Apex Silver Extends Delay of 2006 Year-End Results

    DENVER, March 16 /CNW/ - Apex Silver Mines Limited (AMEX:  SIL) today
reported a further delay in the release of its 2006 year-end results. The
company had previously reported in its press release dated March 2, 2007 that
it had filed for a fifteen-day extension to file its annual report on Form
10-K with the Securities and Exchange Commission to allow additional time for
the company to determine the fair value of its metals derivative positions
using certain additional market information that it had not previously
considered. The determination of the fair value of the company's metals
derivative positions has taken more time than initially expected and,
therefore, the company will be unable to file its Form 10-K on or before the
extended annual report deadline. However, the company believes that its final
determination of the 2006 mark-to-market loss related to its metals derivative
positions will not significantly differ from the $670 million estimate
reported in its March 2, 2007 press release. As of December 31, 2006, the
total liability related to the company's metals derivative position is
currently estimated at $818 million. As previously reported, restatement of
the company's financial statements for the quarter ended September 30, 2005,
the year ended December 31, 2005, and the first three quarters of 2006 will be
necessary in order to correct the previously reported valuation of the
company's metal derivative positions as the company expects that the related
adjustments will be material. As a result of the late filing of its Annual
Report on Form 10-K the company will not be able sell securities under its
existing shelf registration statements for a period of at least one year. The
company has concluded that the restatement indicates its related internal
control over financial reporting was ineffective as of December 31, 2006 and
is taking steps to remediate this material weakness.

    The company had also previously reported in its press release dated March
2, 2007 that additional time was necessary to assess whether it would be
required to reflect amounts outstanding under the company's $225 million San
Cristobal project financing facility and the estimated settlement cost of its
metals derivative positions as a current liability on its December 31, 2006
consolidated balance sheet, due to potential noncompliance with certain
covenants of the project financing facility. The company has since received
waivers and confirmations from its lenders for the potential covenant
violations and any related events of default. As a result, the company will
only reflect the portion of such liabilities which are payable during 2007 as
current liabilities in its December 31, 2006 consolidated balance sheet. The
company has evaluated the procedures and processes it had in effect to
identify or prevent noncompliance with loan covenants and the results of this
evaluation indicate internal control over financial reporting was ineffective
resulting in a material weakness in internal control over financial reporting
as of December 31, 2006. The company is taking steps to remediate this
material weakness.

    Apex Silver is a mining exploration and development company. The Ordinary
shares of Apex Silver trade on the American Stock Exchange under the symbol

    This press release contains forward-looking statements regarding the
company, within the meaning of Section 27A of the Securities Act and Section
21E of the Exchange Act, including statements regarding the fair value of the
company's derivative positions and remediation of material weaknesses. Actual
results relating to any and all of these subjects may differ materially from
those presented. Factors that could cause results to differ materially include
fluctuations in silver, zinc and lead prices, problems or delays in
construction and startup and changes in government policies with respect to
taxes or other political unrest and uncertainty in Bolivia. The company
assumes no obligation to update this information. Additional information
concerning factors that could cause actual results to differ materially from
those in the forward-looking statements can be found in the company's Form
10-K filed with the SEC for the year ended December 31, 2005.

For further information:

For further information: Apex Silver Mines Corporation Gerald Malys,
303-764-9167 Sr. Vice President and Chief Financial Officer

Organization Profile


More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890