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NEW YORK, Nov. 12, 2020 (GLOBE NEWSWIRE) — Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against Interface, Inc. (NASDAQ: TILE) on behalf of Interface stockholders. Our investigation concerns whether Interface has violated the federal securities laws and/or engaged in other unlawful business practices.

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On September 28, 2020, the U.S. Securities and Exchange Commission issued a press release announcing “Interface and Two Former Executives Charged With Accounting and Disclosure Violations[.]” The press release further stated that “[t]he SEC’s order against Interface, Inc. . . . finds that in multiple quarters in 2015 and 2016, the company made unsupported, manual accounting adjustments that were not compliant with GAAP.”

On this news, Interface’s stock price fell sharply on September 29, 2020, the next trading day, to close at $6.18 per share.

If you purchased or otherwise acquired Interface shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker, Melissa Fortunato, or Marion Passmore by email at [email protected], or telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.

About Bragar Eagel & Squire, P.C.:

Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.

Contact Information:

Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Melissa Fortunato, Esq.
Marion Passmore, Esq.
(212) 355-4648
[email protected]
www.bespc.com

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW

CALGARY, Alberta, Nov. 12, 2020 (GLOBE NEWSWIRE) — High Arctic Energy Services Inc. (TSX: HWO) (the “Corporation” or “High Arctic”) released its third quarter results today.

Mike Maguire, Chief Executive Officer commented:

“The health and economic environments have remained challenging through this quarter. The action we took in April to restructure and flatten our management reporting lines, remove costs, suspend our dividend and reduce our capex have ensured that we can navigate this period focused on high quality safe and effective operations, maintaining the health of our employees and our stellar QHSE reputation.

We recognize the importance of communication, and maintain open dialogue with our customers, bankers and government while planning for the recovery of the energy sector.
On a personal note, it was humbling to speak with and thank the small core of international employees who
returned home in October after seven straight months of service in
Papua New Guinea
.”

Highlights

The following highlights the Corporation’s results for Q3-2020 and YTD-2020:

• Revenue of $18.5 million and $74.2 million for the three and nine months ended September 30, 2020 (2019 – $49.6 million and $142.7 million, respectively) and adjusted EBITDA of $3.4 million and $7.3 million (2019 – $6.3 million and $15.8 million) for the Quarter and YTD, respectively. This included Canadian Emergency Wage Subsidy (“CEWS”) benefits, which provided $4.9 million on a YTD basis (Q3-2020 – $2.8 million) to retain a well-positioned and skilled workforce.
• Achieved several quality and safety milestones:
  • PNG operations reached four years of continuous work Total Recordable Incident Free on August 24, 2020,
  • Canadian operations reached two years Lost Time Injury Free on September 29, 2020,
  • 7.5 years Total Recordable Incident Free in October 2020 at our Cold Lake operations with our largest and longest standing Canadian customer, and
  • High Arctic was once again recognized by the IADC-AC with the 2019 Australasian Safety Statistics Award, the fourth such award in the past five years.
• Focus on working capital management to preserve our cash balances and maintain a strong balance sheet during the current global coronavirus (“COVID-19”) crisis has demonstrated High Arctic’s resilience and positioning for recovery in step with customer opportunities:
  • Strong working capital position of $40.6 million at September 30, 2020, and includes a cash balance of $33.2 million,
  • Subsequent to Q3-2020, renewed our revolving bank loan facility and extended the term 2 years through to August 31, 2023. The maximum availability remains at $45.0 million, of which $10.0 million has been drawn, with similar covenants, margin requirements and conditions.  
• The Corporation resumed purchasing shares under its’ Normal Course Issuer Bid (“NCIB”) late in the Quarter.   

As demonstrated through 2020 results, the Corporation continues to execute on its 2020 strategic priorities, including:

• Safety excellence and a focus on quality service delivery through consistent global standards, including safeguarding our people against COVID-19.
• Reinforcement of existing core markets evidenced by top-tier customer market share in Canada and PNG.
• Cost control focused on operating cash flow while balancing strategic priorities, to emerge from the current conditions ready to reactivate and grow, and
• Capital stewardship characterized by disciplined working capital management and capital allocation to maintain value for shareholders including common share buybacks, where appropriate.

The unaudited interim consolidated financial statements (“Financial Statements”) and management discussion & analysis (“MD&A”) for the quarter ended September 30, 2020 will be available on SEDAR at www.sedar.com, and on High Arctic’s website at www.haes.ca. Non-IFRS measures, such as EBITDA, Adjusted EBITDA, Adjusted net earnings (loss), Oilfield services operating margin, Operating margin %, Percent of revenue, Funds provided from operations, Working capital and Net cash are included in this News Release. See Non-IFRS Measures section, below. All amounts are denominated in Canadian dollars (“CAD”), unless otherwise indicated.

Within this News Release, the three months ended September 30, 2020 may be referred to as the “Quarter” or “Q3-2020”, and similarly the nine months ended September 30, 2020 may be referred to as “YTD-2020”. The comparative three months ended September 30, 2019 may be referred to as “Q3-2019”, and similarly the nine months ended September 30, 2019 may be referred to as “YTD-2019”. References to other quarters may be presented as “QX-20XX” with X being the quarter/year to which the commentary relates.

O
utlook

For High Arctic, the year 2020 has been an exercise in thoughtful management, amidst the global instability created by COVID-19. This included preparing for a serious disruption in economic growth and oil demand destruction, resulting in necessary personnel redundancies, management restructuring, commitment to strict cost control, and actively managing key relationships with our lender, customers and vendors. On the whole, the ability for the Corporation to continue operating and remain focused on strategic solutions has ensured that a solid footing has remained in-tact.

The outlook for the global energy industry continues to be challenging. Commodity price increases have continued through Q3-2020, albeit at a slower rate, and signal the expectation of an increase in energy demand, particularly coming into the northern hemisphere winter season.

Notwithstanding these developments, with continued rapid growth in COVID-19 cases in the US and subsequent waves becoming a reality in various communities around the world, it continues to be possible that the appreciation of commodity prices and improvement in price stability may be compromised before a vaccine or other solutions are realized.

Resilience, adaptability, and seizing strategic opportunities will continue to be essential in the coming months and quarters. The reality is that COVID-19 is not a short-term situation and an unsettled political environment in the places where we operate create substantive immediate and mid-term uncertainty.

High Arctic’s near-term outlook will continue to be impacted until such time as the COVID-19 pandemic stabilizes including the reduction of rebound shut-downs, world economies are able to heat back up, and when travel restrictions are removed. In addition, the impact of potential impairment charges, the increased risk of collectability of accounts receivable and measurement uncertainty associated with these considerations will continue to be relevant in future periods if conditions persist or worsen. The Corporation’s operating plan provides options to prudently manage operations and prioritize financial flexibility.

We continue to consider this an environment to prudently conserve capital. We are focused on strategies that lead to cost efficiency, building upon our decision to combine management teams and generate positive cash flow in a depressed market. During the third quarter, we idled our operations in Colorado and North Dakota, and in early November we implemented a further streamlined global management and support structure, eliminating a further $1.0 million in annual indirect costs, while not compromising on front-line worker compensation, training, supervision or field QHSE support. High Arctic has maintained readiness of fleet and our investment in personnel is aimed at being front positioned for an increase in activity.

In Papua New Guinea, the Corporation’s Drilling Services remain suspended, however, we continue to provide some skilled personnel and rental services to assist our customers to maintain production while travel is still restricted. We maintain ongoing dialogue with major customers towards planning an effective return to work amid ongoing constraints, leveraging off our demonstrated recent and long-term capacity as a PNG specialist contractor.

In Canada, we have continued working with our core high value customers in a cost constrained operating environment where we have maintained the utilization levels gained in Q2, amid substantive competition. We have advanced our investigation of technology to deliver on our customers needs for reliable, low cost well work solutions that reduce environmental impact while creating job opportunities for oilfield workers. We have established the Seh’ Chene Partnership with the Saa Dene Group, lead by internationally respected business leader and philanthropist, Mr. Jim Boucher, who was the Fort McKay First Nation’s Chief for over 30 years. It is Seh’ Chene’s mission to execute dependable high-quality energy services, focused on environmental stewardship, while creating opportunity for local Indigenous communities and individuals.

High Arctic remains confident of increasing work both through the new Seh’ Chene Partnership and in our core business, driven in the near term by customer restoration of shut-in production, the well abandonment stimulus programs and our customers growing realization of the opportunity to deliver on Environmental, Social and Governance (“ESG”) obligations while reducing end of life well abandonment cost liabilities.

