Gold price rebounds 2% as Goldman reiterates $3,000 target
Bullion has declined about 7% from a record last month, with losses accelerating after Trump’s victory.
Minera Andes Inc. (the “Company” or “Minera Andes”) (TSX:MAI)(OTCBB:MNEAF) is pleased to announce net income of $17.0 million ($0.06 per share basic and diluted) for the quarter ended March 31, 2011, an increase of $19.9 million compared to a net loss of $2.9 million ($0.01 per share loss basic and diluted), as restated, for the same period in 2010. The increase is primarily attributable to the strong performance of the San José Mine where our 49% ownership interest is reflected in our Income from Investment in Minera Santa Cruz S.A. (“MSC”) which increased from $0.1 million in Q1 2010 to $11.7 million in Q1 2011. Comparing Q1 2011 to Q1 2010, silver ounces sold at MSC increased from 739,000 ounces (“oz”) to 1,342,000 oz and gold ounces sold increased from 14,000 oz to 18,000 oz, reflecting increases of 82% and 29%, respectively. MSC also benefitted from higher silver and gold prices: the average weighted gross sale price for silver was $33.75 per oz in Q1 2011 compared to $16.86 per oz in Q1 2010, a 100% increase; the average weighted gross sale price for gold was $1,362 per oz for gold compared to $1,109 per oz, a 25% increase.
During the first quarter, we also recorded a $6.1 million non-cash gain with respect to fair value adjustments to our warrant liability in the current quarter compared to a $2.1 million non-cash loss in Q1 2010.
The Company also announces that it has recently been informed by MSC of a restatement to their 2010 financial results, as previously reported to us, to record a non-cash deferred tax provision and liability not previously recognized. The restatement has the effect of decreasing our 2010 Income from Investment in MSC by $11.4 million, from $35.9 million to $24.5 million, with a corresponding reduction to our Investment in MSC balance at December 31, 2010. This amount does not reflect income taxes currently payable to tax authorities but instead reflects the difference between the carrying value of MSC’s assets for accounting purposes compared to their value for tax purposes at relevant tax rates. Accordingly, we have filed restated financial statements and revised management discussion and analysis of financial condition and results of operations for the year ended December 31, 2010. Our financial statements and management’s discussion and analysis are available under the Company’s profile at www.sedar.com and www.sec.gov.
About Minera Andes
Minera Andes is an exploration company exploring for gold, silver and copper in Argentina with three significant assets: A 49% interest in Minera Santa Cruz SA, owner of the San Jose Mine in close proximity to Goldcorp’s Cerro Negro project; 100% ownership of the Los Azules copper deposit with an inferred mineral resource of 10.3 billion pounds of 0.73% Cu copper and an indicated resource of 2.2 billion pounds of 0.52% Cu copper; and, 100% ownership of a large portfolio of exploration properties in Santa Cruz province, Argentina, including properties bordering the Cerro Negro project in Santa Cruz Province. The Company had $31 million USD in cash and short-term investments as at March 31, 2011 with no bank debt. Rob McEwen, Chairman and CEO, owns 31% of the shares of the company.
About Minera Santa Cruz
Minera Santa Cruz SA is a joint venture owned 51% by Hochschild Mining Argentina, a wholly owned subsidiary of Hochschild Mining plc, and 49% by Minera Andes S.A., a wholly owned subsidiary of the Company. The joint venture owns and operates the San José property.
This news release has been submitted by Perry Ing, Chief Financial Officer of the Company. For further information, please contact Perry Ing or visit our Web site: www.minandes.com.
Read the full news release here.
