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13.05.2009
CROWFLIGHT ANNOUNCES FIRST QUARTER 2009 FINANCIAL RESULTS
CROWFLIGHT ANNOUNCES FIRST QUARTER 2009 FINANCIAL RESULTS
CROWFLIGHT MINERALS INC. (“Crowflight”, the “Company”) (TSX: CML) today announces its financial results for the first quarter of 2009. Crowflight has delivered on its primary milestone for 2009 by becoming Canada’s newest nickel producer. Crowflight successfully brought its Bucko Lake Nickel Mine into pre-commercial production during the first quarter of 2009 and continued to expand its resource base in support of extending the life-of-mine plan.
Complete interim financial statements and related Management’s Discussion and Analysis will be filed under the Company’s profile on www.sedar.com. All amounts are in Canadian dollars unless otherwise indicated.
Q1 2009 Highlights
During the three months ended March 31, 2009 (“Q1 2009”), Crowflight achieved the following:
• The Company shipped its first railcar of nickel concentrate to Xstrata Nickel’s smelter in Sudbury, Ontario on February 13, 2009.
• The Company produced approximately 139,000 pounds of pre-commercial production nickel.
• The Company sold approximately 65,500 pounds of pre-commercial production nickel at an average nickel price of US$4.46/lb.
• Results from a program of surface and underground drilling completed on the property from 2007 to 2009 were used to produce an updated National Instrument (NI) 43-101 compliant Mineral Reserve and Resource estimate. As a result, the estimated fully diluted Proven and Probable Reserves at Bucko have increased to 3,708,000 tonnes grading 1.45% nickel. This represents a 22% increase in contained nickel over the 2007 Bankable Feasibility Study. A forecasted long-term nickel price of US$6.00 and a 0.81 CAD$:US$ exchange rate was assumed. Mining reserves were established using a 1.25% nickel marginal cut-off grade. See press release of March 12, 2009 for further details regarding the reserve estimate.
• The Company monetized all remaining nickel forward sales and foreign exchange contracts for net proceeds of $10.1 million. Of this, $7.6 million was used to pay off the outstanding balance of the debt facility plus accrued interest. Crowflight is now debt-free as a result.
• Subsequent to quarter end, the Company completed two separate private placements. The first one consisted of 46,000,000 units (the "Units") of the Company at a price of $0.17 for each Unit for total gross proceeds of $7,820,000. The second placement consisted of 29,411,765 units (the "Units") of the Company at a price of $0.17 for each Unit for total gross proceeds of $5,000,000 with Dumas Contracting Limited. Each Unit consists of one common share of Crowflight (a “Unit Share”) and one-half of one common share purchase warrant (each full warrant, a “Warrant”), each full Warrant being exercisable to acquire one common share of Crowflight at a purchase price of $0.20 for a period of 24 months following the closing date of April 30, 2009. Please see press releases dated April 15, 17, and 30, 2009 for further details.
Financial Results
For the three months ended March 31, 2009, the Company reported a net income of $1.5 million or $0.01 per share, compared to a net loss of $2.8 million or ($0.01) per share in the same period last year. The results for the first quarter of 2009 include a net realized gain of $2.1 million on the monetization of all outstanding forward nickel and currency hedges.
Cash provided by operations for the quarter ended March 31, 2009 was $8.5 million compared to cash provided by operations of ($0.88) million in the same period last year. Cash of $10.1 million was generated from the monetization of the Company’s forward nickel and currency contracts.
Working capital deficit was $9.5 million at March 31, 2009, including cash and cash equivalents of $1.6 million.
Outlook
Due to commissioning issues in the first quarter, Crowflight has revised its 2009 guidance from 362,000 tonnes of 1.65% nickel to recover 9.1 million pounds of payable nickel to 326,000 tonnes of 1.59% nickel to recover 7.9 million pounds of payable nickel. Average operating cash cost (after declaration of commercial production) remains unchanged at US$3.61 per pound at an exchange rate of 1.20 to 1.00 Canadian to the US dollar.
A number of stoping areas have been developed on the 1,000 and 900 foot levels and a few of them are now available for production mining at Bucko. In addition, ore has been accessed on the 450 foot level and expectations are to open up new production on the 450 to 500 foot horizon in the next few months. Process plant recoveries, throughputs and concentrate quality are meeting expectations more consistently in the last month with throughput rates ranging from 800 to over 1,000 tonnes per day. Recent nickel recoveries since the last week of April have been tracking the grade recovery curve established during the feasibility study. At the targeted grade of 1.59% nickel, the recovery should be 77%.
Crowflight expects to declare commercial production at Bucko shortly.
Please find the FIRST QUARTER 2009 FINANCIAL RESULTS under the following link: http://www.irw-press.com/dokumente/CML_110509.pdf
Qualified Person/Quality Control Procedures
This press release and the technical information contained therein has been prepared and reviewed by Mr. Greg Collins, P.Geo. (APGO/APEGM) and VP Exploration of Crowflight and Paul Keller, P. Eng. and COO of Crowflight, both of whom are Qualified Person(s) under the NI 43-101 guidelines.
