Communicators
are winners!
News
06.04.2010
CROWFLIGHT ANNOUNCES FOURTH QUARTER AND YEAR END 2009 FINANCIAL RESULTS
CROWFLIGHT ANNOUNCES FOURTH QUARTER AND YEAR END 2009 FINANCIAL RESULTS
CROWFLIGHT MINERALS INC. (“Crowflight” or the “Company”) (TSX: CML) today announces its financial results for the fourth quarter and year end of 2009.
Complete audited annual 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.
2009 IN REVIEW - HIGHLIGHTS FOR THE YEAR
• The Bucko Lake Nickel Mine (“Bucko”) located in the Thompson Nickel Belt near Wabowden, Manitoba shipped its first nickel concentrate in February 2009. The commencement of nickel concentrate shipments marked a major milestone for the Company as it transitioned from an exploration and development company to a nickel producer.
• In February 2009, the Company was able to monetize 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 $55 debt facility used to build the Bucko Mine. As a result of this transaction, Crowflight was free of any long-term debt used to build the mine.
• An updated National Instrument (NI) 43-101 compliant Minerals Reserve and Resource estimate in March 2009 increased Proven & Probable reserves at Bucko by 22% from the 2007 Bankable Feasibility Study.
• The Company raised a total of $47.8 million through private placements throughout the year. This included two strategic investments in Crowflight made by Pala Investments Holdings Limited (“Pala”) and Kingplace Enterprises Limited. These strategic investments provided Crowflight with strong financial partners committed to maximizing the potential of the Bucko Mine.
• In June 2009, commercial production was declared at the Bucko Lake Nickel Mine (commercial production being defined as throughput greater than 60% of mill nameplate capacity).
• In November 2009, Crowflight temporarily suspended all production mining and milling operations at the Bucko Mine for three months in order to complete ramp development, review the mining method (subsequently redesigned the mine method, please see press release dated February 1st, 2010), accelerate mine development, continue with diamond drilling underground and upgrade the backfill plant. The Bucko Mine subsequently resumed milling operations and shipments of nickel concentrate in March 2010.
• For the year 2009, the Company produced approximately 1,382,000 pounds of nickel and sold 1,152,000 pounds of payable nickel.
HIGHLIGHTS FOR THE FOURTH QUARTER OF 2009
• For the quarter ended December 31, 2009, 183,000 pounds of nickel were produced, and 287,000 pounds of commercial production nickel sold as compared to nil in the fourth quarter of 2008 as the mine was not yet in production.
• Total metal revenue for the quarter ended December 31, 2009 was $2.4 million compared to nil for the fourth quarter last year.
• Operating cash flow for the quarter ended December 31, 2009 was negative $4.2 million compared to operating cash flow of $61.8 million in the fourth quarter last year (due to a gain on derivative instruments in 2008).
• Loss for the quarter ended December 31, 2009 was $22.3 million or ($0.04) per share compared to income of $28.9 million or $0.11 per share in the fourth quarter last year (due to a gain on derivative instruments in 2008.) The loss for Q4-2009 included a $33.7 million write down to property, plant and equipment and certain exploration assets which generated a tax benefit of $15 million, giving an after tax write down of $18.7 million.
• Commercial nickel sales settled during the quarter ended December 31, 2009 were realized at an average price of US$7.35 per pound.
• Net working capital (non-GAAP measure, see “Non-GAAP Measures” section) as at December 31, 2009 was $3.2 million (including cash and cash equivalents of $10.0 million) compared to $7.7 million as at December 31, 2008.
• On October 14, 2009, Crowflight closed the second tranche of its private placement financing with Kingplace Enterprises Limited for gross proceeds of approximately $8.8 million. Pursuant to the second tranche, Crowflight issued 35,266,779 common shares of the Company at a price of $0.25 per share. The primary intended use for the proceeds from the financing was the continued development of the Bucko Lake Project and the balance for general corporate purposes. The first tranche of the financing for $11.2 million closed during the third quarter of 2009.
