DELAWARE
|
13-3180530
|
|
(State
or other jurisdiction of
|
(I.R.S.
Employer
|
|
incorporation
or organization)
|
Identification
No.)
|
76 Beaver Street, 14th floor, New York, NY
10005
|
(Address
of principal executive
offices)
|
Registrant’s
telephone number, including area code:
|
(212)
344-2785
|
(Former
name, former address and former fiscal year, if changed since last
report)
|
Yes
|
x
|
No
|
o
|
Large
accelerated filer
|
o |
Accelerated
filer
|
o |
Non-accelerated
filer
|
x
|
Smaller
reporting company
|
o |
Class
|
Outstanding at December 1,
2008
|
|
Common
Stock, par value $.0001 per share
|
193,124,826
|
Item
1.
|
Financial
Statements
|
ASSETS
|
||||||||
Current
Assets:
|
October
31,
2008
|
July
31,
2008
|
||||||
Cash
and Cash Equivalents
|
$ | 9,208 | $ | 10,992 | ||||
Accounts
Receivable
|
1,045 | 1,477 | ||||||
Stockpiles
and Ore on Leach Pads (Note 4)
|
12,131 | 12,176 | ||||||
Material
and Supply Inventories
|
1,045 | 937 | ||||||
Deposits
|
8 | 9 | ||||||
Marketable
Securities (Note 3)
|
15 | 65 | ||||||
Prepaid
Expenses
|
163 | 219 | ||||||
Loans
Receivable – Affiliate (Note 9 and13)
|
40 | 39 | ||||||
Other
Current Assets (Note 5)
|
789 | 490 | ||||||
Total
Current Assets
|
24,444 | 26,404 | ||||||
Mining
Concessions (Note 8)
|
56 | 59 | ||||||
Property
& Equipment – net (Note 6)
|
22,097 | 20,918 | ||||||
Intangible
Assets – net (Note 7)
|
174 | 181 | ||||||
Other
Assets:
|
||||||||
Deferred
Financing Costs (Note 15)
|
562 | 599 | ||||||
Mining
Reclamation Bonds
|
82 | 82 | ||||||
Deferred
Tax Asset (Note 17)
|
446 | 573 | ||||||
Security
Deposits
|
54 | 63 | ||||||
Total
Other Assets
|
1,144 | 1,317 | ||||||
Total
Assets
|
$ | 47,915 | $ | 48,879 | ||||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
||||||||
Current
Liabilities:
|
||||||||
Accounts
Payable
|
$ | 740 | $ | 788 | ||||
Accrued
Expenses (Note 10)
|
3,553 | 2,673 | ||||||
Derivative
Contracts (Note 16)
|
933 | 930 | ||||||
Deferred
Tax Liability (Note 17)
|
1,607 | 2,063 | ||||||
Current
Portion of Long-term Debt (Note 15)
|
4,275 | 4,125 | ||||||
Total
Current Liabilities
|
11,108 | 10,579 | ||||||
Reclamation
and Remediation Liabilities (Note 11)
|
1,331 | 1,666 | ||||||
Other
liabilities
|
48 | 62 | ||||||
Long-term
Debt (Note 15)
|
7,100 | 8,375 | ||||||
Total
Long-term Liabilities
|
8,479 | 10,103 | ||||||
Commitments
and Contingencies
|
- | - | ||||||
Stockholders’
Equity:
|
||||||||
Common
Stock, Par Value $.0001 Per Share;
|
||||||||
Authorized
300,000,000 shares; Issued and
|
||||||||
Outstanding 192,974,826 and 192,777,326 shares,
respectively
|
19 | 19 | ||||||
Additional
Paid-In Capital
|
63,244 | 63,074 | ||||||
Accumulated
Deficit
|
(30,560 | ) | (32,496 | ) | ||||
Deferred
Financing Costs (Note 15)
|
(2,410 | ) | (2,611 | ) | ||||
Deferred
Compensation
|
(491 | ) | (549 | ) | ||||
Accumulated
Other Comprehensive Income (Note 12)
|
(1,474 | ) | 760 | |||||
Total
Stockholders’ Equity
|
28,328 | 28,197 | ||||||
Total
Liabilities and Stockholders’ Equity
|
