Annual Report
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND PLAN OF OPERATION
In March 2002 Tara Gold discontinued its software development business and was inactive until early 2004 when it began acquiring oil and gas properties.
Revenues in 2004 and 2005 were from sales of oil and gas. In 2005 Tara Gold sold its oil and gas properties after it determined that these properties were not economical.
In May 2005 Tara Gold began acquiring mining properties in Mexico.
During 2005 Tara Gold's general and administrative expenses increased due to the beginning of mining operations during the second quarter of 2005, the opening of Tara Gold's office in Mexico and equipment repairs at the La Currita mine.
During the year ended December 31, 2004 Tara Gold's operations used $(240,530) in cash. During this same period Tara Gold paid $164,090 for oil and gas properties and equipment. Tara Gold satisfied its capital requirements during this period through the sale of common stock, loans from Francis Richard Biscan, Jr., Tara Gold's Presdient and cash on hand at January 1, 2004.
During the year ended December 31, 2005 Tara Gold's operations used $(392,212) in cash. During this same period Tara Gold paid:
†
$31,700 for oil and gas properties,
†
$108,658 for mining equipment,
†
$342,117 toward the purchase price of the La Currita property, and
†
$238,368 for deposits on other mining properties.
Tara Gold satisfied its capital requirements during 2005 through the sale of common stock and loans from Mr. Biscan, loans from Clifford A. Brown, Tara Gold's Principal Financial Officer, and loans from unrelated third parties.
Tara Gold anticipates that its capital requirements for the twelve months ending December 31, 2007 will be:
Payments for mining properties
$ 300,000
Mining exploration and development
$1,000,000
General and administrative expenses
$ 700,000
Total
$2,000,000
The capital requirements shown above do not include any capital required by Tara Minerals, Tara Gold's subsidiary.
Tara Gold does not anticipate that it will need to hire any additional employees during the twelve month period ending December 31, 2007.
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Tara Gold does not have any commitments or arrangements from any person to provide Tara Gold with any additional capital. If additional financing is not available when needed, Tara Gold may continue to operate in its present mode or Tara Gold may need to cease operations.
See Note 2 to the financial statements included as part of this report for a description of Tara Gold's significant accounting policies and recent accounting pronouncements.
ITEM 7.
FINANCIAL STATEMENTS
See the financial statements attached to this report.
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