High Arctic believes we are positioned to manage through these challenging times given our decisive actions, our continued focus on pruning unprofitable operations, chasing cost efficiencies, maintaining adequate readiness and delivering quality services in a socially responsible manner. Our people continue to focus on quality as measured by safety performance excellence and long-term customer relationships. The health of our balance sheet, our strong working capital position, the renewed and extended $45.0 million credit facility, and the skill of our management team provide us the ability to weather the economic slowdown.

Consolidation among exploration and production companies is well underway and opportunities for consolidation in the energy services sector persist. Business combinations and acquisitions will be reviewed to the extent they strengthen our service base and enhance shareholder value, but are not our primary focus.

Results Overview

The following is a summary of select financial information of the Corporation:

	For the three months ended September 30				For the Nine months ended September 30
($ millions, except per share amounts)	2020		2019		2020		2019
Revenue	18.5		49.6		74.2		142.7
EBITDA (1)	2.8		6.9		9.7		17.7
Adjusted EBITDA (1) (3)	3.4		6.3		7.3		15.8
Adjusted EBITDA as % of revenue	18 %		13%		10 %		11%
Operating loss	(5.0 )		(0.8)		(15.9 )		(5.5)
Net loss	(6.2 )		(1.1)		(14.4 )		(6.1)
Per share (basic and diluted) (2)	(0.12 )		(0.02)		(0.29 )		(0.12)
Funds provided from operations (1)	2.2		5.3		5.1		12.2
Per share (basic and diluted) (2)	0.0 5		0.11		0.10		0.24
Dividends	–		2.4		1.6		7.4
Per share (basic and diluted) (2)	–		0.05		0.03		0.15
Capital expenditures	0.6		3.0		3.8		9.9
Capital expenditures – acquisitions	–		–		–		8.3

			As at and for Nine months/ year ended
($ millions, except share amounts)			September 30 2020		December 31 2019
Working capital (1)			40.6		35.8
Cash, end of period			33.2		9.3
Total assets			232.8		251.8
Total long-term financial liabilities			8.3		9.1
Shareholders’ equity			192.9		205.6
YTD/share (basic and diluted)(2)			3.89		4.11
Common shares outstanding, millions			49.8		49.6

(1)	Readers are cautioned that EBITDA (Earnings before interest, tax, depreciation and amortization), Adjusted EBITDA, Adjusted net earnings, Funds provided from operations, and working capital do not have standardized meanings prescribed by IFRS – see “Non IFRS Measures” on page 20 for calculations of these measures.
(2)	The number of common shares used in calculating net loss per share, funds provided from operations per share, dividends per share and shareholders’ equity per share is determined as explained in Note 7 of the Financial Statements.
(3)	Adjusted EBITDA includes the impact of wage subsidies (CEWS) recorded.

	Three months ended September 30						Nine months ended September 3 0
Operating Highlights		2020			2019			2020			2019
Revenue:
Drilling Services	$	4.7		$	18.7		$	23.8		$	58.0
Production Services		12.6			24.3			44.0			68.1
Ancillary Services		1.6			7.4			7.7			19.0
Inter-segment eliminations		(0.4 )			(0.8)			(1.3 )			(2.4)
	$	18.5		$	49.6		$	74.2		$	142.7
Production Services – Canada:
Service rigs:
Average fleet		50			57			50			57
Utilization		39 %			51%			43 %			53%
Operating hours		17,956			26,481			59,613			81,780
Revenue per hour ($)		564			586			589			606
Snubbing rigs:
Average fleet		8			18			8			17
Utilization		17 %			17%			19 %			16%
Operating hours		1,228			2,810			4,358			7,300
Production Services – US:
Service rigs:
Average fleet		2			2			2			2
Utilization		37 %			112%			30 %			62%
Operating hours		690			2,069			1,903			3,357
Revenue per hour ($)		846			1,030			883			1,043
Snubbing rigs:
Average fleet		6			6			6			6
Utilization		2 %			34%			7 %			23%
Operating hours		134			1,867			1,138			3,825

Third
Quarter 2020:

• High Arctic reported revenue of $18.5 million, incurred a net loss of $6.2 million and realized Adjusted EBITDA of $3.4 million during Q3-2020. This compares to Q3-2019, with revenue of $49.6 million, a net loss of $1.1 million and Adjusted EBITDA of $6.3 million. Changes were mainly due to $31.1 million of reduced revenue, attributable predominantly to lack of drilling in PNG and reduced levels of production services activity in Canada, offset by reduced operating and administrative costs of $28.2 million compared to Q3-2019.
• CEWS provided $2.8 million in wage subsidy relief, of which $2.4 million related to Oilfield services expenses and $0.4 million to General and administrative expenses.
• Utilization for High Arctic’s 50 registered Concord Well Servicing rigs was 39% in the Quarter versus industry utilization of 20% (source: Canadian Association of Oilwell Drilling Contractors “CAODC”).
• There were no dividends declared or paid in Q3-2020, compared to $2.4 million in Q3-2019 ($0.05 per share).
• Cash decreased by $0.3 million during Q3-2020 as compared to a decrease of $2.6 million in Q3-2019.
• No further amounts were drawn on the Corporation’s loan facility remaining of up to $35.0 million, and as disclosed on October 15, 2020, the Corporation renegotiated its’ facility agreement, extending it to August 31, 2023, and
• High Arctic repurchased and cancelled 145,500 common shares under the existing NCIB during the Quarter. Further, 943,600 common shares were repurchased at a cost of $0.7 million and cancelled subsequent to September 30, 2020 under this same NCIB up to November 12, 2020.

Year to date 2020:

• High Arctic reported revenue of $74.2 million, incurred a net loss of $14.4 million and realized Adjusted EBITDA of $7.3 million YTD-2020. This compares to YTD-2019, which had revenue of $142.7 million, a net loss of $6.1 million and Adjusted EBITDA of $15.8 million. Changes were mainly attributable to reduced activity which decreased revenue by $68.5 million, offset by decreases in operating and administrative costs of $60.0 million. YTD-2020 results included $0.9 million in restructuring costs, and additional bad debt provision of $0.6 million over YTD-2019.
• Although dividends amounting to approximately $0.8 million per month were suspected in March 2020, YTD-2020 dividends amounted to $1.6 million ($0.03 per share), compared to $7.4 million in YTD-2019 ($0.15 per share).
• YTD-2020, High Arctic repurchased and cancelled 145,500 common shares through the existing NCIB. Further, 943,600 common shares were repurchased at a cost of $0.7 million and cancelled subsequent to September 30, 2020 under this same NCIB up to November 12, 2020.

Responding to Global Developments

The impact of suppressed oil prices and COVID-19 has been very challenging. At the outset, and during Q3-2020, COVID-19 continued impact the global economy, with governments around the world attempting to balance the implementation of measures to contain the virus against the need to open up economies. As economies successfully open up, the demand for energy including crude oil along with other products and services will also increase, however the timing of these events continues to be uncertain.

Market pressures, movement increase and the actions by the Organization of Petroleum Exporting Countries (“OPEC”) and non-OPEC members, maintained some stability of the overall global supply of oil during Q3-2020, though the end of the North American summer driving season in September brought with it a drop in consumer demand. The emergence of China and other Asian nations from COVID-19 restrictions also resulted in a net increase in LNG imports, which coupled with an increase in energy use in developed nations improved natural gas demand. Notwithstanding the late quarter commodity price instability, closing benchmark crude oil prices at September 30, 2020 have increased slightly by 3% over June 30, 2020.

As customers continue to decrease their capital and other spending re-forecasts to manage through this crisis event, the market for our services will remain under pressure, with an uncertain end date.

High Arctic’s quick adjustment to the severe financial impact of COVID-19 together with commodity price pressure implications, has resulted in measures to reduce certain cash outflows over prior-year 2019 levels including:

• A 62% reduction in capital expenditures, where YTD-2020 capital spending of $3.8 million compares to YTD-2019 capital spending of $9.9 million.
• The suspension of monthly shareholder dividends in March 2020 has decreased cash outflows by $2.4 million in Q3-2020 compared to Q3-2019, and has resulted in a YTD reduction in cash outflows of $5.8 million.
• The Company completed necessary downsizing of its workforce, where a total reduction of approximately 40% at executive, management and support personnel levels was made.
• Acceleration of changes to globalize processes and reduce fixed infrastructure costs, and
• Board Executive Committee oversight as the Corporation operates through the COVID-19 crisis and beyond.

