TIDMUGY 
 
 


Press Release

 


April 16, 2009

 


Symbols: TSXV: UME; AIM: UGY

 


Uruguay Mineral Exploration Inc. Announces Resultsfor the Third Quarter of Fiscal Year 2009

 


Uruguay Mineral Exploration Inc. (UME), a South American focused gold production and exploration company, today reported results for the third quarter of fiscal 2009 ended February 28, 2009.

 


David Fowler, Chief Executive Officer commented: "This quarter showed a significant improvement over the prior quarter. We produced 19,371 ounces of gold at an average cash cost of $US 547 per ounce. Production was in line with our expectation, and represented a 22 percent increase over the previous quarter. Average cash costs fell by 33 percent during the same period reflecting the increase in head grade, the initial success of the company-wide cost reduction program implemented during the quarter and the decline in the price of oil and other consumables."

 


Mr. Fowler continued: "On the exploration front, we have received the result of an independent resource estimate for Arenal Deeps, which indicates a measured and indicated resource of 3.16 million tones at 2.2 g/t Au using a 1.5 g/t cut off. We expect to release the results of an underground pre-feasibility study in June 2009 with potential production levels, capital investment and operating costs. Infill and extension drilling and feasibility studies are anticipated to follow. "

 


"Despite good surface anomalies in the Rincon district along strike to the east of the Arenal mine, to date drilling has not returned significant results to identify a new bulk open pit resource. Additional targets are however being defined in the Rincon district and will be tested in coming quarters. First pass drilling was completed over the Peru/Esperanza trend during the quarter to test for higher grade open pit vein resources. Two high priority targets have been defined for further definition in coming quarters. Best results were six meters at 5.4 g/t au from 37 meters in MCRC010 and three meters at 8.26 g/t au in PRRC042. "

 


"Away from the mine first pass drilling at Paso de Lugo reported a best result of 9 meters at 2.95 g/t au from 92 meters in hole PLD09005" Mr. Fowler closed.

 
Summary of Results1            Three months ended    Nine months ended 
                               February 28,          February 28, 
=------------------------------------------------------------------------ 
                               Q3 2009  Q3 2008      2009      2008 
=------------------------------------------------------------------------ 
Operating Results 
=------------------------------------------------------------------------ 
Gold produced       Ounces     19,371   25,150       51,647    69,931 
=------------------------------------------------------------------------ 
Average cash cost   US$/oz     547      342          706       375 
=------------------------------------------------------------------------ 
Average price       US$/oz     822      888          841       777 
received 
=------------------------------------------------------------------------ 
Financial Results 
=------------------------------------------------------------------------ 
Revenue             $US '000s  17,125   22,220       46,505    56,653 
=------------------------------------------------------------------------ 
Net income (loss)   $US '000s  (1,098)  5,942        (11,859)  11,535 
for the period 
=------------------------------------------------------------------------ 
Cash flow from      $US '000s  4,091    4,416        3,289     17,359 
operations2 
=------------------------------------------------------------------------ 
Basic earnings      $US        (0.02)   0.12         (0.24)    0.24 
per share 
=------------------------------------------------------------------------ 
Cash at the end     $US '000s  8,051    14,942       8,051     14,942 
of the period 
=------------------------------------------------------------------------ 
Total debt          $US '000s  71       2,309        71        2,309 
at the end 
of the period 
=------------------------------------------------------------------------ 
 
 


1 Results are based on Canadian GAAP and expressed in U.S. dollars.

 


2 Before non-cash working capital movements.

 


REVIEW FOR THE THIRD QUARTER ENDED FEBRUARY 28, 2009

 


Production and Costs

 


Gold production for the third quarter of fiscal 2009 was 19,371 ounces, 22% above production for the previous quarter, and in line with management's expectations. As anticipated, increased grade was encountered at the Arenal pit as mining returned to the core of the deposit. Arenal provided most of the plant feed, but considerable tonnage was sourced from the Zapucay area while smaller amounts of high grade Veta material provided supplementary feed.

