Capital Gold earns $1.93-million in Q1 fiscal 2009

2008-12-15 09:56 ET - News Release

Mr. Jeff Pritchard reports

EARNINGS OF $0.01 PER SHARE FOR THE FIRST FISCAL QUARTER 2009

Capital Gold Corp.'s net income has increased by 64 per cent before taxes for the first fiscal quarter, ending Oct. 31, 2008, as compared with the first quarter last year.

Net income before taxes was approximately $2,863,000 in the first fiscal quarter, which represents a 64-per-cent increase compared with $1,747,000 for the same period last year.

• Net income after taxes was $1,936,000 as compared with $1,747,000, an 11-per-cent increase over the same period last year.
• For the quarter ending Oct. 31, 2008, net sales were $9,175,000 from 11,413 ounces of gold sold at an average price of $805 per ounce, as compared with sales of $6,526,000 from 9,194 ounces sold at an average price of $710 per ounce for the same period last year, at net sales increase of 41 per cent.
• Cash costs of $255 per ounce (excluding net profits interest) were achieved for the fiscal quarter ending Oct. 31, 2008 -- well below the gold industry average.
• Earnings per share of one cent for the quarter.

In their continuing effort to expand production, the company placed an order for an additional secondary crusher. John Brownlie, Capital Gold's chief operating officer, said, "We ordered the crusher from Excel Machinery of Amarillo, Tex., who have manufactured and installed all of our crushing equipment, so we are assured a seamless integration with our existing system.

"The success of all of the upgrades we completed in 2008, including leach pad expansion, additional solution pumps and a new, larger ADR plant, will allow us to consistently produce at current rates. In order to further increase gold production it is necessary to increase the throughput of crushed ore. The most practical approach to achieve this is to add an additional crushing and screening module that have been designed to be installed without disruption to the existing circuit. This will allow us to increase our production of crushed ore from 11,000 tonnes per day to 14,000 tonnes per day," Mr. Brownlie added. The secondary crusher represents the final significant piece of planned infrastructure upgrades for fiscal 2009.

A conference call discussing the first quarter results will be held on Monday, Dec. 15, 2008, at 11 a.m. Eastern Time and will be accessible through dial-in conferencing.

Dial-in numbers: 1-800-908-8763 (North America), 1-212-231-2907 (international)

Please dial in and register at least five minutes prior to the call. Chris Chipman, chief financial officer, and Jeff Pritchard, executive vice-president, will host the conference call. This call will be archived and available on the company's website within 48 hours.

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