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Andean American Mining Reports First Quarter Financial Results
Andean American Mining Reports First Quarter Financial Results
About this update from Aftermath Silver Ltd.
[{"type":"text","content":"\nAndean American Mining Reports First Quarter Financial Results\n\n\n Aug. 27, 2009 (Filing Services Canada) -- Andean American Mining Corp. (AAG - TSX Venture, AQN - FWB), (all figures in Canadian dollars, unless otherwise noted) The Board of Directors of Andean American Mining Corp. reports on its Consolidated Interim Financial Statements and Management Discussion and Analysis for the quarter ended June 30, 2009.Highlights:Financial:- The net income for the period was $31,656 or $0.00 per share compared with a net loss of $1,377,977 or $0.02 per share in the comparable period last year. Stock based compensation expense, general and administrative expenses and direct operating costs decreased over the same period in the prior year. This decrease was offset by increases in foreign exchange due to the fluctuation between the Canadian and US dollar.- The loss from operations in this quarter amounting to $140,719 compared with a loss of $849,982 in the comparable period last year was primarily due to a decrease in direct operating costs.- Cash flow provided from (used for) operations in the three months ended June 30, 2009 before changes to non-cash working capital was $522,180 compared with ($787,437) in the comparative period for 2008. The increase was primarily due to the fluctuation of the Canadian dollar in relation to the United States dollar. Operational:- At Invicta, a feasibility study was completed in June of 2009 after an audit by Guy Lokhorst, P.Eng., of The Lokhorst Ventures Group. The study reported an operating cost for the mine and plant of 29.92 USD/t and a capital cost of USD 65.3 million. The sum of the 5-years bulk revenue is USD 600.1 million and net profits are USD 185.3 million, with a gold base price of USD 900/oz and copper base price of USD 2.00/lb. The Net Present Value at 11% discount rate of the 5-year free cash flow net of debt amortization amounts to USD 159 million in the base case scenario. The Company expects pre-production mine development to take approximately 12 months from project initiation.- At the Sinchao Project, a recent re-interpretation of the property geology indicates that less than 15% of the mineralized zones have been tested to date. The geological potential for additional resources at the Breccia and Skarn Zones has been estimated to range from 400Mt to 1,600Mt, with estimated gra...