Click here to close now.


News Feed Item

Lupaka Gold Reports Performances and Financial Highlights for the Year Ended December 31, 2013

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 03/28/14 -- Lupaka Gold Corp. ("Lupaka Gold" or "the Company") (TSX: LPK)(LMA: LPK)(FRANKFURT: LQP) reports performance highlights and financial results for the year ended December 31, 2013.

The following is taken from the Company's Audited Consolidated Financial Statements and Management's Discussion and Analysis, both of which are filed at

Overall Performance

The Company's recent activities and events of note for the fourth quarter are as follows:

--  The Company finished the year with $3.906 million in cash.
--  On March 17, 2014, the Company announced that it was commencing the
    permitting process to put the Invicta Gold Project in production on a
    small-scale basis of approximately 300 tonnes/day;
--  The Company provided an update on January 20, 2014 of its 2014
    development and exploration plans for its gold projects;
--  On November 26, 2013, the Company announced that it had entered into a
    memorandum of understanding with certain subsidiaries of Hochschild
    Mining plc ("Hochschild")) with regards to the execution of a definitive
    agreement that will allow the Company to earn-in to a 65% interest in
    the Josnitoro Gold Project in Southern Peru (see "Mineral Projects"
    below for additional details);
--  The Company announced on October 28, 2013 that it had completed a
    conceptual pit analysis and applied the findings to a pit-constrained
    resource estimate for the Crucero Gold Project, and that an updated and
    amended technical report supporting the Crucero Gold Project resource
    estimate had been filed on SEDAR (see for a complete copy
    of the related Technical Report);

Lupaka Gold's common shares trade in Canada on the Toronto Stock Exchange ("TSX") and in Peru on the Bolsa de Valores de Lima ("BVL", otherwise known as the Lima Stock Exchange) under the symbol LPK, and in Germany on the Frankfurt Exchange ("FRA") under the symbol LQP. Lupaka Gold's share purchase warrants trade on the TSX under the symbol LPK.WT.


The Company's primary priorities for 2014 are to: implement its small-scale production option for the Invicta Gold Project; continue mineral exploration and development activities on the Crucero Gold Project and Josnitoro Gold Project; and to maximize the potential return on its investment in Southern Legacy Minerals Inc. ("Southern Legacy").

Management also believes that cash and cash equivalents on hand as at the above-referenced date will be sufficient to fund the Company's planned head office and Peru exploration activities for the balance of 2014, by delaying drilling activity and reducing or eliminating discretionary expenses related to administration and exploration.

Financial Highlights

All amounts are in Canadian Dollars unless otherwise stated.

Financial results for the years ended December 31, 2013 and 2012 are summarized as follows:

                                                           Years ended
                                                           December 31,
In thousands of dollars                                     2013      2012
Operating expenses
Exploration                                                5,326     5,475
General and administration                                 2,968     2,673

Operating loss                                             8,294     8,148

Impairment loss on available-for-sale financial asset      1,657     1,476
Finance expense - accretion                                    -        22
Finance income - interest                                    (60)      (58)
Foreign exchange loss (gain)                                (109)        8

Loss for the period                                        9,782     9,596

Loss per share - Basic and diluted                         $0.12     $0.18

Overall, the loss for the year ended December 31, 2013 was slightly larger than for the comparative period in 2012, as a result of increased expenses in the areas of investor relations, impairment losses on the Company's investment in Southern Legacy, and inclusion of Invicta exploration expenses for a full year, offset by there being no corporate development and drilling expenses in 2013.

Exploration - all such expenses relate to the Peru operations of the Company and totalled $5,326,000 for 2013 compared to $5,475,000 for 2012, a net decrease of $149,000 for the period as a result of an increase of $1,707,000 for project administration and camp and community relations costs due to the addition of the Invicta Gold Project in October 2012 and $552,000 in community relations contractor, access payments and project costs related to the Crucero Gold Project, offset by a decrease of $1,856,000 in drilling and related costs as no drilling has been conducted in 2013.

