Paramount Gold and Silver Corp Reports Operating Results (10-Q/A)
Paramount Gold And Silver Corp has a market cap of $217.7 million; its shares were traded at around $1.73 . PZG is in the portfolios of Steven Cohen of SAC Capital Advisors, Kenneth Fisher of Fisher Asset Management, LLC.
Highlight of Business Operations:Gold prices have generally trended upward during the last nine years, from a low of just under $260 per ounce in early 2001 to a high of more than $1,200 per ounce in May 2010. Despite declining from a high of $21.00 per ounce in March 2008 to approximately $18.75 per ounce in November 2009, silver has trended upward as well over the past 9 years from a low of approximately $8.50 per ounce. Management remains encouraged with its ongoing drilling program. If commercially recoverable deposits are identified, management believes that the Company will enter into an agreement with a mining partner who has experience implementing mining operations.
Exploration costs continue to be our largest expense totaling $1,338,425 and $3,982,744 for the three and nine months ended March 31, 2010 as compared to $309,624 and $2,644,958 for the three and nine months ended March 31, 2009. Exploration costs will continue to increase as we continue with an expanded drilling program. We have incurred exploration costs since inception totaling $21,736,215.
With our dual listings on the NYSE AMEX and the Toronto Stock Exchange market awareness and investor relations continues to be a critical component of our business strategy. We believe that this program has been successful and as a result have been able to reduce these fees from $169,181 and $627,306 for the three and nine months ended March 31, 2009 to $158,545 and $322,219 for the comparative periods in this fiscal year. With most of our focus on mining activities and costs related thereto, we have been able to significantly reduce our office and administrative expenses. For the three and nine months ended March 31, 2010, we incurred expenses of $112,959 and $265,723 as compared to $156,497 and $739,121 for the three months and nine months ended March 31, 2009.
Our Net Loss for the three and nine months ended March 31, 2010 was $2,181,875 and $7,306,254 as compared to $2,238,133 and $6,699,994, in the comparable periods of last fiscal year. Cumulative loss since inception totaled $50,503,519. Our Net Loss per Share was $0.01 and $0.03 as compared to a Net Loss per share of $0.03 and $0.11 during the comparable periods in the last fiscal year. Until such time as we are able to identify mineral deposits which we believe can be extracted in a commercially reasonable manner, of which there can be no assurance, we will continue to incur ongoing losses.
At March 31, 2010, we had cash totaling $20,318,898 as compared to $7,040,999, at June 30, 2009, an increase of approximately 188% which is due to our recent financing activities. We also held a term deposit with the Bank of Nova Scotia in the amount of $1,000,000 plus accrued interested. Amounts receivable totaled $1,364,915 at March 31, 2010 as compared to $221,267. This increase is primarily attributable to value added tax refunds due from the Mexican government. Total current assets at March 31, 2010 were $23,695,210 as compared to $8,499,986 at June 30, 2009.
Our long term assets at March 31, 2010 totaled $22,613,391 consisting of mineral properties and fixed assets totaling $22,111,203 and $502,188 respectively as compared to long terms assets at June 30, 2009 totaling $18,957,809 consisting of mineral properties totaling $18,436,951 and $520,858 for fixed assets. Long term assets consist of our mineral properties located within the Sierra Madre gold district in Mexico. During the nine months we wrote off our interest in the Vidette Lake project in British Columbia. The increase in our mineral properties is directly attributable to an increase of the capitalized costs of the San Miguel Project from $13,906,572 to $17,855,824. We capitalize the acquisition costs of certain properties.
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