GIG HARBOR, Wash., April 19 /PRNewswire-FirstCall/ -- LKA
International, Inc. (OTC Bulletin Board: LKAI) released highlights from the
Company's financial results for the year ended December 31, 2005. The
following is a summary of certain highlights (excerpts) from LKA's 10-KSB
(the "Filing") as filed with the Securities and Exchange Commission on
April 17, 2005 and/or previously released production reports. Investors are
advised to read the complete text of the Filing to obtain an accurate
understanding of the Company's activities.
Gold production and grade at LKA's Golden Wonder Mine up 178% and 173%
Total ounces of gold produced from the Mine increased 178% to 25,543
ounces from 14,320 ounces in the year-ago period. The weighted-average
grade of the ore produced during 2005 increased 173% to 19.7 ounces gold
per ton vs. 11.37 ounces gold per ton in 2004. The weighted-average grade
of all ore produced from the Golden Wonder since the pilot production
program in 1984 is 14.19 ounces of gold per ton of ore mined/shipped. The
majority of gold produced from the Golden Wonder has occurred since modern
operations began in 1998.
Royalty revenues from increased gold production up 334%.
Royalties paid to LKA from the Company's Golden Wonder Mine increased
to $888,238 from $265,757 in the year-ago period. LKA currently receives a
10% net-smelter royalty from the all Golden Wonder production and intends
to increase its interest in the Mine's production to 50% by financing the
expansion of the Mine.
Assets and Shareholders' Equity increased 141% and 332% respectively.
Total assets increased to $2.5 million from $1.8 million in the
year-ago period. Shareholders' Equity rose to $2.1 million from $635,457 in
Earnings (after taxes) increased 1,260%
LKA earned $312,232 ($.03 per share) on net revenues of $1,035,075
during 2005. Earnings in 2004 were $24,781 on net revenues of $440,235.
As the sole property owner, LKA currently receives a 10% net-smelter
royalty (less certain shipping and handling charges) from Golden Wonder
production. LKA plans to substantially increase its interest in Golden
Wonder production (up to a 50% net-profits interest) by financing the
estimated $3.5 million expansion of the Mine's existing production zone.
IBK Capital Corp. of Toronto has been engaged by LKA to lead the financing
LKA's plans to expand Golden Wonder production are subject to a number
of conditions including but not limited to, favorable financing
terms/availability, permits, favorable geology, etc. There can be no
assurance that LKA will be successful in this endeavor.
Forward-looking statements in this release are made pursuant to the
'safe harbor' provisions of the Private Securities Litigation reform Act of
1995. Investors are cautioned that such forward-looking statements involve
risks and uncertainties, including, but not limited to, continued
acceptance of the company's products and services, competition, new
products and technological changes, as well as any and all 'other risks'
associated with business.
SOURCE LKA International, Inc.