/NOT TO BE DISTRIBUTED OR DISSEMINATED IN THE UNITED STATES/
TORONTO, Dec. 10 /CNW/ - South American Gold and Copper Company (the "Company) (SAG-TSX) reported that it has filed its audited fiscal year ended September 30, 2009 financial statements on SEDAR today.
Revenues from gold sales were US $9,176,000 and revenues from copper and silver sales were US $1,140,000 or total revenues of US $10,316,000 for the fiscal year ended September 30, 2009.
On a consolidated basis, net earnings were US $104,000 after depreciation and amortization of US $1,464,000 and stock based compensation of US $254,000.
At September 30, 2009 cash was US $855,000 and the Company had a positive working capital ratio of 1.14 to 1.00.
The Company's 100% owned subsidiary, Compania Minera Pimenton, on a stand alone basis reported earnings of US $1,096,000 after depreciation and amortization expenses of approximately US $1,400,000 on gold, copper and silver revenues of US $10,316,000.
In addition, Compania Minera Pimenton received approximately US $1,960,000 of additional cash flow during the fiscal year ended September 30, 2009 through the recovery of Value Added Taxes (IVA) which as received, is a debit to recoverable taxes and a credit to cash on the balance sheet. The recoverable IVA taxes are not flowed through the income statement. At September 30, 2009 the Company had an additional US $2,125,000 of recoverable IVA taxes which are expected to be recoverable during the fiscal year ended September 30, 2010.
Compania Minera Pimenton financial statements are consolidated into the financial statements of South American Gold and Copper Company Limited.
South American Gold and Copper Company Limited is a minerals producing, exploration and development company with properties and activities currently focused in Chile.
FORWARD-LOOKING STATEMENTS: This news release contains certain "forward-looking statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. Except for statements of historical fact relating to the company, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as "plan," "expect," "project," "intend," "believe," "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other ecological data, fluctuating metal prices, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future and other factors. The Company undertakes no obligation to update forward looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.
SOURCE Cerro Grande Mining Corporation
For further information: For further information: Stephen W. Houghton, CEO; David R. S. Thomson, EVP, E-Mail: firstname.lastname@example.org, Telephone: 56-2-264-2295, Website: www.sagc.com