| |
Minco Gold Corporation (the "Company" or "Minco Gold") (TSX:MMM/NYSE Amex:MGH/FSE:MI5) advises that it is unable to file its annual report on Form 20-F for the year ended December 31, 2008 within the prescribed time limits as set out in Form 12b-25 (Notification of Late Filing) because the Form 20-F is still the process of review by the independent auditors. The Company is working diligently with it's auditors and expected to be the position to file the Form 20-F no later than July 24, 2009.
PRELIMINARY FINANCIAL RESULTS
Minco Gold's financial results for the year ended December 31, 2008 and 2007 are as follows, detailed audited financial statements are located on www.sedar.com.
| Consolidated Balance Sheets |
| (Expressed in Canadian Dollars) |
|
|
| |
December 31,
2008 |
December 31,
2007 |
| ASSETS |
|
|
| |
|
|
| Current assets |
|
|
| Cash and cash equivalents |
2,604,411 |
1,302,483 |
| Short-term investments |
922,559 |
6,149,044 |
| Receivables |
896,731 |
319,337 |
| Due from Minco Silver |
1,246,282 |
4,639,788 |
| Due from Minco Base Metals |
506,569 |
271,999 |
| Prepaid expenses and deposits |
129,113 |
103,672 |
| Assets of discontinued operations |
- |
5,838 |
| |
|
|
| |
6,305,665 |
12,792,161 |
| |
|
|
| Long-term rental deposit |
51,523 |
51,277 |
| Long-term marketable securities |
12,600 |
- |
| Mineral interests |
- |
358,500 |
| Plant, property and equipment |
513,521 |
499,710 |
| Equity investment in Minco Silver |
3,675,116 |
3,079,412 |
| Assets of discontinued operations |
- |
4,461 |
| Total assets |
10,558,425 |
16,785,521 |
| |
|
|
|
LIABILITIES |
|
|
| |
|
|
| Current liabilities |
|
|
| Accounts payable and accrued liabilities |
5,671,434 |
889,863 |
| Loan payable |
2,881,237 |
- |
| Due to Minco Silver |
- |
1,929,893 |
| Tax payable |
136,136 |
- |
| Liabilities of discontinued operations |
- |
38,549 |
| |
|
|
| Total current liabilities |
8,688,807 |
2,858,305 |
| |
|
|
| |
|
|
| Non-controlling interest |
- |
82,685 |
| |
|
|
| SHAREHOLDERS' EQUITY |
|
|
| |
|
|
| Share capital |
34,021,922 |
33,941,510 |
| |
|
|
| Contributed surplus |
4,930,097 |
3,721,117 |
| |
|
|
| Deficit |
(37,082,401) |
(23,818,096) |
| |
|
|
| Total shareholders’ equity |
1,869,618 |
13,844,531 |
| |
|
|
| Total liabilities and shareholders’ equity |
10,558,425 |
16,785,521 |
| Consolidated Statements of Operations and Comprehensive Loss and Deficit |
| (Expressed in Canadian Dollars) |
|
|
| |
Year ended
December 31, 2008 |
Year ended
December 31, 2007 |
| Exploration permit |
6,611,918 |
842,788 |
| Exploration costs |
3,934,589 |
2,078,346 |
| |
10,546,507 |
2,921,134 |
| Administrative expenses |
|
|
| Accounting and audit |
184,294 |
122,020 |
| Amortization |
100,754 |
54,668 |
| Consulting |
284,006 |
76,368 |
| Directors’ fees |
48,000 |
62,500 |
| Foreign exchange loss |
991,029 |
417,813 |
| Investor relations |
353,862 |
579,498 |
| Legal |
49,231 |
47,408 |
| Regulatory and filing |
105,838 |
91,948 |
| Meals and entertainment |
75,845 |
51,104 |
| Office and miscellaneous |
169,644 |
201,038 |
| Property investigation |
88,353 |
218,672 |
| Rent |
222,044 |
233,011 |
| Salaries and benefits |
562,138 |
693,436 |
| Stock-based compensation |
1,242,953 |
2,022,850 |
| Telephone |
28,165 |
16,322 |
| Interest expense |
211,402 |
- |
| Travel and transportation |
109,691 |
127,380 |
| |
4,827,249 |
5,016,036 |
| Operating loss |
(15,373,756) |
(7,937,170) |
| Other income (loss) |
|
|
| Gain on sale of exploration permit |
425,632 |
- |
| Share of loss from equity investment in Minco Silver |
(948,750) |
(3,239,898) |
| Dilution gain |
1,544,454 |
191,000 |
| Write down of marketable securities |
(75,600) |
(232,546) |
| Gain on sale of Minco Silver shares |
- |
2,978,034 |
| Write down of mineral interest s |
(358,500) |
- |
| Gain on sale of commercial notes |
3,790 |
- |
| Rental income |
68,109 |
58,761 |
| Sundry income |
150,000 |
- |
| Interest income |
138,250 |
248,010 |
| Loss for the year before discontinued operations, non-controlling interest and tax expenses |
(14,426,371) |
(7,933,809) |
| Tax expenses |
(85,349) |
- |
| Loss for the year before discontinued operations and non-controlling interest |
(14,511,720) |
(7,933,809) |
| Non-controlling interest |
82,685 |
429,442 |
| Loss for the year from continuing operations |
(14,429,035) |
(7,504,367) |
| Earnings (loss) for the year from discontinued operations |
1,164,730 |
(75,864) |
| Loss and comprehensive loss for the year |
(13,264,305) |
(7,580,231) |
| |
|
|
| Deficit, beginning of year |
(23,818,096) |
(16,231,366) |
| Share buy back cost in excess of book value |
- |
(6,499) |
| Deficit, end of year |
(37,082,401) |
(23,818,096) |
| Loss per share from continuing operations - basic |
(0.34) |
(0.18) |
| Earnings per share from discontinued operations -basic |
0.03 |
- |
| Earnings per share from discontinued operations - diluted |
0.03 |
(0.00) |
