Paramount Gold and Silver Corp Reports Operating Results (10-Q)
Paramount Gold And Silver Corp has a market cap of $229.81 million; its shares were traded at around $1.74 . PZG is in the portfolios of Steven Cohen of SAC Capital Advisors, Kenneth Fisher of Fisher Asset Management, LLC.
Highlight of Business Operations:At September 30, 2010 we had a cash balance of $18,773,785 compared to $21,380,505 for the same period in the prior year. The net reduction in cash is attributable to the funding of our exploration program at our San Miguel project in Mexico.
At September 30, 2010, the Company had a working capital of $20.1 million. Based on our current level of activity in Mexico the cash expenditure rate on a monthly basis is approximately $650,000. We anticipate that the monthly cash rate to increase as a result of planned exploration activities in Nevada. We believe that our existing cash is adequate to meet our budgeted expenses in the short-term.
As an exploratory mining company, we have not earned revenue from our operations since our inception. All of our income is derived from interest earned on our cash holdings. We invest our excess cash in short-term Guaranteed Investment Certificates that range from 30 to 90 day terms. For the period ending September 30, 2010, the Company earned $20,937 compared to $54,514 in interest income for the same period a year earlier.
Exploration expenses were $1,802,256 in the three month period ended September 30, 2010 compared to $1,078,499 for three month period ended September 30, 2009. The increase is due to our expanded exploration program at our San Miguel project. Expenses incurred include geology, drilling, lab analysis, site access, license and permitting. During the quarter, the Company drilled 33 holes with a cumulative total of 7800 meters at its San Miguel project. Since inception, we have incurred exploration costs totaling $25,599,520.
Our general and administration expenses which include professional fees, corporate communications, consulting fees and office and administration expense totaled $349,411 for the period ended September 30, 2010 compared to $594,678 for the period ended September 30, 2009. This decrease of $244,907 or 41% is a direct result of reducing headcount and streamlining all of the Company s corporate functions.
Acquisition expenses increased by $711,815 to $1,076,273 in the three months ended September 30, 2010 compared to $364,458 in the same period of 2009. The increase was due to the successful acquisition of X-Cal Resources Ltd. which closed on August 23, 2010. The expenses incurred included advisory, legal, termination benefits, restructuring and related integration costs.
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