 


Aggregate production for the first nine months of fiscal 2009 was 51,647 ounces. UME confirms its previously announced production forecast for fiscal 2009 of 72,000 to 75,000 ounces.

 


Cash costs for the quarter were $US 547 per ounce, and represent a 33% reduction from the previous quarter. As expected, the decline in cash costs was principally the result of:

 
 
    -- increased head grade; 
 
    -- a company-wide cost cutting program, including a 20% reduction in 


headcount and elimination of discretionary expenditure;

 
    -- lower oil prices and the depreciation of the US dollar against the 


Uruguayan peso; and

 
    -- re-negotiation with suppliers resulting in a decline in the price of 


other consumables such as explosives and grinding media.

 


Cost reduction will continue to be an important focus during the last quarter of fiscal 2009. The average cash cost estimate for the 2009 financial year has been revised to the range of $US 650 to $US 680 per ounce from the previous estimate of $US 600 to $US 630. This reflects a change in the mine plan to defer mining of higher levels of medium grade ore at San Gregorio east from the fourth quarter of 2009 into the first quarter of 2010. These higher levels of medium grade ore were expected to produce an inventory credit of approximately $US 3 million which affects cash operating costs, but not the Company's cash position.

 


Financial Performance

 


Results for the quarter improved to a net loss after tax of $US 1.1 million from a net loss after tax of $US 7.9 million in the previous quarter. This compares against the $US 5.9 million net profit after tax posted in the corresponding quarter last year. The average gold sales price was $US 822 per ounce, against a cash cost of $US 547 per ounce.

 


The quarter on quarter improvement was principally the result of increased head grade and the positive impact from the company-wide cost cutting program. This was offset by an unrealized loss of $US 0.9 million on gold forward sales, a $US 0.8 million write-off of exploration expenses, and the depreciation of mine properties that have entered into production during the quarter. Year-on-year, however, results were negatively impacted by lower ounces produced and sold, as well as higher depreciation resulting from the shortfall in high grade ore at Arenal.

 


Cash flow generated by operations was $US 4.1 million after working capital items compared to $US 4.4 million in the year-ago quarter. The Company's cash position improved to US$ 8.1 million at the end of February 2009, from US$ 6.4 million at the end of November 2008. UME maintains its objective of achieving a cash position at May 31, 2009 of between $US 8 million to 10 million. This position is expected to be achieved after funding exploration expenditure of approximately US$ 10 million for fiscal 2009.

 


Capital expenditure for the quarter was $US 0.5 million invested in property, plant and equipment and $US 1.9 million in exploration. Investment in exploration included $US 1.2 million in exploration activities near the mine and in the Isla Cristalina belt and, $US 0.4 million in other gold projects in the Florida and Don Feliciano Belts and $US 0.1 million on Lascano.

 


Exploration and Development

 


A geological map of Uruguay and UME's key projects can be viewed at this link: http://www.uruguayminerals.com/explorations/introduction/intro/

 


Arenal Deeps

 


On April 6, 2009 the Company published a new resource estimate for Arenal Deeps. A 3,164,000 tonne Measured and Indicated Resource below the designed limit of the open pit has been estimated at 2.21 g/t using a gold cut-off of 1.5 g/t. The open pit is expected to be completed to design by April 15, 2009.

 


Mineral Resource Estimate*

 
Cut off   Resource   Tonnes        Au    Measured + Indicated 
Au g/t    Category   (dry metric)  g/t   Tonnes     Au g/t  Contained Au Oz 
0.5       Measured   991,000       1.32  9,126,000  1.39    408,000 
          Indicated  8,135,000     1.40 
          Inferred   484,000       1.33 
1.0       Measured   616,000       1.65  5,780,000  1.77    328,000 
          Indicated  5,164,000     1.78 
          Inferred   254,000       1.84 
1.5       Measured   308,000       2.07  3,164,000  2.21    224,000 
          Indicated  2,856,000     2.22 
          Inferred   152,000       2.27 
2.0       Measured   130,000       2.54  1,557,000  2.70    135,000 
          Indicated  1,427,000     2.71 
          Inferred   75,000        2.79 
2.5       Measured   49,000        3.09  790,000    3.16    80,000 
          Indicated  741,000       3.16 
          Inferred   40,000        3.27 
 
