Glass Earth Gold Limited: Financial Statements and Management's Discussion & Analysis for the Year Ended 31 December 2010
April 29 2011 - 11:29AM
Marketwired
Glass Earth Gold Limited (TSX VENTURE: GEL)(NZAX: GEL) ("Glass
Earth" or the "Company") announced today that it has filed its
December 31, 2010 Year End Financial Statements and associated
Management's Discussion and Analysis ("MD&A") report pertaining
to that period with appropriate regulatory authorities.
As advised on April 12, 2011, Glass Earth has early-adopted
International Financial Reporting Standards ("IFRS") effective for
fiscal 2010. There were no significant differences between Canadian
GAAP and NZ IFRS or IFRS, given the nature of the Company's
operations. Earlier this week, Glass Earth re-filed its restated
unaudited interim financial statements and associated MD&A's
for each of the three, six and nine month periods of 2010 in
accordance with IFRS.
During 2010, the Company announced the completion of two
fundraising exercises which raised $6.2 million (before issuance
costs). As at 31 December 2010, the Company held C$3.9m in cash
with a further $0.5 million received from completion of fundraising
in early January 2011. Together with increasing placer mining
income, this places Glass Earth in a strong position for drilling
activities in 2011.
The Company consolidated its placer activities by acquiring 50%
of its joint venture party's mining company (and related placer
mining equipment).
The Company recorded a net loss for 2010 totaling $1.467 million
(2009 - $2.675 million). Revenue from placer mining activities made
its first contribution with exploration and development costs
associated with the establishment of these operations amortized
completely against revenue as a conservative approach (cash
generation totaled $357,000). Placer mining expansion in 2011
should see a significant increase in both gross and net
revenue.
Glass Earth is a gold exploration company and therefore
classified as being at the 'development stage', as it currently has
modest mining income. With all general and administration expenses
being expensed, Glass Earth currently records losses each year
arising from the expensing of these cash operating costs as well as
other non-cash expense items.
The net loss for the year can include significant non-cash items:-
12 months ended 12 months ended
December 31 2010 December 31 2009
Revenue 584,000 39,000
Cost of revenue (381,000) (2,000)
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Gross profit 203,000 37,000
Cash operating costs
Operating loss 933,000 1,030,000
Foreign exchange (gain) (27,000) (230,000)
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906,000 800,000
Non- Cash expenses
Write down Mineral Properties 574,000 2,364,000
Stock based compensation 178,000 -
Income tax expense/(benefit) -
deferred 12,000 (489,000)
----------------------------------------
764,000 1,875,000
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Net loss for the year 1,467,000 2,675,000
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Operational Activities
Field operations concentrated on the testing of GEG's two most
advanced prospects WKP West (65% Newmont Mining / 35% GEG; Newmont
managed) and Muirs Reefs (100% GEG) in the North Island, and
drilling of the Serpentine Project in the South Island.
In addition metallurgical testing and test plant design on the
Ophir Project (50% GEG/50% Ophir Gold) is nearing completion.
Expansion of alluvial/placer gold mining in the Central Otago
region is a strong focus as current mining operations bed down.
About Glass Earth Gold Limited
Glass Earth is one of the largest New Zealand-based gold
exploration companies exploring a land position of approximately
10,000 square kilometres in the North and South Islands.
In the North Island, exploration efforts are focused on large
epithermal gold systems in the Hauraki/Central Volcanic Region.
This Region is host to the 10 million ounce Martha Gold Mine,
(Newmont Mining).
Hauraki Region - Glass Earth occupies a significant ground
position around the Waihi/Martha Gold Mine; The Newmont-Glass Earth
Waihi West JV (Newmont earning 60%) and Hauraki JV (North and
Central Areas - 65/35) are currently being explored and managed by
Newmont. Exploration at the WKP gold prospect is ongoing following
the very encouraging 2010 drilling results on that prospect.
Central Volcanic Region - Glass Earth has defined several
significant epithermal gold targets in this region including the
Muirs Reef project (Mamaku district).
In the South Island, exploration efforts are focused on the
Otago Region for mesothermal "Macraes-style" gold targets and
alluvial gold.
Otago Region - Field programmes to support the drilling of
highly ranked Serpentine and Game Hen gold targets are
underway.
Two alluvial mining operations continue into the 2011 year,
coupled with an acceleration of alluvial exploration and resource
definition; Glass Earth / Dunstan Mining (placer mining 50/50
partner) anticipates a significant increase in gold output in
2011.
To receive Company news via email, contact jennie@chfir.com and
mention "Glass Earth news" in the subject line.
To view the map associated with this release, please visit the
following link:
http://media3.marketwire.com/docs/Glass_Earth_Gold0429.pdf
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) nor New Zealand Exchange Limited has reviewed
this release and neither accepts responsibility for the adequacy or
accuracy of this release.
Contacts: Glass Earth Gold Limited Simon Henderson President and
Chief Executive Officer +64 4 903 4980 info@glassearthlimited.com
www.glassearthgold.com CHF Investor Relations Jeanny So Director of
Operations +1 416 868 1079 x225 jeanny@chfir.com
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