Welcome!

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 www.sedar.com.

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 www.sedar.com 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.

Outlook

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 www.sedar.com).

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
What are the new priorities for the connected business? First: businesses need to think differently about the types of connections they will need to make – these span well beyond the traditional app to app into more modern forms of integration including SaaS integrations, mobile integrations, APIs, device integration and Big Data integration. It’s important these are unified together vs. doing them all piecemeal. Second, these types of connections need to be simple to design, adapt and configure...
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his Day 2 Keynote at @ThingsExpo, Henrik Kenani Dahlgren, Portfolio Marketing Manager at Ericsson, discussed how to plan to cooperate, partner, and form lasting all-star teams to change the...
@DevOpsSummit has been named the ‘Top DevOps Influencer' by iTrend. iTrend processes millions of conversations, tweets, interactions, news articles, press releases, blog posts - and extract meaning form them and analyzes mobile and desktop software platforms used to communicate, various metadata (such as geo location), and automation tools. In overall placement, @DevOpsSummit ranked as the number one ‘DevOps Influencer' followed by @CloudExpo at third, and @MicroservicesE at 24th.
"I think that everyone recognizes that for IoT to really realize its full potential and value that it is about creating ecosystems and marketplaces and that no single vendor is able to support what is required," explained Esmeralda Swartz, VP, Marketing Enterprise and Cloud at Ericsson, in this SYS-CON.tv interview at @ThingsExpo, held June 7-9, 2016, at the Javits Center in New York City, NY.
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...
When it comes to cloud computing, the ability to turn massive amounts of compute cores on and off on demand sounds attractive to IT staff, who need to manage peaks and valleys in user activity. With cloud bursting, the majority of the data can stay on premises while tapping into compute from public cloud providers, reducing risk and minimizing need to move large files. In his session at 18th Cloud Expo, Scott Jeschonek, Director of Product Management at Avere Systems, discussed the IT and busine...
In his General Session at 16th Cloud Expo, David Shacochis, host of The Hybrid IT Files podcast and Vice President at CenturyLink, investigated three key trends of the “gigabit economy" though the story of a Fortune 500 communications company in transformation. Narrating how multi-modal hybrid IT, service automation, and agile delivery all intersect, he will cover the role of storytelling and empathy in achieving strategic alignment between the enterprise and its information technology.
All clouds are not equal. To succeed in a DevOps context, organizations should plan to develop/deploy apps across a choice of on-premise and public clouds simultaneously depending on the business needs. This is where the concept of the Lean Cloud comes in - resting on the idea that you often need to relocate your app modules over their life cycles for both innovation and operational efficiency in the cloud. In his session at @DevOpsSummit at19th Cloud Expo, Valentin (Val) Bercovici, CTO of Soli...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, discussed the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
In his session at @ThingsExpo, Steve Wilkes, CTO and founder of Striim, will delve into four enterprise-scale, business-critical case studies where streaming analytics serves as the key to enabling real-time data integration and right-time insights in hybrid cloud, IoT, and fog computing environments. As part of this discussion, he will also present a demo based on its partnership with Fujitsu, highlighting their technologies in a healthcare IoT use-case. The demo showcases the tracking of patie...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In his general session at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will explore...
SYS-CON Events announced today that SD Times | BZ Media has been named “Media Sponsor” of SYS-CON's 20th International Cloud Expo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. BZ Media LLC is a high-tech media company that produces technical conferences and expositions, and publishes a magazine, newsletters and websites in the software development, SharePoint, mobile development and commercial UAV markets.
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
SYS-CON Events announced today that Linux Academy, the foremost online Linux and cloud training platform and community, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Linux Academy was founded on the belief that providing high-quality, in-depth training should be available at an affordable price. Industry leaders in quality training, provided services, and student certification passes, its goal is to c...
WebRTC defines no default signaling protocol, causing fragmentation between WebRTC silos. SIP and XMPP provide possibilities, but come with considerable complexity and are not designed for use in a web environment. In his session at @ThingsExpo, Matthew Hodgson, technical co-founder of the Matrix.org, discussed how Matrix is a new non-profit Open Source Project that defines both a new HTTP-based standard for VoIP & IM signaling and provides reference implementations.