Andes Gold Corp. (PINK:AGCZ) has been climbing up since last week. Yesterday, the stock jumped even higher by soaring 33.33% and trading 2.5 million shares on the market. Quite an impressive gain especially considering the fact that it has no reasonable explanation.
Historical data shows that Andes has not released any news on its business since last November, and presently no one is informed on its operations. Nevertheless, a new uptrend was formed and the stock keeps it up.
Andes Gold Corp., through its wholly-owned subsidiary company Compaqia Minera P.L. in Ecuador controls a Gold mining and exploration concession called the Miranda Alto. The last news by the company came up in November last year when AGCZ reported its financial results for the nine month period ending September 30, 2011. In addition to their satisfaction with the results, the management of Andes projected a profitable fourth quarter with increased production.
The financial report was meant to inspire investors with the higher revenues of AGCZ, though there were some other issues related to the company.[BANNER]
Its management stated that AGCZ has experienced and anticipated continued significant expansion during 2011 through investment in its plant and equipment. Additionally, total investment for 2011, including but not limited to operating costs, was expected to total between $1,500,000 to $2,000,000.
However, operating costs and revenue are difficult to predict due to financial changes in the market place and there can be no assurances that revenues will be sufficient to continue to cover operating costs in the foreseeable future. As a result, Andes may find it necessary to raise additional capital to maintain its position in the projects, while the company’s liabilities keep increasing.