SOURCE: Vanguard Mining Corporation

September 15, 2014 09:00 ET

Vanguard Mining Corporation Provides Near-Term Financial Guidance

NEW YORK, NY and JAKARTA, INDONESIA--(Marketwired - Sep 15, 2014) - Vanguard Mining Corporation (PINKSHEETS: VNMC) today provided financial guidance for three new projects that are expected to generate revenues and positive cash flows for the Company in the near term.

VNMC is currently focused on a joint operation gold mining project in Karang Tengah District, Wonogiri Regency, Central Java Province, Indonesia, with PT. Raksasa Metal Agung, an Indonesian partner. In addition, the company is also in development of a limestone and gypsum mine on Solor Island, East Flores, Province of Nusa Tenggara Timur (NTT) in conjunction with PT. Yupolo Resources. The company is also focused on sand supplies to Singapore.

In Phase 1A of the NTT project, based on recent site survey and technical due diligence done in mid September by VNMC and Yupolo Resources, we believe there are sufficient available high quality mineral deposits and excellent infrastructure (i.e. new seaport, stock yard, hauling road, etc.) to produce over one million tons of gypsum and limestone during the first year and over two million tons during the second year of operation.

This would quickly generate cash flows with relatively low investment capital (US$ 2 million - US$ 5 million). Projected revenues for each of these years would be $39,777,231 and $83,532,185 with profits of $5,726,268 and $12,585,306 respectively. Investment in products from limestone with higher retail value such as Hydrated Lime, Precipitated Calcium Carbonate (PCC) and Nano Precipitated Calcium Carbonate (NPCC), in Phase 1B, would require much higher (US$ 35 - US$ 40 million) investment capital. This Phase 1B will be developed in conjunction with the gypsum and limestone mine.

For the joint operation gold mining, PT. Raksasa Metal Agung expects to start with a small-scale test run that will conservatively produce 25 kilograms of gold during the first year and 50 kilograms of gold the second year, yielding revenues of $873,600 and $1,747,200 and profits of $436,800 and $873,600 for each year, respectively. Beginning the third year, the company can quadruple the production at the current location and take on additional allotments for large-scale operations.

The combined projected revenues for the Wonogiri gold mining project and the NTT joint development for the first two years of operation would be $40,650,831 and $85,279,385 whereas projected net profits would be $6,163,068 and $13,458,906, respectively. These estimates are predicated on timely, satisfactory capital infusions, adequate qualified mineral deposits and uninterrupted operations for each of these projects and do not include potential substantial revenues and profitability that may come from the sand supply business in the near term. Should the above-mentioned assumptions not hold, the actual operating results and timing of revenue recognition would differ substantially.

The Company is also in the process of finalizing contractual agreements for the sand supply business and expects to update the near-term financial guidance with substantive upward revision to reflect this component of operation.

Hai Le, Chief Financial Officer of Vanguard Mining Corporation, said, "We believe these projections are reasonable based on our best knowledge and assumptions at the present. However, we may need to make adjustments accordingly after further review and final decision of our various development options."

About Vanguard Mining Corporation
Vanguard Mining Corporation, a Nevada corporation established in 1987, is currently building and developing a portfolio of mineral assets in Southeast Asia, including gold, copper, gypsum, limestone, and manganese in Indonesia as well as sand in Vietnam. The company has also investigated mineral asset opportunities in other geographical areas.

Safe Harbor: This news release contains forward-looking statements that are subject to certain risks and uncertainties that may cause actual results to differ materially from those projected on the basis of such forward-looking statements. Such forward-looking statements are made based upon management's beliefs, as well as assumptions made by, and information currently available to, management pursuant to the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995.

Contact Information

  • Contact:

    Hai Le
    Vanguard Mining Corporation
    Email Contact