General

Andean American Mining Experiences Third Quarter Financial Outcomes

Andean American Mining Corp. (TSX VENTURE:AAG)(FWB-AQN)

The Board of Directors of Andean American Mining Corp. publicizes that its Consolidated Intervening time Financial Statements and Administration Discussion and Analysis for the quarter ended December 31, 2006 had been filed with SEDAR at www.sedar.com. Highlights of these statements are discussed under:

– The acquire loss for the duration became once $1,147,529 or $0.022 per portion compared with a loss of $313,502 or $0.006 per portion in the similar duration closing year. On December 15, 2006 Sinchao Metals Corp. became once amalgamated with Dolce Enterprises Inc. a capital pool company, to procure a fresh company also called Sinchao Metals Corp. As a result of this transaction the Firm’s became once issued 36 million shares or a 74% pastime in the issued and excellent shares of Sinchao Metals Corp.

– Substandard profit from operations is according to expectations as the Firm continues to originate solutions for the metallurgical considerations on the Santa Rosa mine. The quarter has been an awfully busy one with encouraging news from Invicta, which the Firm continues to immediate track in the direction of an early manufacturing decision. In its news originate of October 30, 2006, the Firm announced results from an up up to now NI 43-101 file with tainted metals exclaim material of over 2,000,000 gold ounces the same in Measured, Indicated and Inferred Resources. Substandard metals exclaim material would now not consist of metallurgical recoveries.

– The loss from operations on this quarter amounting to $927,686, compared with earnings of $149,413 in the similar duration closing year, became once due to low recoveries from recycled affords and increased working charges offset in portion by rising prices for gold and silver. Furthermore offsetting the enact of bigger steel prices on this quarter became once a weaker US greenback.

– Get loss for the quarter ended December 31, 2006 became once $1,147,529 compared with a acquire loss of $313,502 in the identical quarter of 2005. The reduction in earnings on this quarter compared with the outdated year became once essentially as a result of low recoveries and greater unit charges from the processing of recycled arena matter.

– Cash current in operations in the quarter prior to adjustments to non-cash working capital devices became once $603,106, compared with particular cash drift of $42,051 in closing year’s quarter. The reduction in cash drift from operations became once as a result of reduction of gold and silver produced and an lengthen in the worth of sales mainly due to heart-broken recoveries.

-R evenues were $ 1,523,064 in 2006 compared with $ 1,555,666 in 2005. Gross sales of gold and gold equivalents in the quarter were 1,950 ounces compared to 2,852 ounces in the similar duration closing year. The income lower in 2006 became once as a result of point of pastime shifting from maximizing manufacturing to making an strive to clear up recovery considerations.

Outlook:

The Firm continues its tough exploration programs at Invicta, Santa Rosa and Sinchao.

Santa Rosa

Continues to course of recycle arena matter. On the metallurgical entrance it looks that a resolution for the center-broken gold and silver recoveries is in take into memoir in the procure of a fresh CIL Agitated Leach course of and Merrill Crowe plant.

Invicta

Has a winning drill program underway and a predominant fresh discovery, called Ydalia, south of the Atenea Zone. NI 43-101 compliant resource estimates had been printed.

Sinchao

Has a predominant program underway with 2 drills about to start and predominant growth of the centered areas already executed.

The Firm expects to make 12,000 ounces of gold the same in fiscal 2007. Gold and silver prices are exhibiting endured energy and on the date of this file are bigger than US$610.00 and US$11.00 per ounce, respectively. The Firm’s revenues shall be negatively tormented by from now on strengthening of the Canadian greenback in opposition to the US greenback. Metal prices and currencies are arena to fluctuation due to adjustments in global financial prerequisites.

The Firm is experiencing rising manufacturing charges due to increasing prices for gasoline, chemical substances and repairs provides. These rising prices, driven by the worldwide financial enhance, are expected to continue at some point of calendar 2007.

In fiscal year 2007 capital expenditures for exploration activities at Santa Rosa are estimated to be $650,000. Capital expenditures for endured exploration of the Invicta venture are estimated to be $800,000. The Firm is reviewing possible sources of debt financing for the Invicta venture which may presumably consist of an estimated capital expenditure of $32,000,000 in whine to arrive the property in the direction of a manufacturing decision. Exploration expenditures for Sinchao are estimated to be $2,000,000 and may presumably well gentle be funded from Sinchao Metals Corp’s cash resources and the proceeds from the whine of its warrants.