Following is a summary of exploration expenditures, by project, during the year ended December 31, 2013:

In thousands of dollars                         Crucero   Invicta     Total

Project administration                            1,617     1,156     2,772
Camp, community relations and related costs       1,567       566     2,134
Technical reports, assays and related costs         285        35       320
Transportation, reclamation and professional
 fees                                                71        29       100

                                                  3,540     1,786     5,326

General and administration expenses - all such expenses relate to the Canadian operations of Lupaka Gold and totalled $2,968,000 for 2013 compared to $2,673,000 for 2012. The net increase of $295,000 was due to an increase of $581,000 reflecting the costs of investor relations programs implemented in the second and third quarter and offset by decreases of $108,000 in salaries and benefits, professional and regulatory fees, office and general, and travel (primarily due a decrease of $109,000 in related share-based compensation expense) and $177,000 in corporate development expenses compared to 2012. In 2012, there was $177,000 in Andean American due diligence costs and in 2013, there were none.

Investment in Southern Legacy Minerals Ltd. - as a result of the AAG acquisition, the Company acquired 9,841,269 common shares in Southern Legacy, representing approximately 17% of the issued and outstanding ownership shares of Southern Legacy, and which the Company classifies as an available-for-sale financial asset. At the October 1, 2012, date of initial recognition, the fair market value of this investment was $3,986,000.

On October 22, 2013, the Company acquired an additional 208,333 common shares in Southern Legacy at a cost of $52,000. As a result of this acquisition, the Company owns a total of 10,049,602 common shares in Southern Legacy, representing approximately 17% of the issued and outstanding ownership shares of Southern Legacy.

As at December 31, 2013, the aggregate fair market value of this investment was $904,000 ($2,510,000 - December 31, 2012), as indicated by the closing price of the shares as quoted by the TSX Venture Exchange (under the symbol, "LCY"), for which the Company recorded impairment losses of $1,657,000 ($1,476,000 - 2012) during the year. Southern Legacy's common shares also trade on the BVL.

The Company continues to evaluate its strategic options regarding this portfolio investment.

A snapshot of the Company's balance sheet is as follows:

                      Liquidity and Capital Resources

                                                December 31,   December 31,
In thousands of dollars                                 2013           2012
Cash and cash equivalents                              3,906         10,716
Working capital (defined as current assets
 less current liabilities)                             2,502          9,737
Total assets                                          33,106         42,780
Current liabilities                                    1,777          1,563
Shareholders' equity                                  31,106         41,217


The principal changes in the Company's cash during the year ended December 31, 2013 were as follows:

--  Cash used in operating activities in the year ended December 31, 2013
    was $6,650,000 ($8,081,000 - 2012), principally to fund the Company's
    loss for the period of $9,782,000 ($9,596,000 - 2012) which was offset
    by non-cash charges including depreciation of $350,000 ($128,000 -
    2012), the impairment loss on the investment in Southern Legacy of
    $1,657,000 ($1,476,000 - 2012), share-based compensation of $618,000
    ($854,000 - 2012), other miscellaneous non-cash expenses of $82,000
    ($(10,000) - 2012), as well as net changes in non-cash working capital
    of an increase of $425,000 (decrease of $940,000 - 2012);
--  Net cash used in investing activities in the year ended December 31,
    2013 totalled $149,000 from purchases of equipment for $107,000, sales
    of equipment for $10,000 and $52,000 for the acquisition of additional
    common shares of Southern Legacy, as compared to net cash from investing
    activities in the year ended December 31, 2012 totalling $9,366,000,
    primarily a result of the cash acquired on the acquisition of Andean
    American on October 1, 2012 of $13,502,000 offset by LGP acquisition
    costs of $3,057,000, equipment purchases of $309,000 and $770,000 in due
    diligence and related transaction costs pursuant to the acquisition of
    Andean American; and
--  The Company had no cash flows from or used in financing activities in
    the year ended December 31, 2013. Net cash used in financing activities
    during 2012 totalled $4,026,000, resulting from the payment of
    $4,076,000 (US $4 million) for the remaining 40% of LGP that it did not
    already own and proceeds from the exercise of stock options of $50,000.

Total current liabilities as at December 31, 2013 were $1,777,000 ($1,563,000 - December 31, 2012), comprised of $1,406,000 ($1,019,000 - December 31, 2012) of accounts payable and accrued liabilities, mostly for current community obligations, and $371,000 of provisions for reclamation ($544,000 - December 31, 2012).