$ | 47,915 | $ | 48,879 |
For
The Three Months Ended
|
||||||||
October
31,
|
||||||||
2008
|
2007
|
|||||||
Revenues
|
||||||||
Sales
– Gold, net
|
$ | 9,175 | $ | 6,526 | ||||
Costs
and Expenses:
|
||||||||
Costs
Applicable to Sales
|
3,042 | 2,205 | ||||||
Depreciation
and Amortization
|
703 | 949 | ||||||
General
and Administrative
|
1,364 | 794 | ||||||
Exploration
|
490 | 135 | ||||||
Equity
Based Compensation
|
14 | 58 | ||||||
Total
Costs and Expenses
|
5,613 | 4,141 | ||||||
Income
(Loss) from Operations
|
3,562 | 2,385 | ||||||
Other
Income (Expense):
|
||||||||
Interest
Income
|
13 | 20 | ||||||
Interest
Expense
|
(200 | ) | (281 | ) | ||||
Other
Income (Expense)
|
(208 | ) | (19 | ) | ||||
Loss
on change in fair value of derivative
|
(304 | ) | (358 | ) | ||||
Total
Other Income (Expense)
|
(699 | ) | (638 | ) | ||||
Income
(Loss) before Income Taxes
|
2,863 | 1,747 | ||||||
Income
Tax Expense
|
(927 | ) | - | |||||
Net
Income (Loss)
|
$ | 1,936 | $ | 1,747 | ||||
Income
(Loss) Per Common Share
|
||||||||
Basic
|
$ | 0.01 | $ | 0.01 | ||||
Diluted
|
$ | 0.01 | $ | 0.01 | ||||
Basic
Weighted Average Common Shares Outstanding
|
192,843,875 | 170,854,825 | ||||||
Diluted
Weighted Average Common Shares Outstanding
|
198,342,324 | 192,997,981 |
CAPITAL
GOLD CORPORATION
|
||||||||||||||||||||||||||||||||
CONDENSED
CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY
(UNAUDITED)
|
||||||||||||||||||||||||||||||||
(in
thousands, except for share and per share amounts)
|
||||||||||||||||||||||||||||||||
Accumulated
|
||||||||||||||||||||||||||||||||
Additional
|
Other
|
Deferred
|
Total
|
|||||||||||||||||||||||||||||
Common
Stock
|
paid-in-
|
Accumulated
|
Comprehensive
|
Financing
|
Deferred
|
Stockholders’
|
||||||||||||||||||||||||||
Shares
|
Amount
|
capital
|
Deficit
|
Income/(Loss)
|
Costs
|
Compensation
|
Equity
|
|||||||||||||||||||||||||
Balance
at July 31, 2008
|
192,777,326 | $ | 19 | $ | 63,074 | $ | (32,496 | ) | $ | 760 | $ | (2,611 | ) | $ | (549 | ) | $ | 28,197 | ||||||||||||||
Amortization
of deferred finance costs
|
- | - | - | - | - | 201 | - | 201 | ||||||||||||||||||||||||
Equity
based compensation
|
- | - | 67 | - | - | - | 58 | 125 | ||||||||||||||||||||||||
Issuance
of restricted common stock
|
197,500 | - | 103 | - | 103 | |||||||||||||||||||||||||||
Change
in fair value on interest rate swaps
|
- | - | - | - | 8 | - | - | 8 | ||||||||||||||||||||||||
Unrealized
loss on marketable securities
|
- | - | - | - | (50 | ) | - | - | (50 | ) | ||||||||||||||||||||||
Equity
adjustment from foreign currency translation
|
- | - | - | - | (2,192 | ) | - | - | (2,192 | ) | ||||||||||||||||||||||
Net
income for the three months ended October 31, 2008
|
- | - | - | 1,936 | - | - | 1,936 | |||||||||||||||||||||||||
Balance
at October 31, 2008
|
192,974,826 | $ | 19 | $ | 63,244 | $ | (30,560 | ) | $ | (1,474 | ) | $ | (2,410 | ) | $ | (491 | ) | $ | 28,328 |
CAPITAL
GOLD CORPORATION
|
|||||
CONDENSED
CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