High Arctic’s focus remains on being well positioned to navigate through the uncertainty with capacity ready for deployment as markets recover and activity levels increase, and includes:

• Sustained emphasis on the safety and well being of our people through mature health, safety and environment policies.
• Renewal and extension of contracts at modest rate reductions with a core customer base in Canada.
• Continued support services to our major customers in PNG.
• Continued use of wage subsidy programs to maintain regional workforce strength.
• Carefully controlling recertification and maintenance expenditures enabling High Arctic to have equipment poised for quick activation from all our regional bases, and
• Strong liquidity position, with cash of $33.2 million combined with up to $35.0 million of remaining Bank Facility borrowing capacity.

High Arctic continues to maintain close working relations with its customers and focus on high quality customer service differentiation as an absolute imperative. These attributes have been, and continue to be, key principles for High Arctic throughout the energy industry economic cycle.

The Corporation remains acutely aware that the impact to our customers’ spending and their ability to pay for work completed on a timely basis could have a significant impact on High Arctic’s financial and operating results and we continue to work closely with our customers to ensure credit and operating risks are minimized.

The Canadian federal government’s $1.7 billion well abandonment and site reclamation stimulus plan announced in April 2020 continues to slowly ramp up. Responsibility for fund distribution is assigned to the British Columbia, Alberta and Saskatchewan provincial governments. High Arctic has directly applied for hundreds of wells across the first tranches of the Alberta and Saskatchewan controlled programs, receiving a modest number of approvals with work commencing during the Quarter. With tens of thousands of inactive oil and gas wells across western Canada, we would expect that over the stimulus period, there will be meaningful opportunity for High Arctic to participate in the resulting work programs through our Production Services segment, as the focus shifts to securing, isolating and capping wellbores of increasing cost and complexity.

Liquidity and Capital Resources

Operating Activities

Cash provided from operations of $1.2 million for the Quarter (Q3-2019 – $2.6 million) resulted from $2.2 million of funds provided from operations (Q3-2019 – $5.3 million), offset by $1.0 million due to working capital changes (Q3-2019 – offset of $2.7 million), predominantly the payment of accounts payable offset by the collection of accounts receivable during the Quarter.

YTD-2020, cash provided from operations amounted to $17.6 million (YTD-2019 – $11.5 million), with funds provided from operations amounting to $5.1 million (YTD-2019 – $12.2 million), and working capital changes amounting to $12.5 million resulted from the net impact of the collection of accounts receivable of $25.1 million, which exceeded various liability payments.

Investing Activities

During the Quarter, the Corporation’s cash used in investing activities amounted to $0.6 million (Q3-2019 – use of $2.7 million). Capital expenditures during the Quarter of $0.6 million (Q3-2019 – $3.0 million) accounted for the majority of this activity.

YTD-2020, cash used in investing activities totalled $0.2 million (YTD-2019 – use of $16.4 million). YTD-2020 capital expenditures amounted to $3.8 million (YTD-2019 – $9.9 million), proceeds of disposal were $5.0 million (YTD-2019 – $1.6 million), with working capital changes representing the balance of the change. In addition, YTD-2019 included a business acquisition amounting to $8.3 million associated with the acquisition of a snubbing business.  

Financing Activities


During the Quarter, the Corporation did not draw further on its available long-term debt facility, and the balance was reclassified to current liabilities as the original facility due date was August 31, 2021. Subsequent to September 30, 2020, the facility has been renewed, with a revised maturity date of August 31, 2023. YTD-2020, $10.0 million of the maximum $45.0 million long-term debt facility has been drawn. No long-term debt existed at September 30, 2019.

High Arctic suspended dividends in March 2020, and as such no dividends were paid during Q3-2020. YTD-2020, $1.6 million in dividends were paid to shareholders, down $5.8 million from $7.4 million YTD-2019.

During the Quarter and YTD-2020, $0.1 million was paid to repurchase and cancel common shares under the existing NCIB, compared to $0.4 million and $5.1 million paid to repurchase and cancel common shares in Q3-2019 and YTD-2019, respectively, under NCIBs in place at that time.

Credit Facility

As at September 30, 2020, the Corporation had drawn $10.0 million (December 31, 2019 – $nil) of its $45.0 million revolving loan facility, which was set to mature on August 31, 2021 and is therefore recorded as a current liability (“Original facility”).

Subsequent to September 30, 2020, the Original facility was renewed with the lender’s consent, and the maturity date extended to August 31, 2023, as a three-year committed revolving facility (“Renewed facility”). The Renewed facility, like the Original facility, is renewable with the lender’s consent, and is secured by a general security agreement over the Corporation’s assets. The Renewed facility additionally provides for a $5.0 million overdraft for the duration of the term, and is inclusive of the $45.0 million available to the Corporation. This overdraft is not subject to covenant restrictions, however is dependent upon North American asset net book values remaining above $50.0 million.

The Renewed facility is limited to 60% of the net book value of the Canadian fixed assets plus 75% of acceptable accounts receivable (85% for bank facility defined investment grade receivables), plus 90% of insured receivables, less priority payables, less receivables that have been sold or factored, whether to the lender or another third party as defined in the loan agreement (“Margin Requirement”).  

Interest on the Renewed facility, which is independent of standby fees, is charged monthly at prime plus an applicable margin which fluctuates based on the Funded Debt to Covenant EBITDA ratio (defined below), where the applicable margin can range between 0.75% – 1.75% of the outstanding balance. Standby fees also fluctuate based on the Funded Debt to Covenant EBITDA ratio and range between 0.40% and 0.60% of the undrawn balance.

The Original and Renewed facility are subject to two financial covenants which are reported to the lender on a quarterly basis. As at September 30, 2020, the Corporation was in compliance with the two financial covenants under the credit facility. The first covenant requires the Funded Debt to Covenant EBITDA ratio to be under 3.0 to 1 and the second covenant requires Covenant EBITDA to Interest Expense ratio to be a minimum of 3.0 to 1. Both are calculated on the last day of each fiscal quarter on a rolling four quarter basis.

The covenant calculations at September 30, 2020 are:

	As at
Covenant			Required	September 30, 2020
Funded debt to Covenant EBITDA (1)(2)			3.0 : 1 Maximum	0.94 : 1
Covenant EBITDA to Interest expense (2)			3.0 : 1 Minimum	18.03 : 1

(1)	Funded debt to Covenant EBITDA is defined as the ratio of consolidated Funded Debt to the aggregate EBITDA for the trailing four quarters. Funded debt is the amount of debt provided and outstanding at the date of the covenant calculation.
(2)	EBITDA for the purposes of calculating the covenants, “Covenant EBITDA,” is defined as net income plus interest expense, current tax expense, depreciation, amortization, future income tax expense (recovery), share based compensation expense less gains from foreign exchange and sale or purchase of assets. Interest expense excludes an impact from IFRS 16.

The Original and Renewed facility contain additional covenants and conditions impacting availability and repayment of borrowings under the facility. Events of default, which include material adverse change conditions, at the reasonable discretion of the lender, may result in facility indebtedness being immediately due and payable.

N
on
–
IFRS M
easures

This News Release contains references to certain financial measures that do not have a standardized meaning prescribed by International Financial Reporting Standards (“IFRS”) and may not be comparable to the same or similar measures used by other companies. High Arctic uses these financial measures to assess performance and believes these measures provide useful supplemental information to shareholders and investors. These financial measures are computed on a consistent basis for each reporting period and include EBITDA, Adjusted EBITDA, Adjusted net earnings (loss), Oilfield services operating margin, Percent of revenue, Funds provided from operations, Working capital, and Net cash, none of which have standardized meanings prescribed under IFRS.

These financial measures should not be considered as an alternative to, or more meaningful than, net income (loss), Cash from operating activities, current assets or current liabilities, cash and/or other measures of financial performance as determined in accordance with IFRS.
For additional information regarding non-IFRS measures, including their use to management and investors and reconciliations to measures recognized by IFRS, please refer to the Corporation’s MD&A, which is available online at www.sedar.com and through High Arctic’s website at www.haes.ca.   

F
orward
-L
ooking
S
tatements

This MD&A contains forward-looking statements. When used in this document, the words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “seek”, “propose”, “estimate”, “expect”, “prepare”, “determine” and similar expressions are intended to identify forward-looking statements. Such statements reflect the Corporation’s current views with respect to future events and are subject to certain risks, uncertainties and assumptions. Many factors could cause the Corporation’s actual results, performance or achievements to vary from those described in this MD&A.

Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this MD&A as intended, planned, anticipated, believed, estimated or expected. Specific forward-looking statements in this MD&A include, among others, statements pertaining to the following: general economic and business conditions which will, among other things, impact demand for and market prices for the Corporation’s services; expectations regarding the Corporation’s ability to raise capital and manage its debt obligations; commodity prices and the impact that they have on industry activity; initiatives to reduce cash outlays over 2019 levels; elimination of annual indirect cost; continued safety performance excellence; realization of work from Site Rehabilitation Programs; oversight of working capital to maintain a strong balance sheet; estimated capital expenditure programs for fiscal 2020 and subsequent periods; projections of market prices and costs; factors upon which the Corporation will decide whether or not to undertake a specific course of operational action or expansion; the Corporation’s ongoing relationship with major customers; treatment under governmental regulatory regimes and political uncertainty and civil unrest; the Corporation’s ability to maintain a USD bank account and conduct its business in USD in PNG; and the Corporation’s ability to repatriate excess funds from PNG as approval is received from the Bank of PNG and the PNG Internal Revenue Commission.

With respect to forward-looking statements contained in this MD&A, the Corporation has made assumptions regarding, among other things, its ability to: obtain equity and debt financing on satisfactory terms; market successfully to current and new customers; the general continuance of current or, where applicable assumed industry conditions; activity and pricing; assumptions regarding commodity prices, in particular oil and gas; the Corporation’s primary objectives, and the methods of achieving those objectives; obtain equipment from suppliers; construct property and equipment according to anticipated schedules and budgets; remain competitive in all of its operations; and attract and retain skilled employees.

The Corporation’s actual results could differ materially from those anticipated in these forward-looking statements as a result of the risk factors set forth above and elsewhere in this MD&A, along with the risk factors set out in the most recent Annual Information Form filed on SEDAR at www.sedar.com.

The forward-looking statements contained in this MD&A are expressly qualified in their entirety by this cautionary statement. These statements are given only as of the date of this MD&A. The Corporation does not assume any obligation to update these forward-looking statements to reflect new information, subsequent events or otherwise, except as required by law.

A
bout High Arctic
Energy Services

High Arctic’s principal focus is to provide drilling and specialized well completion services, equipment rentals and other services to the oil and gas industry. High Arctic is a market leader providing drilling and specialized well completion services and supplies rig matting, camps and drilling support equipment on a rental basis in Papua New Guinea. The Canadian operation provides well servicing, well abandonment, snubbing and nitrogen services and equipment on a rental basis to a large number of oil and natural gas exploration and production companies operating in Western Canada.

For further information contact:

Michael J. Maguire Chief Executive Officer P: (587) 318-3826

Christopher C. Ames , CPA, CA VP Finance & Chief Financial Officer P: (587) 318-2218 [email protected]

RENO, Nev., Nov. 12, 2020 (GLOBE NEWSWIRE) — Across the country, there is an increase in COVID-19 cases including significant increases in hospitalized patients. As Nevadans experience the impact of the pandemic, the Renown Health team continues to be prepared to serve the community.

At this time, based on the number of patients hospitalized for COVID-19 and seasonal fluctuations, Renown Regional Medical Center and Renown South Meadows Medical Center are experiencing inpatient hospital capacity challenges.

Being prepared for these patient census increases and the need to serve an increased level of hospital patients, Renown Regional Medical Center has now opened the ground floor of the Alternate Care Site (ACS) created within the Mill Street parking structure to serve additional hospitalized patients diagnosed with COVID-19 who are clinically stable or improving. Staff, technology, supplies, equipment and services are in place to meet the needs of patients and assure the safety of Renown’s care teams.

This measure allows Renown to enact the emergency preparedness plans that have been in place over the past year, creating additional capacity for inpatients while allowing Renown to continue to deliver high quality care as the number of patients hospitalized for COVID-19 increases in northern Nevada.

This ACS location allows patients and caregivers to remain on campus, and still have accessibility to existing hospital infrastructure such as lab, pharmacy, imaging, food services and other critical services. Staff, technology, supplies, equipment and services are in place to meet the needs of patients and the safety of care teams. The Ground Floor has accommodation for 711 beds.

Renown representatives are set to host a virtual media opportunity tomorrow, Nov. 13 at 1 p.m. PST to discuss the opening of the ACS and answer questions. Please email

[email protected]

and specify your media affiliation to request call-in details.

“These challenges presented to our community this year by COVID-19 have confirmed the critical role that Renown plays as a locally-owned, not-for-profit integrated health network,” says Tony Slonim, MD, DrPH, President and CEO, Renown Health. “We are passionate about stepping up to serve our community at all times, and especially when we are needed most. We are transforming and implementing creative approaches to ensure patient care needs can be addressed and that we can meet the needs of our community.”

“Every community member can feel confident that Renown has a specialty-trained team of physicians, nurses, respiratory therapists, medical assistants, care managers, and physical and occupational therapists around the clock, every day to ensure that, no matter the illness or injury, every patient will be treated with compassion and the appropriate degree of care,” says Paul Sierzenski, MD, MSHQS, CPE, FACEP, Chief Medical Officer, Acute Services.

“News about the coronavirus disease 2019 (COVID-19) pandemic may be making you feel anxious about going to the emergency room (ER) or getting the medical care you need,” said Bret W. Frey, MD, emergency medicine physician at Renown. “Please remember it’s important to seek emergency care if you have serious non-COVID-19 symptoms and COVID-19 symptoms. Delaying care for a medical emergency, such as a heart attack or stroke, can be life-threatening or lead to serious complications. We are here for you around the clock and have taken all precautions to be sure that visits to the ER and hospital are as safe as possible.”

The Renown Alternate Care Site was built within a 10-day period last April by local partners including Clark/Sullivan Construction, Curtis Bros. Construction, PK Electrical, Ainsworth Associates Mechanical Engineers, Intermountain Electric, Mt. Rose Heating & Air Conditioning and Frank Lepori Construction.

In U.S. News and World Report Best Hospital rankings, Renown South Meadows Medical Center was listed #1 in the State of Nevada. Renown Regional Medical Center was named #2 Best Hospital in Nevada. A hospital’s score is based on multiple data categories, including patient outcomes, safety and volumes. Hospitals earning a high performing rating were significantly better than the national average.

Renown Regional Medical Center has also been awarded the Joint Commission’s Gold Seal of Approval® for Hospital Accreditation based on compliance with hospital standards related to emergency management, environment of care, infection prevention and control, leadership and medication management.

Renown’s Roseview, Sierra and Cardiac Intensive Care Units have each been awarded a Beacon Award of Excellence from the American Association of Critical Care Nurses (AACN) based on patient outcomes that exceed national benchmarks. Renown has the only intensive care units awarded this distinction in Nevada.

For up-to-date information on Renown’s approach to keeping our community safe, visit our website at www.renown.org/covid-19/.

We are so grateful for our community’s support during these unprecedented times. If you are able to assist with handcrafted mask covers, financial donations, PPE & other supplies or restaurant meal delivery for staff, please visit https://www.renown.org/donations-covid-19/

###

About Renown Health

Renown Health is the region’s largest, locally owned and governed, not-for-profit integrated healthcare network serving Nevada, Lake Tahoe and northeast California. With a diverse workforce of more than 7,000 employees, Renown has fostered a longstanding culture of excellence, determination and innovation. The organization comprises a trauma center, two acute care hospitals, a children’s hospital, a rehabilitation hospital, a medical group and urgent care network, and the region’s largest, locally owned not-for-profit insurance company, Hometown Health. Renown’s institute model addresses social determinants of health and includes: Child Health, Behavioral Health & Addiction, Healthy Aging and Health Innovation. Clinical institutes include: Cancer, Heart and Vascular Health, Neurosciences and Robotic Surgery. Renown is currently enrolling participants in the world’s largest community-based genetic population health study, the Healthy Nevada Project®. For more information visit, www.renown.org.

Attachments

• ACS2
• ACS

Renown Health Public Relations
Renown Health
775-691-7308
[email protected]

ROAD TOWN, British Virgin Islands, Nov. 12, 2020 (GLOBE NEWSWIRE) — Aura Minerals Inc. (TSX: ORA) (B3: AURA33) (the “Company” or “Aura”) is pleased to announce that the Ernesto open pit mine (“Ernesto mine”), part of the Ernesto/Pau-a-Pique mine complex (“EPP”), located in the southwest of Mato Grosso state, near Pontes e Lacerda in Brazil, has declared commercial production effective October 1, 2020. In October 2020 production achieved 2,507 ounces of gold in the Ernesto mine alone.