Management believes that cash and cash equivalents on hand as at March 26, 2013 will be sufficient to fund the Company's planned head office and Peru exploration activities through the balance of 2014. If required, the Company can adjust its discretionary expenditures in the areas of administration and exploration to preserve cash.

Outstanding Share Data

As at March 26, 2014, the following securities were issued and outstanding:

--  basic - 84,495,110 common shares
--  fully-diluted - 99,766,627 common shares, after including:
--  7,992,350 stock options, with exercise prices ranging from $0.20 to
    $4.08, of which 5,989,850 options are vested; and
--  7,279,167 share purchase warrants, with a weighted average exercise
    price of $2.22.

Accumulated Deficit

The Company's accumulated deficit was $29,321,000 as at December 31, 2013 ($19,539,000 - December 31, 2012), with the increase in deficit of $9,782,000 reflecting the loss incurred for the year ended December 31, 2013.

About the Company

Lupaka Gold is a Peru-focused gold explorer with geographic diversification and balance through its interest in asset-based resource projects spread across three regions of Peru.

Lupaka Gold's flagship project is the Crucero Gold Project, its 5,500 hectare gold property located in southern Peru. The Company, based in Vancouver, Canada, is project operator and holds a 100% indirect interest in the Crucero Gold Project. Since commencing active exploration in April 2010, the Company has reported annual NI 43-101 compliant gold resource estimate increases for the Crucero Gold Project in the first quarter of 2011 and 2012 (see the Company's most recent technical report on

As a result of the Company's 2012 acquisition of Andean American Gold Corp., Lupaka Gold's assets now include the 100% owned Invicta Gold Project (north Peru), which has near-term underground gold and poly-metallic development potential, and a strategic 17% stake in Southern Legacy Minerals Inc., owner of the AntaKori copper-gold deposit located in central Peru.

Forward Looking Information and Regulatory Endnotes

This news release contains "forward-looking statements" and "forward-looking information" within the meaning of applicable securities regulations in Canada and the United States (collectively, "forward-looking information"). The forward-looking information contained in this news release is made as of the date of this news release. Except as required under applicable securities legislation, the Company does not intend, and does not assume any obligation, to update this forward-looking information. Forward-looking information includes, but is not limited to, statements with respect to exploration plans and timing for Crucero, the grant of social license and exploration plans for Josnitoro, a potential mining operation at Invicta and estimates of mineral resources. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "expects, "is expected", "budget", "scheduled", "projects", "estimates", forecasts", "intends", "anticipates", or "believes", or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", or "will" be taken, occur or be achieved.

The forward-looking information contained in this news release is based on certain assumptions that the Company believes are reasonable, including with respect to mineral resource estimates, the key assumptions and parameters on which such estimates are based, that that the current price of and demand for gold will be sustained or will improve, that general business and economic conditions will not change in a material adverse manner, that financing will be available if and when needed on reasonable terms, that supplies, equipment, personnel, permits and local community approvals required to conduct the Company's planned exploration and development activities will be available on reasonable terms, that results of exploration activities will be consistent with management's expectations and that the Company will not experience any material accident, labour dispute, or failure of equipment. However, forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include, among others, risk that actual results of exploration activities will be different than anticipated, that cost of labour, equipment or materials will increase more than expected, that the future price of gold will decline, that the Canadian dollar will strengthen against the U.S. dollar, that mineral resources are not as estimated, unexpected variations in mineral resources, grade or recovery rates, risk of accidents, labour disputes and other risks generally associated with mineral exploration and unanticipated delays in obtaining or failure to obtain community, governmental or regulatory approvals or financing. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results to not be as anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Readers are cautioned not to place undue reliance on forward-looking information due to the inherent uncertainty thereof.

This announcement contains certain forward looking statements, including such statements within the meaning of Section 27A of the US Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In particular, such forward looking statements may relate to matters such as the business, strategy, investments, production, major projects and their contribution to expected production and other plans of the Company and its current goals, assumptions and expectations relating to its future financial condition, performance and results.

Forward-looking statements include, without limitation, statements typically containing words such as "intends", "expects", "anticipates", "targets", "plans", "estimates" and words of similar import. By their nature, forward looking statements involve risks and uncertainties because they relate to events and depend on circumstances that will or may occur in the future. Actual results, performance or achievements of the Company may be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. Factors that could cause or contribute to differences between the actual results, performance or achievements of the Company and current expectations include, but are not limited to, legislative, fiscal and regulatory developments, competitive conditions, technological developments, exchange rate fluctuations and general economic conditions. Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser.

