State of Delaware
|
13-3180530
|
|
(State or other jurisdiction of
|
(I.R.S. Employer
|
|
Incorporation or organization)
|
Identification No.)
|
76 Beaver Street, 14th Floor, New York, New York
|
10005
|
|
(Address
of principal executive offices)
|
(Zip
Code)
|
¨
Large accelerated filer
|
x
Accelerated filer
|
¨
Non-accelerated filer
|
¨
Smaller Reporting Company
|
Table of Contents
|
Page
|
||
Glossary
of Technical Terms
|
(iii)
|
||
Part I
|
|||
Item
1.
|
Business.
|
1
|
|
Item
1A.
|
Risk
Factors.
|
2
|
|
Item
1B.
|
Unresolved
Staff Comments.
|
9
|
|
Item
2.
|
Property.
|
9
|
|
Item
3.
|
Legal
Proceedings.
|
19
|
|
Item
4.
|
Submission
of Matters to a Vote of Security Holders.
|
19
|
|
Part II
|
|||
Item
5.
|
Market
for Registrant’s Common Equity, Related Stockholder Matters and Issuer
Purchases of Equity Securities.
|
20
|
|
Item
6.
|
Selected
Financial Data.
|
23
|
|
Item
7.
|
Management's
Discussion and Analysis of Financial Condition and Results of
Operations.
|
23
|
|
Item
7A.
|
Quantitative
and Qualitative Disclosure About Market Risk
|
44
|
|
Item
8.
|
Financial
Statements and Supplementary Data.
|
45
|
|
Item
9.
|
Changes
in and Disagreement with Accountants on Accounting and Financial
Disclosure.
|
45
|
|
Item
9A
|
Controls
and Procedures.
|
45
|
|
Item
9B
|
Other
Information.
|
46
|
|
Part III
|
|||
Item
10.
|
Directors,
Executive Officers and Corporate Governance.
|
46
|
|
Item
11.
|
Executive
Compensation.
|
48
|
|
Item
12.
|
Security
Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters.
|
48
|
|
Item
13.
|
Certain
Relationships and Related Transactions and Director
Independence.
|
48
|
|
Item
14.
|
Principal
Accounting Fees and Services.
|
49
|
|
Part IV
|
|||
Item
15.
|
Exhibits,
Financial Statement Schedules.
|
49
|
|
Signatures
|
53
|
||
Supplemental
Information
|
N/A
|
||
Financial
Statements
|
F-1
|
Reserve:
|
That
part of a mineral deposit which could be economically and legally
extracted or produced at the time of the reserve determination. Reserves
must be supported by a feasibility study done to bankable standards that
demonstrates the economic extraction ("Bankable standards" implies
that the confidence attached to the costs and achievements developed in
the study is sufficient for the project to be eligible for external debt
financing.) A reserve includes adjustments to the in-situ tonnes and grade
to include diluting materials and allowances for losses that might occur
when the material is mined.
|
Proven
Reserve:
|
Reserves
for which (a) quantity is computed from dimensions revealed in outcrops,
trenches, workings or drill holes; grade and/or quality are computed from
the results of detailed sampling and (b) the sites for inspection,
sampling and measurement are spaced so closely and the geologic character
is so well defined that size, shape depth and mineral content of reserves
are well-established.
|
Probable
Reserve:
|
Reserves
for which quantity and grade and/or quality are computed from information
similar to that used for proven (measured) reserves, but the sites for
inspection, sampling, and measurement are farther apart or are otherwise
less adequately spaced. The degree of assurance, although lower than that
for proven reserves, is high enough to assume continuity between points of
observation.
|
Mineralized
Material
|
The
term “mineralized material” refers to material that is not included in the
reserve as it does not meet all of the criteria for adequate demonstration
for economic or legal extraction.
|
Non-reserves
|
The
term “non-reserves” refers to mineralized material that is not included in
the reserve as it does not meet all of the criteria for adequate
demonstration for economic or legal extraction.
