Midway Gold Corp (MDW, Financial) filed Quarterly Report for the period ended 2009-06-30.
MIDWAY GOLD CORP. is a precious metals exploration company listed on Tier-1 of the TSX Venture Exchange. Its primary focus is discovering and developing high-grade gold resources in environmentally favorable deposits within politically stable regions known for large gold endowments. Midway Gold Corp has a market cap of $49.5 million; its shares were traded at around $0.64 .
Exploration expenses in the six months ended June 30, 2009 was $422,359 (2008 $6,321,363). The details of the expenses in each period may be found in the schedule to the unaudited consolidated interim financial statements. Exploration levels are determined by the success of previous exploration programs on each project and cash available to fund additional programs. Exploration salaries and labor include the non-cash estimated fair value of stock based compensation for stock options granted to technical employees in the period of $156,305 (2008 - $162,209).
Directors fees and salaries and benefits of $701,974 (2008 - $622,117) are payments to the Companys non-management directors and Midways staff based in Helena, Montana. In the six months ended June 30, 2009 directors fees paid or accrued were $10,845 (2008 - $63,652). Salaries and benefits paid in the six months ended June 30, 2009 were $691,129 (2008 - $558,465). However in US dollar terms the salaries paid in the six months ended June 30, 2009 were US$299,635 compared to US$383,491 in the six months ended June 30, 2008. The category also includes the estimated fair value of stock based compensation for stock options granted and vested to employees, directors and officers in the period of $329,700 (2008 - $172,267).
Interest income has declined with the Companys lower cash balances and the reduction in interest rates. The income tax recovery of $11,900 (2008 - $464,000) and an unrealized foreign exchange gain of $370,092 (2008 loss of $229,892) included in the foreign exchange gain of $261,565 (2008 loss of $207,313) relate to the US dollar denominated future income tax liability recorded upon the acquisition of Pan-Nevada in April 2007.
The Company began the 2009 year with cash and cash equivalents of $2,416,438. During the six months ended June 30, 2009, the Company expended $1,544,312 on operations, invested a total of $156,919 in mineral property and equipment and received $3,500,000 from the exercise of warrants and paid $1,000,000 owing for the promissory note to end at June 30, 2009 with cash and cash equivalents of $3,215,207.
Midway has an obligation to reclaim its properties after the surface has been disturbed by exploration methods at the site. As of June 30, 2009, we have accrued US$49,385 ($57,435) related to reclamation and other closure requirements at our properties which is reduced from the estimate made at from December 31, 2008. These liabilities are covered by a combination of surety bonds and restricted cash totaling $338,999 at June 30, 2009 (December 31, 2008 - $517,711). We have accrued as a current liability what management believes is the present value of our best estimate of the liabilities as of June 30, 2009; however, it is possible that our obligations may change in the near or long term depending on a number of factors.
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MIDWAY GOLD CORP. is a precious metals exploration company listed on Tier-1 of the TSX Venture Exchange. Its primary focus is discovering and developing high-grade gold resources in environmentally favorable deposits within politically stable regions known for large gold endowments. Midway Gold Corp has a market cap of $49.5 million; its shares were traded at around $0.64 .
Highlight of Business Operations:
The Company expended $93,918 on the Spring Valley project in the six months ended June 30, 2009 which includes $39,059 of legal costs incurred to finalize the agreement with Barrick and other matters related to the project. As discussed below the Company expended and recovered an additional $351,424 on the Spring Valley Project from Barrick.Exploration expenses in the six months ended June 30, 2009 was $422,359 (2008 $6,321,363). The details of the expenses in each period may be found in the schedule to the unaudited consolidated interim financial statements. Exploration levels are determined by the success of previous exploration programs on each project and cash available to fund additional programs. Exploration salaries and labor include the non-cash estimated fair value of stock based compensation for stock options granted to technical employees in the period of $156,305 (2008 - $162,209).
Directors fees and salaries and benefits of $701,974 (2008 - $622,117) are payments to the Companys non-management directors and Midways staff based in Helena, Montana. In the six months ended June 30, 2009 directors fees paid or accrued were $10,845 (2008 - $63,652). Salaries and benefits paid in the six months ended June 30, 2009 were $691,129 (2008 - $558,465). However in US dollar terms the salaries paid in the six months ended June 30, 2009 were US$299,635 compared to US$383,491 in the six months ended June 30, 2008. The category also includes the estimated fair value of stock based compensation for stock options granted and vested to employees, directors and officers in the period of $329,700 (2008 - $172,267).
Interest income has declined with the Companys lower cash balances and the reduction in interest rates. The income tax recovery of $11,900 (2008 - $464,000) and an unrealized foreign exchange gain of $370,092 (2008 loss of $229,892) included in the foreign exchange gain of $261,565 (2008 loss of $207,313) relate to the US dollar denominated future income tax liability recorded upon the acquisition of Pan-Nevada in April 2007.
The Company began the 2009 year with cash and cash equivalents of $2,416,438. During the six months ended June 30, 2009, the Company expended $1,544,312 on operations, invested a total of $156,919 in mineral property and equipment and received $3,500,000 from the exercise of warrants and paid $1,000,000 owing for the promissory note to end at June 30, 2009 with cash and cash equivalents of $3,215,207.
Midway has an obligation to reclaim its properties after the surface has been disturbed by exploration methods at the site. As of June 30, 2009, we have accrued US$49,385 ($57,435) related to reclamation and other closure requirements at our properties which is reduced from the estimate made at from December 31, 2008. These liabilities are covered by a combination of surety bonds and restricted cash totaling $338,999 at June 30, 2009 (December 31, 2008 - $517,711). We have accrued as a current liability what management believes is the present value of our best estimate of the liabilities as of June 30, 2009; however, it is possible that our obligations may change in the near or long term depending on a number of factors.
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