For the total Administration’s Discussion and Analysis and Financial Statements, please consult with the Firm’s filings at www.sedar.com.

On behalf of Andean American Mining Corp.,

John Huguet, President & CEO

Andean American Mining Corp. (TSX VENTURE:AAG) is centered on whisper each and every organically and by acquisitions. The company is actively pursuing fresh properties with possible for early stage gold and silver targets. Andean American continues to withhold unbelievable neighborhood relatives and a dedication to accountable environmental practices. The company has a robust administration crew with over 60 years expertise and an effective board dedicated to excellence in corporate governance. Andean American Mining is committed to persevering with to be a low-value, winning producer with an honest of manufacturing 200,000 ounces of gold by 2010.

ANDEAN AMERICAN MINING CORP.

INTERIM CONSOLIDATED BALANCE SHEETS

(Unaudited - Ready by Administration)

December 31, March 31, 2006

2006 $

$ (audited)

ASSETS

CURRENT ASSETS

Cash 963,229 810,500

Restricted cash (Existing 9) - 265,597

Accounts receivable (Existing 4) 591,340 820,423

Pay as you lumber costs 198,233 69,700

Minerals on pads & inventories (Existing 5) 5,003,830 5,231,399

---------- ----------

6,756,632 7,197,619

-

MINERAL ON PADS (Existing 5) 1,482,602 1,749,223

MINERAL PROPERTIES AND DEFERRED COSTS (Existing 6) 32,189,900 36,967,866

PROPERTY, PLANT AND EQUIPMENT (Existing 7) 2,626,032 3,052,262

PREPAID TAX 172,765 -

---------- ----------

43,227,931 48,966,970

---------- ----------

---------- ----------

LIABILITIES

CURRENT LIABILITIES

Accounts payable and accrued liabilities 3,182,263 3,685,816

Deferred earnings 211,551 186,415

Loans payable (Existing 8) 46,029 46,100

Present part of capital lease responsibility (Existing 9) - 264,998

Present part of future debt (Existing 10) 608,685 975,138

-------- --------

4,048,528 5,158,467

LONG TERM DEBT (Existing 10) 125,541 -

PROVISION FOR RECLAMATION & CLOSURE COSTS (Existing 11) 124,805 119,253

--------- ---------

4,298,874 5,277,720

MINORITY INTEREST 2,875,547 -

SHARE HOLDERS' EQUITY

SHARE CAPITAL (Existing 12) 59,203,415 58,371,791

CONTRIBUTED SURPLUS 1,734,758 1,674,684

DEFICIT (24,884,663) (16,357,225)

36,053,510 43,689,250

43,227,931 48,966,970

CONTINGENCY (Existing 19)

GOING CONCERN (Existing 1)

APPROVED BY THE DIRECTORS

"JOHN HUGUET' "BRYAN MORRIS"

------------- --------------

DIRECTOR DIRECTOR

ANDEAN AMERICAN MINING CORP.

INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS AND DEFICIT

FOR THE NINE MONTHS ENDED DECEMBER 31, 2006

(Unaudited - Ready by Administration)

Three Month Period Ended 9 Month Period Ended

December 31 December 31

2006 2005 2006 2005

$ $ $ $

REVENUE

Gross sales of metals 1,523,064 1,555,666 4,225,586 7,126,338

--------- --------- --------- ---------

OPERATING EXPENSES

Verbalize working charges 1,956,884 1,062,320 4,669,559 3,954,467

Royalty expense 24,628 63,782 71,862 144,705

Amortization and

depletion 422,339 236,840 852,707 939,460

Promoting costs 43,254 41,753 115,111 164,412

Reclamation 3,645 1,558 10,777 12,832

--------- --------- --------- ---------

2,450,750 1,406,253 5,720,016 5,215,877

--------- --------- --------- ---------

GROSS PROFIT (LOSS) (927,686) 149,413 (1,494,430) 1,910,461

OTHER EXPENSES

Overall and

administrative costs 248,110 287,040 955,486 974,430

Stock based compensation 75,344 107,877 75,344 519,841

Hobby and finance

costs 29,315 37,205 77,828 244,558

Other costs (earnings) 162,881 (21,585) 25,143 (10,359)

International alternate (reach)

loss (260,713) 52,378 (103,721) (205,770)