Thanks to the contribution from the Ernesto mine, in October 2020 EPP achieved its highest production since the 2016 start-up, with 8,233 of ounces of gold produced.

At Ernesto, the Company expects an increase in production in the fourth quarter of 2020. Following this, the Company plans a push back in the mine in order to access high grade ore by Q4 2021, which the Company then expects to be able to access through to the end of 2022.

Rodrigo Barbosa, the Company’s President and CEO noted, “In January 2019 we started to develop the Ernesto mine (pre-stripping). We are glad to see the higher grades into production for the coming quarter and we look-forward to reaching the ore body again during the second semester of next year. The Ernesto mine is expected to provide approximately 125,000 Oz at 3.0 g/ton average grade during the life of the mine”

Qualified Person

Farshid Ghazanfari, P.Geo., Geology and Mineral Resources Manager for Aura Minerals Inc. has reviewed and confirmed the scientific and technical information contained within this news release and serves as the Qualified Person as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects.

Technical Information
Relating
to the Project

EPP is comprised of multiple operating open pits (Lavrinha, Ernesto and Japones), an open pit mine under development (Nosde), and one underground mine (Pau-Pique) located in the southwest of Mato Grosso state, near Pontes e Lacerda in Brazil.

Aura has filed a technical report dated January 13, 2017, with an effective date of July 31, 2016, and entitled “Feasibility Study and Technical Report on the EPP Project, Mato Grosso, Brazil” prepared for Aura by a group of third-party consultants, including P&E Mining Consultants Inc., MCB Brazil and Knight Piesold Ltd. with respect to EPP (the “Feasibility Study”). The results of the Feasibility Study were announced in a press release in November 2016. Aura resumed commercial production from the Lavrinha open pit and Pau-Pique underground mine in 2017 and Japones open pit mine in 2018.

Pre-stripping development started at Ernesto in early 2019 with waste stripping, which continued into August 2020 to reach the ore body (Lower Tarp), which was delineated at the time of Feasibility Study. Ernesto has contributed to production from EPP since August 2020.

As of December 31, 2019, Ernesto is estimated to have measured and indicated resources of 923,990 tonnes @ 4.58g/t Au containing 136,100 ounces of gold, and inferred resources of 1,215,550 tonnes @ 2.46 g/t containing 96,140 ounces of gold. The total proven and probable reserves is 1,047,300 tonnes @ 3.41 g/t Au containing 114,820 ounces of gold. Mineral resources are inclusive of mineral reserves. Mineral resources that are not mineral reserves do not have demonstrated economic viability. The main part of the inferred resource disclosed herein is not amenable to open pit mining. Readers are encouraged to reference the annual information form of the Company dated March 30, 2020 for the year ended December 31, 2019 filed under the Company’s SEDAR profile at www.sedar.com for further information, including important assumptions and qualifications, with respect to the resource and reserve estimates disclosed herein for Ernesto.

Forward-Looking Information

This press release contains “forward-looking information” and “forward-looking statements”, as defined in applicable Canadian securities laws (collectively, “forward-looking statements”) which include, but are not limited to the future performance of Ernesto.

Known and unknown risks, uncertainties and other factors, many of which are beyond the Company’s ability to predict or control, could cause actual results to differ materially from those contained in the forward-looking statements. Specific reference is made to the most recent Annual Information Form on file with certain Canadian provincial securities regulatory authorities for a discussion of some of the factors underlying forward-looking statements.

All forward-looking statements herein are qualified by this cautionary statement. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements whether as a result of new information or future events or otherwise, except as may be required by law. If the Company does update one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements.

About Aura 360° Mining

Aura is focused on mining in complete terms – thinking holistically about how its business impacts and benefits every one of our stakeholders: our company, our shareholders, our employees, and the countries and communities we serve. We name it 360° Mining.

Aura is a mid-tier gold and copper production company focused on the development and operation of gold and base metal projects in the Americas. The Company’s producing assets include the San Andres gold mine in Honduras, the Ernesto/Pau-a-Pique gold mine in Brazil, the Aranzazu copper-gold-silver mine in Mexico and the Gold Road gold mine in the United States. In addition, the Company has two additional gold projects in Brazil, Almas and Matupá, and one gold project in Colombia, Tolda Fria.

For further information, please contact:

Rodrigo Barbosa
President & CEO
305 239 9332

 

(All amounts expressed in US dollars, unless otherwise stated)

VANCOUVER, British Columbia, Nov. 12, 2020 (GLOBE NEWSWIRE) — Fortuna Silver Mines Inc. (NYSE: FSM) (TSX: FVI) today reported net income of $13.1 million, adjusted EBITDA of $42.2 million, and free cash flow from ongoing operations of $30.1 million for the third quarter of 2020.

Jorge A. Ganoza, President and CEO, commented, “We have reported a record breaking quarter in sales and free cash flow as we continue to capitalize on the current metals price environment through solid production results and cost containment measures.”   Mr. Ganoza continued, “At Lindero, the ramp-up phase is progressing with first gold pour achieved in October.” Mr. Ganoza concluded, “We remain on track for commercial production at Lindero in the first quarter of 2021.”

Third quarter 2020 highlights

• Sales of $83.4 million, compared to $61.3 million in Q3 2019
• Net income of $13.1 million, compared to net loss of $7.7 million in Q3 2019
• Adjusted net income¹ of $16.1 million, compared to $1.9 million in Q3 2019
• Adjusted EBITDA¹ of $42.2 million, compared to $19.2 million in Q3 2019
• Free cash flow from ongoing operations¹ of $30.1 million, compared to $10.6 million in Q3 2019
• Silver and gold production of 2,127,746 ounces and 12,791 ounces, respectively

Note:
    ^1.    Refer to non-GAAP financial measures and Forward-Looking Statements at the end of this news release

Third quarter COVID-19 related impacts on operations

The COVID-19 pandemic continues to impact economies around the world and our operations.  In response to the pandemic, the Governments of Mexico, Peru and Argentina implemented measures to curb the spread of COVID-19, which included among others, the closure of international borders, temporary suspension of all non-essential activities, and the declaration of mandatory quarantine periods.  Certain of these measures have either been eliminated or relaxed during the third quarter.

The Company is managing the necessary country-by-country restrictions in order to assist in the protection of those most vulnerable.  At each of our mine sites, health protocols are in place for control, isolation and quarantine, as necessary, and these continue to be reviewed and adjusted accordingly based on the circumstances at each location. Operations at the Caylloma Mine were temporarily suspended for a 21-day period in July to among other things sanitize and disinfect the mine and make infrastructure improvements to accommodate social distance guidelines.  As a result of the shutdown, approximately $0.9 million has been recorded as care and maintenance costs.

In April 2020, the Company withdrew its production and cost guidance for the year until further notice due to the uncertainties related to the impact caused by COVID-19 constraints on the Company’s business and operations (refer to Fortuna news release dated April 2, 2020).

Third Quarter 2020 Consolidated Results

	Three months ended						Nine months ended
	September 30,						September 30,
Consolidated Metrics	2020		2019				2020		2019
(Expressed in $ millions except per share information)
Sales		83.4	61.3				175.5		188.2
Mine operating income		42.1	16.7				63.3		61.1
Operating income (loss)		28.5	(1.5	)			29.0		25.2
Net income (loss)		13.1	(7.7	)			2.9		4.8
Earnings (loss) per share – basic		0.07	(0.05	)			0.02		0.03
Adjusted net income1		16.1	1.9				8.9		17.5
Adjusted EBITDA1		42.2	19.2				67.8		70.2
Net cash provided by operating activities		45.5	18.2				62.1		45.3
Free cash flow from ongoing operations1		30.1	10.6				44.5		28.2
Capex
Sustaining		4.9	4.0				10.6		13.7
Non-sustaining		–	0.8				0.2		1.7
Lindero		9.9	68.5				36.2		161.5
Brownfields		1.0	1.0				2.9		3.9
							Sept 30, 2020		Dec 31, 2019
Cash and cash equivalents							85.2		83.4
Note:
1  Refer to Non-GAAP financial measures and Forward Looking Statements at the end of this news release

Sales for the three months ended September 30, 2020 were $83.4 million, a 36% increase from the $61.3 million reported in the same period in 2019 driven by higher silver and gold prices of 44% and 29%, along with increased volume of silver and gold ounces sold of 9% and 12%, respectively.

