DELAWARE
|
13-3180530
|
|
(State
or other jurisdiction of
|
(I.R.S.
Employer
|
|
incorporation
or organization)
|
Identification
No.)
|
Large accelerated filer
|
¨
|
Accelerated filerx
|
Non-accelerated filer
|
¨
|
Smaller reporting company ¨
|
(do
not check if smaller reporting company)
|
Class
|
Outstanding at June 4, 2010
|
|||
Common
Stock, par value $.0001 per share
|
48,559,521 |
April 30,
2010
(unaudited)
|
July 31,
2009
|
|||||||
ASSETS
|
||||||||
Current
Assets:
|
||||||||
Cash
and Cash Equivalents
|
$ | 9,203 | $ | 6,448 | ||||
Accounts
Receivable
|
- | 2,027 | ||||||
Ore
on Leach Pads (Note 6)
|
30,767 | 20,024 | ||||||
Material
and Supply Inventories (Note 5)
|
2,109 | 1,381 | ||||||
Marketable
Securities (Note 4)
|
75 | 35 | ||||||
Prepaid
Expenses
|
444 | 277 | ||||||
Other
Current Assets (Note 7)
|
1,018 | 1,101 | ||||||
Total
Current Assets
|
43,616 | 31,293 | ||||||
Mining
Concessions (Note 10)
|
52 | 51 | ||||||
Property
& Equipment – net (Note 8)
|
25,134 | 22,417 | ||||||
Intangible
Assets – net (Note 9)
|
672 | 318 | ||||||
Other
Assets:
|
||||||||
Deferred
Financing Costs
|
1,641 | 2,232 | ||||||
Other
Long-term Assets
|
332 | 98 | ||||||
Total
Other Assets
|
1,973 | 2,330 | ||||||
Total
Assets
|
$ | 71,447 | $ | 56,409 | ||||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
||||||||
Current
Liabilities:
|
||||||||
Accounts
Payable
|
$ | 1,103 | $ | 988 | ||||
Accrued
Expenses (Note 17)
|
7,114 | 1,633 | ||||||
Derivative
Contracts (Note 16)
|
72 | 193 | ||||||
Deferred
Tax Liability (Note 18)
|
4,571 | 4,233 | ||||||
Current
Portion of Long-term Debt (Note 15)
|
3,600 | 3,600 | ||||||
Total
Current Liabilities
|
16,460 | 10,647 | ||||||
Reclamation
and Remediation Liabilities (Note 11)
|
2,016 | 1,594 | ||||||
Other
liabilities
|
276 | 78 | ||||||
Long-term
Debt (Note 15)
|
1,700 | 4,400 | ||||||
Total
Long-term Liabilities
|
3,992 | 6,072 | ||||||
Commitments
and Contingencies
|
||||||||
Stockholders’
Equity:
|
||||||||
Common
Stock, Par Value $.0001 Per Share;
|
||||||||
Authorized
75,000,000 shares; Issued and
|
||||||||
Outstanding
48,475,507 and 48,463,406 shares, respectively
|
5 | 5 | ||||||
Additional
Paid-In Capital
|
64,813 | 64,071 | ||||||
Accumulated
Deficit
|
(13,426 | ) | (22,089 | ) | ||||
Deferred
Compensation
|
(97 | ) | (319 | ) | ||||
Accumulated
Other Comprehensive Income (Note 12)
|
(300 | ) | (1,978 | ) | ||||
Total
Stockholders’ Equity
|
50,995 | 39,690 | ||||||
Total
Liabilities and Stockholders’ Equity
|
$ | 71,447 | $ | 56,409 |
For The Three Months Ended
|
||||||||
April 30,
|
||||||||
2010
|
2009
|
|||||||
Revenues
|
||||||||
Sales
– Gold, net
|
$ | 17,525 | $ | 12,395 | ||||
Costs
and Expenses:
|
||||||||
Costs
Applicable to Sales
|
6,601 | 3,698 | ||||||
Depreciation
and Amortization
|
838 | 563 | ||||||
General
and Administrative
|
3,753 | 1,361 | ||||||
Exploration
|
320 | 329 | ||||||
Total
Costs and Expenses
|
11,512 | 5,951 | ||||||
Income
from Operations
|
6,013 | 6,444 | ||||||
Other
Income (Expense):
|
||||||||
Interest
Income
|
4 | 7 | ||||||
Interest
Expense
|
(326 | ) | (351 | ) | ||||
Other
Expense
|
34 | (40 | ) | |||||
Loss
on change in fair value of derivative
|
- | (1,391 | ) | |||||
Total
Other Expense
|
(288 | ) | (1,775 | ) | ||||
Income
before Income Taxes
|
5,725 | 4,669 | ||||||
Income
Tax Expense
|
(2,946 | ) | (2,115 | ) | ||||
Net
Income
|
$ | 2,779 | $ | 2,554 | ||||
Income
Per Common Share
|
||||||||
Basic
|
$ | 0.06 | $ | 0.05 | ||||
Diluted
|
$ | 0.06 | $ | 0.05 | ||||
Basic
Weighted Average Common Shares Outstanding