Crowflight Minerals -- Canada's Newest Nickel Producer
Crowflight Minerals Inc. (TSX: CML) is a debt-free Canadian junior mining company that is producing nickel at the Bucko Lake Nickel Mine near Wabowden, Manitoba. Crowflight expects to achieve full commercial production at Bucko in the second quarter of 2009. The Company is also focused on nickel, copper and Platinum Group Mineral (PGM) projects in the Thompson Nickel Belt and Sudbury Basin.
Cautionary Note on Forward-Looking Information
This press release contains forward-looking statements under Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the Company’s development potential and timetable of the Company’s properties, including the Bucko Lake Project; the future price of nickel and other minerals; the estimation of mineral reserves and mineral resources; conclusions of economic evaluations; the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of production; capital expenditures; success of exploration activities; mining or processing issues; currency exchange rates; government regulation of mining operations; and environmental risks. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Estimates regarding the anticipated timing, amount and cost of mining at the Bucko Lake Project are based on assumptions underlying mineral reserve and mineral resource estimates and the probability of realizing such estimates that are set out herein. Capital and operating cost estimates are based on extensive research of the Company, purchase orders placed by the Company to date, recent estimates of construction and mining costs and other factors that are set out herein. Production estimates are based on mine plans and production schedules, which have been developed by the Company’s personnel and independent consultants. Forward looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements, including but not limited to risks related to: unexpected events and delays during construction, expansion and start-up; variations in mineral grade and recovery rates; receipt and revocation of government approvals; timing and availability of external financing on acceptable terms; actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of minerals, particularly nickel; failure of plant, equipment or processes to operate as anticipated; reliance on joint venture partners; accidents, labour disputes and other risks of the mining industry. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements, except in accordance with applicable securities laws.
Further information is available on the Company's website at www.crowflight.com or contact:
Mike Hoffman
President and CEO
Crowflight Minerals
Tel: (416) 861-2964
Heather Colpitts
Manager, Investor and Public Relations
Crowflight Minerals
Tel: (416) 861-5803
info@crowflight.com
NEWSLETTER REGISTRIERUNG:
Aktuelle Pressemeldungen dieses Unternehmens direkt in Ihr Postfach:
http://www.irw-press.com/alert_subscription.php?lang=en&isin=CA2280241050
Mitteilung übermittelt durch IRW-Press.com. Für den Inhalt ist der Aussender
verantwortlich.
Kostenloser Abdruck mit Quellenangabe erlaubt.
CROWFLIGHT MINERALS INC. (“Crowflight”, the “Company”) (TSX: CML) today announces its financial results for the first quarter of 2009. Crowflight has delivered on its primary milestone for 2009 by becoming Canada’s newest nickel producer. Crowflight successfully brought its Bucko Lake Nickel Mine into pre-commercial production during the first quarter of 2009 and continued to expand its resource base in support of extending the life-of-mine plan.
Complete interim financial statements and related Management’s Discussion and Analysis will be filed under the Company’s profile on www.sedar.com. All amounts are in Canadian dollars unless otherwise indicated.
Q1 2009 Highlights
During the three months ended March 31, 2009 (“Q1 2009”), Crowflight achieved the following:
• The Company shipped its first railcar of nickel concentrate to Xstrata Nickel’s smelter in Sudbury, Ontario on February 13, 2009.
• The Company produced approximately 139,000 pounds of pre-commercial production nickel.
• The Company sold approximately 65,500 pounds of pre-commercial production nickel at an average nickel price of US$4.46/lb.
• Results from a program of surface and underground drilling completed on the property from 2007 to 2009 were used to produce an updated National Instrument (NI) 43-101 compliant Mineral Reserve and Resource estimate. As a result, the estimated fully diluted Proven and Probable Reserves at Bucko have increased to 3,708,000 tonnes grading 1.45% nickel. This represents a 22% increase in contained nickel over the 2007 Bankable Feasibility Study. A forecasted long-term nickel price of US$6.00 and a 0.81 CAD$:US$ exchange rate was assumed. Mining reserves were established using a 1.25% nickel marginal cut-off grade. See press release of March 12, 2009 for further details regarding the reserve estimate.
• The Company monetized all remaining nickel forward sales and foreign exchange contracts for net proceeds of $10.1 million. Of this, $7.6 million was used to pay off the outstanding balance of the debt facility plus accrued interest. Crowflight is now debt-free as a result.
• Subsequent to quarter end, the Company completed two separate private placements. The first one consisted of 46,000,000 units (the "Units") of the Company at a price of $0.17 for each Unit for total gross proceeds of $7,820,000. The second placement consisted of 29,411,765 units (the "Units") of the Company at a price of $0.17 for each Unit for total gross proceeds of $5,000,000 with Dumas Contracting Limited. Each Unit consists of one common share of Crowflight (a “Unit Share”) and one-half of one common share purchase warrant (each full warrant, a “Warrant”), each full Warrant being exercisable to acquire one common share of Crowflight at a purchase price of $0.20 for a period of 24 months following the closing date of April 30, 2009. Please see press releases dated April 15, 17, and 30, 2009 for further details.
