TORONTO,
Feb. 12, 2014 /PRNewswire/ - Cerro
Grande Mining Corporation (the "Company" or "CEG") (TSX: CEG)
(OTCQX: CEGMF) reported its unaudited results for its first fiscal
quarter ended December 31, 2013
compared to same period in 2012. The Company's financial statements
and MD&A for its fiscal first quarter ended December 31, 2013 compared to the comparable
quarter in 2012 have been filed on SEDAR. The Company refers
the reader to those materials for additional information.
Revenues totalled US $4,541,000 for the Company's first fiscal quarter
ended December 31, 2013 which
includes gold sales of US $3,884,000
(3,088 ozs of gold) and copper and silver sales of US $657,000 compared to revenues in its first
quarter ended December 31, 2012 of US
$6,532,000 which includes gold sales
of US $5,714,000 (3,380 ozs of gold)
and copper and silver sales of US $499,000. Services revenue of US $nil in the
first fiscal quarter ended December 31,
2013 compared to US $75,000 in
the comparable quarter a year ago related to service charges on the
Santa Cecilia project against actual expenses of US $60,000.
Net income before income taxes for the first
fiscal quarter ended December 31,
2013 was a negative US $1,086,000 compared to US $129,000 in the comparable period a year ago. Net
income after taxes was a loss of US $1,086,000 after depreciation and amortization
charges of US $724,000 and
exploration expense of US $2,000.
This compares to the same period a year ago when income was a
negative US $112,000 after income tax
expenses and deferred taxes of US $241,000 and after amortization and depreciation
charges of US $662,000 and
exploration expenses of US $695,000.
At December 31,
2013 the Company had a negative working capital position of
US $454,000.
On a stand alone basis, the Pimenton mine had
net earnings for its first fiscal quarter ended December 31, 2012 of a negative US $683,000 after depreciation and amortization
expense of US $715,000 compared to
the same period in 2012 when net income was US $993,000 after deducting depreciation and
amortization expense of US $660,000.
Operational Highlights
- Gold produced by the Pimenton Mine for the three months ended
December 31, 2013 was 2,558 oz
compared to 2,614 oz produced in the prior quarter.
- Pimenton's cash cost for the first quarter ended December 31, 2013 was $919 per ounce of gold produced net of by product
credits, compared to US $1,001 per oz
in the prior quarter.
- Pimenton's production cost, which includes depreciation and
amortization, for the first quarter ended December 31, 2013, was US $1,198 per ounce of gold produced net of by
product credit, compared to US $1,258
per oz in the prior quarter.
- The average gold recovery for the three months ended
December 31, 2013 was 94.10% compared
to 94.28% in the prior quarter.
- The Company expects the mine to maintain milling rates of 120
tons per day depending on the rate of conversion of its known
resources to reserves.
- Currently the plant has been permitted to operate at an average
of 166 tons per day. The Company has prepared but not yet submitted
permits to take the mine up to 500 tons per day.
Financial Highlights
- Loss before income taxes for the three months period ended
December 31, 2013 was US $1,086,000 compared to income of US $129,000 in the same three month period in
2012.
- Average price per ounce of gold sold for the three months ended
December 31, 2013 was US $1,258 compared and average price of gold of US
$1,696 in the comparable period a
year ago.
- Net loss after income taxes for the three months ended
December 31, 2013 was US $1,086,000 compared to a loss of US $112,000 in the same three month period in
2012.
- Basic loss per share for the three months ended December 31, 2013 was a loss of US $0.01 cents per share (2012 - US $0.00).
- At December 31, 2013, the Company
had cash and cash equivalents of US $480,000 compared to US $53,000 at September 30,
2013.
- Cash flow provided by operating activities for the quarter
ended December 31, 2013 was
US$750,000 compared to US
$1,032,000 in the comparable period a
year ago.
Stephen W.
Houghton, CEO stated that the Company has focused a part of
its efforts on further reduction in mine operating costs as well as
corporate expenses and conducting additional exploration and
development work on the Pimenton gold/copper veins to increase the
number of faces in the mine, which if successful, could lead to
increased daily production and plant through put rates to above 120
tons per day. We are also drilling porphyry targets at Pimenton.
Additional exploration and development of its Tordillo prospect
will depend on increased production at Pimenton and future gold
prices. The Company continues to evaluate the Santa Cecilia
prospect and will make further announcements on it in the
future.
Mr. Houghton further cited the NI 43-101
Technical Report on Pimenton, completed in December 2013 shown on the Company's web site,
www.cegmining.com, showed substantially the same Proven and
Probable reserves and Inferred resources at similar g/Au and %
copper grades as the Technical Report completed in January 2011. This indicates the Pimenton mine
has been successful in replacing the tons of ore mined each year
for the past three years.
Cerro Grande Mining Corporation is a minerals
producing, exploration and development company with properties and
activities currently focused in Chile.
Cautionary Statement on Forward-looking
Information:
This news release contains "forward-looking
information", which may include, but is not limited to, statements
with respect to the future financial or operating performance of
CEG. Often, but not always, forward-looking statements can be
identified by the use of words such as "plans", "expects", "is
expected", "budget", "scheduled", "estimates", "forecasts",
"intends", "anticipates", or "believes" or variations (including
negative variations) of such words and phrases, or state that
certain actions, events or results "may", "could", "would", "might"
or "will" be taken, occur or be achieved. Forward-looking
statements involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or
achievements of CEG to be materially different from any future
results, performance or achievements expressed or implied by the
forward-looking statements. Forward-looking statements contained
herein are made as of the date of this press release based on
current expectations and beliefs and CEG disclaims, other than as
required by law, any obligation to update any forward-looking
statements whether as a result of new information, results, future
events, circumstances, or if management's estimates or opinions
should change, or otherwise. 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, the reader is
cautioned not to place undue reliance on forward-looking
statements.
SOURCE Cerro Grande Mining Corporation