Operating income for the three months ended September 30, 2020 was $28.5 million, an increase of $30.0 million from a $1.5 million operating loss reported in the same period in 2019.  The operating loss in 2019 was impacted by an $8.3 million foreign exchange loss related to the VAT construction receivable in Argentina.  Excluding the effect of foreign exchange, our higher operating income in the third quarter was driven by higher precious metal prices and higher volumes of silver and gold ounces sold despite a 21-day shutdown that lowered sales volume at the Caylloma Mine. Other factors increasing operating income were lower cash production costs, and lower exploration and evaluation costs of $1.4 million, which were partially offset by higher share-based payment expense of $2.2 million.  The Company’s increased share price performance during this quarter directly impacted the value of our cash-settled share awards.

Net income for the three months ended September 30, 2020 was $13.1 million, a $20.8 million increase over the $7.7 million net loss reported in the same period in 2019.  The effective tax rate for the quarter was 53% which reflects a negative impact of approximately 7 percentage points derived from the devaluation of the Mexican peso.

Free cash flow from ongoing operations for the three months ended September 30, 2020 was $30.1 million compared to $10.6 million in the same period in 2019.  Net cash provided by operating activities for the quarter increased $27.3 million to $45.5 million.

Capital resources and liquidity

Total liquidity available to the Company as of September 30, 2020 was $140.0 million, which includes $55.0 million of available credit under our $150.0 million credit facility.  At the end of the quarter, the Company had cash and cash equivalents of $85.2 million (December 31, 2019: $83.4 million). 

Third Quarter 2020 Consolidated Results

San Jose Mine, Mexico

					Three months ended September 30,					Nine months ended  September 30,
					2020			2019			2020				2019
Mine Production
Tonnes milled					255,226			267,998			662,203				795,656
Average tonnes milled per day					2,934			3,046			2,518				3,025
Silver
Grade (g/t)					254			219			232				253
Recovery (%)					92			91			92				91
Production (oz)					1,917,540			1,709,125			4,516,790				5,865,843
Metal sold (oz)					1,884,940			1,706,678			4,503,736				5,880,888
Realized price ($/oz)					24.87			17.33			20.04				15.81
Gold
Grade (g/t)					1.52			1.40			1.42				1.60
Recovery (%)					92			91			91				90
Production (oz)					11,425			10,942			27,709				36,886
Metal sold (oz)					11,317			10,886			27,797				36,861
Realized price ($/oz)					1,921			1,487			1,752				1,365
Unit Costs
Production cash cost ($/t)					67.62			70.53			68.53				69.40
Production cash cost ($/oz Ag Eq)1,2					6.97			7.67			7.17				6.71
Unit net smelter return ($/t)					255.64			161.83			196.93				168.67
AISC ($/oz Ag Eq)1,2					12.00			10.77			11.32				9.60
Notes:
1 Production cash cost Ag Eq and AISC Ag Eq are calculated using realized metal prices for each period, respectively
2 Production cash cost, production cash cost Ag Eq, and AISC Ag Eq are non-GAAP financial measures; refer to non-GAAP financial measures in the associated MD&A for a description and calculation of these measures

Quarterly Results

The San Jose Mine produced 1,917,540 ounces of silver and 11,425 ounces of gold during the third quarter of 2020, which represents a 12% and 4% increase over the comparable quarter in 2019.  The increase was due primarily to higher silver and gold head grades of 16% and 9%, respectively.

Cash cost per tonne for the three months ended September 30, 2020 decreased 4% to $67.62 per tonne compared to $70.53 per tonne in the same period in 2019.  The decrease in cash cost per tonne is mainly due to lower mine preparation costs compared to the same period in the prior year.  Mine preparation in 2020 is in line with plan.

All-in sustaining cash cost per ounce of payable silver equivalent was $12.0 for the quarter compared to $10.77 for the comparable period in 2019, due mainly to higher royalties and worker participation expenses related to higher sales and profits.

Caylloma Mine, Peru

			Three months ended September 30,						Nine months ended September 30,
			2020			2019			2020			2019
Mine Production
Tonnes milled			107,002			134,338			373,915			398,037
Average tonnes milled per day			1,189			1,493			1,530			1,496
Silver
Grade (g/t)			74			64			70			65
Recovery (%)			83			82			83			83
Production (oz)			210,206			228,168			704,190			692,005
Metal sold (oz)			217,281			224,504			704,843			695,836
Realized price ($/oz)			24.96			17.12			19.27			15.84
Lead
Grade (%)			3.15			2.68			2.94			2.67
Recovery (%)			90			90			87			91
Production (000’s lbs)			6,702			7,157			21,201			21,305
Metal sold (000’s lbs)			6,884			7,069			21,196			21,410
Realized price ($/lb)			0.86			0.92			0.82			0.90
Zinc
Grade (%)			4.93			4.35			4.58			4.31
Recovery (%)			89			89			88			90
Production (000’s lbs)			10,313			11,518			33,110			33,986
Metal sold (000’s lbs)			10,628			11,615			32,999			33,807
Realized price ($/lb)			1.07			1.06			0.98			1.18
Unit Costs
Production cash cost ($/t)			82.55			93.03			79.20			86.25
Production cash cost ($/oz Ag Eq)1,2			15.28			12.78			14.28			10.69
Unit net smelter return ($/t)			162.82			132.06			119.79			137.71
AISC ($/oz Ag Eq)1,2			19.37			15.78			17.15			13.97
Notes:
1 Production cash cost Ag Eq and AISC Ag Eq are calculated using realized metal prices for each period respectively
2 Production cash cost, production cash cost Ag Eq, and AISC Ag Eq are non-GAAP financial measures; refer to non-GAAP financial measures in the associated MD&A for a description and calculation of these measures

Quarterly Results

The Caylloma Mine produced 6.7 million pounds of lead and 10.3 million pounds of zinc during the third quarter of 2020, which were 6% lower and 10% lower than the 7.2 million pounds of lead and 11.5 million pounds of zinc produced in the same period in 2019.  The lower production was due to lost production from a 21-day shutdown of the mine in early July to sanitize and disinfect the mine following the sudden death of a contractor’s employee.  Lead and zinc head grades were 18% and 13% higher than in the same period in 2019.  Silver production for the third quarter totaled 210,206 ounces with an average head grade of 74 g/t compared to the 228,168 ounces produced with an average head grade of 64 g/t in the same period in 2019.  The Company incurred $0.9 million of costs during the 21-day shutdown of the mine and have been reported as care and maintenance costs.

Cash cost per tonne of processed ore for the three months ended September 30, 2020 was $82.55, which was 11% lower than the $93.03 cash cost per tonne in the same period in 2019.  The lower cash cost per tonne was due to lower mine preparation as a result of cost-cutting efforts related to Covid-19.  Cash costs incurred during the shutdown were reported as care and maintenance costs.

All-in sustaining cash cost per ounce of payable silver equivalent was $19.37 for the quarter compared to $15.78 for the comparable period in 2019, due to the impact of the 21-day voluntary suspension at the mine site in July. 

Lindero Mine Update

Construction at the Lindero open pit heap leach gold mine located in Salta Province, Argentina is substantially complete as at September 30, 2020.  On October 20, 2020, the Company announced the first gold pour of 728 ounces (refer to Fortuna news release dated October 20, 2020) as the mine ramps up towards commercial production in the first quarter of 2021.

The following table summarizes the spending on construction and preproduction related costs at the Lindero Mine for the nine months ended September 30, 2020:

			Cumulative to	Nine months ended
(Expressed in $ millions)			December 31, 2019	September 30, 2020		Total
Construction capital expenditures			268.2	36.2		304.4
Contractor advances and deposits on equipment, net of transfers			10.5	(7.2	)	3.3
Total Construction Spending			278.7	29.0		307.7
Preproduction costs			8.0	23.3		31.3
Spare parts, supplies and materials inventory			6.2	11.7		17.9
Other costs 1			4.5	1.2		5.7
Total Lindero Mine Costs			297.4	65.2		362.6

Note:
    ^1.   Consists of Argentina financial transaction taxes, deposits and other costs

There were $15.2 million of construction trade payables outstanding as at the end of the third quarter.

During the third quarter of 2020, a total of 675,000 tonnes of ore have been placed on the leach pad averaging 0.83 g/t gold, containing an estimated 17,980 ounces of gold (refer to Fortuna news release dated October 14, 2020). Average gold head grade of ore placed on the leach pad is below budget of 1.00 g/t to 1.10 g/t (refer to Fortuna news release dated May 8, 2020). The lower average head grade is due to COVID-19 related restrictions which delayed the start of mining activities and limited the access to high-grade ore from the pit and resulted in the shortfall being sourced from the medium grade stockpile.

