LKA Releases Highlights of 2005 Year-End Financial Results
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% respectively. 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 2004. 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. About LKA 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 effort. 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. Website: http://www.lkaintl.com
SOURCE LKA International, Inc.
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