Andean American Reports Financial Results for the Quarter Ended December 31, 2011
TORONTO, ONTARIO -- (Marketwire) -- 02/14/12 -- Andean American Gold Corp. ('Andean' or the 'Company') (TSX VENTURE: AAG)(FRANKFURT: AQN) reports that for the three and nine months ended December 31, 2011, it incurred a net loss of US$46,453 or US$0.00 per share and US$4,814,560 or US$0.03 per share compared to US$879,971 or US$0.01 per share and US$2,541,296 or US$0.02 per share for the same period in 2010. Andean ended the quarter with cash on hand of US$17,425,208 and a working capital surplus of US$15,396,619.
Andean is an international mining and exploration company focused on gold and copper projects in Peru and currently has two key assets: the 31,600 hectare Invicta gold-silver-copper advanced exploration stage project located in the Huaura Province in Peru, and 64.95% of Sinchao Metals Corp. Sinchao is listed on the TSX-V trading under the symbol 'SMZ' and is the owner of a gold-silver-copper-zinc-lead exploration project.
Results of Operations
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Nine months ended Nine months ended
December 31, 2011 December 31, 2010
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Income/(loss) before
income tax ($4,814,560) ($2,541,296)
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Income/ (loss) per share ($0.03) ($0.02)
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Total assets $61,719,660 $62,334,275
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Working capital surplus/
(deficit) $15,396,619 $10,350,437
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Mineral properties $42,273,886 $45,476,315
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Share Capital:
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Outstanding 144,543,476 122,016,287
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Warrants 2,500,000 5,614,368
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Options 7,770,088 8,520,588
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Cash Flow and Liquidity
As at December 31, 2011, Andean had working capital of US$15,396,619, compared to a working capital surplus of US$22,894,392 at March 31, 2011. For the nine months ended December 31, 2011, Andean used cash of US$8,775,733, which included cash used in operations of US$4,522,743, expenditures on plant and equipment and mineral properties and deferred costs of US$5,028,726. This was offset by financing activities of $775,736.
International Financial Reporting Standards ('IFRS')
The Company adopted IFRS on April 1, 2011, with a transition date of April 1, 2010. Under IFRS 1 First-time Adoption of IFRS, the IFRS are applied retrospectively at the transition date of April 1, 2010. The effect of the transition from Canadian generally Accepted Accounting Principles ('Canadian GAAP') to IFRS is not material and the explanation of how the transition from Canadian GAAP to IFRS has affected Andean's financial position, financial performance and cash flows are set out in the financial statements.
The information above should be reviewed in conjunction with the Company's unaudited consolidated financial statements, management discussion and analysis, for the three and six months ended September 30, 2011 that will be available shortly on www.sedar.com. For further information call (416) 368-9500 or toll free: 1-888-356-4784 or visit our website at www.AAGgold.com.
On behalf of Andean American Gold Corp.,
Bruce Ramsden
This news release may contain forward-looking information within the meaning of the Securities Act (Ontario) ('forward-looking statements'). Such forward-looking statements may include the Company's plans for its mineral projects, the overall economic potential of its properties, the availability of adequate financing and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements expressed or implied by such forward-looking statements to be materially different. Such factors include, among others, risks and uncertainties relating to potential political risks involving the Company's operations in a foreign jurisdiction, uncertainty of production and costs estimates and the potential for unexpected costs and expenses, physical risks inherent in mining operations, currency fluctuations, fluctuations in the price of gold and other metals, completion of economic evaluations, changes in project parameters as plans continue to be refined, the inability or failure to obtain adequate financing on a timely basis, and other risks and uncertainties, including those described in the Company's Financial Statements, Management Discussion and Analysis and Material Change Reports filed with the Canadian Securities Administrators and available at www.sedar.com.
This press release is not an offer to sell or the solicitation of an offer to buy the securities, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification or registration under the securities laws of such jurisdiction. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended and such securities may not be offered or sold within the United States absent an applicable exemption from U.S. registration requirements.
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.
Contacts:
Andean American Gold Corp.
Bruce Ramsden
Vice President, Finance, CFO and Corporate Secretary
416-368-9500
bramsden@aaggold.com
Andean American Gold Corp.
Linda Dorrington
Investor Relations
905 491 6852
ldorrington@aaggold.com
www.AAGgold.com