|
48,486,705 | 48,340,687 | ||||||
Diluted
Weighted Average Common Shares Outstanding
|
50,264,669 | 50,206,726 |
For The Nine Months Ended
|
||||||||
April 30,
|
||||||||
2010
|
2009
|
|||||||
Revenues
|
||||||||
Sales
– Gold, net
|
$ | 42,480 | $ | 32,939 | ||||
Costs
and Expenses:
|
||||||||
Costs
Applicable to Sales
|
15,336 | 10,395 | ||||||
Depreciation
and Amortization
|
2,063 | 1,535 | ||||||
General
and Administrative
|
7,413 | 3,800 | ||||||
Exploration
|
1,000 | 1,224 | ||||||
Total
Costs and Expenses
|
25,812 | 16,954 | ||||||
Income
from Operations
|
16,668 | 15,985 | ||||||
Other
Income (Expense):
|
||||||||
Interest
Income
|
11 | 32 | ||||||
Interest
Expense
|
(1,046 | ) | (1,264 | ) | ||||
Other
Expense
|
(27 | ) | (273 | ) | ||||
Loss
on change in fair value of derivative
|
- | (1,969 | ) | |||||
Total
Other Expense
|
(1,062 | ) | (3,474 | ) | ||||
Income
before Income Taxes
|
15,606 | 12,511 | ||||||
Income
Tax Expense
|
(6,943 | ) | (4,824 | ) | ||||
Net
Income
|
$ | 8,663 | $ | 7,687 | ||||
Income
Per Common Share
|
||||||||
Basic
|
$ | 0.18 | $ | 0.16 | ||||
Diluted
|
$ | 0.17 | $ | 0.15 | ||||
Basic
Weighted Average Common Shares Outstanding
|
48,487,931 | 48,282,926 | ||||||
Diluted
Weighted Average Common Shares Outstanding
|
49,987,145 | 49,801,877 |
Accumulated
|
||||||||||||||||||||||||||||
Additional
|
Other
|
Total
|
||||||||||||||||||||||||||
Common Stock
|
paid-in-
|
Accumulated
|
Comprehensive
|
Deferred
|
Stockholders’
|
|||||||||||||||||||||||
Shares
|
Amount
|
Capital
|
Deficit
|
Income/(Loss)
|
Compensation
|
Equity
|
||||||||||||||||||||||
Balance
at July 31, 2009
|
48,463,406 | $ | 5 | $ | 64,071 | $ | (22,089 | ) | $ | (1,978 | ) | $ | (319 | ) | $ | 39,690 | ||||||||||||
Equity
based compensation
|
(63,333 | ) | - | 689 | - | - | 222 | 911 | ||||||||||||||||||||
Common
stock issued upon the exercising of options and warrants
|
75,434 | - | 53 | - | - | - | 53 | |||||||||||||||||||||
Net
income for the nine months ended April 30, 2010
|
- | - | - | 8,663 | - | - | 8,663 | |||||||||||||||||||||
Change
in fair value on interest rate swaps
|
- | - | - | - | 122 | - | 122 | |||||||||||||||||||||
Unrealized
gain on marketable securities
|
- | - | - | - | 40 | - | 40 | |||||||||||||||||||||
Equity
adjustment from foreign currency translation
|
- | - | - | - | 1,516 | - | 1,516 | |||||||||||||||||||||
Total
comprehensive income
|
- | - | - | - | - | - | 10,341 | |||||||||||||||||||||
Balance
at April 30, 2010
|
48,475,507 | $ | 5 | $ | 64,813 | $ | (13,426 | ) | $ | (300 | ) | $ | (97 | ) | $ | 50,995 |
For The
|
||||||||
Nine Months Ended
|
||||||||
April 30,
|
||||||||
2010
|
2009
|
|||||||
Cash
Flow From Operating Activities:
|
||||||||
Net
Income
|
$ | 8,663 | $ | 7,687 | ||||
Adjustments
to Reconcile Net Income to
|
||||||||
Net
Cash Provided by Operating Activities:
|
||||||||
Depreciation
and Amortization
|
2,063 | 1,535 | ||||||
Amortization
of Deferred Financing Costs
|
741 | 734 | ||||||
Accretion
of Reclamation and Remediation
|
111 | 113 | ||||||
Loss
on change in fair value of derivative
|
- | 1,969 | ||||||
Equity
Based Compensation
|
911 | 798 | ||||||
Changes
in Operating Assets and Liabilities:
|
||||||||
Decrease
(increase) in Accounts Receivable
|
2,027 | (527 | ) | |||||
Increase
in Prepaid Expenses
|
(167 | ) | (93 | ) | ||||
Increase
in Inventory
|
(10,893 | ) | (3,298 | ) | ||||
Decrease
(increase) in Other Current Assets
|
82 | (34 | ) | |||||
Decrease
(increase) in Other Long-term Assets
|
(234 | ) | (260 | ) | ||||
Increase
in Accounts Payable
