TORONTO, Dec. 15, 2011 /PRNewswire/ - Cerro Grande Mining Corporation (the "Company" or "CEG") (TSX-CEG) (OTCQX-CEGMF) reported today audited financial results for its fiscal year ended September 30, 2011, compared to its fiscal year ended September 30, 2010.
Revenues from gold, copper and silver sales for fiscal year ended September 30, 2011 were US $24,289,000 compared to US $10,959,000 in the same period last year. Net earnings were a positive US $3,425,000 or US $0.04 per share compared to a negative (US $5,248,000) or a loss of (US $0.01) per share in the same period last year.
Cash flow from operations, before amortization and depreciation of US $2,207,000, stock based compensation of US $567,000 warrant revaluation of US $112,000 was US $6,311,000 in the fiscal year period ended September 30, 2011 compared to a negative cash flow of (US $2,458,000) in the comparable period a year ago.
Gold ounces sold in fiscal year ended September 30, 2011 were 14,083 oz compared to 8,598 oz in the comparable period last year. Cash costs per ounce of gold ounces sold at the Pimenton mine, net of by product credits was US $716.00 compared to US $992.00 in the comparable period last year.
Working capital ratio was a positive 1:80 to 1:00 including cash US $1,750,000 at September 30, 2011 compared to a negative .80 to 1:00 at September 30, 2010.
The Company also reported that its Consolidated Financial Statements, MD&A and Annual Information Form have been posted on SEDAR.
In addition the Company reported that the diamond drill rig is being moved to the drill site at Santa Cecilia for assembly and drilling is expected to start early in January, 2012.
Cerro Grande Mining Corporation is a minerals producing, exploration and development company with properties and activities currently focused in Chile.
Cautionary Statement on Forward-looking Information
This news release contains "forward-looking information", which may include, but is not limited to, statements with respect to the future financial or operating performance of CEG. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of CEG to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements contained herein are made as of the date of this press release based on current expectations and beliefs and CEG disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.
SOURCE Cerro Grande Mining Corporation