|
Exploration
Stage
|
An
“exploration stage” prospect is one which is not in either the development
or production stage.
|
Development
Stage
|
A
“development stage” project is one which is undergoing preparation of an
established commercially mineable deposit for its extraction but which is
not yet in production. This stage occurs after completion of a
feasibility study.
|
Production
Stage
|
A
“production stage” project is actively engaged in the process of
extraction and beneficiation of mineral reserves to produce a marketable
metal or mineral product.
|
Caliche:
|
Sediment
cemented by calcium carbonate near surface.
|
Diorite:
|
Igneous
Rock (Rock formed from magma or molten rock).
|
Dore:
|
Bars
of low purity precious metal (Gold & Silver) which represents final
product of a gold mine typically weighing 25 kg per
bar.
|
Dikes:
|
Tabular,
vertical bodies of igneous rock.
|
Fissility:
|
Shattered,
broken nature of rock.
|
Fracture
Foliations:
|
Fracture
pattern in rock, parallel orientation, resulting from
pressure.
|
Heap
Leaching:
|
Broken
and crushed ore on a pile subjected to dissolution of metals by leach
solution.
|
Hydrometallurgical
|
|
Plant:
|
A
metallurgical mineral processing plant that uses water to leach or
separate and concentrate elements or minerals.
|
Intercalated:
|
Mixed
in.
|
Lithostatic
Pressure:
|
Pressure
brought on by weight of overlaying rocks.
|
Major
|
|
Intrusive
Center:
|
An
area where large bodies of intrusive igneous rock exist and through which
large amounts of mineralizing fluids rose.
|
Mesothermal:
|
A
class of hydrothermal ore deposit formed at medium temperatures and a
depth over one mile in the earth’s crust.
|
Microporphyritic
|
|
Latite:
|
Extremely
fine grained siliceous igneous rock with a distribution of larger crystals
within.
|
Mudstone:
|
Sedimentary
bed composed primarily of fine grained material such as clay and
silt.
|
PPM:
|
Part
per million.
|
Pyritized:
|
Partly
replaced by the mineral pyrite.
|
Reverse
Circulation
|
|
Drilling
(or R.C.
|
|
Drilling):
|
Type
of drilling using air to recover cuttings for sampling through the middle
of the drilling rods rather than the outside of the drill rods, resulting
in less contamination of the sampled
interval.
|
Sericitized:
|
Rocks
altered by heat, pressure and solutions resulting in formation of the
mineral sericite, a very fine grained mica.
|
Siltstone:
|
A
sedimentary rock composed of clay and silt sized
particles.
|
Silicified:
|
Partly
replaced by silica.
|
Stockwork
Breccia:
|
Earth's
crust broken by two or more sets of parallel faults converging from
different directions.
|
Stockwork:
|
Ore,
when not in strata or in veins but in large masses, so as to be worked in
chambers or in large blocks.
|
Surface
Mine:
|
Surface
mining by way of an open pit without shafts or underground
working.
|
|
·
|
the
level of interest rates,
|
|
·
|
the
rate of inflation,
|
|
·
|
central
bank sales,
|
|
·
|
world
supply of gold and
|
|
·
|
stability
of exchange rates.
|
|
·
|
labor
disputes,
|
|
·
|
invalidity
of governmental orders,
|
|
·
|
uncertain
or unpredictable political, legal and economic
environments,
|
|
·
|
war
and civil disturbances,
|
|
·
|
changes
in laws or policies,
|
|
·
|
taxation,
|
|
·
|
delays
in obtaining or the inability to obtain necessary governmental
permits,
|
|
·
|
governmental
seizure of land or mining claims,
|
|
·
|
limitations
on ownership,
|
|
·
|
limitations
on the repatriation of earnings,
|
|
·
|
increased
financial costs,
|
|
·
|
import
and export regulations, including restrictions on the export of gold,
and
|
|
·
|
foreign
exchange controls.
