TORONTO, June 2, 2015 /PRNewswire/ - Cerro Grande
Mining Corporation (the "Company" or "CEG") (CSE: CEG) (OTCQB:
CEGMF) reported its unaudited results for its second fiscal quarter
ended March 31, 2015 compared to the
same quarter in 2014 and results for the six months fiscal period
ended March 31, 2015 compared to the
same 6 months period in 2014. These financial statements and
MD&A have been filed on SEDAR and the Company refers the reader
to those materials for additional information.
Revenues totalled US $2,381,000
for the Company's second fiscal quarter ended March 31, 2015 which includes gold sales of US
$2,096,000 (1,667ozs of gold) and
copper and silver sales of US $285,000 compared to revenues for the same
quarter in 2014 of US $4,233,000
which includes gold sales of US $3,601,000 (2,643 ozs of gold) and copper and
silver sales of US $638,000.
Revenues totalled US $4,845,000
for the Company's six months fiscal period ended March 31, 2015 which included gold sales of US
$4,255,000 (3,499 ozs of gold) and
copper and silver sales of US $590,000 compared to revenues for the same 6
month period in 2014 of US $8,744,000
which includes gold sales of US $7,485,000 (5,201 ozs of gold) and copper and
silver sales of US $1,259,000.
Net loss before income taxes for the second fiscal quarter ended
March 31, 2015 was US $1,372,000 compared to a loss of US $1,248,000 in the comparable period a year ago
and for the six month period ended March 31,
2015, the Company reported a loss before income taxes of US
$2,847,000 compared to the same 6
month period a year ago of US $2,334,000. Net loss after income taxes for the
six month period just ended and the year ago period were the same
as income before taxes.
At March 31, 2015 the Company had
a negative working capital position of US $2,686,000 compared to US $1,429,000 at March 31,
2014.
On a standalone basis, the Pimenton mine had a net loss for its
second fiscal quarter ended March 31,
2015 of US $947,000 after
deducting depreciation and amortization expense of US $1,207,000 compared to the same period in 2014
when the net loss was US $290,000
after deducting depreciation and amortization expense of US
$1,421,000.
SUMMARY FINANCIAL RESULTS
The table below sets out the consolidated profit and loss for
the second quarter ended March 31,
2015 with comparatives for the same period in 2014 and the
six months ended March 31, 2015
compared to the six months, ended March
31, 2014. (000's omitted only in the table below)
|
Three months
ended
|
|
Six months
ended
|
|
March
31,
|
March
31,
|
|
March
31,
|
March
31,
|
|
2015
|
2014
|
|
2015
|
2014
|
|
Revenue
|
$
|
$
|
|
$
|
$
|
|
Sales
|
2,381
|
4,233
|
|
4,845
|
8,774
|
|
Services
|
-
|
-
|
|
-
|
-
|
|
2,381
|
4,233
|
|
4,845
|
8,774
|
|
Expenses
|
|
|
|
|
|
|
Operating
costs
|
3,203
|
4,909
|
|
6,508
|
9,699
|
|
Operating costs for
services
|
-
|
-
|
|
-
|
-
|
|
Reclamation and
remediation
|
6
|
11
|
|
13
|
22
|
|
General, sales and
administrative
|
557
|
577
|
|
1,172
|
1,347
|
|
Foreign
exchange
|
(39)
|
(8)
|
|
(59)
|
(58)
|
|
Interest
|
52
|
(5)
|
|
105
|
90
|
|
Other gains and
losses (net)
|
(26)
|
(3)
|
|
(48)
|
6
|
|
Exploration
costs
|
-
|
-
|
|
-
|
2
|
|
3,753
|
5,481
|
|
7,692
|
11,108
|
|
|
|
|
|
|
|
Loss and
comprehensive loss before income taxes
|
(1,372)
|
(1,248)
|
|
(2,847)
|
(2,334)
|
|
Income tax
(expense)/recovery
|
-
|
-
|
|
-
|
-
|
|
Deferred income
tax
|
-
|
-
|
|
-
|
-
|
|
Loss and
comprehensive loss for the
period
|
(1,372)
|
(1,248)
|
|
(2,847)
|
(2,334)
|
|
|
|
|
|
|
|
Basic and diluted
loss per share
|
(0.01)
|
(0.01)
|
|
(0.02)
|
(0.02)
|
|
1)
|
Consolidated
statements for the three month periods ended March 31, 2015 and
2014:
|
|
|
|
|
a)
|
Revenue for the three
month period ended March 31, 2015 decreased over the same period in
2013 due to a decrease in gold sales to 1,677 oz compared to 2,643
oz in the three month period ended March 31, 2014. The decrease was
also due to a lower grade and an average price of gold of $1,195
for the quarter ended March 31, 2015 (2014 - $1,296).