| Loss per share - basic and diluted |
(0.30) |
(0.18) |
| Weighted average number of common shares outstanding - basic and diluted |
42,970, 813 |
42,908,809 |
| Consolidated Statement of Cash Flows |
| (Expressed in Canadian Dollars) |
|
|
| |
Year ended
December 31, 2008 |
Year ended
December 31, 2007 |
| Cash flows (used in) operating activities |
|
|
| Net loss from continuing operations for the year |
( 14,429,035 ) |
(7,504,367) |
| Adjustment to reconcile net loss from continuing operations to cash
provided by (used in) operating activities: |
|
|
| - amortization of equipment |
100,754 |
54,668 |
| - equity loss on investment in Minco Silver |
948,750 |
3,239,898 |
| - dilution gain |
(1,544,454) |
(191,000) |
| - stock-based compensation |
1,242,953 |
2,022,850 |
| - gain on sale of exploration permit |
(425,632) |
- |
| - f oreign exchange loss |
991,029 |
417,813 |
| - non-controlling interest in loss |
(82,685) |
(429,442) |
| - write down of marketable securities |
75,600 |
232,546 |
| - write down of mineral interests |
358,500 |
- |
| - gain on sale of Minco Silver shares |
- |
(2,978,034) |
| Change in non-cash working capital items: |
|
|
| - increase in receivables |
(87,111) |
( 41,783 ) |
| - due from Minco Base Metals |
(234,570) |
(271,999) |
| - decrease (increase) in prepaid expenses and deposits |
(25 ,687 ) |
81,134 |
| - increase in accounts payable and accrued liabilitie s |
1,693,433 |
483,224 |
| - increase in tax payable |
85,349 |
- |
| Cash used for operating activities of continuing operations |
( 11,332,806 ) |
( 4,884,492 ) |
| Cash provided by operating activities of discontinued operations |
677,004 |
1,756 |
| |
(10,655,802) |
(4,882,736) |
| Cash flows from (used in) financing activities |
|
|
| Proceeds from issuance of shares in Minco Gold |
46,439 |
105,808 |
| Movement in loan payable |
2,881,237 |
- |
| Cost of share buyback |
- |
(44,451) |
| Non-controlling interest |
- |
512,128 |
| |
2,927,676 |
573,485 |
| Cash from (used) in investing activities of continuing operations |
|
|
| Acquisition of equipment |
( 114,565 ) |
(245,978) |
| Decrease in short-term investments |
5, 138 , 2 85 |
4,7 45 ,616 |
| Proceeds from sales of mineral interest |
425,632 |
- |
| Proceeds from sale of Minco Silver shares |
- |
3,248,416 |
| (Increase) d ecrease in Due from Minco Silver |
3,393,506 |
(1,903,602) |
| Cash from investing activities of continuing operations |
8,842,858 |
5,844,452 |
| Cash from investing activities of discontinued operations |
4,461 |
- |
| |
8,847,319 |
5,844,452 |
| Effect of exchange rate changes on cash and cash equivalents |
182,735 |
(417,814) |
| Increase in cash and cash equivalents |
1,301,928 |
1,1 17,387 |
| Cash and cash equivalents, beginning of period |
1,302,483 |
185,096 |
| |
|
|
| Cash and cash equivalents, end of period |
2,604,411 |
1,30 2,483 |
| |
138,250 |
248,010 |
ABOUT MINCO GOLD
Minco Gold Corporation (TSX:MMM/NYSE Amex:MGH/FSE:MI5) is a Canadian mining company involved in the direct acquisition and development of high-grade, advanced stage gold properties. The Company owns an exploration property portfolio covering more than 1,000 square kilometres of mineral rights in China. For more information on Minco Gold and its properties, please visit the website at www.mincomining.ca or contact Ute Koessler at 1-888-288-8288 or (604)-688-8002 info@mincomining.ca.
ON BEHALF OF THE BOARD
"Dr. Ken Z. Cai"
President & CEO
The TSX has neither approved nor disapproved of the information contained herein. The statements that are not historical facts are forward-looking statements involving known and unknown risks and uncertainties which could cause actual results to vary considerably from these statements. The risks and uncertainties include those described in Minco Gold's annual report on Form 20-F filed with the U.S. Securities and Exchange Commission. Forward Looking Statements: Statements in this news are forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. Forward looking statements are statements that are not historical facts and that are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements, including risks related to the exploration stage of the company's projects; market fluctuations in prices for securities of exploration stage companies; uncertainties about the availability of additional financing; uncertainties related to fluctuations in gold prices; the possibility that Minco Gold Corporation may change its plans with respect to one or more properties; and other risks and uncertainties described in the company's annual report on Form 20-F and Reports on Form 6- K filed with or furnished to the U.S. Securities and Exchange Commission. Although we believe the expectations reflected in our forward looking statements are reasonable, results may vary, and we cannot guarantee future results, levels of activity, performance or achievements.
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