|
115 | 180 | ||||||
Decrease
in Derivative Liability
|
- | (2,684 | ) | |||||
Increase
(decrease) in Other Liability
|
198 | (17 | ) | |||||
Increase
(decrease) in Reclamation and Remediation
|
308 | (511 | ) | |||||
Increase
in Deferred Tax Liability
|
338 | 523 | ||||||
Increase
in Accrued Expenses
|
5,481 | 1,196 | ||||||
Net
Cash Provided By Operating Activities
|
9,744 | 7,311 | ||||||
Cash
Flow From Investing Activities:
|
||||||||
Purchase
of Mining, Milling and Other Property
and Equipment
|
(5,319 | ) | (4,590 | ) | ||||
Purchase
of Intangibles
|
(393 | ) | (180 | ) | ||||
Net
Cash Used in Investing Activities
|
(5,712 | ) | (4,770 | ) |
For The
|
||||||||
Nine Months Ended
|
||||||||
April 30,
|
||||||||
2010
|
2009
|
|||||||
Cash
Flow From Financing Activities:
|
||||||||
Repayments
from Affiliate, net
|
4 | 5 | ||||||
Payment
of Deferred Finance Costs
|
(150 | ) | - | |||||
Repayments
on Note Payable
|
(2,700 | ) | (3,375 | ) | ||||
Proceeds
From Issuance of Common Stock
|
53 | 144 | ||||||
Net
Cash Used in Financing Activities
|
(2,793 | ) | (3,226 | ) | ||||
Effect
of Exchange Rate Changes
|
1,516 | (3,120 | ) | |||||
(Decrease)
Increase In Cash and Cash Equivalents
|
2,755 | (3,805 | ) | |||||
Cash
and Cash Equivalents - Beginning
|
6,448 | 10,992 | ||||||
Cash
and Cash Equivalents – Ending
|
$ | 9,203 | $ | 7,187 | ||||
Supplemental
Cash Flow Information:
|
||||||||
Cash
Paid For Interest
|
$ | 328 | $ | 465 | ||||
Cash
Paid For Income Taxes
|
$ | 4,521 | $ | 2,572 | ||||
Non-Cash
Financing Activities:
|
||||||||
Change
in Fair Value of Derivative Instrument
|
$ | 122 | $ | 12 |
Nine months ended April 30,
|
||||||||
2010
|
2009
|
|||||||
Expected
volatility
|
71.25 | % | 69.98-79.72 | % | ||||
Risk-free
interest rate
|
2.48 | % | 0.86-1.56 | % | ||||
Expected
dividend yield
|
- | - | ||||||
Expected
life
|
5.0
years
|
2.0
– 5.0 years
|
||||||
Forfeiture
rate
|
- | - |
Number of
Options
|
Weighted
average
exercise
price
|
Weighted
average
remaining
contracted
term (years)
|
Aggregate
intrinsic value
|
|||||||||||||
Outstanding
at July 31, 2007
|
625,000 | $ | 1.36 | 1.20 | $ | 255 | ||||||||||
Options
granted*
|
625,000 | 2.52 | - | - | ||||||||||||
Options
exercised
|
(362,500 | ) | 1.28 | - | - | |||||||||||
Options
expired
|
- | - | - | - | ||||||||||||
Outstanding
at July 31, 2008
|
887,500 | $ | 2.20 | 4.00 | $ | 334 | ||||||||||
Options
granted*
|
250,000 | 1.96 | - | - | ||||||||||||
Options
exercised
|
(176,432 | ) | 1.48 | - | - | |||||||||||
Options
expired
|
(86,068 | ) | 1.40 | - | - | |||||||||||
Options
outstanding at July 31, 2009
|
875,000 | $ | 2.36 | 5.18 | $ | 70 | ||||||||||
Options
granted*
|
500,000 | $ | 3.60 | - | - | |||||||||||
Options
exercised
|
(26,932 | ) | 2.18 | - | - | |||||||||||
Options
expired
|
(322,235 | ) | 2.26 | - | - | |||||||||||
Options
outstanding at April 30, 2010
|
1,025,833 | $ | 3.00 | 4.61 | $ | 676 | ||||||||||
Options
exercisable at April 30, 2010
|
550,000 | $ | 2.76 | 4.53 | $ | 494 |
Number of Options
|
Weighted
average
exercise
price
|
Weighted
average
remaining
contracted
term (years)
|
Aggregate
Intrinsic value
|
|||||||||||||
Outstanding at July 31,
2007
|
37,500 | $ | 1.28 | 1.67 | $ | 17 | ||||||||||
Options
granted
|
625,000 | 2.52 | - | - | ||||||||||||
Options
vested
|
(225,000 | ) | 2.32 | - | - | |||||||||||
Unvested
Options Outstanding
at July 31, 2008
|
437,500 | $ | 2.52 | 4.49 | $ | 8 | ||||||||||
Options
granted
|
250,000 | 1.96 | - | - | ||||||||||||
Options
vested
|
(250,000 | ) | 2.24 | - | - | |||||||||||
Unvested
