TORONTO, May 16, 2014 /CNW Telbec/ - 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.
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|
|
|
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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.
|
|
|
|
|
|
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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.
|
|
|
|
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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.
|
|
|
|
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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
Registered Office:
ROYAL BANK PLAZA
SOUTH TOWER
200 BAY STREET, SUITE 3800
TORONTO, ONTARIO M5J 2Z4
CANADA
Toronto Office:
67 YONGE STREET, OF. 1201
TORONTO, ONTARIO M5J 1J8
CANADA
Santiago Office:
AVENIDA SANTA MARIA 2224
PROVIDENCIA, SANTIAGO, CHILE
Telephone: 56-2-2569 6200
For further information, contact:
Stephen W. Houghton, CEO
Stephen W. Houghton, CEO
E-Mail: ceg@cegmining.com
Telephone: 56-2-2569 6200
Website: www.cegmining.com
Renmark Financial Communications Inc.
Barbara Komorowski : bkomorowski@renmarkfinancial.com
Lorraine Athaide : lathaide@renmarkfinancial.com
Tel: (416) 644-2020 or (514) 939-3989
www.renmarkfinancial.com
Copyright CNW Group 2014