 


* Totals have been rounded| 359 drill holes were used in an estimation process incorporating ordinary kriging for a high grade domain and inverse distance weighting for a low grade domain

 


The measured, indicated and inferred resource detailed above is outside of the final pit design used for reserve estimation. The 780,167 tonnes at 2.21 g/t using a 1.5 g/t cut of measured and indicated resource shown above have been included in the last resource statement for Arenal published June 1, 2008.

 


This resource estimate is being used by Golder Associates S.A. in its underground mining pre-feasibility study for Arenal Deeps which is expected to be released in June 2009. This study will provide preliminary estimates of mining recoveries, operating cost and capital.

 


Concurrent with the completion of prefeasibility work, in April 2009 UME has commenced a 4,500 meter drill campaign to further define and increase this resource. A follow up15,000 meter infill drill program would follow as part of a bankable feasibility study. The total cost of completing feasibility studies and drilling is estimated at $US 3 million and is expected to be funded from operating cash flow.

 


Following completion of a bankable feasibility study mine plans are expected to be updated to reflect underground mining with the objective of contributing to production within two years and extending mine life to beyond five years. Once the economics of underground mining for Arenal Deep are understood and equipment is available additional exploration targets at San Gregorio, Ombú, the Vetas and other areas are expected to be tested to incrementally add resources.

 


A cross section of the down dip drilling at Arenal can be viewed at this link: http://www.uruguayminerals.com/explorations/isla_cristalina_belt/san_gregorio/

 


Veta Sur

 


Definition and extension drilling was completed at Veta Sur during the quarter. Selected significant drill results include:

 
HOLE ID   FROM  Intercept g/t Au 
=-------------------------------- 
VSRC138   22    5m @ 3.33g/t 
=-------------------------------- 
VSRC139   32    2m @ 8.11g/t 
=-------------------------------- 
VSRC142   35    2m @ 3.47g/t 
=-------------------------------- 
VSRC144   14    4m @ 4.48g/t 
=-------------------------------- 
VSRC145   28    5m @ 3.90g/t 
=-------------------------------- 
VSRC146   49    7m @ 3.86g/t 
=-------------------------------- 
VSRC147   52    5m @ 2.47g/t 
=-------------------------------- 
VSRC148   37    13m @ 13.67g/t 
=-------------------------------- 
VSRC149   32    4m @ 4.64g/t 
=-------------------------------- 
VSRC150   36    6m @ 6.68g/t 
=-------------------------------- 
VSRC151   54    3m @ 4.7g/t 
=-------------------------------- 
VSRC152   50    4m @ 2.90g/t 
=-------------------------------- 
 
 


As a result of this drilling, 137,650 tones at 2.64 g/t, equivalent to 11,600 ounces have been added to reserves. Mining has commenced in this area and is expected to continue during the fourth fiscal 2009 quarter and the first fiscal 2010 quarter.

 


Zapucay

 


Drilling at Knob Hill, to the south of Zapucay, has returned the following significant results:

 
HOLE ID   from  Intercept 
=---------------------------- 
ZPRC096   16    6m @ 4.05g/t 
=---------------------------- 
ZPRC096   35    2m @ 2.73g/t 
=---------------------------- 
ZPRC096   39    5m @ 1.11g/t 
=---------------------------- 
ZPRC103   15    5m @ 5.27g/t 
=---------------------------- 
 
 


As a result of this drilling an extension of the Zapucay resource by approximately 5,000 ounces is expected to be defined during the forth quarter.

 


Peru/Esperanza

 


First pass drilling has tested the 4.5 kilometer strike length of the Peru/Esperanza trend. Best results include

 
HOLE ID   FROM  Intercept Au g/t 
=-------------------------------- 
MCRC010   37    6m @ 5.40g/t 
=-------------------------------- 
PRRC042   63    3m @ 8.26g/t 
=-------------------------------- 
 
 


Drill result composites of >0.5g/t, includes intervals of 1.0mt <0.5 g/t

 


This drilling has identified two zones of interest that have the potential to deliver resources. Follow up drilling will continue in the coming quarters.

 


Rincon District

 


The Rincon district covers an area of 10 kilometers by 5 kilometers immediately east along strike of the Arenal mine. Detailed surface exploration commenced in this area a year ago targeting a bulk open pit target. Three targets have been identified to date with additional targets currently being developed. During the second quarter of fiscal 2009 UME announced that very promising surface samples were reported in the Los Castillos area. Despite these encouraging surface results no significant mineralization was reported from 2,334 meters of drilling in the area during the quarter. Structures were encountered but surface mineralization did not extend to depth.

 


Additional targets continue to be developed and are expected to be drilled during calendar 2009.

 


Paso de Lugo

 


Paso de Lugo is located in the Arroyo Grande Belt in Central Uruguay approximately 235 kilometers from the San Gregorio mine. Drilling at the project commenced during the quarter with a 13 hole program designed to test approximately 2 kilometers of a defined anomalous structure. Results have been obtained for the first six holes. Quartz veining and anomalous mineralization have been encountered in all holes with the best result being 9 meters at 2.95 g/t from 92 meters in PDL-09-005. Drilling will continue in the fourth quarter of the 2009 financial year.

 


Other Projects

 


Work on other projects includes the following:

 
 
    -- A 13 hole drill program was completed at the Madre con Hijos project 


in December 2008. This drilling intercepted anomalous vein material
but failed to define significant thickness or grade.

 
    -- Surface mapping and sampling at Texas has defined an anomalous area of 


interest 4.5 kilometers in length and up to 1.5 kilometers wide.
Mineralization is associated with quartz veins in granite including
zones of sheeting and stockworking. The target is expected to be
further developed with surface mapping and geophysics. Drilling is
planned early in the 2010 financial year.

 
    -- At Rocha, 60 kilometers south of Lascano, follow up soil sampling and 


surface geophysical surveys over a 15 kilometer structural/vein
corridor commenced during the quarter and this work is expected to be
completed during the fourth fiscal 2009 quarter. Preliminary results
indicate that several new targets will be generated in outcropping and
soil covered areas. Strong sulfide mineralization composed of
arsenopyrite and occasional galena has been identified in the
principal vein selvages. An induced polarization survey is planned
over the more prospective zones to help define drill targets that are
expected to be drilled in the 2010 financial year.

 
    -- Stream sediment sampling in the eastern end of the Isla Cristalina 


belt is defining new strongly anomalous areas that are expected to be
followed up during calendar 2009.

 


Further details on exploration results for the quarter can be found in the company's exploration report for the quarter at the following link: http://www.uruguayminerals.com/investors/quarterly_results/

 


Corporate

 


Mergers and Acquisitions

 


On February 25, 2009 the Company announced a potential offer for all of its issued capital. After exploring the potential offer in detail and in consultation with key shareholders, UME's Board of Directors rejected the potential offer as it significantly undervalues the Company. UME is actively considering other growth opportunities.

 


Lascano

 


The Lascano exploration target is composed of three large circular geophysical features which are each approximately 20 kilometers in diameter. Drilling has confirmed that a strong hydrothermal system is associated with the underlying intrusive suite of rocks. All rock types encountered show evidence of hydrothermal alteration and analytical results had locally defined weak but anomalous copper mineralization.

 


Due to its size and complexity, the project is being offered for joint venture. Four major companies have expressed an interest in the project. To date, two confidentiality agreements have been signed and data reviews have commenced.

 


Other Properties

 


A final report was received from GeoDiscovery on UME's nickel properties. Carpentaria was identified as very prospective for nickel and PGE minerals. Evaluation of continued work to identify drill targets is underway.

 


A non binding letter of intent has been signed with a Canadian junior on the Company's Cinco Rios diamond project. While significant progress has been made on preparation of documents a number of final points require resolution. If these issues can be resolved during April the agreement is expected to be signed.

 


Qualified Person's Statement

 


The technical information presented in this press release has been reviewed and verified by Mr. John Sadek, Vice President Operations and a Mining Engineer, and Mr. George Schroer Vice President Exploration and a Certified Professional Geologist. Mr. Sadek and Mr. Schroer are the Qualified Persons for the purposes of the AIM Guidance Note on Mining, Oil and Gas Companies dated March 2006. Mr. Sadek has a Bachelor of Engineering (Mining) from the University of Sydney and is a member of the AusIMM and SME. He has over 20 years of international experience in mining. Mr. Schroer has a Masters of Science in Geology from Colorado State University and is a member of SEG and AIPG. He has over 20 years of international experience in exploration.

 


Forward Looking Statements

 


All statements, other than statements of historical fact, contained or incorporated by reference in this news release, including any information as to the future financial or operating performance of UME, constitute "forward-looking statements" within the meaning of certain securities laws, including the "safe harbour" provisions of the Securities Act (Ontario) and the United States Private Securities Litigation Reform Act of 1995 and are based on expectations estimates and projections as of the date of this news release. There can be no assurance that such statements will prove to be accurate, such statements are subject to significant risks and uncertainties, and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements include, without limitation success of exploration activities; permitting time lines; the failure of plant; equipment or processes to operate as anticipated; accidents; labour disputes; requirements for additional capital title disputes or claims and limitations on insurance coverage. UME disclaims any intention or obligation to update or revise any forward looking statements whether as a result of new information, future events and such forward-looking statements, except to the extent required by applicable law.

 


ENDS

 


Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

 


About Uruguay Mineral Exploration Inc.

 


Uruguay Mineral Exploration Inc. (UME) is a gold production and exploration company that identifies and develops mineral opportunities in South America. UME is a fully integrated mining company, possessing the skills necessary to explore and develop its discoveries. UME operates San Gregorio, the only producing gold mine in Uruguay, and is the leading mineral exploration company in Uruguay with an exploration portfolio of gold, diamonds and base metal prospects, including copper, nickel, lead, and zinc.

 


Uruguay Mineral Exploration Inc. is quoted in Canada (TSXV) and London (AIM) and RBC Capital Markets is its Nominated Adviser and Broker. More information can be found at www.uruguayminerals.com

 


For further information, please contact:

 


Uruguay Mineral Exploration Inc

 


Tony Shearer, Chairman: +44 20 7602-1570; tonyshearer@btinternet.com

 


David Fowler, CEO: 598 2 6016354; urumin@ume.com.uy

 


Investor/Media Relations

 


Susan Borinelli, Breakstone Group: +1-646-330-5907; sborinelli@breakstone-group.com

 


RBC Capital Markets

 


Sarah Wharry: +44 (0) 20 7653 4667; sarah.wharry@rbccm.com

 


Consolidated Balance Sheets

 


(Unaudited)

 


(Thousands of United States Dollars, except where indicated

 
                                             As at 
                                             February 28,  May 31, 
                                             2009          2008 
                                             $             $ 
Assets 
Current assets 
Cash                                         8,051         18,601 
Accounts receivable                          4,267         2,810 
Inventories (Note 2)                         18,208        16,749 
Prepaid expenses                             1,092         1,004 
Total Current Assets                         31,618        39,164 
Property plant and equipment and             22,440        29,681 
mineral properties (Note 3) 
Deferred exploration (Note 4)                13,031        8,948 
Future income tax assets                     3,477         5,375 
Restricted cash                              176           191 
Total Non Current assets                     39,124        46,079 
Total assets                                 70,742        83,359 
Liabilities and Shareholders' Equity 
Current liabilities 
Accounts payable and accrued liabilities     8,343         8,816 
Fair value of derivatives (Note 9)           1,696         0 
Restructure plan (Note 11)                   307           0 
Current portion of long term debt (Note 5)   71            2,275 
Total Current liabilities                    10,417        11,091 
Long term tax payable                        2,414         2,414 
Long term debt (Note 5)                      0             25 
Asset retirement obligation                  2,975         2,869 
Total Non current liabilities                5,389         5,308 
Total liabilities                            15,806        16,399 
Capital stock (Note 6)                       34,642        35,043 
Warrants and convertible notes (Note 6)      12            12 
Contributed surplus                          4,118         3,882 
Accumulated other comprehensive income       (19)          (19) 
Retained earnings                            16,183        28,042 
Total shareholders' equity                   54,936        66,960 
Total liabilities and shareholders' equity   70,742        83,359 
 
 


Consolidated Statements of Income, other comprehensive income and Retained Earnings

 


(Unaudited)

 


(Thousands of United States Dollars except for earnings per share and weighted average number of shares outstanding)

 
                           Three months ended      Nine months ended 
                           February 28             February 28 
                           2009        2008        2009        2008 
                           $           $           $           $ 
Net Sales                  17,125      22,220      46,505      56,653 
Operating expenses         (11,071)    (9,244)     (38,225)    (26,914) 
Amortization and           (4,600)     (3,567)     (13,571)    (10,772) 
depreciation 
Operating expenses         (15,671)    (12,811)    (51,796)    (37,686) 
Sub-total                  1,454       9,409       (5,291)     18,967 
Other income (expenses) 
Stock based compensation   50          (264)       (236)       (770) 
expense 
General                    (910)       (1,069)     (3,173)     (3,235) 
and administrative 
expense 
Exploration expenses       (775)       0           (775)       0 
written off 
Non-hedged derivative      (901)       0           (1,696)     0 
Interest expense and       (80)        (99)        (218)       (291) 
debt accretion 
Foreign exchange           13          4           37          54 
Interest earned and        32          215         309         595 
other income 
                           (2,571)     (1,213)     (5,752)     (3,647) 
Income (loss)              (1,117)     8,196       (11,043)    15,320 
before taxes 
Current income taxes       (29)        (3,467)     1,081       (5,903) 
(provision) recovery 
Future income taxes        48          1,213       (1,897)     2,118 
(provision) 
recovery 
Net income (loss) and      (1,098)     5,942       (11,859)    11,535 
comprehensive 
income (loss) for 
the period 
Retained earnings,         17,281      26,803      28,042      22,896 
beginning 
of period 
Dividends                  0           (1,000)     0           (2,776) 
Retained earnings,         16,183      31,745      16,183      31,745 
end of period 
Earnings (loss) per 
common share 
Basic                      (0.02)      0.12        (0.24)      0.24 
Diluted                    (0.02)      0.12        (0.24)      0.24 
Weighted average shares 
outstanding 
Basic                      48,667,068  48,882,801  48,672,890  48,911,779 
Diluted                    48,667,068  48,904,758  48,871,567  48,929,474 
 
 


Consolidated Statements of Cash Flows

 


(Unaudited)

 


(Thousands of United States Dollars, except where indicated)

 
                              Three months ended    Nine months ended 
                              February 28           February 28 
                              2009     2008         2009      2008 
                              $        $            $         $ 
Operating activities 
Net income (loss)             (1,098)  5,942        (11,859)  11,535 
for the period 
Adjustments for: 
Amortization and depletion    4,600    3,567        13,571    10,772 
Exploration expenses          775      0            775       0 
written off 
Fair value of derivatives     901      0            1,696     0 
Accretion of debt             36       66           118       202 
Future income taxes           (48)     (1,213)      1,897     (2,118) 
Stock based compensation      (50)     264          236       770 
Restructure plan              (175)    0            307       0 
Other                         12       45           25        102 
                              4,953    8,671        6,766     21,263 
Net change in non-cash        (862)    (4,255)      (3,477)   (3,904) 
working 
capital balances (Note 8)) 
                              4,091    4,416        3,289     17,359 
Financing activities 
Proceeds from the issue       0        0            0         593 
of share capital 
Payments of finance lease     (46)     (46)         (140)     (141) 
net of draw downs 
Share repurchase              0        (270)        (401)     (270) 
Dividend payment              0        0            0         (1,776) 
                              (46)     (316)        (541)     (1,594) 
Investing activities 
Purchase of property,         (537)    (1,669)      (4,994)   (7,770) 
plant and equipment 
and development costs 
Exploration expenditure       (1,896)  (2,230)      (8,304)   (7,031) 
                              (2,433)  (3,899)      (13,298)  (14,801) 
Increase (Decrease) in cash   1,612    201          (10,550)  964 
Cash at the beginning         6,439    14,741       18,601    13,978 
of period 
Cash at the end of period     8,051    14,942       8,051     14,942 
 