Options outstanding at July 31, 2009
|
437,500 | $ | 2.36 | 5.18 | $ | 35 | ||||||||||
Options
granted
|
500,000 | 3.60 | - | - | ||||||||||||
Options
vested
|
(237,500 | ) | 3.23 | - | - | |||||||||||
Options
expired
|
(224,167 | ) | 2.26 | - | - | |||||||||||
Unvested
Options outstanding at April 30, 2010
|
475,833 | $ | 3.28 | 4.71 | $ | 182 |
Number of
options
|
Weighted
average
exercise
price
|
Weighted
average
remaining
contracted
term (years)
|
Aggregate
Intrinsic value
|
|||||||||||||
Warrants
and options outstanding at July 31, 2007
|
5,633,886 | $ | 1.32 | 1.48 | $ | 2,578 | ||||||||||
Options
granted*
|
428,750 | 2.64 | ||||||||||||||
Options
exercised
|
(5,388,886 | ) | 1.32 | - | - | |||||||||||
Options
expired
|
(170,000 | ) | 1.20 | - | - | |||||||||||
Warrants
and options outstanding at July 31, 2008
|
503,750 | $ | 2.48 | 3.54 | $ | 54 | ||||||||||
Options
granted
|
350,000 | 2.00 | - | - | ||||||||||||
Options
exercised
|
(37,500 | ) | 1.56 | - | - | |||||||||||
Options
expired
|
(37,500 | ) | 1.56 | - | - | |||||||||||
Warrants
and options outstanding at July 31, 2009
|
778,750 | $ | 2.36 | 3.36 | $ | 73 | ||||||||||
Options
granted
|
187,500 | 3.60 | - | - | ||||||||||||
Options
exercised
|
(48,502 | ) | 1.77 | - | - | |||||||||||
Options
expired
|
(305,248 | ) | 2.21 | - | - | |||||||||||
Warrants
and options outstanding at April 30, 2010
|
612,500 | $ | 2.84 | 3.07 | $ | 489 | ||||||||||
Warrants
and options exercisable at April 30, 2010
|
429,166 | $ | 2.84 | 1.78 | $ | 353 |
Number of
Options
|
Weighted
Average
Exercise
Price
|
Weighted
average
remaining
contracted
term (years)
|
Aggregate
Intrinsic
value
|
|||||||||||||
Outstanding
at July 31, 2007
|
- | - | - | - | ||||||||||||
Options
granted
|
162,500 | 2.52 | - | - | ||||||||||||
Options
vested
|
(48,750 | ) | 2.52 | - | - | |||||||||||
Outstanding
at July 31, 2008
|
113,750 | $ | 2.52 | 4.49 | $ | 3 | ||||||||||
Options
granted
|
318,750 | 1.96 | - | - | ||||||||||||
Options
vested
|
(191,875 | ) | 2.04 | - | - | |||||||||||
Outstanding
at July 31, 2009
|
240,625 | $ | 2.16 | 4.88 | $ | 70 | ||||||||||
Options
granted
|
187,500 | 3.60 | - | - | ||||||||||||
Options
vested
|
(129,166 | ) | 3.07 | - | - | |||||||||||
Options
expired
|
(115,625 | ) | 2.35 | - | - | |||||||||||
Unvested
options outstanding at April 30, 2010
|
183,334 | $ | 2.85 | 4.30 | $ | 148 |
(in thousands)
|
||||||||
April
30,
2010
|
July
31,
2009
|
|||||||
Marketable
equity securities, at cost
|
$ | 50 | $ | 50 | ||||
Marketable
equity securities, at fair value (See
Note 14)
|
$ | 75 | $ | 35 |
(in thousands)
|
||||||||
April
30,
2010
|
July
31,
2009
|
|||||||
Materials,
supplies and other
|
$ | 2,109 | $ | 1,381 | ||||
Total
|
$ | 2,109 | $ | 1,381 |
(in thousands)
|
||||||||
April
30,
2010
|
July
31,
2009
|
|||||||
Ore
on leach pads
|
$ | 30,767 | $ | 20,024 | ||||
Total
|
$ | 30,767 | $ | 20,024 |
(in thousands)
|
||||||||
April 30,
2010
|
July 31,
2009
|
|||||||
Value
added tax to be refunded
|
$ | 765 | $ | 1,032 | ||||
MRS
receivable
|
219 | - | ||||||
Loans
receivable – affiliate
|
30 | 33 | ||||||
Deposit
|
4 | 26 | ||||||
Other
|
- | 10 | ||||||
Total
Other Current Assets
|
$ | 1,018 | $ | 1,101 |
(in thousands)
|
||||||||
April
30,
2010
|
July
31,
2009
|
|||||||
Process
equipment and facilities
|
$ | 31,416 | $ | 26,477 | ||||
Mining
equipment
|
2,494 | 2,248 | ||||||
Mineral properties
|
175 | 175 | ||||||
Construction
in progress
|
181 | 70 | ||||||
Computer
and office equipment
|
396 | 389 | ||||||
Improvements
|
16 | 16 | ||||||
Furniture