|
|
·
|
ownership
of assets,
|
|
·
|
land
tenure,
|
|
·
|
mining
policies,
|
|
·
|
monetary
policies,
|
|
·
|
taxation,
|
|
·
|
rates
of exchange,
|
|
·
|
environmental
regulations,
|
|
·
|
labor
relations,
|
|
·
|
repatriation
of income and/or
|
|
·
|
return
of capital.
|
|
·
|
stricter
standards and enforcement,
|
|
·
|
increased
fines and penalties for
non-compliance,
|
|
·
|
more
stringent environmental assessments of proposed projects
and
|
|
·
|
a
heightened degree of responsibility for companies and their officers,
directors and employees.
|
|
·
|
environmental
hazards,
|
|
·
|
industrial
accidents,
|
|
·
|
metallurgical
and other processing,
|
|
·
|
acts
of God, and/or
|
|
·
|
mechanical
equipment and facility performance
problems.
|
|
·
|
damage
to, or destruction of, mineral properties or production
facilities,
|
|
·
|
personal
injury or death,
|
|
·
|
environmental
damage,
|
|
·
|
delays
in mining,
|
|
·
|
monetary
losses, and/or
|
|
·
|
possible
legal liability.
|
|
·
|
the
location of economic ore bodies,
|
|
·
|
development
of appropriate metallurgical
processes,
|
|
·
|
receipt
of necessary governmental approvals,
and
|
|
·
|
construction
of mining and processing facilities at any site chosen for
mining.
|
|
·
|
the
price of gold,
|
|
·
|
the
particular attributes of the deposit, such as
its
|
|
o
|
size,
|
|
o
|
grade,
and
|
|
o
|
proximity
to infrastructure,
|
|
·
|
financing
costs,
|
|
·
|
taxation,
|
|
·
|
royalties,
|
|
·
|
land
tenure,
|
|
·
|
land
use,
|
|
·
|
water
use,
|
|
·
|
power
use,
|
|
·
|
importing
and exporting gold, and
|
|
·
|
environmental
protection.
|
Lot
|
Title
#
|
Hectars
|
Owner
|
|||||
1
|
SAN
JOSE
|
200718
|
96.00
|
Oro
|
||||
2
|
LAS
DOS VIRGEN
|
214874
|
132.235
|
Oro
|
||||
3
|
RONO
#1
|
206408
|
82.1902
|
Oro
|
||||
4
|
RONO
#3
|
214224
|
197.218
|
Oro
|
||||
5
|
LA
CUCHILLA
|
211987
|
143.3481
|
Oro
|
||||
6
|
ELSA
|
212004
|
2,035.3997
|
Oro
|
||||
7
|
ELISA
|
214223
|
78.4717
|
Oro
|
||||
8
|
ENA
|
217495
|
190.00
|
Oro
|
||||
9
|
EVA
|
212395
|
416.8963
|
Oro
|
||||
10
|
MIRSA
|
212082
|
20.5518
|
Oro
|
||||
11
|
OLGA
|
212081
|
60.589
|
Oro
|
||||
12
|
EDNA
|
219624
|
24.0431
|
Oro
|
||||
13
|
LA
TIRA
|
219324
|
1.7975
|
Oro
|
||||
14
|
LA
TIRA 1
|
219623
|
18.6087
|
Oro
|
||||
15
|
LOS
TRES
|
223634
|
8.00
|
Oro
|
||||
16
|
EL
CHARRO
|
206404
|
40.00
|
Oro
|
||||
17
|
SANTA
RITA 4 FRACCION I
|
233574
|
5.0728
|
Oro
|
||||
18
|
SANTA
RITA 4 FRACCION II
|
233575
|
4.7786
|
Oro
|
||||
19
|
SANTA
RITA 4 FRACCION III
|
233576
|
110.2725
|
Oro
|
||||
20
|
SANTA
RITA I
|
231373
|
3,765.9666
|
Oro
|
||||
21
|
SANTA
RITA III
|
232117
|
2,233.3163
|
Oro
|
||||
Total
|
9,664.7559
|
Metric
|
U.S.