Loss on dilution

(demonstrate 6) - - 6,086,167 -

--------- ------- --------- -------

(1,182,623) (313,502) (8,610,677) 387,761

LESS: MINORITY INTEREST 35,094 - 83,239 -

--------- ------- --------- -------

NET INCOME (LOSS) (1,147,529) (313,502) (8,527,438) 387,761

DEFICIT -- BEGINNING

OF PERIOD (23,737,134) (16,386,739) (16,357,225) (17,088,002)

---------- ---------- ---------- ----------

DEFICIT -- END

OF PERIOD (24,884,663) (16,700,241) (24,884,663) (16,700,241)

---------- ---------- ---------- ----------

---------- ---------- ---------- ----------

WEIGHTED AVERAGE

COMMON SHARES

OUTSTANDING

BASIC & DILUTED 51,864,930 50,620,481 51,612,880 46,834,535

---------- ---------- ---------- ----------

---------- ---------- ---------- ----------

EARNINGS (LOSS) PER

COMMON SHARE

BASIC & DILUTED (0.022) (0.006) (0.167) 0.008

---------- ---------- ---------- ----------

---------- ---------- ---------- ----------

ANDEAN AMERICAN MINING CORP.

INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN CASH FLOW

FOR THE NINE MONTHS ENDED DECEMBER 31, 2006

(Unaudited - Ready by Administration)

Three Month Period Ended 9 Month Period Ended

December 31 December 31

2006 2005 2006 2005

$ $ $ $

CASH PROVIDED FROM (USED

FOR) OPERATING

ACTIVITIES

Income (loss) for the

duration (1,147,529) (313,502) (8,527,438) 387,761

Amortization and

depletion 443,452 236,840 863,318 1,010,247

Provision for reclamation 3.645 1,558 10,777 12,832

International alternate (reach)

loss 21,982 9,878 (25,688) (62,621)

Stock based compensation 75,344 107,877 75,344 519,841

Loss on dilution - - 6,086,167 -

------- ------ --------- ---------

(603,106) 42,051 (1,517,520) 1,868,060

(Amplify) lower in

accounts receivable (21,136) 171,464 229,083 158,326

(Amplify) lower in

inventories 234,861 (33,587) 494,190 (526,673)

(Amplify) lower in

prepaid costs (9,734) 127,438 (128,532) 79,310

Amplify (lower) in

accounts payable (69,946) 557,974 (503,547) 753,864

Amplify (lower) in

deferred earnings (39,225) (328,467) 25,136 (137,605)

Amplify (lower) in

accrued pastime payable - - - (321,465)

------- ------- --------- ---------

(508,286) 536,873 (1,401,190) 1,873,817

INVESTING ACTIVITIES

Mineral properties and

deferred charges (900,300) (1,044,387) (2,232,625) (2,085,772)

Property, plant and

tools (13,146) (614,763) (83,106) (997,045)

------ ------- ------ -------

(913,446) (1,659,150) (2,315,731) (3,082,817)

FINANCING ACTIVITIES

Rate of debentures - - - (1,924,757)

Frequent shares issued for

cash 798,855 126,305 816,355 4,996,796

Frequent shares issued by

Sinchao Metals 513,459 - 3,337,434 -

Switch in restricted cash (205,634) (72,875) - -

Rate of future debt (84,272) - (231,663) (428,889)

Rate of loans payable - (81,831) (52,476) (381,033)

--------- ------ --------- ---------

1,022,408 (28,401) 3,869,650 2,262,117

INCREASE (DECREASE) IN

CASH DURING PERIOD (399,324) (1,150,678) 152,729 1,053,117

CASH - BEGINNING OF

PERIOD 1,362,553 2,446,452 810,500 242,657

--------- --------- ------- ---------

CASH -END OF PERIOD 963,229 1,295,774 963,229 1,295,774

------- --------- ------- ---------

------- --------- ------- ---------

CASH IS COMPRISED OF:

Cash 1,057,820

Bank indebtedness (94,591)

---------

963,229

---------

---------

SUPPLEMENTARY CASH FLOW INFORMATION (Existing 17)

This news originate may presumably well possess forward-having a take into memoir statements regarding upcoming work programs and occasions. Staunch results may presumably well fluctuate materially from these anticipated in such statements.

SOURCE: Andean American Mining Corp.

Andean American Mining Corp. John Huguet President & CEO (604) 681-6186 or Toll Free: 1-888-356-4784 (604) 681-3652 (FAX) E-mail: [email protected] Site: www.andeanamerican.com

Related Articles

Back to top button
%d bloggers like this: