TORONTO,
May 16, 2014 /PRNewswire/ - Cerro
Grande Mining Corporation (the "Company" or "CEG") (TSX: CEG)
(OTCQX: CEGMF) announced today its interim unaudited consolidated
Financial Statements and Management Discussion and Analysis for the
3 months fiscal quarter ended March 31,
2014 compared to the same quarter a year ago and its results
for the six months fiscal period ended March
31, 2014 compared to the six month period ended March 31, 2013 a year ago have been filed on
SEDAR and the Company refers the reader to those materials for
additional information.
The table below shows the summary of unaudited
results of the consolidated profit and loss statements for the six
and three fiscal month periods ended March
31, 2014 and 2013. (Expressed in thousands of US dollars
except per share amounts)
| |
Three months ended |
|
Six months ended |
| |
March
31, |
|
March
31, |
|
March
31, |
|
March
31, |
| |
2014 |
|
2013 |
|
2014 |
|
2013 |
| Revenue |
$ |
|
$ |
|
$ |
|
$ |
| Sales |
4,233 |
|
6,199 |
|
8,774 |
|
12,656 |
| Services |
- |
|
126 |
|
- |
|
101 |
| |
4,233 |
|
6,225 |
|
8,774 |
|
12,757 |
| Expenses |
|
|
|
|
|
|
|
| Operating costs |
4,909 |
|
5,841 |
|
9,699 |
|
10,538 |
| Operating costs for services |
- |
|
24 |
|
- |
|
77 |
| Reclamation and remediation |
11 |
|
11 |
|
22 |
|
22 |
| General, sales and
administrative |
577 |
|
910 |
|
1,347 |
|
1,764 |
| Foreign exchange |
(8) |
|
(4) |
|
(58) |
|
39 |
| Interest |
(5) |
|
95 |
|
90 |
|
144 |
| Other gains and losses (net) |
(3) |
|
43 |
|
6 |
|
44 |
| Exploration costs |
- |
|
506 |
|
2 |
|
1,201 |
| |
5,481 |
|
7,426 |
|
11,108 |
|
13,829 |
| |
|
|
|
|
|
|
|
| Loss and comprehensive loss before
income taxes |
(1,248) |
|
(1,201) |
|
(2,334) |
|
(1,072) |
| |
|
|
|
|
|
|
|
| Income tax expense |
- |
|
189 |
|
- |
|
- |
| Deferred income tax |
- |
|
(70) |
|
- |
|
(122) |
| Loss and comprehensive loss for
the period |
(1,248) |
|
(1,082) |
|
(
2,334) |
|
(1,194) |
| |
|
|
|
|
|
|
|
| Basic and diluted loss per
share |
(0.01) |
|
(0.01) |
|
(0.01) |
|
(0.01) |
| 1) |
Consolidated statements
of income and other comprehensive (loss) income for the three month
period ended March 31, 2014 and 2013: |
| |
|
|
| |
a) |
Revenue for the three month period
ended March 31, 2014 decreased over the same period 2013 due to a
drop in the price of gold and sales of 2,785 oz compared to sales
of 3,373 oz in the three month period ended March 31, 2013. |
| |
|
|
| |
b) |
Operating expenses for the three
months ended March 31, 2014 were $4,909 compared to $5,841 for the
same period in 2013. The decrease of $932 consists basically in a
drop in labor and mine operating costs. |
| |
|
|
| |
c) |
General and administrative costs for
the three months ended March 31, 2014 were $577 compared to $910
for the same period in 2013. This significant drop of $333 was
mainly due to a decrease of $264 in salaries. Other variations were
an increase in sales expenses of $28; an increase in listing fees
of $38; a decrease in professional fees of $52 and a reduction in
overhead expenses of $83. |
| |
|
|
| |
d) |
The Company expenses its exploration
expenditures on properties until a NI 43 -101 compliant resource
has been established on a property. As a result during the three
month period ended March 31, 2014, the Company expensed $nil (2013
- $506) of exploration costs as follows: La Bella $nil (2013 -
$31); Bandurrias $nil (2013 - $18); Santa Cecilia $nil (2013 -
$179); Tordillo $nil (2013- $160); Catedral $nil (2013 - $43); Cal
Norte $nil (2013 - $5); and other $nil (2013 -$70). |
| |
|
| 2) |
Consolidated statements
of income and other comprehensive (loss) income for the six month
period ended March 31, 2014 and 2013: |
| |
|
|
| |
a) |
Revenue for the six month period
ended March 31, 2014 dropped over the same period 2013 due to
decreased gold sales of 5,910 oz compared to 6,737 oz in the six
month period ended March 31, 2013. Added to this the price of gold
has also dropped significantly |
| |
|
|
| |
b) |
Operating expenses for the six months
ended March 31, 2014 were $9,699 compared to $10,538 for the same
period in 2013. The decrease of $839 is due to a continuing
campaign to reduce costs. |
| |
|
|
| |
c) |
General and administrative costs for
the six months ended March 31, 2014 were $1,347 compared to $1,764
for the same period in 2013. This $417 decrease is also in line
with the cost reduction campaign. |
| |
|
|
| |
d) |
The Company expenses its exploration
expenditures on properties until a NI 43 -101 compliant resource
has been established on a property. As a result during the six
month period ended March 31, 2014, the Company expensed $2 (2013 -
$1,201) of exploration costs. |
| |
|
| 3) |
Consolidated Cash flow
for the six months ended March 31,2014 |
| |
| Cash generated by the
Pimenton Mine continues to decrease due to drops in gold sales and
prices. As a result the Company's capital expenditures related
primarily to expenditures at the Pimenton Mine were $234 for the
six month period ended March 31, 2014 (2013 - $2,889) and have been
limited to the minimum requirements. |
| |
|
| 4) |
Consolidated Statement of
Financial Position as at March 31, 2014 |
| |
| As at March 31, 2014, the
Company had a negative working capital of $1,429 (2012 negative
$218). David Thompson and Mario Hernandez have provided funds for
working capital during prior quarters. $2,719 of these
funds were converted to a loan which will be repaid by July 2016 at
a 5% interest rate. |
Subsequent event
On Friday the 9th of May, 2014 the
Municipality of San Esteban in which the Pimenton Mine and
installations are located, ordered the mine shut down because the
Pimenton Mine lacks the proper municipal permit for the plant and
camp buildings.
The Company has undergone a long process of
permitting with the municipality and all other relevant government
authorities over a number of years which has resulted in all the
appropriate permits being issued except the final one for the plant
and camp buildings which is based to large extent on first
receiving other permits or certificates dealing with water use,
land use, health and safety and structural calculations amongst
others. The only missing document is the certificate relating to
the structural calculations used in the construction of the plant
and camp buildings.
At this moment, the company is concentrating its
efforts on getting the already completed structural calculations
approved by a required third party specialist so that it can be
filed with the municipality in order to get the last remaining
permit issued. Until such time as this permit is issued operations
at the Pimenton Mine will be on hold. The company cannot predict
how long it will take the municipality to issue the final permit
for the mine plant and buildings, but is reasonably confident that
it will be done quickly in order to restart operations at the
Pimenton Mine.
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