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Paramount Gold and Silver Corp Reports Operating Results (10-Q/A)

November 05, 2010 | About:

Paramount Gold and Silver Corp (PZG) filed Amended Quarterly Report for the period ended 2009-12-31.

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 December2009. 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 $1,538,070 and $2,616,569 for the three and six months ended December 31, 2009 as compared to $486,295 and $2,335,334 for the three and six months ended December 31, 2008. We have incurred exploration costs since Inception totaling $20,370,042.

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 $202,839 and $458,125 for the three and six months ended December 31, 2008 to $46,564 and $86,190 for the comparative periods in 2009. 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 six months ended December 31, 2009, we incurred expenses of $71,827 and $152,764 as compared to $266,245 and $582,634.

Our Net Loss for the three and six months ended December 31, 2009 was $3,078,888 and $5,124,380 as compared to $1,400,682 and $4,461,220, in 2008. Cumulative loss since inception totaled $(49,684,485) 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 December 31, 2009, we had cash totaling $19,095,311 as compared to $7,040,999, at June 30, 2009, an increase of approximately 170% which is due to our recent financing activities. Amounts receivable totaled $473,052 at December 31, 2009 as compared to $221,267. This increase is primarily attributable to value added tax refunds due from the Mexican government.. Total current assets at December 31, 2009 were $22,011,845 as compared to $8,499,986 at June 30, 2009.

Our long term assets at December 31, 2009 totaled $22,628,864 consisting of mineral properties and fixed assets totaling $22,111,203 and $517,661 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 in addition to an option we acquired for mineral properties located at Vidette Lake 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 these properties.

Read the The complete Report

About the author:

Charlie Tian, Ph.D. - Founder of GuruFocus. You can now order his book Invest Like a Guru on Amazon.

Rating: 3.3/5 (3 votes)


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