Minera Andes Reports First Quarter Results

 

SPOKANE, WA - Minera Andes Inc. reported a net loss of $4.9 million in its first quarter 2009 financial statements. All amounts are in US dollars unless otherwise noted.

Minera Andes' share of the net loss derived from Minera Santa Cruz S.A.("MSC") for the three months ended March 31, 2009 (before amortization), was $0.9 million. MSC is owned 49% by Minera Andes and 51% by Hochschild Mining plc.

MSC owns and operates the San Jose silver/gold mine in southern Argentina, which has recently expanded its processing capacity to a rate of 1,500 tonnes per day. Hochschild is the operator of the San Jose Mine.

Allen Ambrose, President of Minera Andes said, "While we are disappointed with our loss for the first quarter, we are very pleased by the progress that MSC is making in reducing operating costs at the San Jose Mine. Unfortunately, the mine had a considerable build-up of processed silver and gold in inventory during the quarter and showed a net loss for the quarter, but the products have now been sold, and the sale of this built up inventory will be reflected in the results for the second quarter."

The silver and gold sales from the San Jose Mine in the first quarter of 2009 totaled $21.1 million. During the fourth quarter 2008, total sales from the San Jose Mine were $19.6 million. The weighted average sales prices were $12.98/ounce of silver and $911/ounce of gold during the first quarter of 2009 and $8.93/ounce of silver and $774/ounce of gold during the previous quarter. San Jose's silver and gold sales are unhedged. The first quarter 2009 sales of silver and gold by MSC were lower compared to fourth quarter of 2008 due to built up processed product inventories of silver and gold at the end of the quarter while MSC negotiated new contracts and improved commercial terms for the sale of dore bullion and concentrates. The accumulated inventories were sold at the start of the second quarter of 2009.

The company’s address is 111 East Magnesium Road, Ste. A, Spokane, WA 99208, (509) 921-7322, fax: (509) 921-7325, email: [email protected].