|
|||||
(in
thousands, except for share and per share
amounts)
|
For
The
|
||||||||
Three
Months Ended
|
||||||||
October
31,
|
||||||||
2008
|
2007
|
|||||||
Cash
Flow From Operating Activities:
|
||||||||
Net
Income (Loss)
|
$ | 1,936 | $ | 1,747 | ||||
Adjustments
to Reconcile Net Loss to
|
||||||||
Net
Cash Provided by (Used in) Operating Activities:
|
||||||||
Depreciation
and Amortization
|
703 | 949 | ||||||
Accretion
of Reclamation and Remediation
|
38 | 61 | ||||||
Loss
on change in fair value of derivative, net
|
304 | 66 | ||||||
Equity
Based Compensation
|
227 | 58 | ||||||
Changes
in Operating Assets and Liabilities:
|
||||||||
Decrease
(Increase) in Accounts Receivable
|
432 | (1,019 | ) | |||||
Decrease
in Prepaid Expenses
|
55 | 6 | ||||||
Decrease
(Increase) in Inventory
|
330 | (1,910 | ) | |||||
Increase
in Other Current Assets
|
(299 | ) | (470 | ) | ||||
Decrease
in Other Deposits
|
1 | 307 | ||||||
Decrease
in Security Deposits
|
9 | - | ||||||
Decrease
in Deferred Tax Asset
|
127 | - | ||||||
(Decrease)
Increase in Accounts Payable
|
(48 | ) | 297 | |||||
Decrease
in Derivative Liability
|
(293 | ) | - | |||||
Decrease
in Other Liability
|
(14 | ) | - | |||||
Decrease
in Reclamation and Remediation
|
(373 | ) | - | |||||
Decrease
in Deferred Tax Liability
|
(455 | ) | - | |||||
Increase
in Accrued Expenses
|
881 | 323 | ||||||
Net
Cash Provided By Operating Activities
|
3,561 | 415 | ||||||
Cash
Flow From Investing Activities:
|
||||||||
Purchase
of Mining, Milling and Other Property and
|
||||||||
Equipment
|
(2,027 | ) | (799 | ) | ||||
Purchase
of Intangibles
|
- | (90 | ) | |||||
Net
Cash Used in Investing Activities
|
(2,027 | ) | (889 | ) |
CAPITAL
GOLD CORPORATION
|
|||||
CONDENSED
CONSOLIDATED STATEMENT OF CASH FLOWS – CONTINUED
|
|||||
(UNAUDITED)
|
|||||
(in
thousands, except for share and per share
amounts)
|
For
The
|
||||||||
Three
Months Ended
|
||||||||
October
31,
|
||||||||
2008
|
2007
|
|||||||
Cash
Flow From Financing Activities:
|
||||||||
Advances
to Affiliate
|
(1 | ) | 9 | |||||
Repayments
on Notes Payable
|
(1,125 | ) | - | |||||
Proceeds
From Issuance of Common Stock
|
- | 2,076 | ||||||
Net
Cash Provided By Financing Activities
|
(1,126 | ) | 2,085 | |||||
Effect
of Exchange Rate Changes
|
(2,192 | ) | 80 | |||||
Increase
(Decrease) In Cash and Cash Equivalents
|
(1,784 | ) | 1,691 | |||||
Cash
and Cash Equivalents - Beginning
|
10,992 | 2,225 | ||||||
Cash
and Cash Equivalents – Ending
|
$ | 9,208 | $ | 3,916 | ||||
Supplemental
Cash Flow Information:
|
||||||||
Cash
Paid For Interest
|
$ | 213 | $ | 879 | ||||
Cash
Paid For Income Taxes
|
$ | 672 | $ | - | ||||
Non-Cash
Financing Activities:
|
||||||||
Change
in Fair Value of Derivative Instrument
|
$ | (8 | ) | $ | 66 |
Three
months ended October 31,
|
||
2008
|
2007
|
|
Expected
volatility
|
-
|
47.60
– 49.85%
|
Risk-free
interest rate
|
-
|
4.31%
|
Expected
dividend yield
|
-
|
-
|
Expected
life
|
-
|
2.0
years
|
Number
of
Options
|