|
48 | 47 | ||||||
Total
|
34,726 | 29,422 | ||||||
Less:
accumulated depreciation
|
(9,592 | ) | (7,005 | ) | ||||
Property
and equipment, net
|
$ | 25,134 | $ | 22,417 |
(in thousands)
|
||||||||
April 30,
2010
|
July 31,
2009
|
|||||||
Water
Rights
|
510 | 241 | ||||||
Reforestation
fee
|
198 | 73 | ||||||
Mobilization
Payment to Mineral Contractor
|
70 | 70 | ||||||
Investment
in Right of Way
|
18 | 18 | ||||||
Total
|
796 | 402 | ||||||
Accumulated
Amortization
|
(124 | ) | (84 | ) | ||||
Intangible
assets, net
|
$ | 672 | $ | 318 |
(in thousands)
|
||||||||
April 30,
2010
|
July 31,
2009
|
|||||||
El
Chanate
|
$ | 49 | $ | 45 | ||||
El
Charro
|
25 | 25 | ||||||
Total
|
74 | 70 | ||||||
Less:
accumulated amortization
|
(22 | ) | (19 | ) | ||||
Total
|
$ | 52 | $ | 51 |
(in
thousands)
|
||||
Balance
as of July 31, 2009
|
$ | 1,594 | ||
Additions,
changes in estimates and other
|
434 | |||
Liabilities
settled
|
(123 | ) | ||
Accretion
expense
|
111 | |||
Balance
as of April 30, 2010
|
$ | 2,016 |
Foreign
currency items
|
Unrealized gain
(loss) on securities
|
Change in fair
value of interest
rate swaps
|
Accumulated other
comprehensive
income
|
|||||||||||||
Balance
as of July 31, 2009
|
$ | (2,050 | ) | $ | (15 | ) | $ | 87 | $ | (1,978 | ) | |||||
Income
(loss)
|
1,516 | 40 | 122 | 1,678 | ||||||||||||
Balance
as of April 30, 2010
|
$ | (534 | ) | $ | 25 | $ | 209 | $ | (300 | ) |
(in thousands)
|
||||||||
April 30,
2010
|
July 31,
2009
|
|||||||
Total
long-term debt
|
$ | 5,300 | $ | 8,000 | ||||
Less
current portion
|
3,600 | 3,600 | ||||||
Long-term
debt
|
$ | 1,700 | $ | 4,400 |
Fiscal
Years Ending July 31,
|
||||
2010
|
$ | 900 | ||
2011
|
3,600 | |||
2012
|
800 | |||
$ | 5,300 |
(in thousands)
|
||||
Liability
balance as of July 31, 2009
|
$ | 193 | ||
Change
in fair value of swap agreement
|
26 | |||
Net
cash settlements
|
(147 | ) | ||
Liability
balance as of April 30, 2010
|
$ | 72 |
Quarter
Ended
|
Derivatives in Cash
Flow Hedging
Relationships
|
Effective
Results
Recognized
in OCI
|
Location of Results
Reclassified from AOCI
to Earnings
|
Amount
Reclassified
from AOCI
to Income
|
Ineffective
Results
Recognized
in Earnings
|
Location
of
Ineffective
Results
|
|||||||||||||
7/31/08
|
Interest
Rate contracts
|
$ | 19 |
Interest
Income (Expense)
|
(49 | ) | - |
N/A
|
|||||||||||
10/31/08
|
Interest
Rate contracts
|
$ | (38 | ) |
Interest
Income (Expense)
|
(38 | ) | - |
N/A
|
||||||||||
1/31/09
|
Interest
Rate contracts
|
$ | (95 | ) |
Interest
Income (Expense)
|
(35 | ) | - |
N/A
|
||||||||||
4/30/09
|
Interest
Rate contracts
|
$ | (16 | ) |
Interest
Income (Expense)
|
(55 | ) | - |
N/A
|
||||||||||
7/31/09
|
Interest
Rate contracts
|
$ | (19 | ) |
Interest
Income (Expense)
|
(55 | ) | - |
N/A
|
||||||||||
10/31/09
|
Interest
Rate contracts
|
$ | (16 | ) |
Interest
Income (Expense)
|
(53 | ) | - |
N/A
|
||||||||||
1/31/10
|
Interest
Rate contracts
|
$ | (8 | ) |
Interest
Income (Expense)
|
(48 | ) | - |
N/A
|
||||||||||
4/30/10
|
Interest
Rate contracts
|
$ | (1 | ) |
Interest
Income (Expense)
|
(38 | ) | - |
N/A
|
Liability Derivatives
|
||||||
July 31, 2008
|
Balance Sheet Location
|
Fair Values
|
||||
Derivatives
designated as hedging instruments
|
||||||
Interest
rate derivatives
|
Current
Liabilities
|
$ | 192 | |||
Derivatives
designated as non-hedging instruments
|
||||||
Gold
derivatives
|
Current
Liabilities
|
$ | 738 | |||
Liability
Derivatives
|
||||||
October
31, 2008
|
Balance
Sheet Location
|
Fair
Values
|
||||
Derivatives
designated as hedging instruments
|
||||||
Interest