|
|||
Materials
|
||||
Reserves
|
||||
Proven
|
20.9
Million Tonnes @ 0.772 g/t(1)
|
23.0
Million Tons @ 0.0225 opt(1)
|
||
Probable
|
14.9
Million Tonnes @ 0.702 g/t(1)
|
16.5
Million Tons @ 0.0205 opt(1)
|
||
Low
Grade Stockpile (Probable)
|
7.3
Million
Tonnes @ 0.246 g/t(1)
|
8.1
Million Tons @ 0.0007 opt(1)
|
||
Total
Reserves(2)
|
43.1
Million Tonnes @ 0.659 g/t(1)
|
47.6
Million Tons @ 0.0192 opt(1)
|
||
Waste
|
53.6 Million Tonnes
|
58.9 Million
Tons
|
||
Total
|
96.7
Million Tonnes
|
106.5
Million tons
|
||
Contained
Gold
|
28.41
Million grams
|
913,400 Oz
|
||
Production
|
||||
Ore
Crushed
|
5.0
Million Tonnes /Year
|
5.51
Million Tons/Year
|
||
13,699
Mt/d(1)
|
15,100
t/d(1)
|
|||
Operating
Days/Year
|
365
Days per year
|
365
Days per year
|
||
Gold
Plant Average Recovery
|
64.20
%
|
64.20%
|
||
Average
Annual Production
|
2.21 Million
grams
|
71,079 Oz
|
||
Total
Gold Produced
|
18.24
Million grams
|
586,403 Oz
|
(1)
|
“g/t”
means grams per metric tonne, “opt” means ounces per ton, “Mt/d” means
metric tonnes per day and “t/d” means tons per
day.
|
(2)
|
The
reserve estimates are based on a gold cutoff grade of 0.20 grams per
metric tonne.
|
|
·
|
Blocks
with 2 or more drill holes within a search radius of 80m x 70m x 15m and
with a relative kriging 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 15m 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); and
|
|
·
|
Blocks
outside the above search radii or outside suitable geological zones were
not assigned a gold grade or a resource
classification.
|
Cutoff
Grade Calculation
|
Internal
Cutoff Grade
|
Break
Even Cutoff Grade
|
||
Basic
Parameters
|
||||
Gold
Price
|
US$750/oz
|
US$750/oz
|
||
Shipping
and Refining
|
US$
1.00/oz
|
US$
1.00/oz
|
||
Gold
Recovery*
|
64.2%
|
64.2%
|
||
Royalty
|
4%
of NSR
|
4%
of NSR
|
||
Operating
Costs per Tonne of Ore
|
$
per Tonne of Ore
|
$
per Tonne of Ore
|
||
Mining
|
1.156
|
1.156
|
||
Processing/G&A
|
2.683
|
2.683
|
||
Total
|
3.839
|
3.839
|
||
Cutoff
Grade
|
Grams
per Tonne
|
Grams
per Tonne
|
||
Head
Grade Cutoff (64.2% average recov.)
|
0.19
g/t Au
|
0.27
g/t Au
|
||
Recovered
Gold Grade Cutoff
|
0.12
|
0.17
|
Proven and probable mineral reserve (Ktonnes of
ore)
|
July
31,
2009
|
July
31,
2008
|
July
31,
2007
|
|||||||||
Ore
|
- | - | - | |||||||||
Beginning
balance (Ktonnes)
|
35,417 | 38,916 | 19,868 | |||||||||
Additions
|
9,342 | - | 19,593 | |||||||||
Reductions
|
(3,848 | ) | (3,499 | ) | (545 | ) | ||||||
Ending
Balance
|
40,911 | 35,417 | 38,916 | |||||||||
Contained
gold
|
||||||||||||
Beginning
balance (thousand of ounces)
|
719 | 814 | 490 | |||||||||
Additions
|
239 | - | 342 | |||||||||
Reductions
|
(99 | ) | (95 | ) | (18 | ) | ||||||
Ending
Balance
|
859 | 719 | 814 |
Mineral Reserve Class
|
Ore (tonnes)
|
Grade (g/t)
|
Contained Gold (oz.)