Financial Results
For the three months ended March 31, 2009, the Company reported a net income of $1.5 million or $0.01 per share, compared to a net loss of $2.8 million or ($0.01) per share in the same period last year. The results for the first quarter of 2009 include a net realized gain of $2.1 million on the monetization of all outstanding forward nickel and currency hedges.
Cash provided by operations for the quarter ended March 31, 2009 was $8.5 million compared to cash provided by operations of ($0.88) million in the same period last year. Cash of $10.1 million was generated from the monetization of the Company’s forward nickel and currency contracts.
Working capital deficit was $9.5 million at March 31, 2009, including cash and cash equivalents of $1.6 million.
Outlook
Due to commissioning issues in the first quarter, Crowflight has revised its 2009 guidance from 362,000 tonnes of 1.65% nickel to recover 9.1 million pounds of payable nickel to 326,000 tonnes of 1.59% nickel to recover 7.9 million pounds of payable nickel. Average operating cash cost (after declaration of commercial production) remains unchanged at US$3.61 per pound at an exchange rate of 1.20 to 1.00 Canadian to the US dollar.
A number of stoping areas have been developed on the 1,000 and 900 foot levels and a few of them are now available for production mining at Bucko. In addition, ore has been accessed on the 450 foot level and expectations are to open up new production on the 450 to 500 foot horizon in the next few months. Process plant recoveries, throughputs and concentrate quality are meeting expectations more consistently in the last month with throughput rates ranging from 800 to over 1,000 tonnes per day. Recent nickel recoveries since the last week of April have been tracking the grade recovery curve established during the feasibility study. At the targeted grade of 1.59% nickel, the recovery should be 77%.
Crowflight expects to declare commercial production at Bucko shortly.
Please find the FIRST QUARTER 2009 FINANCIAL RESULTS under the following link: http://www.irw-press.com/dokumente/CML_110509.pdf
Qualified Person/Quality Control Procedures
This press release and the technical information contained therein has been prepared and reviewed by Mr. Greg Collins, P.Geo. (APGO/APEGM) and VP Exploration of Crowflight and Paul Keller, P. Eng. and COO of Crowflight, both of whom are Qualified Person(s) under the NI 43-101 guidelines.
Crowflight Minerals -- Canada's Newest Nickel Producer
Crowflight Minerals Inc. (TSX: CML) is a debt-free Canadian junior mining company that is producing nickel at the Bucko Lake Nickel Mine near Wabowden, Manitoba. Crowflight expects to achieve full commercial production at Bucko in the second quarter of 2009. The Company is also focused on nickel, copper and Platinum Group Mineral (PGM) projects in the Thompson Nickel Belt and Sudbury Basin.
Cautionary Note on Forward-Looking Information
This press release contains forward-looking statements under Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the Company’s development potential and timetable of the Company’s properties, including the Bucko Lake Project; the future price of nickel and other minerals; the estimation of mineral reserves and mineral resources; conclusions of economic evaluations; the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of production; capital expenditures; success of exploration activities; mining or processing issues; currency exchange rates; government regulation of mining operations; and environmental risks. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Estimates regarding the anticipated timing, amount and cost of mining at the Bucko Lake Project are based on assumptions underlying mineral reserve and mineral resource estimates and the probability of realizing such estimates that are set out herein. Capital and operating cost estimates are based on extensive research of the Company, purchase orders placed by the Company to date, recent estimates of construction and mining costs and other factors that are set out herein. Production estimates are based on mine plans and production schedules, which have been developed by the Company’s personnel and independent consultants. Forward looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements, including but not limited to risks related to: unexpected events and delays during construction, expansion and start-up; variations in mineral grade and recovery rates; receipt and revocation of government approvals; timing and availability of external financing on acceptable terms; actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of minerals, particularly nickel; failure of plant, equipment or processes to operate as anticipated; reliance on joint venture partners; accidents, labour disputes and other risks of the mining industry. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements, except in accordance with applicable securities laws.
Further information is available on the Company's website at www.crowflight.com or contact:
Mike Hoffman
President and CEO
Crowflight Minerals
Tel: (416) 861-2964
Heather Colpitts
Manager, Investor and Public Relations
Crowflight Minerals
Tel: (416) 861-5803
info@crowflight.com
NEWSLETTER REGISTRIERUNG:
Aktuelle Pressemeldungen dieses Unternehmens direkt in Ihr Postfach:
http://www.irw-press.com/alert_subscription.php?lang=en&isin=CA2280241050
Mitteilung übermittelt durch IRW-Press.com. Für den Inhalt ist der Aussender
verantwortlich.
Kostenloser Abdruck mit Quellenangabe erlaubt.