Minera Andes releases their Q1 2011 financials. A bit of a good news bad news story. The good news, net income increased to $17 million and silver oz shipped doubled year over year to 1,342,000 oz and average price was $33.75. The bad news, Minera Santa Cruz S.A. (“MSC”), which operates the silver mine, informed of a restatement to their 2010 financial results, as previously reported to Minera Andes, to record a non-cash deferred tax provision and liability not previously recognized. The impact was a $11.4 million decrease in 2010 net income, from $35.9 million to $24.5 million. (Definitely not something to instill confidence in the stock and someone obviously got wind of this earlier in the day given the stock price movement today.)
It should be noted that there was 1,342,000 oz of silver shipped but 1,522,207 ounces of silver produced, as per the April 20th production press release, see here.
It should also be noted that this $17 million was down from 2010′s Q4 of $18.8 million, as noted here.. This is explained in the production release above as being due to lower mine production with tonnage down by 16% and slightly lower head grades for both silver and gold. The $17 million also includes a $6.1 million non-cash gain with respect to fair value adjustments to our warrant liability.
See full release here.