Weighted
Average
exercise
price
|
Weighted
average
remaining
contracted
term
(years)
|
Aggregate
intrinsic
value
|
|||||||||||||
Outstanding
at July 31, 2007
|
2,500,000 | $ | .34 | 1.20 | $ | 255 | ||||||||||
Options
granted
|
2,500,000 | .63 | ||||||||||||||
Options
exercised
|
(1,450,000 | ) | .32 | - | - | |||||||||||
Options
expired
|
- | - | - | - | ||||||||||||
Warrants
and options outstanding at July 31, 2008
|
3,550,000 | $ | .55 | 4.00 | $ | 334 | ||||||||||
Options
granted
|
- | - | - | - | ||||||||||||
Options
exercised
|
- | - | - | - | ||||||||||||
Options
expired
|
- | - | - | - | ||||||||||||
Warrants
and options outstanding at October 31, 2008
|
3,550,000 | $ | .55 | 3.75 | $ | - | ||||||||||
Warrants
and options exercisable at October 31, 2008
|
1,925,000 | $ | .48 | 2.58 | $ | - |
|
Number
of
Options
|
Weighted
Average
Exercise
price
|
Weighted
average
remaining
contracted
term
(years)
|
Aggregate
Intrinsic
value
|
||||||||||||
Outstanding
at August 1, 2007
|
150,000 | $ | .32 | 0.67 | $ | 18 | ||||||||||
Options
granted
|
2,500,000 | $ | .63 | - | - | |||||||||||
Options
vested
|
(900,000 | ) | $ | .58 | - | - | ||||||||||
Unvested
Options outstanding at July 31, 2008
|
1,750,000 | $ | .63 | 4.49 | $ | 8 | ||||||||||
Options
granted
|
- | - | - | - | ||||||||||||
Options
vested
|
(125,000 | ) | .63 | - | - | |||||||||||
Unvested
Options outstanding at October 31, 2008
|
1,625,000 | $ | .63 | 4.24 | $ | - |
Number
of
Options
|
Weighted
Average
Exercise
price
|
Weighted
average
remaining
contracted
term
(years)
|
Aggregate
Intrinsic
value
|
|||||||||||||
Warrants
and options outstanding at July 31, 2007
|
22,535,542 | $ | .33 | 1.48 | $ | 2,578 | ||||||||||
Options
granted
|
1,715,000 | .66 | - | - | ||||||||||||
Options
exercised
|
(21,555,542 | ) | .33 | - | - | |||||||||||
Options
expired
|
(680,000 | ) | .30 | - | - | |||||||||||
Warrants
and options outstanding at July 31, 2008
|
2,015,000 | $ | .62 | 3.54 | $ | 54 | ||||||||||
Options
granted
|
- | - | - | - | ||||||||||||
Options
exercised
|
- | - | - | - | ||||||||||||
Options
expired
|
- | - | - | - | ||||||||||||
Warrants
and options outstanding at October 31, 2008
|
2,015,000 | $ | .62 | 3.02 | $ | - | ||||||||||
Warrants
and options exercisable at October 31, 2008
|
1,592,500 | $ | .61 | 2.25 | $ | - |
Number
of
Options
|
Weighted
Average
Exercise
price
|
Weighted
average
remaining
contracted
term
(years)
|
Aggregate
Intrinsic
value
|
|||||||||||||
Outstanding
at August 1, 2007
|
- | - | - | - | ||||||||||||
Options
granted
|
650,000 | $ | .63 | - | - | |||||||||||
Options
vested
|
(195,000 | ) | $ | .63 | - | - | ||||||||||
Unvested
Options outstanding at July 31, 2008
|
455,000 | $ | .63 | 4.49 | $ | 3 | ||||||||||
Options
granted
|
- | - | - | - | ||||||||||||
Options
vested
|
(32,500 | ) | $ | .63 | - | - | ||||||||||
Unvested
Options outstanding at October 31, 2008
|
422,500 | $ | .63 | 4.24 | $ | - |
(in
thousands)
|
||||||||
October
31, 2008
|
July
31, 2008
|
|||||||
