PNG Gold Corporation-Third Quarter 2013 Results
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov 28, 2013) - PNG
Gold Corporation (TSX-VENTURE:PGK) ("PNG Gold" or the "Company")
announces that the Company has filed its third quarter interim
Financial Statements and Management Discussion and Analysis for the
three and nine-month periods ended September 30, 2013 on SEDAR.
The Company reported a net loss of $31,503,751 and $32,877,579
for the three and nine-month periods ended September 30, 2013,
respectively. During the third quarter of 2013, the Company tested
its assets for indicators of impairment in accordance with
International Financial Reporting Standards 6 and International
Accounting Standards 36 ("IAS 36"). As at September 30, 2013, the
Company determined that there were indicators of impairment for its
exploration and evaluation assets and property, plant and
equipment. The indicators of impairment result from the current
economic uncertainty in general and the downturn in the mining
industry in particular, decline in the Company's market
capitalization and the Company's decision to significantly reduce
future exploration expenditures until the economy improves. As a
result, the Company recorded impairment losses for the three and
nine months ended September 30, 2013 as noted in the table below.
All of the impairment loss relate to assets held in Papua New
Guinea.
Exploration and evaluation assets |
$29,155,318 |
Computers, equipment and furniture |
6,289 |
Camp buildings |
518,755 |
Drilling equipment |
993,541 |
Other operations equipment |
290,030 |
Total impairment loss |
$30,963,933 |
To ensure that the Company's assets are carried at no more than
their recoverable amount, which is the higher of the amount to be
recovered through use of the asset (Value In Use - "VIU") and the
amount to be recovered through sale of the asset (Fair Value Less
Cost Of Disposal - "FVLCD"), the Company performed an impairment
analysis. If an asset is carried at more than its recoverable
amount, the asset is impaired and IAS 36 requires an entity to
recognize an impairment loss. The recoverable amount of each asset
was determined based on the FVLCD approach. Estimates of fair value
were based on recent observable market transactions or replacement
costs for items similar in nature and condition to those impaired.
The Company's exploration and evaluation assets are currently at
the exploration stage and there have been no resources established
to reliably estimate the economic viability or future cash flows of
the properties. As a result, an estimate of fair value under the
VIU approach using a discounted cash flow would be very difficult
and unreliable. The Company has therefore adopted the FVLCD
approach to estimate the recoverable amount for its exploration and
evaluation assets.
About PNG Gold Corporation
PNG Gold Corporation is an exploration company with an advanced
stage drilling program in Papua New Guinea. PNG Gold holds a 100%
interest in the Normanby and Sehulea properties on Normanby Island,
Milne Bay Province, Papua New Guinea, and trades on the TSX Venture
Exchange under the symbol PGK.
FORWARD-LOOKING STATEMENTS
Forward-Looking Statements - This document contains
forward-looking information. Often, but not always, forward-looking
information can be identified by the use of words such as "plans",
"expects" or "does not expect", "is expected", "estimates",
"intends", "anticipates" or "does not anticipate", or "believes",
or variations of such words and phrases or states that certain
actions, events or results "may", "could", "would", "might" or
"will" be taken, occur or be achieved. Forward-looking information
involves known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements of
PNG Gold Corporation ("PNG" or the "Company") to be materially
different from any future results, performance or achievements
expressed or implied by the forward-looking information.
Examples of such statements include: statements pertaining
to PNG's proposed exploration and development activities and method
for funding thereof, timing of development of undeveloped gold
resources, gold extraction, processing, recovery and production
levels, expectations regarding the ability to raise capital and to
continually add to resources through acquisitions/development,
treatment under governmental regulatory regimes and tax laws,
capital expenditure programs and the timing and method of financing
thereof, the development plans and status of assets, future growth
and performance.
Actual results and developments are likely to differ, and
may differ materially, from those expressed or implied by the
forward-looking information contained in this document. Such
forward-looking information is based on a number of assumptions
which may prove to be incorrect, including, but not limited to: the
ability of PNG to obtain necessary financing and adequate
insurance; the economy generally; and, current and future stock
prices, results of operations and exploitation, exploration and
development activities, fluctuations in gold prices and market
conditions, the extent of gold resources and future growth and
performance, the regulatory and foreign environment, future capital
and other expenditures (including the amount, nature and sources of
funding thereof), uncertainty of resource estimates, the
availability of necessary exploration and development equipment,
competitive advantages, fluctuations in foreign currency exchange
rates, property title and investments, business prospects and
opportunities, transportation and construction delays, possible
variations of ore grade or recovery rates, failure of plant,
equipment or processes to operate as anticipated, accidents, labor
disputes and other risks of the mining industry, political
instability, arbitrary changes in law, delays in obtaining
governmental approvals and anticipated and unanticipated costs. The
factors identified above are not intended to represent a complete
list of the factors that could affect PNG. Additional risk factors
are noted under the heading "Risk and Uncertainties" in the
Company's MD&A for the year ended December 31, 2012 that was
filed on SEDAR.
Should one or more of these risks or uncertainties
materialize, or should assumptions underlying the forward looking
information prove incorrect, actual results, performance or
achievement may vary materially from those expressed or implied by
the forward-looking information contained in this document. These
risk factors should be carefully considered and readers are
cautioned not to place undue reliance on forward-looking
information, which speaks only as of the date of this document. All
subsequent forward-looking information attributable to PNG herein
is expressly qualified in its entirety by the cautionary statements
contained in or referred to herein. PNG does not undertake any
obligation to release publicly any revisions to this
forward-looking information to reflect events or circumstances that
occur after the date of this document or to reflect the occurrence
of unanticipated events, except as may be required under applicable
securities laws.
ON BEHALF OF PNG GOLD
Greg Clarkes, CEO and Director
PNG Gold Corporation
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
The securities have not been registered under the United
States Securities Act of 1933, as amended, or any state securities
laws and may not be offered or sold in the United States absent
registration thereunder or an applicable exemption from such
registration requirements. This press release shall not constitute
an offer to sell or the solicitation of an offer to buy any of the
securities in the United States.
PNG Gold Corporation(604) 669 4899(604) 685
2345www.pnggold.com