rate derivatives
|
Current
Liabilities
|
$ | 199 | |||
Derivatives
designated as non- hedging instruments
|
||||||
Gold
derivatives
|
Current
Liabilities
|
$ | 734 | |||
Liability
Derivatives
|
||||||
January
31, 2009
|
Balance
Sheet Location
|
Fair
Values
|
||||
Derivatives
designated as hedging instruments
|
||||||
Interest
rate derivatives
|
Current
Liabilities
|
$ | 268 | |||
Derivatives
designated as non-hedging instruments
|
||||||
Gold
derivatives
|
Current
Liabilities
|
$ | 719 | |||
Liability
Derivatives
|
||||||
April
30, 2009
|
Balance
Sheet Location
|
Fair
Values
|
||||
Derivatives
designated as hedging instruments
|
||||||
Interest
rate derivatives
|
Current
Liabilities
|
$ | 228 | |||
Liability
Derivatives
|
||||||
July
31, 2009
|
Balance
Sheet Location
|
Fair
Values
|
||||
Derivatives
designated as hedging instruments
|
||||||
Interest
rate derivatives
|
Current
Liabilities
|
$ | 193 | |||
Liability
Derivatives
|
||||||
October
31, 2009
|
Balance
Sheet Location
|
Fair
Values
|
||||
Derivatives
designated as hedging instruments
|
||||||
Interest
rate derivatives
|
Current
Liabilities
|
$ | 154 | |||
January
31, 2010
|
Balance
Sheet Location
|
Fair
Values
|
||||
Derivatives
designated as hedging instruments
|
||||||
Interest
rate derivatives
|
Current
Liabilities
|
$ | 112 | |||
April
30, 2010
|
Balance
Sheet Location
|
Fair
Values
|
||||
Derivatives
designated as hedging instruments
|
||||||
Interest
rate derivatives
|
Current
Liabilities
|
$ | 72 |
Accrued
expenses consist of the following:
|
(in thousands)
|
||||||||
April 30,
2010
|
July 31,
2009
|
|||||||
Net
smelter return
|
$ | 374 | $ | 212 | ||||
Mining
contract
|
425 | 30 | ||||||
Income
tax payable
|
2,929 | 507 | ||||||
Utilities
|
172 | 128 | ||||||
Interest
|
12 | 21 | ||||||
Legal
and professional
|
60 | 125 | ||||||
Salaries,
wages and related benefits
|
2,916 | 533 | ||||||
Deferred
Financing Costs
|
159 | - | ||||||
Other
liabilities
|
67 | 77 | ||||||
$ | 7,114 | $ | 1,633 |
(in thousands)
|
(in thousands)
|
|||||||||||||||
For The Three Months Ended
|
For The Nine Months Ended
|
|||||||||||||||
April 30,
2010
|
April 30,
2009
|
April 30,
2010
|
April 30,
2009
|
|||||||||||||
Current:
|
||||||||||||||||
United
States
|
$ | - | $ | - | $ | - | $ | - | ||||||||
Foreign
|
(2,946 | ) | (2,154 | ) | (6,943 | ) | (4,078 | ) | ||||||||
(2,946 | ) | (2,154 | ) | (6,943 | ) | (4,078 | ) | |||||||||
Deferred:
|
||||||||||||||||
United
States
|
- | - | - | - | ||||||||||||
Foreign
|
- | 39 | - | (746 | ) | |||||||||||
- | 39 | - | (746 | ) | ||||||||||||
Total
|
$ | (2,946 | ) | $ | (2,115 | ) | $ | (6,943 | ) | $ | (4,824 | ) |
(in thousands)
|
(in thousands)
|
|||||||||||||||
For The Three Months Ended
|
For The Nine Months Ended
|
|||||||||||||||
April 30,
2010
|
April 30,
2009
|
April 30,
2010
|
April 30,
2009
|
|||||||||||||
United
States
|
$ | (4,046 | ) | $ | (1,637 | ) | $ | (8,270 | ) | $ | (4,602 | ) | ||||
Foreign
|
9,771 | 6,306 | 23,876 | 17,113 | ||||||||||||
Total
|
$ | 5,725 | $ | 4,669 | $ | 15,606 | $ | 12,511 |
Level 1
|
Unadjusted
quoted prices in active markets that are accessible at the measurement
date for identical, unrestricted assets or
liabilities;
|
Level 2
|
Quoted
prices in markets that are not active, or inputs that are observable,
either directly or indirectly, for substantially the full term of the
asset or liability; and
|
Level 3
|
Prices
or valuation techniques that require inputs that are both significant to
the fair value measurement and unobservable (supported by little or no
market activity).
|
Fair Value at April 30, 2010
(in thousands)
|
||||||||||||||||
Total
|
Level 1
|
Level 2
|
Level 3
|
|||||||||||||
Assets:
|
||||||||||||||||
Cash
equivalents
|
$ | 2,796 | $ | 2,796 | $ | - | $ | - | ||||||||
Marketable
securities
|
75 | 75 | - | - | ||||||||||||
$ | 2,871 | $ | 2,871 | $ | - | $ | - | |||||||||
Liabilities:
|
||||||||||||||||
Interest
rate swap
|
72 | - | 72 | - | ||||||||||||
$ | 72 | $ | - | $ | 72 | $ | - |
Metric
|
U.S.
|
|||
Materials
|
||||
Reserves
|
||||
Proven
|
22.4 Million Tonnes
@ 0.70 g/t(1)
|
24.7 Million Tons @ 0.0204
opt(1)
|
||
Probable
|
48.2
Million
Tonnes @ 0.65 g/t(1)
|
53.0
Million Tons @ 0.0189
opt(1)
|
||
Total Reserves(2)
|
70.6 Million
Tonnes @ 0.66 g/t(1)
|
77.7 Million Tons @ 0.0193
opt(1)
|
||
Waste
|
203.5
Million
Tonnes
|
224.3
Million
Tons
|
||
Total
Ore/Waste
|
274.1
Million Tonnes
|
302.0
Million tons
|
||
Contained
Gold
|
46.78
Million grams
|
1,504,000 Oz
|
||
Production
|
5.4
Million Tonnes /Year
|
6.0
Million Tons/Year
|
||
Ore
Crushed
|
14,868 Mt/d(1)
|
16,390 t/d(1)
|
||
Operating
Days/Year
|
365
Days per year
|
365
Days per year
|
||
Gold
Plant Average Recovery
|
58.25
%
|
58.25%
|
||
Average
Annual Production
|
2.1 Million
grams
|
67,391 Oz
|
||
Total
Gold Produced
|
|
27.25
Million grams
|
|
876,080 Oz
|
(1)
|
“g/t”
means grams per metric tonne, “opt” means ounces per ton, “Mt/d” means
metric tonnes per day and “t/d” means tons per
day.
|
(2)
|
The
reserve estimates are mainly based on a gold cutoff grade of 0.15 g/t for
sandstone and 0.19 grams for siltstone and latite within the pit
design.
|
Cutoff
Grade Calculation
|
Internal
Cutoff Grade
|
Break
Even Cutoff Grade
|
||
Basic
Parameters
|
||||
Gold
Price
|
US$800/oz
|
US$800/oz
|
||
Gold
Selling Cost (4% Royalty,
|
$25.258/oz
|
$25.258/oz
|
||
Refining,
Transport, Silver Credit, etc)
|
58.25%
|
58.25%
|
||
Gold
Recovery*
|
||||
Operating
Costs per Tonne of Ore
|
||||
Mining
|
$1.08/tonne
|
|||
Processing
– Heap leach
|
$2.357/tonne
|
$2.357/tonne
|
||
Total
|
$2.357/tonne
|
$3.44/tonne
|
||
Cutoff
Grade
|
Grams
per Tonne
|
Grams
per Tonne
|
||
Head
Grade Cutoff (58.25% average recovery)
|
0.15
g/t gold
|
0.24
g/t gold
|
||
Recovered
Gold Grade Cutoff
|
|
0.09
g/t gold
|
|
0.14
g/t gold
|
Proven and probable mineral reserve (Ktonnes of ore)
|
April 30,
2010
|
July 31,
2009
|
||||||
Ore
|
- | - | ||||||
Beginning
balance (Ktonnes)
|
40,911 | 35,417 | ||||||
Additions
|
30,388 | 9,342 | ||||||
Reductions
|
(3,438 | ) | (3,848 | ) | ||||
Ending
Balance
|
67,861 | 40,911 | ||||||
Contained
gold
|
||||||||
Beginning
balance (thousand of ounces)
|
859 | 719 | ||||||
Additions
|
662 | 239 | ||||||
Reductions
|
(83 | ) | (99 | ) | ||||
Ending
Balance
|
1,438 | 859 |
For the three
|
For the three
|
For the nine
|
For the nine
|
|||||||||||||
months ended
|
months ended
|
months ended
|
months ended
|
|||||||||||||
April 30,
2010
|
April 30,
2009
|
April 30,
2010
|
April 30,
2009
|
|||||||||||||
Revenues
|
17,525 | 12,395 | 42,480 | 32,939 | ||||||||||||
Net
Income
|
2,779 | 2,554 | 8,663 | 7,687 | ||||||||||||
Basic
net income per share
|
0.06 | 0.05 | 0.18 | 0.16 | ||||||||||||
Diluted
net income per share
|
0.06 | 0.05 | 0.17 | 0.15 | ||||||||||||
Gold
ounces sold
|
15,745 | 13,347 | 39,294 | 38,047 | ||||||||||||
Average
price received
|
$ | 1,113 | $ | 929 | $ | 1,081 | $ | 866 | ||||||||
Cash
cost per ounce sold(1)
|
$ | 403 | $ | 263 | $ | 374 | $ | 261 | ||||||||
Total
cost per ounce sold(1)
|
$ | 455 | $ | 305 | $ | 426 | $ | 301 |
(1)
|
"Cash
costs per ounce sold" is a Non-GAAP measure, which includes all direct
mining costs, refining and transportation costs, by-product credits and
royalties as reported in the Company's financial statements. It also
excludes intercompany management fees. “Total cost per ounce
sold” is a Non-GAAP measure which includes “cash costs per ounce sold” as
well as depreciation and amortization as reported in the Company's
financial statements.