From the commencement of mining operations in September 2019 (refer to Fortuna news release dated September 13, 2019) to the end of the third quarter 2020, a total of 2.3 million tonnes of mineralized material averaging 0.61 g/t Au, containing 45,700 ounces of gold has been extracted from the pit. Of this amount, 1.6 million tonnes averaging 0.52 g/t Au, containing an estimated 27,500 ounces of gold has been stockpiled, with the remaining 682,000 tonnes averaging 0.83 g/t Au, containing 18,200 ounces sent to the crushers. (refer to Fortuna news release dated October 14, 2020).

Management confirms the reconciliation of the material movements from the pit for the third quarter of 2020 as satisfactory and indicates a good correlation between the grade control model versus the Mineral Reserve block model with differences of less than five percent for tonnes, grade and ounces (refer to Fortuna news release October 14, 2020).

Management has updated the production forecast for Lindero in 2020 and estimates between 13,000 to 15,000 ounces of gold doré will be produced (refer to Fortuna news release dated May 8, 2020). The new forecast considers the following operational issues which were encountered during commissioning and ramp-up activities:

• Despite placing 93% of planned gold ounces on the leach-pad as at the end of October, the adoption of an advance stacking sequence limited the Company’s ability to implement an early irrigation strategy as per the original plan. This issue will be resolved in mid-November when the conveyor stacking system is commissioned, and a retreat stacking sequence is implemented which will accelerate the irrigation process.  

• Additional time has been allocated to the commissioning and ramp-up schedule of the HPGR-Agglomeration-Stacking system during November and December due to the challenges and limitations of completing these activities under COVID-19 related restrictions. This will result in a reduction of contained gold ounces placed on the leach-pad for the two months from 38,000 ounces to 24,000 ounces.

• The shortfall of gold ounces placed on the leach pad in November and December along with the placement of a greater quantity of coarser crushed material due to the extended commissioning of the HPGR has a compound effect on reducing gold doré production.

Qualified Person

Eric Chapman, Vice President of Technical Services, is a Professional Geoscientist of the Association of Professional Engineers and Geoscientists of the Province of British Columbia (Registration Number 36328), and is the Company’s Qualified Person (as defined by National Instrument 43-101). Mr. Chapman has reviewed and approved the scientific and technical information contained in this news release and has verified the underlying data.

Non-GAAP Financial Measures

The following tables represent the calculation of certain non-GAAP financial measures as referenced in this news release.

Reconciliation to Adjusted Net Income for the three and nine months ended September 30, 2020 and 2019

(Expressed in $ millions)		Q3, 2020				Adjust.				Q3 2020 Adjusted				Q3, 2019				Adjust.				Q3, 2019 Adjusted
Sales		83.4				–				83.4				61.3				–				61.3
Cost of sales		41.4				(0.0	)			41.4				44.6				0.1				44.7
Mine operating income		42.1				0.0				42.1				16.7				(0.1	)			16.6
General and administration		9.0				0.0				9.0				6.9				0.0				7.0
Exploration and evaluation		0.1				–				0.1				1.5				–				1.5
Share of loss from associates		0.0				(0.0	)			–				0.0				(0.0	)			–
Foreign exchange loss		3.6				(3.3	)			0.3				8.4				(8.2	)			0.2
Other expenses, net		0.9				0.0				0.9				1.2				(1.3	)			(0.1	)
Operating income (loss)		28.5				3.3				31.8				(1.5	)			9.5				8.0
Interest income and finance costs, net		(0.4	)			0.1				(0.4	)			(0.1	)			0.1				0.0
Income before taxes		28.1				3.4				31.4				(1.5	)			9.6				8.0
Income tax expense		15.0				0.4				15.4				6.2				(0.0	)			6.2
Net income (loss) and adjusted net income		13.1				3.0				16.1				(7.7	)			9.6				1.9

Note:  Certain figures may not add due to rounding and certain comparative figures have been reclassified to conform to the current year presentation

(Expressed in $ millions)		Q3 2020 YTD				Adjust.				Q3 2020 YTD Adjusted				Q3 2019 YTD				Adjust.				Q3 2019 YTD Adjusted
Sales		175.5				–				175.5				188.2				–				188.2
Cost of sales		112.2				0.1				112.3				127.1				0.2				127.3
Mine operating income		63.3				(0.1	)			63.2				61.1				(0.2	)			61.0
General and administration		22.9				0.1				23.0				20.4				0.1				20.5
Exploration and evaluation		0.6				–				0.6				2.0				–				2.0
Share of loss from associates		0.1				(0.1	)			–				0.2				(0.2	)			–
Foreign exchange loss		7.5				(9.2	)			(1.8	)			11.9				(10.5	)			1.4
Other expenses, net		3.1				(0.2	)			2.8				1.5				(1.3	)			0.2
Operating Income		29.0				9.4				38.5				25.2				11.7				36.9
Investment income		3.3				(3.3	)			–				–				–				–
Interest income and finance costs, net		(1.1	)			0.2				(0.9	)			(0.0	)			0.3				0.3
Gain (loss) on derivatives		–				–				–				(1.2	)			2.6				1.4
Income before taxes		31.2				6.2				37.6				23.9				14.6				38.5
Income tax expense		28.3				0.4				28.6				19.1				1.9				21.0
Net income and adjusted net income		2.9				5.9				8.9				4.8				12.7				17.5

Note:  Certain figures may not add due to rounding and certain comparative figures have been reclassified to conform to the current year presentation

Reconciliation to Adjusted EBITDA for the three and nine months ended September 30, 2020 and 2019

		Three months ended						Nine months ended
		September 30,						September 30,
(Expressed in $ millions)		2020		2019				2020		2019
Net income (loss) for the period		13.1		(7.7	)			2.9		4.8
Adjustments:
Community support provision		0.1		(0.1	)			–		(0.2	)
Inventory adjustment		–		0.1				–		0.1
Foreign exchange loss, Lindero Mine		2.7		8.3				8.7		10.4
Net finance items		0.4		–				0.9		(0.3	)
Depreciation, depletion, and amortization		11.2		11.3				31.8		34.4
Income taxes		15.0		6.2				28.3		19.1
Share of loss from associates		–		–				0.1		0.2
Investment income		–		–				(3.3	)	–
Other non-cash items		(0.2	)	1.1				(1.6	)	1.7
Adjusted EBITDA		42.2		19.2				67.8		70.2

Reconciliation to free cash flow from ongoing operations for the three and nine months ended September 30, 2020 and 2019

		Three months ended						Nine months ended
		September 30,						September 30,
(Expressed in $ millions)		2020		2019				2020		2019
Net cash provided by operating activities		45.5		18.2				62.1		45.3
Less:  Change in long-term receivables		(0.3	)	(1.5	)			(0.9	)	(1.5	)
Less:  Additions to mineral properties, plant and equipment		(5.6	)	(7.2	)			(13.8	)	(18.2	)
Less:  Current income tax expense		(15.5	)	(5.9	)			(25.5	)	(24.4	)
Add:  Income taxes paid		6.0		7.0				22.6		27.0
Free cash flow from ongoing operations 1		30.1		10.6				44.5		28.2
Note:
1 From ongoing operations including San Jose and Caylloma and excludes Greenfields exploration

The financial statements and MD&A are available on SEDAR and on the Company’s website:
https://www.fortunasilver.com/investors/financials/2020/.

Conference call to review third quarter 2020 financial and operational results

A conference call to discuss the financial and operational results will be held on Friday, November 13, 2020 at 9:00 a.m. Pacific time | 12:00 p.m. Eastern time. Hosting the call will be Jorge A. Ganoza, President and CEO, and Luis D. Ganoza, Chief Financial Officer. 

Shareholders, analysts, media and interested investors are invited to listen to the live conference call by logging onto the webcast at: https://www.webcaster4.com/Webcast/Page/1696/38330 or over the phone by dialing in just prior to the starting time.

Conference call details:

Date:  Friday, November 13, 2020
Time: 9:00 a.m. Pacific time | 12:00 p.m. Eastern time 

Dial in number (Toll Free): +1.844.369.8770
Dial in number (International): +1.862.298.0840

Replay number (Toll Free): +1.877.481.4010
Replay number (International): +1.919.882.2331
Replay Passcode: 38330

Playback of the conference call will be available until November 27, 2020. Playback of the webcast will be available until November 13, 2021. In addition, a transcript of the call will be archived on the company’s website: https://www.fortunasilver.com/investors/financials/2020/. 