Marketable
equity securities, at cost
|
$ | 50 | $ | 50 | ||||
Marketable
equity securities, at fair value (See
Notes 9 & 13)
|
$ | 15 | $ | 65 |
(in
thousands)
|
||||||||
October
31, 2008
|
July
31, 2008
|
|||||||
Ore
on leach pads
|
$ | 12,131 | $ | 12,176 | ||||
Total
|
$ | 12,131 | $ | 12,176 |
(in
thousands)
|
||||||||
October
31, 2008
|
July
31, 2008
|
|||||||
Value
added tax to be refunded
|
$ | 789 | $ | 425 | ||||
Other
|
- | 65 | ||||||
Total
Other Current Assets
|
$ | 789 | $ | 490 |
(in
thousands)
|
||||||||
October
31, 2008
|
July
31, 2008
|
|||||||
Process
equipment and facilities
|
$ | 21,289 | $ | 20,182 | ||||
Asset
retirement obligation
|
1,511 | 1,511 | ||||||
Mining
equipment
|
974 | 974 | ||||||
Mineral properties
|
141 | 141 | ||||||
Construction
in progress
|
2,190 | 1,277 | ||||||
Computer
and office equipment
|
320 | 316 | ||||||
Improvements
|
16 | 16 | ||||||
Furniture
|
38 | 38 | ||||||
Total
|
26,479 | 24,455 | ||||||
Less:
accumulated depreciation
|
(4,382 | ) | (3,537 | ) | ||||
Property
and equipment, net
|
$ | 22,097 | $ | 20,918 |
(in
thousands)
|
||||||||
October
31, 2008
|
July
31, 2008
|
|||||||
Repurchase
of Net Profits Interest
|
$ | 500 | $ | 500 | ||||
Water
Rights
|
134 | 134 | ||||||
Mobilization
Payment to Mineral Contractor
|
70 | 70 | ||||||
Investment
in Right of Way
|
18 | 18 | ||||||
Total
|
722 | 722 | ||||||
Accumulated
Amortization
|
(548 | ) | (541 | ) | ||||
Intangible
assets, net
|
$ | 174 | $ | 181 |
(in
thousands)
|
||||||||
October
31, 2008
|
July
31, 2008
|
|||||||
El
Chanate
|
$ | 45 | $ | 45 | ||||
El
Charro
|
25 | 25 | ||||||
Total
|
70 | 70 | ||||||
Less:
accumulated amortization
|
(14 | ) | (11 | ) | ||||
Total
|
$ | 56 | $ | 59 |
(in
thousands)
|
||||||||
October
31, 2008
|
July
31, 2008
|
|||||||
Net
profit interest
|
$ | 896 | $ | 753 | ||||
Net
smelter return
|
130 | 189 | ||||||
Mining
contractor
|
306 | 193 | ||||||
Income
tax payable
|
1,033 | 777 | ||||||
Utilities
|
127 | 110 | ||||||
Interest
|
59 | 72 | ||||||
Salaries,
wages and employee benefits
|
687 | 334 | ||||||
Other
liabilities
|
315 | 244 | ||||||
$ | 3,553 | $ | 2,672 |
(in
thousands)
|
||||
Balance
as of July 31, 2008
|
$ | 1,666 | ||
Additions,
changes in estimates and other (foreign currency translation
adjustment)
|
(373 | ) | ||
Liabilities
settled
|
- | |||
Accretion
expense
|
38 | |||
Balance
as of October 31, 2008
|
$ | 1,331 |
(in
thousands)
|
||||
Balance
as of July 31, 2008
|
$ | 760 | ||
Change
in fair value of derivative instrument
|
8 | |||
Equity
Adjustments from Foreign Currency Translation
|
(2,192 | ) | ||
Unrealized
Gains (loss) on Marketable Securities
|
(50 | ) | ||
Balance
as of October 31, 2008
|
$ | (1,474 | ) |
(in
thousands)
|
||||||||
October
31,
2008
|
July
31,
2008
|
|||||||
Total
debt
|
$ | 11,375 | $ | 12,500 | ||||
Less
current portion
|
4,275 | 4,125 | ||||||
Long-term
debt
|
$ | 7,100 | $ | 8,375 |
(in
thousands)
|
||||
Liability
balance as of July 31, 2008
|
$ | 725 | ||
Loss
