Cerro Grande Mining Corporation Reports 3 Months and 6 Months
Results for its Fiscal Period Ended March 31, 2013 Compared to
Comparable Period a Year Ago
TORONTO, May 15, 2013 /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,
2013 compared to the same quarter a year ago and its results
for the
six months fiscal period ended March 31,
2013 compared to the six month
period ended March 31, 2012 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, 2013
and 2012. (Expressed in thousands of
US dollars except per share amounts)
Revenue
|
Three months ended
|
|
Six months ended
|
March 31,
|
March 31,
|
|
March 31,
|
March 31,
|
2013
|
2012
|
|
2013
|
2012
|
$
|
$
|
|
$
|
$
|
Gold Sales
|
5.394
|
4.643
|
|
11.110
|
9.433
|
Copper and Silver Sales
|
805
|
688
|
|
1.546
|
1.187
|
Services
|
26
|
951
|
|
101
|
951
|
|
6.225
|
6.282
|
|
12.757
|
11.571
|
Expenses
|
|
|
|
|
|
Operating costs
|
5.841
|
4.892
|
|
10.538
|
8.985
|
Operating costs for services
|
24
|
828
|
|
77
|
828
|
Reclamation and remediation
|
11
|
14
|
|
22
|
41
|
General, sales and administrative
|
910
|
710
|
|
1.764
|
1.459
|
Foreign exchange
|
(4)
|
52
|
|
39
|
43
|
Interest
|
95
|
27
|
|
144
|
54
|
Other gains and losses (net)
|
43
|
99
|
|
44
|
57
|
Exploration costs
|
506
|
611
|
|
1.201
|
1.013
|
|
7.426
|
7.233
|
|
13.829
|
12.480
|
Loss and comprehensive loss before income taxes
|
(1.201)
|
(951)
|
|
(1.072)
|
(909)
|
Income tax expense
|
189
|
(44)
|
|
-
|
(44)
|
Deferred income tax
|
( 70)
|
-
|
|
(122)
|
-
|
Loss and comprehensive loss for the
period
|
(1.082)
|
(995)
|
|
(1.194)
|
(953)
|
|
|
|
|
|
|
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 fiscal month period ended March 31, 2013 and
2012:
(Expressed in thousands of US dollars)
|
|
a)
|
Revenue for the three month period ended March 31, 2013 increased
over
the same period 2012 due to increased gold sales of 3,373 oz
compared
to 2,763 oz in the three month period ended March 31,
2012.
|
|
b)
|
Operating expenses for the three month period ended March 31, 2013
were
$5,841 compared to $4,892 for the same period in 2012. This
increase of
$949 consisted primarily of increased direct costs.
|
|
c)
|
General and administrative costs for the three month period ended
March
31, 2013 were $910 compared to $710 for the same period in 2012.
This
increase was due primarily to an increase in salaries.
|
|
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, 2013, the
Company
expensed $506 (2012 - $611) of exploration costs.
|
Net income after taxes was a negative $1,082 for the three month period
ended March 31, 2013. During
the period, depreciation and amortization
amounted to $614 resulting in a
negative cash flow of $468 after
exploration expenses of $506.
Net income after taxes for the three month period ended 2012 was
a
negative $995. During the period,
depreciation and amortization
amounted to $541 resulting in a
negative cash flow of $454 after
exploration expenses of $611.
On a stand alone basis for the three month period ended
March 31, 2013,
the Pimenton mine had net loss of $20. Depreciation and amortization
amounted to $704. In total (net
earnings (loss) plus depreciation and
amortization) the Pimenton mine had a positive cash flow of
$684 for
the three month period ended March 31,
2013. This compares to $628
in
the comparable three month period ended March 31, 2012.
Pimenton's cash cost per ounce of gold produced was $1,289 for the three
month period ended March 31, 2013
compared to $967 in the same period
a
year ago.
2)
|
Consolidated statements of income and other comprehensive (loss)
income
for the six fiscal month period ended March 31, 2013 and 2012:
(Expressed in thousands of US dollars)
|
|
a)
|
Revenue for the six month period ended March 31, 2013 increased
over the
same period 2012 due to increased gold sales of 6,737 oz compared
to
5,655 oz in the six month period ended March 31, 2012.
|
|
b)
|
Operating expenses for the six month period ended March 31, 2013
were
$10,538 compared to $8,985 for the same period in 2012. The
increase of
$1,553 consisted of increased labor costs of $220; direct costs
of
$651; net smelter return of $120; indirect costs of $259,
principally
related to mine insurance. In addition, amortization and
depreciation
increased by $212 and other expenses increased by $91.
|
|
c)
|
General and administrative costs for the six month period ended
March
31, 2013 were $1,764 compared to $1,459 for the same period in
2012.
This $305 increase was due primarily to an increase in
salaries.
|
|
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, 2013, the
Company
expensed $1,201 (2012 - $1,013) of exploration costs
|
Net income after taxes was a negative $1,194 for the six month period
ended March 31, 2013. During the
period, depreciation and amortization
amounted to $1,276 resulting in a
positive cash flow of $82 after
exploration expenses of $1,201.
Net income after taxes was a negative $953 for the six month period
ended 2012. During the period, depreciation and amortization
amounted
to $1,072 resulting in a positive
cash flow of $119 after
exploration
expenses of $1,013.
On a stand alone basis for the six month period ended March 31, 2013,
the Pimenton mine had net earnings of $973. Depreciation and
amortization amounted to $1,344. In
total (net earning plus
depreciation and amortization) the Pimenton mine had a positive
cash
flow of $2,317 for the six month
period ended March 31, 2013. This
compares to $1,863 in the comparable
six month period ended March 31,
2012.
Pimenton's cash cost per ounce of gold produced was $1,067 for the six
month period ended March 31, 2013
compared to $1,142 in the same
period
a year ago.
The principal reason for the poor results in the second quarter
ended
March 31, 2013, compared to the six
months ended March 31, 2013, was
an
increase in costs and a reduction in ore grades into the
mill. We are
working to improve the ore grades into the mill along with cost
reductions in the entire organization. These cost reductions will
not
be recognized completely until the fourth quarter of our fiscal
year
ended September 30, 2013.
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