About Fortuna Silver Mines Inc.

Fortuna Silver Mines Inc. is a Canadian precious metals mining company with operations in Peru, Mexico and Argentina. Sustainability is integral to all our operations and relationships. We produce silver and gold and generate shared value over the long-term for our shareholders and stakeholders through efficient production, environmental protection, and social responsibility.  For more information, please visit our website at www.fortunasilver.com.

ON BEHALF OF THE BOARD

Jorge A. Ganoza
President, CEO, and Director
Fortuna Silver Mines Inc.

Trading symbols: NYSE: FSM | TSX: FVI

Investor Relations:
Carlos Baca
T (Peru): +51.1.616.6060, ext. 0
E: [email protected]

Forward looking Statements

This news release contains forward looking statements which constitute “forward looking information” within the meaning of applicable Canadian securities legislation and “forward looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 (collectively, “Forward looking Statements”). All statements included herein, other than statements of historical fact, are Forward looking Statements and are subject to a variety of known and unknown risks and uncertainties which could cause actual events or results to differ materially from those reflected in the Forward looking Statements. The Forward looking Statements in this news release include, without limitation, statements about the Company’s plans for its mines and mineral properties; the Company’s business strategy, plans and outlook; the merit of the Company’s mines and mineral properties; the future financial or operating performance of the Company;


the timing and amount of estimated future production; recovery rates; mine plans and mine life; the future price of gold, silver and other metals; costs of production
; and proposed expenditures; the construction of the Lindero mine and the related costs of construction, achieving steady operations and timing of commencement of commercial production; and forecasted production at the Lindero Mine for 2020. Often, but not always, these Forward looking Statements can be identified by the use of words such as “estimated”, “expected”, “anticipated”, “potential”, “open”, “future”, “assumed”, “projected”, “used”, “detailed”, “has been”, “gain”, “planned”, “reflecting”, “will”, “containing”, “remaining”, “to be”, or statements that events, “could” or “should” occur or be achieved and similar expressions, including negative variations.

Forward looking Statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any results, performance or achievements expressed or implied by the Forward looking Statements. Such uncertainties and factors include, among others,


the duration and effects of COVID-19, and any other pandemics on our operations and workforce, and the effects on global economies and society;


changes in general economic conditions and financial markets; changes in prices for gold, silver and other metals; fluctuation in foreign exchange rates; any extension of the currency controls in Argentina; technological and operational hazards in Fortuna’s mining and mine development activities; delays in commissioning at Lindero; delays in achieving steady production and commencement of commercial production at Lindero; risks inherent in mineral exploration; uncertainties inherent in the estimation of mineral reserves, mineral resources, and metal recoveries; governmental and other approvals; political unrest or instability in countries where Fortuna is active; labor relations issues; as well as those factors discussed under “Risk Factors” in the Company’s Annual Information Form. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in Forward looking Statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended.

Forward looking Statements contained herein are based on the assumptions, beliefs, expectations and opinions of management, including but not limited to expectations regarding the Company’s plans for its mines and mineral properties; mine production costs; expected trends in mineral prices and currency exchange rates; the accuracy of the Company’s current mineral resource and reserve estimates; that the Company’s activities will be in accordance with the Company’s public statements and stated goals; that there will be no material adverse change affecting the Company or its properties; that all required approvals will be obtained; that there will be no significant disruptions affecting operations and such other assumptions as set out herein. Forward looking Statements are made as of the date hereof and the Company disclaims any obligation to update any Forward looking Statements, whether as a result of new information, future events or results or otherwise, except as required by law. There can be no assurance that Forward looking Statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, investors should not place undue reliance on Forward looking Statements.

This news release also refers to non-GAAP financial measures, such as cash cost per tonne of processed ore; cash cost per payable ounce of silver; total production cost per tonne; all-in sustaining cash cost; all-in cash cost silver equivalent; adjusted net (loss) income; operating cash flow per share before changes in working capital, income taxes, and interest income; free cashflow from ongoing operations; and adjusted EBITDA. These measures do not have a standardized meaning or method of calculation, even though the descriptions of such measures may be similar. These performance measures have no meaning under International Financial Reporting Standards (IFRS) and therefore, amounts presented may not be comparable to similar data presented by other mining companies.

VANCOUVER, British Columbia, Nov. 12, 2020 (GLOBE NEWSWIRE) — Aequus Pharmaceuticals Inc. (TSX-V: AQS, OTCQB: AQSZF), a specialty pharmaceutical company with a focus on developing, advancing and promoting differentiated products announces Ms Anne Stevens is stepping down from her role as Chief Operating Officer. Ms Stevens will remain a Director and will continue to serve on the Aequus Board of Directors.

“Anne and I co-founded Aequus together and I want to thank her for her many contributions over the years,” said Doug Janzen, Chairman and CEO of Aequus. “Anne is an incredibly talented and effective executive who is leaving the company in excellent shape and well positioned for success in the years to come. We are excited about her future plans and look forward to her continued work with the Aequus Board.”

“I want to thank my fellow Directors and the entire team at Aequus,” said Ms Stevens. “It is extraordinary to see how Aequus has grown to be the mature commercial entity it is today, with a sharp focus and great momentum towards being a meaningful contributor to the Eye Care landscape in Canada. I believe that the commercial team is well prepared for my departure under the leadership of Grant Larsen and I look forward to watching a strong launch of the Evolve line of eye care products in Canada.”

About
Aequus
Pharmaceuticals

Aequus Pharmaceuticals Inc. (TSX-V: AQS, OTCQB: AQSZF) is a growing specialty pharmaceutical company focused on developing and commercializing high quality, differentiated products. Aequus has grown its sales and marketing efforts to include several commercial products in ophthalmology and transplant. Aequus plans to build on its Canadian commercial platform through the launch of additional products that are either created internally or brought in through an acquisition or license; remaining focused on highly specialized therapeutic areas. For further information, please visit www.aequuspharma.ca.

Forward-Looking Statements:

This release may contain forward-looking statements or forward-looking information under applicable Canadian securities legislation that may not be based on historical fact, including, without limitation, statements containing the words “believe”, “may”, “plan”, “will”, “estimate”, “continue”, “anticipate”, “intend”, “expect”, “potential” and similar expressions. Forward- looking statements are necessarily based on estimates and assumptions made by us in light of our
experience and perception of historical trends, current conditions and expected future developments, as well as the factors we believe are appropriate. Forward-looking statements include but are not limited to statements relating to
:
the implementation of our business model and strategic plans; expected timing for product launch; the regulatory approval of the Evolve line of products expected in 2020
. Such statements reflect our current views with respect to
future events and are subject to risks and uncertainties and are necessarily based upon a number of estimates and assumptions that, while considered reasonable by
Aequus
, are inherently subject to significant business, economic, competitive, political and
social uncertainties and contingencies. Many factors could cause our actual results, performance or achievements to be materially different from any future results, performance, or achievements that may be expressed or implied by such forward-looking statements. In making the forward looking statements included in this release, the Company has made various material assumptions, including, but not limited to: obtaining positive results of clinical trials; obtaining regulatory approvals; general business and economic conditions; the Company’s ability to successfully out license or sell its current products and in-license and develop new products; the assumption that the Company’s current good relationships with its manufacturer and other third parties will be maintained; the availability of financing on reasonable terms; the Company’s ability to attract and retain skilled staff; market competition;
the products and technology offered by the Company’s competitors; and the Company’s ability to protect patents and proprietary rights
. In evaluating forward looking statements, current and prospective shareholders should specifically consider various factors set out herein and under the heading “Risk Factors” in the Company’s Annual Information Form dated April 28, 2020, a copy of which is available on
Aequus
’ profile on the SEDAR website at www.sedar.com, and as otherwise disclosed from time to time on
Aequus
’ SEDAR profile. Should one or more of these risks or uncertainties, or a risk that is not currently known to us materialize, or should assumptions underlying those forward-looking statements prove incorrect, actual results may vary materially from those described herein. These forward-looking statements are made as of the date of this release and we do not intend, and do not assume any obligation, to update these forward-looking statements, except as required by applicable securities laws. Investors are cautioned that forward-looking statements are not guarantees of future performance and are inherently uncertain. Accordingly, investors are cautioned not to put undue reliance on forward looking statements.

Contact Information:

Aequus Investor Relations
Email: [email protected]
Phone: 604-336-7906