Andean American Gold Corp.
("Andean" or the
"Company") (TSX VENTURE:AAG)(FRANKFURT:AQN)
reports that for the three and nine months ended December 31, 2011,
it incurred a net loss of US$46,453 or US$0.00
per share and US$4,814,560 or US$0.03 per share
compared to US$879,971 or US$0.01 per share and US$2,541,296
or US$0.02 per share for the same period in 2010. Andean ended
the quarter with cash on hand of US$17,425,208 and a working
capital surplus of US$15,396,619.
Andean is an international
mining and exploration company focused on gold and copper projects in Peru
and currently has two key assets: the 31,600 hectare Invicta
gold-silver-copper advanced exploration stage project located in the Huaura Province in Peru,
and 64.95% of Sinchao Metals Corp. Sinchao is listed on the TSX-V trading under the symbol 'SMZ'
and is the owner of a gold-silver-copper-zinc-lead exploration project.
Results of Operations
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Nine months ended Nine months ended
December 31, 2011 December 31, 2010
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Income/(loss) before
income tax ($4,814,560) ($2,541,296)
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Income/ (loss) per share ($0.03) ($0.02)
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Total assets $61,719,660 $62,334,275
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Working capital surplus/
(deficit) $15,396,619 $10,350,437
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Mineral properties $42,273,886 $45,476,315
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Share Capital:
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Outstanding 144,543,476 122,016,287
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Warrants 2,500,000 5,614,368
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Options 7,770,088 8,520,588
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Cash Flow and Liquidity
As at December 31,
2011, Andean had working capital of US$15,396,619,
compared to a working capital surplus of US$22,894,392 at March
31, 2011. For the nine months ended December 31, 2011,
Andean used cash of US$8,775,733, which included cash used in
operations of US$4,522,743, expenditures on plant and equipment
and mineral properties and deferred costs of US$5,028,726. This
was offset by financing activities of $775,736.
International Financial
Reporting Standards ("IFRS")
The Company adopted IFRS on
April 1, 2011, with a transition date of April 1, 2010.
Under IFRS 1 First-time Adoption of IFRS, the IFRS are applied retrospectively
at the transition date of April 1, 2010..
The effect of the transition from Canadian generally Accepted Accounting
Principles ("Canadian GAAP") to IFRS is not material and the
explanation of how the transition from Canadian GAAP to IFRS has affected
Andean's financial position, financial performance and cash flows are set out
in the financial statements.
The information above
should be reviewed in conjunction with the Company's unaudited consolidated
financial statements, management discussion and analysis, for the three and six
months ended September 30, 2011 that will be available shortly
on www.sedar.com.
For further information call (416) 368-9500 or toll free: 1-888-356-4784 or
visit our website at www.AAGgold.com.
On behalf
of Andean American Gold Corp.,
Bruce Ramsden