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Minera Andes Announces Financial Results for the Third Quarter 2010

Below you will find the third quarter results of Minera Andes. There is not much news in it, but we are confident that Minera Andes will produce some positive surprises the coming years. Icon of the industry Rob McEwen is the biggest shareholder and the company is teaming up with some of the biggest players (Hochschild Mining and Xstrata). We still think that this company is one of the building blocks for some kind of new Goldcorp. We bought Minera Andes in September 2009 @ CAD$0,72 at the moment the stock is trading @ CAD$2,04 meaning a 183,3% gain.

Minera Andes Press Release:

TORONTO, ONTARIO – November 11 2010 – Minera Andes Inc. (the “Corporation” or “Minera Andes”) (TSX: MAI and US OTC: MNEAF) is pleased to announce net income of $6.1 million ($0.02 per share basic and diluted) for the three month period ended September 30 2010 compared to net income of $5.2 million ($0.02 per share basic and diluted) for the same period ended September 30 2009. All amounts in this news release are in US dollars unless otherwise noted. Our financial statements and management’s discussion and analysis are available under the Corporation’s profile at www.sedar.com and www.sec.gov.

Minera Andes has a 49% interest in the San José Mine operated and owned by Minera Santa Cruz (“MSC”), a joint venture between Minera Andes (49%) and Hochschild Mining (51%).

Highlights – Third Quarter 2010

  • Net income increase of $0.9 million: The Company reported a $0.9 million increase in net income for the quarter (as compared to the same quarter in 2009) primarily due to an increase of $1.8 million in income recorded on our investment in MSC, which was partially offset by an increase of $0.9 million in total expenses for the quarter. The increase in expenses was a net result of an increase in general and administrative costs, a decrease in foreign currency exchange gains (due to a decrease in the strengthening of the Canadian dollar), and a decrease in professional fees as compared to the third quarter in 2009.
  • San José Mine Performance (on a 100% basis): Net income at the San José Mine increased by $3.8 million compared to the same three month period in 2009, driven primarily by an 8% increase in sales. The increase in sales was due to higher realized metal prices for both silver and gold offset by a decrease in the number of ounces of silver and gold sold in the quarter. Production for the quarter was 1,408,501 ounces of silver and 22,025 ounces of gold. Silver production was unchanged and gold production was 2% lower compared to the same quarter in 2009, a result of a decrease in total ore processed at the mine offset by an increase in the head grade for silver. On a per-ounce co-product basis the average cash cost was $8.81 per ounce of silver and $570 per ounce of gold for the quarter.
  • Settlement of lawsuit with Hochschild Mining plc: The Company announced on September 20 2010, an end to litigation with certain affiliates of Hochschild Mining plc. (“Hochschild”) in New York courts relating to funding of the San José Mine joint venture. Revised finance and shareholder loan agreements were completed and the Company received its first scheduled repayment of interest.
  • San José Mine Exploration: The Company announced on October 7 2010, the discovery of nine new high-grade gold/silver veins plus important extensions of two other veins, which together total more than five kilometers in strike length at the San José Mine. The discoveries represent significant exploration progress at the San José Mine where the total strike length of all the previously known veins totalled approximately 17 kilometers. The 2010 exploration budget has been increased to $6.5 million compared to $2.5 million in 2009.

This news release is submitted by Perry Ing, Chief Financial Officer of Minera Andes Inc.

About Minera Andes Minera Andes is an exploration company exploring for gold, silver and copper in Argentina with three significant assets: a 49% interest in Minera Santa Cruz SA, owner of the San José Mine in close proximity to Andean Resources’ Cerro Negro project; 100% ownership of the Los Azules copper deposit with an inferred mineral resource of 10.3 billion pounds of copper and an indicated resource of 2.2 billion pounds of copper; and, 100% ownership of a portfolio of exploration properties bordering Andean’s Cerro Negro project in Santa Cruz Province. The Corporation had $10 million USD in cash as at September 30 2010 with no bank debt. Rob McEwen, Chairman and CEO, owns 33% of the company.

About Minera Santa Cruz Minera Santa Cruz SA is a joint venture owned 51% by Hochschild Mining Argentina, a wholly owned subsidiary of Hochschild Mining plc, and 49% by Minera Andes S.A., a wholly owned subsidiary of the Corporation. The joint venture owns and operates the San José property.

About Hochschild Mining plc Hochschild Mining plc is a leading precious metals company listed on the London Stock Exchange (HOCM.L / HOC LN) with a primary focus on the exploration, mining, processing and sale of silver and gold. Hochschild has over forty years of experience in the mining of precious metal epithermal vein deposits and currently operates four underground epithermal vein mines, three located in southern Peru, one in southern Argentina and one open pit mine in northern Mexico. Hochschild also has numerous long-term prospects throughout the Americas.

For further information, please contact: Daniela Ozersky or visit our Web site: www.minandes.com.

Daniela Ozersky
Manager, Investor Relations
99 George St. 3rd Floor,
Toronto, Ontario, Canada. M5A 2N4
Toll-Free: 1-866-441-0690
Fax: 647-258-0408
E-mail: info@minandes.com

Source: Company website