Golden Queen announces third quarter 2016 financial and operating results

VANCOUVER, Nov. 9, 2016

The Company's financial results will be filed today on Form 10-Q with the regulatory agencies in Canada and the United States.  All amounts herein are in US dollars and reflect 100% of the financial results of Golden Queen Mining Company, LLC ("GQM LLC"), the Company's 50%-owned subsidiary that holds the Project, unless otherwise stated.

OPERATIONAL HIGHLIGHTS

• Gold production of 7,975 ounces
• Silver production of 87,849 ounces
• Plant throughput averaged 8,479 tons per day in the third quarter of 2016
• Average gold and silver grade processed this quarter was 0.016 ounces per ton gold and 0.362 ounces per ton silver
• Ore in stockpile as at September 30, 2016 was 1.77 million tons containing an estimated 23,540 ounces of gold and 619,860 ounces of silver

FINANCIAL HIGHLIGHTS

• $12.2 million equity financing completed in July 2016; net proceeds will be used to reduce debt
• Attributable net income for the third quarter totaled $2.7 million, or $0.03 per share, on a basic and diluted basis
• Revenue totaled $13.5 million in the third quarter
• Gold sold in the third quarter totaled 8,715 ounces at an average realized gold price of $1,329 per ounce
• Silver sold in the third quarter totaled 97,430 ounces at an average realized silver price of $19.22 per ounce
• Cash balances as at September 30, 2016 totaled $31.2 million
• Total cash costs net of silver by-products of $854 per ounce sold for the third quarter
• All-in sustaining costs of $993 per ounce sold for the third quarter

During the third quarter ended September 30, 2016, the net income attributable to the Company was $2.7 million (or $0.03 per basic share), compared to a net loss of $1.9 million (or $0.02 per basic share), for the corresponding period in 2015. 

In accordance with US GAAP, the Company began to recognize revenues and expenses related to the sale of metals in the second quarter of 2016. The Company sold 8,715 gold ounces at an average realized gold price of $1,329 per ounce and 97,430 silver ounces at an average realized silver price of $19.22 per ounce for total revenue in the third quarter of $13.5 million. The Company expensed $9.1 million in direct mining costs in the same quarter.

The Company had, on a consolidated basis, $175.9 million in assets, including $31.2 million in cash, and a working capital deficit of $17.4 million as at September 30, 2016, compared with $169.4 million in assets, including $37.6 million in cash, and a working capital deficit of $7.7 million as at December 31, 2015.