|
|
|
|
|
b)
|
Operating expenses
for the three months ended March 31, 2015 were $3,203,000 compared
to $4,909,000 for the same period in 2014. The decrease of
$1,706,000 consists mainly of a reduction in labour costs and a
revaluation of the Chilean pesos vs the US Dollar and lower fuel
costs.
|
|
|
|
|
c)
|
General and
administrative costs for the three months ended March 31, 2015 were
$557,000 compared to $577,000 for the same period in
2014.
|
|
|
|
|
2)
|
Consolidated
statements for the six month period ended March 31, 2015 and
2014:
|
|
|
|
|
a)
|
Revenue for the six
month period ended March 31, 2015 decreased over the same period in
2013 due to a decrease in gold sales to 3,499 oz compared to 5,201
oz in the six month period ended March 31, 2015. The decrease was
also due to a lower grade and an average price of gold of $1,183
for the quarter ended March 31, 2015 (2014 - $1,319).
|
|
|
|
|
b)
|
Operating expenses
for the six months ended March 31, 2015 were $6,508,000 compared to
$9,699,000 for the same period in 2014. The decrease of $3,191,000
consists mainly of a reduction in labour costs and a revaluation of
the Chilean pesos vs the US Dollar and lower fuel, maintenance and
other production costs.
|
|
|
|
|
c)
|
General and
administrative costs for the six months ended March 31, 2015 were
$1,172,000 compared to $1,347,000 for the same period in 2014,
basically due to reduction in labour costs during the first
quarter.
|
|
|
|
|
3)
|
Consolidated Cash
flow for the six month period ended March 31, 2015
|
|
|
|
|
Cash generated by the
Pimenton Mine decreased due to lower gold grades, sales and prices
in the quarter compared to the comparative quarter. Capital
expenditures at the Pimenton Mine were $86,000 for the six months
ended March 31, 2015 (2014 - $63,000).
|
Overview
The Company is an exploration, development and mining
corporation focused in Chile. The Company's primary asset is
an operating gold and copper mine in Chile (the "Pimenton Mine"). The
Pimenton mine is a narrow high-grade gold and copper mine located
in the high mountain range of Chile and encompasses 3,121 hectares (7,708
acres).
The Company's other major projects are a porphyry copper deposit
(the "Pimenton Porphyry") and other projects in various stages of
exploration and development in Chile which include "Santa Cecilia",
"Tordillo", and two limestone deposits "Catedral" and "Cal
Norte".
Operational Highlights
- Gold produced by the Pimenton Mine for the six months ended
March 31 2015 was 3,499 oz compared
to 5,200 oz produced in the same period for 2014
- Pimenton's cash cost for the six months ended March 31, 2015 was $1,165 per ounce of gold produced net of by
product credits, compared to $777 per
oz in the same period for 2014.
- Pimenton's production cost, which includes depreciation and
amortization, for the six months ended March
31 2015, was $1,531,000 per
ounce of gold produced net of by product credit, compared to
$1,047,000 per oz in the same period
for 2014
- The average gold recovery for the six months ended March 31 2015 was 93.0% compared to 93.10% in the
same period for 2014
- 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 six months period ended
March 31 2015 was $2,847,000 compared to a loss of $2,334,000 in the same period in 2014.
- Average price per ounce of gold sold for the six months ended
March 31 2015 was $1,195 (2014 - $1,279).
- Net loss after income taxes for the six months ended
March 31 2015 was $2,847,000 compared to $2,334,000 in the same period in 2014.
- Basic loss per share for the six months ended March 31 2015 was a loss of 0.01 cents per share (2014 – loss of 0.02).
- At March 31 2015, the Company had
cash and cash equivalents of $45,000
compared to $87,000 at September 30, 2014.
- Cash flow provided by operating activities for the period ended
March 31 2015 was negative
$634,000 (2014 – positive
$769,000).
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