|
For the three
|
For the three
|
For the nine
|
For the nine
|
|||||||||||||
months ended
|
months ended
|
months ended
|
months ended
|
|||||||||||||
Reconciliation from non-GAAP
measure to US GAAP
|
April 30,
2010
|
April 30,
2009
|
April 30,
2010
|
April 30,
2009
|
||||||||||||
Cash
cost per ounce sold
|
$ | 403 | $ | 263 | $ | 374 | $ | 261 | ||||||||
Intercompany
management fee
|
11 | 11 | 13 | 13 | ||||||||||||
Other
|
5 | 3 | 3 | (1 | ) | |||||||||||
Costs
applicable to sales per ounce sold
|
$ | 419 | $ | 277 | $ | 390 | $ | 273 |
For the three
|
For the three
|
For the nine
|
For the nine
|
|||||||||||||
months ended
|
months ended
|
months ended
|
months ended
|
|||||||||||||
April 30,
2010
|
April 30,
2009
|
April 30,
2010
|
April 30,
2009
|
|||||||||||||
Tonnes
of ore mined
|
1,204,414 | 866,604 | 3,437,951 | 2,771,284 | ||||||||||||
Tonnes
of waste removed
|
2,047,766 | 890,241 | 4,373,945 | 3,144,623 | ||||||||||||
Ratio
of waste to ore
|
1.70 | 1.03 | 1.27 | 1.13 | ||||||||||||
Tonnes
of ore processed
|
1,229,139 | 938,469 | 3,441,506 | 2,892,595 | ||||||||||||
Grade
(grams/tonne)
|
0.76 | 0.68 | 0.73 | 0.82 | ||||||||||||
Gold
(ounces)
|
||||||||||||||||
-
Produced(1)
|
16,506 | 13,460 | 40,459 | 38,994 | ||||||||||||
-
Sold
|
15,745 | 13,347 | 39,294 | 38,047 |
(1)
|
Gold
produced each year does not necessarily correspond to gold sold during the
year, as there is a time delay in the actual sale of the
gold.
|
Type of Derivative
|
Notional Size
|
Fixed Price or
Strike Price
|
Underlying Price
|
Termination or
Expiration
|
Fair Value
|
||||||||||
Interest
Rate Swaps
|
$ | 2,625 | (1) | 5.30 | % |
3 Mo. USD LIBOR
|
12/31/2010
|
$ | (72 | ) |
Item
1.
|
Legal
Proceedings.
|
Item
1A.
|
Risk
Factors
|
|
·
|
Industrial
and commercial demand for gold,
|
|
·
|
the
level of interest rates,
|
|
·
|
the
rate of inflation,
|
|
·
|
central
bank sales,
|
|
·
|
world
supply of gold and
|
|
·
|
stability
of exchange rates.
|
|
·
|
a
limited availability for market quotations for the Company’s
securities;
|
|
·
|
reduced
liquidity with respect to the Company’s
securities;
|
|
·
|
a
determination that the Common Stock are a “penny stock,” which will
require brokers trading in the Common Stock to adhere to more stringent
rules and possibly result in a reduced level of trading activity in the
secondary trading market for the Ordinary
Shares;
|
|
·
|
limited
amount of news and analyst coverage for the Company’s securities;
and
|
|
·
|
a
decreased ability to issue additional securities or obtain additional
financing in the future.
|
Item
2.
|
Unregistered Sales of
Equity Securities and Use of
Proceeds.
|
Item
3.
|
Defaults Upon Senior
Securities.
|
Item
4
|
Submission of Matters
to a Vote of Security
Holders.
|
Item
5.
|
Other
Information.
|
Item
6.
|
Exhibits.
|
|
31.1
|
Certification
pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 from the
Company's Chief Executive Officer.
|
|
31.2
|
Certification
pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 from the
Company's Chief Financial Officer.
|
|
32.1
|
Certification
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 from the
Company's Chief Executive Officer.
|
|
32.2
|
Certification
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 from the
Company's Chief Financial
Officer.
|
CAPITAL GOLD CORPORATION
|
|||
Date:
June 9, 2010
|
By:
|
/s/ John Brownlie
|
|
John
Brownlie
|
|||
President
and Chief Operating Officer
|
|||
(Principal
Executive Officer)
|
|||
Date:
June 9, 2010
|
By:
|
/s/ Christopher M. Chipman
|
|
Christopher
M. Chipman
|
|||
Chief
Financial Officer
|
|||
(Principal
Financial Officer)
|