Glass Earth Gold Limited: Financial Statements and Management's Discussion & Analysis for the Year Ended 31 December 2010
April 29 2011 - 11:29AM
Marketwired Canada
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)
----------------------------------------
Gross profit 203,000 37,000
Cash operating costs
Operating loss 933,000 1,030,000
Foreign exchange (gain) (27,000) (230,000)
----------------------------------------
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
----------------------------------------
----------------------------------------
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
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