Glass Earth Gold Limited: Financial Results and Management's Discussion & Analysis for 9 Months to 30 September 2010
November 25 2010 - 9:23AM
Marketwired Canada
Glass Earth Gold Limited (TSX VENTURE:GEL)(NZAX:GEL) ("Glass Earth") announced
today that it has filed its September 30 2010, third quarter Financial
Statements and associated Management's Discussion and Analysis ("MD&A") report
pertaining to that period with the requisite regulatory authorities.
The Company recorded a net loss for the three months ended September 30, 2010 of
$266,000, which included a non-cash expense of $174,000 being the deemed value
of options granted to employees and directors. The Company's cash position as at
September 30, 2010 was $1,322,000.
Placer gold mining operations provided a net cash contribution of $138,000 for
the quarter.
Exploration activities were steady in Q3, but subsequent to refinancing in June
2010, increased exploration and operational activity is planned including:
-- WKP West - surface mapping and additional geophysical data planned to
assist in the targeting of additional step-out drilling. Decision on
further drilling pending.
-- Muirs - multi-hole drilling program commenced in October 2010.
-- Ophir - completion of an evaluation study by 30 November. Mining
decision pending.
-- Placer production - A replacement placer mine is expected to be put into
production in early December. Resource definition on several other
prospects is underway. Third gold recovery unit being built.
The Company is an exploration company and therefore classified as being at a
'development stage', as it has limited mining or other significant income. With
all general and administration expenses being expensed, the Company records
losses each year arising from the expensing of these cash operating costs as
well as other non-cash expense items. Periodical reviews of capitalised
exploration expenditures is undertaken and write offs and provisions are
expensed to the Consolidated Statements of Operations, Comprehensive Loss and
Deficit.
Mineral exploration costs, which form the bulk of the Company's expenditures,
were at reduced levels during the early part of the year as cash was conserved
and placer mining development efforts progressed. Increased exploration activity
is planned for Q4.
The net loss for the year to date includes significant non-cash items:-
Three Three
months months Nine months Nine months
ended Sep ended Sep ended Sep ended Sep
30 2010 30 2009 30 2010 30 2009
Cash operating costs
General & Admin costs
(net) 195 173 612 496
Placer mining (profit) (99) - (201) (35)
---------------------------------------------------
96 173 411 461
Non - Cash expenses
Write down Mineral
Properties - - 574 1,717
Stock-based compensation
(note4) 174 - 174 -
Exchange translation
(gains) (4) (9) (27) (235)
---------------------------------------------------
170 (9) 721 1,482
---------------------------------------------------
---------------------------------------------------
Net loss for the year to
date 266 164 1,132 1,943
---------------------------------------------------
---------------------------------------------------
Significant expense categories are discussed as per below:
----------------------------------------------------------------------------
Three Three Nine Nine
Expenditure months months months months
2010 2009 2010 2009 Note
------------------------------------------------------------------------
General and administration
36 46 169 157 1
Professional fees 4 9 35 22 2
Net salaries (after exploration
charges) 52 56 172 149 3
Consulting fees 25 29 75 81
Travel and accommodation 8 9 18 26
Amortization 13 16 39 50
Directors fees 38 - 38 - 5
All others 19 8 66 11
------------------------------------------------------------------------
Total 195 173 612 496
--------------------------------------==================================----
Note
1. General and Administration costs include accounting services ($67,000),
insurances ($30,000) and New Zealand office costs ($44,000).
2. Professional fees are audit fees and legal fees.
3. Net salaries after exploration recharges are principally composed of the
costs of the full time Chief Financial Officer, most of the costs of the
Data/IT manager, and 25% of the Chief Executive Officer's salary (to
reflect the split between exploration activities and the other corporate
based work that he undertakes).
4. 2,270,000 stock options were granted to directors, consultants and
employees of the Company. (2009: No options granted).
5. Cash compensation for non-executive directors was reinstituted, this
being the annual rate.
Qualified Persons
Glass Earth's exploration programmes are carried out under the supervision of
Glass Earth's President and CEO, Simon Henderson, M.Sc, M.AUSIMM, F.SEG. Mr.
Henderson meets the qualified person requirements (as defined by National
Instrument 43-101) with more than 30 years of experience in the gold mining and
exploration industry.
About Glass Earth Gold Limited
Glass Earth is one of the largest New Zealand-based gold exploration companies
exploring a land position of over 12,000 km(2)in the North and South Islands.
The Company maintains its objective to discover new large gold deposits in New
Zealand, and it is currently mining placer gold under its Otago permits to
provide funding for its hard rock gold exploration. With its main office in
Wellington, New Zealand, Glass Earth Gold Limited is listed on the TSX Venture
Exchange (TSX VENTURE:GEL) and the New Zealand Alternative Stock Exchange
(NZAX:GEL).
To receive Company news via email, contact jennie@chfir.com and mention "Glass
Earth news" in the subject line.
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