Glencairn Gold Corporation

Glencairn Gold Corporation

March 16, 2005 08:06 ET

Glencairn Reports 2004 Year-End Results




MARCH 16, 2005 - 08:06 ET

Glencairn Reports 2004 Year-End Results

TORONTO, ONTARIO--(CCNMatthews - March 16, 2005) - Glencairn Gold
Corporation (TSX:GGG)(AMEX:GLE) is pleased to report its financial
results for the year ended December 31, 2004 (all currency figures are
in U.S. dollars). The consolidated financial statements along with
management's discussion and analysis, which can be viewed on our web
site at, have been filed on SEDAR (
and will be mailed to shareholders in the Company's annual report. A
conference call and audio webcast has been scheduled for March 16, 2005,
at 11 a.m. EST to discuss the results (see details below).

Highlights for 2004 include:

- Gold sold increased 5% year over year to 47,983 oz.
from 45,927 oz. in 2003

- Sales increased by 22% to $19.7 million from $16.2 million in 2003

- Tonnes milled at Limon Mine increased 20% to 341,234 from 284,116
in 2003

- Financings provided $28.7 million, primarily to complete
Bellavista Mine construction

Financial results for 2004 reflect the first full year of operations
since the Company completed a business combination with Black Hawk
Mining Inc. in late 2003 that brought the Limon Mine in Nicaragua and
other assets in Nicaragua and Canada to the Company.

During 2004 the Company reported steadily improving results from Limon,
its only source of gold production during the year and these
improvements continued into 2005. In the fourth quarter of 2004 the
Company was essentially at break-even with a fourth quarter net loss of
$323,000 or nil per share.

Selected Financial Information
2004 2003 2002
---- ---- ----
Gold sales (oz.) 47,983 45,927 57,083
Average spot gold price ($/oz.) $410 $363 $310
Average realized gold price ($/oz.) $410 $332 $272
Cash operating costs ($/oz.) $308 $248 $214
Total cash costs ($/oz.) $331 $267 $227
Tonnes milled 341,234 284,116 314,567
Ore grade (grams/tonne) 5.1 5.7 6.2
Recovery (%) 84.6 88.1 86.8

(in thousands, except per share amounts)
Sales $19,669 $16,182 $14,932
Cost of sales $14,770 $11,395 $12,209
Net loss $8,594 $1,249 $3,501
Loss per share - basic and diluted $0.06 $0.02 $0.07

Cash $13,728 $14,903 $754
Working capital $18,693 $20,165 $4,036
Total assets $60,973 $38,723 $17,268

Gold sales in 2004 increased to $19.7 million compared to $16.2 million
in 2003. A total of 47,983 ounces of gold were sold in 2004 compared
with 45,927 in 2003. The average realized price per ounce of gold sold
was $410 in 2004 compared with $363 in 2003.

The Company recorded a net loss in 2004 of $8.6 million or $0.06 per
share compared to a net loss of $1.2 million or $0.02 per share in 2003.
The increased loss was attributable largely to an increase in
exploration expenses of $4.6 million in 2004 up from $884,000 in 2003.
General and administrative expenses also increased to $3.9 million from
$1.5 million in 2003 as the Company was more active since the Black Hawk
transaction and construction began at the Bellavista Mine in Costa Rica.

Earnings from mining operations were $1.1 million in 2004 compared to
$2.1 million in 2003. During 2004, performance at the Limon Mine
improved markedly in the second half of the year compared to the first
half with total cash costs per ounce of gold sold declining to $311 from

At Bellavista, the first ore will be placed on the leach pads in March
2005. Gold production is scheduled to begin in the second quarter of
2005. Production from the mine is expected to reach commercial
quantities in the third quarter of 2005. Bellavista is designed to
produce an average of 60,000 ounces of gold annually over an eight-year
mine life.

Gold sales in 2005 are expected to reach 72,000 ounces. (In addition,
Bellavista is expected to produce 5,000 ounces prior to reaching
commercial production and the revenue from these ounces will be credited
against the mine's capital cost.) Total cash costs for 2005 are expected
to be $299 per ounce. and decline further when Bellavista is at full

2005 Production Estimates
Gold sales (oz.)
Limon 48,738
Bellavista 23,296
Total 72,034

Cash operating cost/oz. sold
Limon 282
Bellavista 281
Weighted Average 281

Total cash cost/oz. sold
Limon 303
Bellavista 289
Weighted Average 299

Working capital at December 31, 2004, was $18.7 million, of which
$13.7 million was in cash, compared with $19.7 million at the end of
2003, $14.9 million of which was in cash.

Conference Call Information:

Date: March 16, 2005
Time: 11:00 a.m. EST (Toronto time)
Local: 416-695-5261
Toll Free (North America): 1-877-888-7019
Participant Audio Webcast:

Conference Call Replay:

Replay Call: 416-695-5275
Replay Toll Free Call: 1-888-509-0081

The conference call will be available from 1 p.m. EST on March 16, 2005,
until 11:59 p.m. EST on March 22, 2005.

To find out more about Glencairn Gold Corporation (TSX:GGG, AMEX:GLE),
visit our website at

FORWARD-LOOKING STATEMENTS: This news release contains certain
"forward-looking statements" within the meaning of Section 21E of the
United States Securities Exchange Act of 1934, as amended. Except for
statements of historical fact relating to the company, certain
information contained herein constitutes forward-looking statements.
Forward-looking statements are frequently characterized by words such as
"plan," "expect," "project," "intend," "believe," "anticipate",
"estimate" and other similar words, or statements that certain events or
conditions "may" or "will" occur. Forward-looking statements are based
on the opinions and estimates of management at the date the statements
are made, and are subject to a variety of risks and uncertainties and
other factors that could cause actual events or results to differ
materially from those projected in the forward-looking statements. These
factors include the inherent risks involved in the exploration and
development of mineral properties, the uncertainties involved in
interpreting drilling results and other ecological data, fluctuating
metal prices, the possibility of project cost overruns or unanticipated
costs and expenses, uncertainties relating to the availability and costs
of financing needed in the future and other factors. The Company
undertakes no obligation to update forward-looking statements if
circumstances or management's estimates or opinions should change. The
reader is cautioned not to place undue reliance on forward-looking


Contact Information

    Glencairn Gold Corporation
    Kerry Knoll
    President and CEO
    (416) 860-0919
    (416) 367-0182 (FAX)
    Renmark Financial Communications Inc.
    Sylvain Laberge
    (514) 939-3989