|
|||||||||
Proven
Mineral Reserve
|
22,401,000 | 0.70 | 503,000 | |||||||||
Probable
Mineral Reserve
|
48,155,000 | 0.65 | 1,001,000 | |||||||||
Proven
and Probable Mineral Reserve
|
70,557,000 | 0.66 | 1,504,000 |
Item 5.
|
Market for
Registrant’s Common Equity, Related Stockholder Matters and Issuer
Purchases of Equity
Securities.
|
Quarter Ending
|
High and Low
|
|||||||
July
31, 2009
|
0.72 | 0.53 | ||||||
April
30, 2009
|
0.71 | 0.52 | ||||||
January
31, 2009
|
0.63 | 0.30 | ||||||
October
31, 2008
|
0.65 | 0.27 | ||||||
July
31, 2008
|
0.70 | 0.60 | ||||||
April
30, 2008
|
0.78 | 0.62 | ||||||
January
31, 2008
|
0.81 | 0.60 | ||||||
October
31, 2007
|
0.63 | 0.38 |
Quarter Ending
|
High and Low
|
|||||||
US$/CDN$
|
US$/CDN$
|
|||||||
Quarter
ended July 31, 2009
|
0.71/0.79 | 0.53/0.62 | ||||||
Quarter
ended April 30, 2009
|
0.71/0.90 | 0.52/0.63 | ||||||
Quarter
ended January 31, 2009
|
0.62/0.76 | 0.29/0.35 | ||||||
Quarter
ended October 31, 2008
|
0.65/0.68 | 0.25/0.32 | ||||||
Quarter
ended July 31, 2008
|
0.70/0.71 | 0.61/0.60 | ||||||
Quarter
ended April 30, 2008
|
0.83/0.83 | 0.62/0.62 | ||||||
Quarter
ended January 31, 2008
|
077/0.76 | 0.58/0.57 | ||||||
Quarter
ended October 31, 2007
|
0.60/0.61 | 0.39/0.40 |
Number of Securities to
be issued upon exercise
of outstanding options,
warrants and rights*
|
Weighted-average
Exercise price of
Outstanding options,
warrants and rights
|
Number of securities
Remaining available for
future issuance under
equity compensation plans
(excluding securities
reflected in column (a))
|
||||||||||
Plan Category
|
||||||||||||
(a)
|
(b)
|
(c)
|
||||||||||
Equity
compensation plans approved by security holders:
|
6,015,000 | $ | 0.56 | 602,500 | ||||||||
Equity
compensation plans not approved by security holders:
|
600,000 | $ | 0.85 | N/A | ||||||||
Total
|
6,615,000 | $ | 0.59 | 602,500 |
QUARTERLY
RETURN PERCENTAGE
|
||||||||||||||||||||||||||||||||||||
Quarter
Ending
|
||||||||||||||||||||||||||||||||||||
Company
/ Index
|
10/31/07
|
1/31/08
|
4/30/08
|
7/31/08
|
10/31/08
|
1/31/09
|
4/30/09
|
7/31/09
|
||||||||||||||||||||||||||||
Capital
Gold Corporation
|
36.07 | 10.48 | -6.61 | -0.77 | -55.04 | 115.52 | -13.60 | 12.04 | ||||||||||||||||||||||||||||
S&P
SmallCap 600 Index
|
5.12 | -12.65 | 1.20 | -1.48 | -22.43 | -18.20 | 11.89 | 13.71 | ||||||||||||||||||||||||||||
New
Peer Group
|
5.64 | -18.49 | 1.12 | 14.03 | -63.09 | 62.24 | 5.86 | 22.80 | ||||||||||||||||||||||||||||
Old
Peer Group
|
9.32 | -20.42 | -4.41 | 17.42 | -56.28 | 88.11 | -0.63 | 19.89 | ||||||||||||||||||||||||||||
INDEXED
RETURNS
|
||||||||||||||||||||||||||||||||||||
Base
|
Quarter
Ending
|
