What a bunch of noise about nothing from the auditors. The restatement had little effect on the numbers.
Trading Symbol TSX-VE: GGC
April 18, 2006
Genco Amends Financial Statements
April 18, 2006 – Vancouver, B.C., Canada – Wayne Moorhouse, VP Finance for Genco
Resources Ltd. [TSX Venture Exchange: GGC], announces Genco has amended its
financial statements for the financial periods ending October 31, 2003 through
September 30, 2005. The reason for this action was an overstatement of the debt Genco
reported relating to the acquisition on August 1, 2003 of La Guitarra Compania Minera
S.A. de C.V. (La Guitarra), a company incorporated in Mexico whose assets include an
operating mine and mining concessions in the Temascaltepec Mining District of
Mexico.
Genco acquired La Guitarra for consideration of US $5,000,000. The purchase price
was comprised of 1,380,315 common shares of Genco valued at CDN $1,407,921 and
US $4,000,000 payable without interest in annual payments of US $500,000 for eight
years.
The effect of this restatement is to reduce the debt and related assets reported on each
balance sheet. The income statements were adjusted by reducing the depreciation on the
assets previously reported and adding imputed interest.
The following presents a summary of the changes to the Company’s previously issued
financial statements for the most recently reported period, the three and nine month
period ended September 30, 2005:
Balance sheet as at September 30, 2005 –
Previously Increase
Reported (Decrease) Restated
$ $ $
Capital assets 12,579,844 (977,131) 11,602,713
Total Assets 15,815,037 (977,131) 14,837,906
Long-term debt 2,902,750 (511,984) 2,390,766
Total liabilities 4,756,240 (511,984) 4,244,256
Deficit 5,120,225 (465,147) 5,585,372
1.
Statement of operations for the three months ended September 30, 2005 -
Previously Increase
Reported (Decrease) Restated
$ $ $
Cost of sales 1,467,566 (10,641) 1,456,925
Gross profit 489,528 10,641 500,169
Amortization 232,998 (10,641) 222,357
Foreign exchange (gain) 125,501 (46,603) 78,898
Accretion expense – 33,493 33,493
Net Income (loss) 220,713 23,751 244,464
Deficit, beginning (5,340,938) (488,898) (5,829,836)
Deficit, ending (5,120,225) (465,147) (5,585,372)
Suite 550 – 999 West Hastings Street, Vancouver, B.C., Canada V6C 2W2
Tel: (604) 682-2205 Fax: (604) 682-2235 www.gencoresources.com
GGC (TSX Venture Exchange
Statement of operations for the nine months ended September 30, 2005 -
Full financial statements are available on SEDAR at www.sedar.com and on the
Company’s website.
For further information: 604-682-2205
E-mail: gencoinfo@telus.net
www.gencoresources.com
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
2.
Suite 550 – 999 West Hastings, Vancouver, B.C., Canada V6C 2W2
Tel: (604) 682-2205 Fax: (604) 682-2235 www.gencoresources.com
GGC (TSX Venture Exchange)
Previously Increase
Reported (Decrease) Restated
$ $ $
Cost of sales 3,818,939 (31,924) 3,787,015
Gross profit 2,013,365 31,924 2,045,289
Amortization 388,521 (31,924) 356,597
Foreign exchange (gain) 191,533 34,565 226,098
Accretion expense – 105,228 105,228
Net Income (loss) 882,464 (107,869) 774,595
Deficit, beginning (6,002,689) (357,278) (6,359,967)
Deficit, ending (5,120,225) (465,147) (5,585,372) |
