Midway Gold Announces Year End 2012 Financial Results
Midway Gold Corp. ('Midway? or the 'Company?) announces financial
results for the year ended December 31, 2012. These results were filed
today with the United States Securities and Exchange Commission (the
'SEC?) in the Company′s quarterly report on Form 10-K, and with the
relevant security regulators in Canada.
Current Highlights
Strong cash position ? $70 (US$) million private placement financing
in December 2012
Pan permitting is on track with the Draft EIS in progress and
completion expected near-term.
Detailed engineering and post-feasibility mine optimization are
underway in anticipation of Pan Project construction this year
Initial Pan production is scheduled for mid-2014
Financial Results
All references to '$? in this release mean the Canadian dollar. The
financial information is presented in accordance with U.S. generally
accepted accounting principles.
A comparison of our balance sheets at December 31, 2012 and December 31,
2011 is as follows:
? | ? | ? | ? | ? | December 31, | ? | ? | ? | ? | ? | ? | December 31, | ? | ? | ||||
2012 | ? | ? | ? | ? | ? | ? | 2011 | |||||||||||
Assets | ||||||||||||||||||
Cash and cash equivalents | $ | 75,052,836 | $ | 10,191,069 | (1) | |||||||||||||
Mineral properties | 49,922,926 | 49,563,134 | ||||||||||||||||
Other assets | ? | 9,054,841 | ? | ? | ? | ? | ? | ? | ? | 2,817,749 | ||||||||
Total assets | $ | 134,030,603 | ? | ? | ? | ? | ? | ? | $ | 62,571,952 | ||||||||
? | ||||||||||||||||||
Liabilities | $ | 33,379,702 | $ | 5,291,319 | (2) | |||||||||||||
Redeemable preferred stock | 44,261,122 | - | (3) | |||||||||||||||
Shareholders′ equity | ? | 56,389,779 | ? | ? | ? | ? | ? | ? | ? | 57,280,633 | ||||||||
Total liabilities and shareholders′ equity | $ | 134,030,603 | ? | ? | ? | ? | ? | ? | $ | 62,571,952 | ||||||||
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Notes: | |||
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(1) | ? | ? | The net increase in cash and cash equivalents of $64.9 million is primarily due to cash provided by financing activities of $84.3 million during the 12 months ended December 31, 2012. |
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(2) | The net increase in liabilities is primarily due to the recording of a derivative liability of $27.3 million related to the redeemable Series A Preferred Stock issued as part of a private offering closed on December 13, 2012. | ||
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(3) | The Redeemable preferred stock balance of $44.3 million as of December 31, 2012 is related to the issuance of US$70.0 million worth of Series A Preferred Stock, the bifurcated embedded derivative liability noted above comprises the remainder of the associated balance. | ||
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A comparison of the results of operations for the twelve months ended
December 31, 2012 and December 31, 2011 is as follows:
? | ? | ? | ---- Twelve Months Ended December 31, ---- | |||||||
| 2012 | ? | ? | ? | 2011 | ||||||
Net loss | $ | (15,274,622) | ? | ? | ? | $ | (15,527,179) | |||
| (15,706,856) | (15,527,179) | ||||||||
Basic and diluted loss per share | $ | (0.13) | $ | (0.15) | ||||||
Weighted average number of shares outstanding | 121,056,319 | 106,992,452 | ||||||||
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Net cash used in operating activities | (11,650,261) | (14,045,550) | ||||||||
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Net cash used in investing activities | (7,921,806) | (1,665,648) | ||||||||
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Net cash provided by financing activities | 84,323,143 | 19,839,451 | ||||||||
? | ||||||||||
Effect of exchange rates on changes in cash | 110,691 | |||||||||
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Results from Operations
The consolidated net loss for the twelve-month period ended December 31,
2012 was $15,274,622 or $0.13 per share, a decrease of 2% from
$15,527,179 or $0.15 per share for the same period in 2011. The change
is primarily due to a decrease in mineral exploration expenditures of
$3.8 million offset by changes in other income and income tax recovery.
Other income (expenses) for the year ended December 31, 2012 was an
expense of $1,382,963 compared to an income of $485,725 during the
comparable period of 2011. Income tax recovery for the year ended
December 31, 2012 decreased by $1,760,374, or 68%, from the same period
of 2011.
To review Midway Gold′s Annual Report on Form 10-K for the year ended
December 31, 2012, including our Management Discussion and Analysis,
visit any of the following websites: www.sedar.com,
www.sec.gov
or www.midwaygold.com.
The 'Recent Highlights? section of this release has also been reviewed
and approved by Mr. William S. Neal (M.Sc. and CPG), Midway′s Vice
President of Geological Services and a 'qualified person? as that term
is defined in NI 43-101 of the Canadian Securities Administrators.
ON BEHALF OF THE BOARD
'Kenneth A.
Brunk'
Kenneth A. Brunk, Chairman, President and CEO
About Midway Gold Corp.
Midway Gold Corp. is a precious metals company with a vision to explore,
design, build and operate gold mines in a manner accountable to all
stakeholders while assuring return on shareholder investments. For more
information about Midway, please visit our website at www.midwaygold.com
or contact Jaime Wells, Investor Relations Analyst, at (877) 475-3642
(toll-free).
Neither the TSX Venture Exchange, its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
nor the NYSE MKT accepts responsibility for the adequacy or accuracy of
this release.
This press release contains forward-looking statements about the
Company and its business. Forward looking statements are statements that
are not historical facts and include, but are not limited to, statements
about the Company's intended work plans and resource estimates and
potential offering of common shares of the Company from time to time.
The forward-looking statements in this press release are subject to
various risks, uncertainties and other factors that could cause the
Company's actual results or achievements to differ materially from those
expressed in or implied by forward looking statements. These risks,
uncertainties and other factors include, without limitation, risks
related to the timing and completion of the Company's intended work
plans, risks related to fluctuations in gold prices; uncertainties
related to raising sufficient financing to fund the planned work in a
timely manner and on acceptable terms; changes in planned work resulting
from weather, logistical, technical or other factors; the possibility
that results of work will not fulfill expectations and realize the
perceived potential of the Company's properties; uncertainties involved
in the interpretation of drilling results and other tests and the
estimation of gold resources and reserves; the possibility that required
permits may not be obtained on a timely manner or at all; the
possibility that capital and operating costs may be higher than
currently estimated and may preclude commercial development or render
operations uneconomic; the possibility that the estimated recovery rates
may not be achieved; risk of accidents, equipment breakdowns and labor
disputes or other unanticipated difficulties or interruptions; the
possibility of cost overruns or unanticipated expenses in the work
program; and other factors identified in the Company's SEC filings and
its filings with Canadian securities regulatory authorities.
Forward-looking statements are based on the beliefs, opinions and
expectations of the Company's management at the time they are made, and
other than as required by applicable securities laws, the Company does
not assume any obligation to update its forward-looking statements if
those beliefs, opinions or expectations, or other circumstances, should
change.
Midway Gold Corp.
Jaime Wells, 877-475-3642 (toll-free)
Investor
Relations Analyst