|||||||||||||||||||||||||||||||||||
Period
|
||||||||||||||||||||||||||||||||||||
Company
/ Index
|
8/1/07
|
10/31/07
|
1/31/08
|
4/30/08
|
7/31/08
|
10/31/08
|
1/31/09
|
4/30/09
|
7/31/09
|
|||||||||||||||||||||||||||
Capital
Gold Corporation
|
100 | 136.07 | 150.32 | 140.39 | 139.31 | 62.63 | 134.99 | 116.63 | 130.67 | |||||||||||||||||||||||||||
S&P
SmallCap 600 Index
|
100 | 105.12 | 91.82 | 92.92 | 91.55 | 71.01 | 58.09 | 65.00 | 73.91 | |||||||||||||||||||||||||||
New
Peer Group
|
100 | 105.64 | 86.10 | 87.07 | 99.28 | 36.64 | 59.45 | 62.93 | 77.28 | |||||||||||||||||||||||||||
Old
Peer Group
|
100 | 109.32 | 87.00 | 83.16 | 97.64 | 42.69 | 80.30 | 79.79 | 95.67 |
New
Peer Group
|
Old
Peer Group
|
|
ALAMOS
GOLD INC
|
ALAMOS
GOLD INC
|
|
GAMMON
GOLD INC
|
GAMMON
GOLD INC
|
|
MINEFINDERS
CORP LTD
|
WESTERN
GOLDFIELDS INC
|
|
NEW
GOLD INC
|
Fiscal Year Ended July 31
|
||||||||||||||||||||
2009
|
2008
|
2007
|
2006
|
2005
|
||||||||||||||||
Statement of Operations
data:
|
||||||||||||||||||||
Revenues
|
$ | 42,757 | $ | 33,104 | $ | - | $ | - | $ | - | ||||||||||
Net Income (loss)
|
$ | 10,407 | $ | 6,364 | $ | (7,472 | ) | $ | (4,805 | ) | $ | (2,006 | ) | |||||||
Income (loss) per share –
Basic
|
$ | 0.05 | $ | 0.04 | $ | (0.05 | ) | $ | (0.04 | ) | $ | (0.03 | ) | |||||||
Balance Sheet data:
|
||||||||||||||||||||
Total Assets
|
$ | 54,601 | $ | 48,879 | $ | 27,551 | $ | 9,546 | $ | 5,552 | ||||||||||
Long-term Debt
|
$ | 4,400 | $ | 8,375 | $ | 12,500 | $ | - | $ | - | ||||||||||
Reclamation and Remediation
Liability
|
$ | 1,594 | $ | 1,666 | $ | 1,249 | $ | - | $ | - |
For the year
|
For the year
|
|||||||
ended
|
ended
|
|||||||
July 31,
2009
|
July 31,
2008
|
|||||||
Total debt
|
$ | 8,000 | $ | 12,500 | ||||
Total stockholders’ equity
|
$ | 37,882 | $ | 28,197 | ||||
Cash and cash equivalents
|
$ | 6,448 | $ | 10,992 | ||||
Working capital
|
$ | 20,646 | $ | 15,825 |
|
·
|
Net
cash provided from operations of
$7,536;
|
|
·
|
Capital
expenditures of $5,174;
|
|
·
|
Repayments
on Credit Facility of $4,500;
|
|
·
|
Proceeds
from the issuance of common stock upon the exercising of warrants of
$319;
|
|
·
|
Fluctuations
in gold prices;
|
|
·
|
We
expect fiscal 2010 gold sales of approximately 60,000 ounces and
90,000 ounces of silver;
|
|
·
|
Cash
costs per ounce sold for fiscal 2010 are expected to be approximately $330
per ounce;
|
|
·
|
We
anticipate capital expenditures of approximately $5,000 in fiscal 2010
with approximately $3,300 being allocated to leach pad expansion and
approximately $1,000 for the addition of a new tertiary crusher and
screening module;
|
|
·
|
Repayments
on Credit Facility of $3,600 during fiscal
2010.
|
|
·
|
Our
fiscal year 2010 expectations, particularly with respect to sales volumes
and cash costs per ounce sold, may differ significantly from actual
quarter and full fiscal year results due to variations in: ore grades and
hardness, metal recoveries, waste removed, commodity input prices, foreign
currencies and gold sale prices.
|
For
the year
|
For
the year
|
For
the year
|
||||||||||
ended
|
ended
|
Ended
|
||||||||||
July
31,
2009
|
July
31,
2008
|
July
31,
2007
|
||||||||||
Revenues
|
42,757 | 33,104 | - | |||||||||
Net
Income (loss)
|
10,407 | 6,364 | (7,472 | ) | ||||||||
Basic
net income (loss) per share
|
0.05 | 0.04 | (0.05 | ) | ||||||||
Diluted
net income (loss) per share
|
0.05 | 0.03 | - | |||||||||
Gold
ounces sold
|
48,418 | 39,102 | - | |||||||||
Average
price received
|
$ | 883 | $ | 847 | - | |||||||
Cash
cost per ounce sold
|
$ | 271 | $ | 276 | - | |||||||
Total
cost per ounce sold
|
$ | 314 | $ | 335 | - |
For
the year
ended
July
31,
2009
|
For
the year
ended
July
31,
2008
|
For
the year
ended
July
31,
2007(1)
|
||||||||||
Tonnes
of ore mined
|
3,847,883 | 3,498,612 | 545,089 | |||||||||
Tonnes
of waste removed
|
4,319,949 | 2,627,318 | 209,567 | |||||||||
Ratio
of waste to ore
|
1.12 | 0.75 | 0.38 | |||||||||
Tonnes
of ore processed
|
3,999,346 | 3,529,699 | 631,530 | |||||||||
Grade
(grams/tonne)
|
0.78 | 0.85 | 0.88 | |||||||||
Gold
(ounces)
|
||||||||||||
-Produced(2)
|
49,921 | 39,242 | 578 | |||||||||
-Sold
|
48,418 | 39,102 | - |
Payments Due by Period
|
||||||||||||||||||||
Contractual Obligations(5)
|
Total
|
Less than
1 Year
|
1 – 3
Years
|
3 – 5
Years
|
More than
5 Years
|
|||||||||||||||
Debt
(1)
|
$ | 8,650 | $ | 3,860 | $ | 4,790 | $ | - | $ | - | ||||||||||
Remediation
and reclamation obligations(2)
|
3,741 | - | - | - | 3,741 | |||||||||||||||
Operating
leases(3)
|
760 | 247 | 513 | - | - | |||||||||||||||
Derivative
instruments(4)
|
184 | 154 | 30 | - | - | |||||||||||||||
$ | 13,335 | $ | 4,261 | $ | 5,333 | $ | - | $ | 3,741 |
(1)
|
Amounts
represent principal ($8,000) and estimated interest payments ($650)
assuming no early extinguishment.
|
(2)
|
Mining
operations are subject to extensive environmental regulations in the
jurisdictions in which they operate. Pursuant to environmental
regulations, we are required to close our operations and reclaim and
remediate the lands that operations have disturbed. The estimated
undiscounted cash outflows of these remediation and reclamation
obligations are reflected here. For more information regarding remediation
and reclamation liabilities, see Note 12 to the Consolidated Financial
Statements.
|
(3)
|
Amounts
represent a non-cancelable operating lease for office space in New York
that commenced on September 1, 2007 and terminates on August 31, 2012. In
addition to base rent, the lease calls for payment of utilities and other
occupancy costs. Also, includes an operating lease for office space in
Caborca, Sonora, as well as leased concessions in Saric, Sonora for
exploration.
|
(4)
|
Amounts
represent the net cash settlement of interest rate swap
agreement with Standard Bank.
|
(5)
|
Contractual
obligations do not include the net smelter return payments as this payment
is linked to the gold price and cannot be reasonably estimated given
variable market conditions. As of July 31, 2009, the amount
remaining in net smelter return payments due to Royal Gold was
approximately $13,936.
|
Level 1
|
Unadjusted
quoted prices in active markets that are accessible at the measurement
date for identical, unrestricted assets or
liabilities;
|
Level 2
|
Quoted
prices in markets that are not active, or inputs that are observable,
either directly or indirectly, for substantially the full term of the
asset or liability;
|
Level 3
|
Prices
or valuation techniques that require inputs that are both significant to
the fair value measurement and unobservable (supported by little or no
market activity).
|
Fair Value at July 31, 2009
(in thousands)
|
||||||||||||||||
|
Total
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||
Assets:
|
||||||||||||||||
Cash
equivalents
|
$ | 3,334 | $ | 3,334 | $ | - | $ | - | ||||||||
Marketable
securities
|
35 | 35 | - | - | ||||||||||||
$ | 3,369 | $ | 3,369 | $ | - | $ | - | |||||||||
Liabilities:
|
||||||||||||||||
Interest
rate swap
|
193 | - | 193 | - | ||||||||||||
$ | 193 | $ | - | $ | 193 | $ | - |
Item
7A.
|
Quantitative and
Qualitative Disclosures About Market
Risk
|
Type of Derivative
|
Notional Size
|
Fixed Price or
Strike Price
|
Underlying Price
|
Termination or
Expiration
|
Fair Value
|
|||||||||||
Interest
Rate Swaps
|
$ | 4,594 | (1) | 5.30 | % |
3 Mo. USD LIBOR
|
12/31/2010
|
$ | (193 | ) |
Item
8.
|
Financial Statements
and Supplementary Data.
|
Item
9.
|
Changes in and
Disagreements with Accountants on Accounting and Financial
Disclosures.
|
Item
9A.
|
Controls and
Procedures.
|
Item
9B.
|
Other
Information.
|
Item
10.
|
Executive Officers and
Corporate Governance.
|
Name
|
Age
|
Position
|
||
Gifford
A. Dieterle
|
77
|
Chief
Executive Officer, Treasurer
|
||
John
Brownlie
|
59
|
President,
Chief Operating Officer
|
||
Christopher
M. Chipman
|
36
|
Chief
Financial Officer
|
||
J.
Scott Hazlitt
|
57
|
Vice
President – Mine
Development
|
Item
11.
|
Executive
Compensation
|
Item
12.
|
Security Ownership of
Certain Beneficial Owners and Management and Related Stockholder
Matters.
|
Item
15.
|
Exhibits and Financial
Statement Schedules.
|
3.1
|
Certificate
of Incorporation of the Company dated September 22, 2005 (Incorporated by
reference to Exhibit 3.3 to the Company’s Registration Statement on Form
SB-2 (File No. 333-129939) filed on November 23, 2005), as amended by the
Certificate of Amendment dated February 26, 2007 (Incorporated by
reference to Exhibit 3.1 to the Company’s Quarterly Report on Form 10-QSB
for the quarterly period ended January 31, 2007 and filed on March 19,
2007), as further amended by the Certificate of Amendment dated January
24, 2008 (Incorporated by reference to Exhibit 3.1 to the Company’s
Current Report on Form 8-K filed on January 30, 2008).
|
||
3.2
|