The forward looking statements reflect knowledge and information available at the date of preparation of this announcement. Except as required by the Listing Rules and applicable law, the Company does not undertake any obligation to update or change any forward looking statements to reflect events occurring after the date of this announcement. Nothing in this announcement should be construed as a profit forecast.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
PubNub has announced the release of BLOCKS, a set of customizable microservices that give developers a simple way to add code and deploy features for realtime apps.PubNub BLOCKS executes business logic directly on the data streaming through PubNub’s network without splitting it off to an intermediary server controlled by the customer. This revolutionary approach streamlines app development, reduces endpoint-to-endpoint latency, and allows apps to better leverage the enormous scalability of PubNu...
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Day 2 Keynote at 17th Cloud Expo, San...
Apps and devices shouldn't stop working when there's limited or no network connectivity. Learn how to bring data stored in a cloud database to the edge of the network (and back again) whenever an Internet connection is available. In his session at 17th Cloud Expo, Ben Perlmutter, a Sales Engineer with IBM Cloudant, demonstrated techniques for replicating cloud databases with devices in order to build offline-first mobile or Internet of Things (IoT) apps that can provide a better, faster user e...
In today's enterprise, digital transformation represents organizational change even more so than technology change, as customer preferences and behavior drive end-to-end transformation across lines of business as well as IT. To capitalize on the ubiquitous disruption driving this transformation, companies must be able to innovate at an increasingly rapid pace. Traditional approaches for driving innovation are now woefully inadequate for keeping up with the breadth of disruption and change facin...
I recently attended and was a speaker at the 4th International Internet of @ThingsExpo at the Santa Clara Convention Center. I also had the opportunity to attend this event last year and I wrote a blog from that show talking about how the “Enterprise Impact of IoT” was a key theme of last year’s show. I was curious to see if the same theme would still resonate 365 days later and what, if any, changes I would see in the content presented.
Cloud computing delivers on-demand resources that provide businesses with flexibility and cost-savings. The challenge in moving workloads to the cloud has been the cost and complexity of ensuring the initial and ongoing security and regulatory (PCI, HIPAA, FFIEC) compliance across private and public clouds. Manual security compliance is slow, prone to human error, and represents over 50% of the cost of managing cloud applications. Determining how to automate cloud security compliance is critical...
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York and Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty ...
In his General Session at DevOps Summit, Asaf Yigal, Co-Founder & VP of Product at, explored the value of Kibana 4 for log analysis and provided a hands-on tutorial on how to set up Kibana 4 and get the most out of Apache log files. He examined three use cases: IT operations, business intelligence, and security and compliance. Asaf Yigal is co-founder and VP of Product at log analytics software company In the past, he was co-founder of social-trading platform Currensee, which...
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.
DevOps is about increasing efficiency, but nothing is more inefficient than building the same application twice. However, this is a routine occurrence with enterprise applications that need both a rich desktop web interface and strong mobile support. With recent technological advances from Isomorphic Software and others, rich desktop and tuned mobile experiences can now be created with a single codebase – without compromising functionality, performance or usability. In his session at DevOps Su...
As organizations realize the scope of the Internet of Things, gaining key insights from Big Data, through the use of advanced analytics, becomes crucial. However, IoT also creates the need for petabyte scale storage of data from millions of devices. A new type of Storage is required which seamlessly integrates robust data analytics with massive scale. These storage systems will act as “smart systems” provide in-place analytics that speed discovery and enable businesses to quickly derive meaningf...
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
In his General Session at 17th Cloud Expo, Bruce Swann, Senior Product Marketing Manager for Adobe Campaign, explored the key ingredients of cross-channel marketing in a digital world. Learn how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects).
The buzz continues for cloud, data analytics and the Internet of Things (IoT) and their collective impact across all industries. But a new conversation is emerging - how do companies use industry disruption and technology enablers to lead in markets undergoing change, uncertainty and ambiguity? Organizations of all sizes need to evolve and transform, often under massive pressure, as industry lines blur and merge and traditional business models are assaulted and turned upside down. In this new da...