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 $1,100 per ounce in November 2009. Despite declining from a high of $21.00 per ounce in March 2008 to approximately $17.00 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.
On March 20, 2009 we sold a total of 12 million units of our securities at a price of CDN$0.75 per unit for a total of CDN$9,000,000 (the “Financing”). (Based on an exchange rate of CDN$1 = US$0.80 we raised gross proceeds of US$7.2 million). Each unit consisted of one share of common stock and one common stock purchase warrant. Each warrant entitles the holder thereof to purchase one share of our common stock at an exercise price of CDN$1.05 per share for a period of four years from the date of issuance. The warrants were not exercisable until six months from their issue date.
Our exploration and geology costs declined from $1,449,884 and $399,995 for the three months ended September 30, 2008 as compared to $859,211 and $219,288 for the three months ended September 30, 2009.
Our net gain for the three months ended September 30, 2009 was $2,045,492 as compared to a net loss of $3,061,378 in 2008. Due to foreign currency translation adjustments, our total comprehensive gain for the three months ended September 30, 2009 was $1,053,458 as compared to a total comprehensive loss of $3,093,672. Total comprehensive loss since inception totaled $55,068,873. 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 September 30, 2009, we had cash and cash equivalents totaling $1,851,389 as compared to $7,040,999 at June 30, 2009. This decline of approximately $5.2 million is primarily attributable to the $3,701,751 acquisition costs (Mexoro) associated with several mining concessions as well as our ongoing drilling and exploration program. The $3.7 million to fund the purchase from Mexoro was paid into escrow just prior to quarter end thereby lowering our cash position accordingly.
Our long term assets at September 30, 2009 totaled $22,647,977 as compared to $18,957,809. Long term assets consist primarily of our mineral properties located within the Sierra Madre gold district in Mexico which we valued at $22,138,703 as compared to $18,436,951 as of June 30, 2009. The Company has capitalized the acquisition costs of these properties. We also have fixed assets consisting of property and equipment totaling $509,274 as compared to $520,858 net of depreciation.
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