VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 11/28/13 -- 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.
Contacts:
PNG Gold Corporation
(604) 669 4899
(604) 685 2345 (FAX)
www.pnggold.com