on change in fair value of derivative
|
304 | |||
Net
cash settlements
|
( 295 | ) | ||
Liability
balance as of October 31, 2008
|
$ | 734 |
(in
thousands)
|
||||
Liability
balance as of July 31, 2008
|
$ | 205 | ||
Change
in fair value of derivative
|
(8 | ) | ||
Interest
expense (income)
|
46 | |||
Net
cash settlements
|
(44 | ) | ||
Liability
balance as of October 31, 2008
|
$ | 199 |
Quarter
Ended
|
Derivatives
in Cash Flow Hedging Relationships
|
Effective
Results Recognized in OCI
|
Location
of Results Reclassified from AOCI to Earnings
|
Amount
Reclassified from AOCI to Income
|
Ineffective
Results Recognized in Earnings
|
Location
of Ineffective Results
|
1/31/08
|
Interest
Rate contracts
|
$ (201)
|
Interest
Income (Expense)
|
(5)
|
-
|
N/A
|
4/30/08
|
Interest
Rate contracts
|
$ 28
|
Interest
Income (Expense)
|
(24)
|
-
|
N/A
|
7/31/08
|
Interest
Rate contracts
|
$ 19
|
Interest
Income (Expense)
|
(49)
|
-
|
N/A
|
10/31/08
|
Interest
Rate contracts
|
$ (38)
|
Interest
Income (Expense)
|
(38)
|
-
|
N/A
|
Quarter
Ended
|
Derivatives
Not Designated in Hedging Relationships
|
Location
of Results
|
Amount
of Gain (Loss)
|
1/31/08
|
Gold
contracts
|
Other
Income (Expense)
|
$ (345)
|
4/30/08
|
Gold
contracts
|
Other
Income (Expense)
|
$ (337)
|
7/31/08
|
Gold
contracts
|
Other
Income (Expense)
|
$ (319)
|
10/31/08
|
Gold
contracts
|
Other
Income (Expense)
|
$ (304)
|
Liability
Derivatives
|
||
January
31, 2008
|
Balance
Sheet Location
|
Fair
Values
|
Derivatives
designated as hedging instruments
|
||
Interest
rate derivatives
|
Current
Liabilities
|
$ 313
|
Derivatives
designated as hedging instruments
|
||
Gold
derivatives
|
Current
Liabilities
|
$ 660
|
April
30, 2008
|
Balance
Sheet Location
|
Fair
Values
|
Derivatives
designated as hedging instruments
|
||
Interest
rate derivatives
|
Current
Liabilities
|
$ 274
|
Derivatives
designated as hedging instruments
|
||
Gold
derivatives
|
Current
Liabilities
|
$ 702
|
July
31, 2008
|
Balance
Sheet Location
|
Fair
Values
|
Derivatives
designated as hedging instruments
|
||
Interest
rate derivatives
|
Current
Liabilities
|
$ 205
|
Derivatives
designated as hedging instruments
|
||
Gold
derivatives
|
Current
Liabilities
|
$ 725
|
Liability
Derivatives
|
||
October
31, 2008
|
Balance
Sheet Location
|
Fair
Values
|
Derivatives
designated as hedging instruments
|
|
|
Interest
rate derivatives
|
Current
Liabilities
|
$ 199
|
Derivatives
designated as hedging instruments
|
|
|
Gold
derivatives
|
Current
Liabilities
|
$ 734
|
(in
thousands)
|
||||||||
October
31, 2008
|
October
31, 2007
|
|||||||
Current:
|
||||||||
United
States
|
$ | - | $ | - | ||||
Foreign
|
(927 | ) | - | |||||
(927 | ) | - | ||||||
Deferred:
|
||||||||
United
States
|
- | - | ||||||
Foreign
|
- | - | ||||||
- | - | |||||||
Total
|
$ | (927 | ) | $ | - |
(in
thousands)
|
||||||||
October
31, 2008
|
October
31, 2007
|
|||||||
United
States
|
$ | (1,524 | ) | $ | (1,603 | ) | ||
Foreign
|
4,387 | 3,350 | ||||||
Total
|
$ | 2,863 | $ | 1,747 |
Metric
|
U.S.
|
|
Materials
Reserves
Proven
Probable
Total
Reserves
Waste
Total
Contained
Gold
Production
Ore
Crushed**
Operating
Days/Year
Gold
Plant Average Recovery
Average
Annual Production**
Total
Gold Produced
|
26.7
Million Tonnes @ 0.68 g/t*
12.8 Million
Tonnes @ 0.61 g/t*
39.5
Million
Tonnes @ 0.66 g/t*
24.1 Million Tonnes
63.6
Million Tonnes
25.89
Million grams
2.6
Million Tonnes /Year
7,500
Mt/d
365
Days per year
66.8
%
1.35 Million
grams
17.29
Million grams
|
29.4
Million Tons @ 0.0198 opt*
14.1 Million Tons @ 0.0179 opt*
43.5
Million Tons @ 0.0192 opt*
26.6 Million Tons
70.1
Million tons
832,280 Oz
2.87
Million Tons/Year
8,267
t/d
365
Days per year
66.8
%
43,414 Oz
555,960 Oz
|
|
·
|
Blocks
with 2 or more drill holes within a search radius of 80m x 70m x 40m and
with a relative kriging (a geostatistical calculation technique) standard
deviation less than or equal to 0.45 were classified as Measured
(corresponding to Proven);
|
|
·
|
Blocks
with 1 hole within the search radius of 80m x 70m x 40m and with a
relative kriging standard deviation of 0.60 or less, blocks with 2 holes
and a kriging standard deviation of 0.70 or less, blocks with 3 holes and
a kriging standard deviation of 0.80 or less, blocks with 4 holes and a
relative kriging standard deviation of 0.90 or less and all blocks with 5
or more holes within the search radius were classified as Indicated
(corresponding to Probable), unless they met the above criterion for
Proven;
|
|
·
|
Blocks
with a grade estimate that did not meet the above criteria were
classified as Inferred (and which was classed as waste material in the
mining reserves estimate);
|
|
·
|
Blocks
outside the above search radii or outside suitable geological zones were
not assigned a gold grade or a resource
classification.
|
Cutoff
Grade Calculation
Basic
Parameters
Gold
Price
Shipping
and Refining
Gold
Recovery
Royalty
Operating
Costs per Tonne of Ore
Mining
*
Processing/Leach
Pad
G&A
Total
Internal Cutoff
Grade
Head
Grade Cutoff (66.8% recov.)
Recovered
Gold Grade Cutoff
|
Internal
Cutoff Grade
US$550/oz
US$
4.14/oz
66.8%
4%
of NSR
$
per Tonne of Ore
0.070
1.980
0.800
2.850
Grams
per Tonne
0.25
0.17
|
Break
Even Cutoff Grade
US$550/oz
US$
4.14/oz
66.8%
4%
of NSR
$
per Tonne of Ore
1.360
1.980
0.800
4.140
Grams
per Tonne
0.37
0.25
|
For the three
|
For the three
|
|||||||
Months ended
|
Months ended
|
|||||||
October 31, 2008
|
October 31, 2007
|
|||||||
Revenues
|
9,175 | 6,526 | ||||||
Net Income (loss)
|
1,936 | 1,747 | ||||||
Basic net income (loss) per
share
|
0.01 | 0.01 | ||||||
Diluted net income (loss) per
share
|
0.01 | 0.01 | ||||||
Gold ounces sold
|
11,413 | 9,194 | ||||||
Average price received
|
$ | 805 | $ | 710 | ||||
Cash cost per ounce sold
|
$ | 270 | $ | 239 | ||||
Total cost per ounce sold
|
$ | 310 | $ | 311 |
Fiscal
year ending:
|
Ounces Remaining
|
Amount
|
||||||
2009
|
25,196 | $ | 882 | |||||
2010
|
33,176 | $ | 1,161 | |||||
2011
|
8,230 | $ | 288 | |||||
Total
|
66,602 | $ | 2,331 |
Market
Risk Disclosures
|
|||||
October
31, 2008
|
|||||
(in
thousands)
|
|||||
Instruments
entered into for hedging purposes -
|
|||||
Type
of Derivative
|
Notional
Size
|
Fixed
Price or Strike Price
|
Underlying
Price
|
Termination
or Expiration
|
Fair
Value
|
Interest
Rate Swaps
|
$
6,375(1)
|
5.30%
|
3
Mo. USD LIBOR
|
12/31/2010
|
$ (198)
|
Gold
Forward Sales
(2)
|
8,369
oz./qtr. (3)
|
$500/oz.
|
Price
of gold
|
9/30/2010
|
$ (14,861)
|
Gold
Call Options (2)
|
8,369
oz./qtr. (3)
|
$535/oz.
|
Price
of gold
|
9/30/2010
|
$ 14,127
|
(1) The value shown
reflects the notional as of October 31, 2008. Over the term of the swap,
the notional amortizes, dropping to approximately $656.
|
|||||
(2) These contracts
are used for hedging purposes, but hedge accounting is not
applied.
|
|||||
(3) The value shown
reflects the current notional, but these contracts amortize down to 8,230
ounces per quarter by the contract
termination.
|
|
·
|
the
level of interest rates,
|
|
·
|
the
rate of inflation,
|
|
·
|
central
bank sales,
|
|
·
|
world
supply of gold and
|
|
·
|
stability
of exchange rates.
|