 


Consolidated Statements of Changes in Shareholders' Equity

 


(Unaudited)

 


(Thousands of United States Dollars, except where indicated)

 
                       Three months ended February 2009    Nine month ended February 2009 
=------------------------------------------------------------------------------------------- 
                       Number   Amount                     Number   Amount 
                       (000's)                             (000's) 
=------------------------------------------------------------------------------------------- 
=------------------------------------------------------------------------------------------- 
Common shares 
=------------------------------------------------------------------------------------------- 
Balance at beginning   48,667   $ 34,642                   48,811   $ 35,043 
of period 
=------------------------------------------------------------------------------------------- 
Exercise of stock      0        0                          0        0 
options 
=------------------------------------------------------------------------------------------- 
Share repurchases      0        0                          (144)    (401) 
=------------------------------------------------------------------------------------------- 
Balance at end         48,667   $ 34,642                   48,667   $ 34,642 
of period 
=------------------------------------------------------------------------------------------- 
=------------------------------------------------------------------------------------------- 
Warrants and 
Convertible 
notes (Note 6) 
=------------------------------------------------------------------------------------------- 
Balance at beginning   20       $ 12                       270      $ 12 
of period 
=------------------------------------------------------------------------------------------- 
Expired warrants and   (0)      0                          (250) 
convertible notes 
=------------------------------------------------------------------------------------------- 
Balance at end         20       $ 12                       20       $ 12 
of period 
=------------------------------------------------------------------------------------------- 
Contributed surplus 
=------------------------------------------------------------------------------------------- 
Balance at beginning            $ 4,168                             $ 3,882 
of period 
=------------------------------------------------------------------------------------------- 
Employee stock based            (50)                                236 
compensation 
recognized 
=------------------------------------------------------------------------------------------- 
Transfer to common                                                  (0) 
shares 
=------------------------------------------------------------------------------------------- 
Balance at end                  $ 4,118                             $ 4,118 
of period 
=------------------------------------------------------------------------------------------- 
=------------------------------------------------------------------------------------------- 
Accumulated other 
comprehensive 
income 
=------------------------------------------------------------------------------------------- 
Balance at beginning            $ (19)                              $ (19) 
of period 
=------------------------------------------------------------------------------------------- 
Movement for                    0                                   0 
the period 
=------------------------------------------------------------------------------------------- 
Balance at end                  $ (19)                              $ (19) 
of period 
=------------------------------------------------------------------------------------------- 
=------------------------------------------------------------------------------------------- 
Retained earnings 
=------------------------------------------------------------------------------------------- 
Balance at beginning            $ 17,281                            $ 28,042 
of period 
=------------------------------------------------------------------------------------------- 
Net income for                  (1,098)                             (11,859) 
the period 
=------------------------------------------------------------------------------------------- 
Dividends                       0                                   0 
=------------------------------------------------------------------------------------------- 
Balance at end                  $ 16,183                            $ 16,183 
of period 
=------------------------------------------------------------------------------------------- 
=------------------------------------------------------------------------------------------- 
Shareholders' equity            $ 54,936                            $ 54,936 
at end of period 
=------------------------------------------------------------------------------------------- 
 
 
 
 
 


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