• In addition to the temporary three-month suspension of all production mining and milling operations at the Bucko Mine mentioned above in the “2009 in Review – Highlights for the Year” section, the Company also announced on November 16, 2009 that Paul Keller stepped down as Crowflight’s Vice President Operations and Chief Operating Officer, effective November 16, 2009.
• Crowflight completed an exploration drill program around its M11A deposit located 5 kilometres from the Bucko mine site during the fourth quarter of 2009. The work was designed to infill and explore for extensions to mineralization identified at the M11A North deposit while meeting the Company’s ongoing commitment to fund exploration under its option agreement with Xstrata. Expenditures made during this program will allow Crowflight to vest its initial 35% interest in the combined land package in the Thompson Nickel Belt held under option from Xstrata.
Please find the table under the following link: http://www.irw-press.com/dokumente/CrowflightTable01042010.pdf
Outlook
As announced February 24, 2010, Crowflight’s production targets for 2010 from Bucko are approximately 8.6 million pounds of payable nickel based on projections of 342,000 tonnes at a 1.63% nickel grade and assuming a 78% recovery. The average operating cash costs (non-GAAP measure, see “Non-GAAP Measures” section) for the entire year are projected to be between US$5.70 - $5.90 per pound of payable nickel (using a USD: CAD exchange rate of 0.94) as a result of lower tonnages in the first half of 2010 as the mine resumes production. The average operating cash cost projected for the second half of the year is expected to average US$5.15 - $5.35 per pound of payable nickel when the mine is expected to be in full production.
Crowflight currently estimates capital requirements for 2010 to be approximately CAD$14 million for continued mine development, upgrading of the backfill plant and increasing the tailings pond capacity.
Further to the Bucko operational updates that Crowflight provided in the press releases dated February 1 and 24, 2010, the ramp connecting surface to the 1,000’ Level has been completed. The ramp connection has been designed to develop access to new areas for mining and allow for the use of large 40-tonne class trucks to haul ore directly from the stoping levels to surface. The trucking via ramp is important to allow for efficient mining cycle time as well as the continuous transport of ore to surface from a number of operating mining levels.
Production mining, milling and nickel concentrate shipments resumed at Bucko in March, 2010 and the mine is ramping up to achieve the second quarter target of 1,000 tonnes per day (tpd) of ore which is planned to increase to 1,200 tpd in the second half of 2010.
Greg Radke has replaced Jan Castro as a member of the Board of Directors. Mr. Radke has been appointed by Pala. The Company would like to thank Mr. Castro for his contribution to, and continuing support of, the Company.
Non-GAAP Measures
This press release refers to net working capital and cash cost per pound which are not recognized measures under Canadian GAAP. These non-GAAP performance measures do not have any standardized meaning prescribed by Canadian GAAP and are therefore unlikely to be comparable to a similar measures presented by other issuers. Management uses these measures internally. The use of these measures enables management to better assess performance trends. Management understands that a number of investors and others who follow the Company's performance assess performance in this way. This data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with Canadian GAAP.
Qualified Person/Quality Control Procedures
This press release has been prepared and reviewed by Mr. Greg Collins, P.Geo. (APGO/APEGM) VP Exploration of Crowflight and Steve Davies, P.Eng, and Chief Operating Officer of Crowflight, both of whom are Qualified Persons under the National Instrument 43-101 guidelines.
About Crowflight Minerals
Crowflight Minerals Inc. (TSX: CML) is a Canadian junior mining company that owns the Bucko Lake Nickel Mine near Wabowden, Manitoba that recently resumed production. The Company also holds 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; foreign exchange rates; 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.
Please find the Consolidated Balance Sheets under the following link: http://www.irw-press.com/dokumente/ConsolidatedBalanceSheets.pdf
Further information is available on the Company's website at www.crowflight.com or contact:
Anna M. Ladd
VP Finance and CFO
Crowflight Minerals
Tel: (416) 861-5891
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:
<a href="http://www.irw-press.com/alert_subscription.php?lang=en&isin=CA2280241050">http://www.irw-press.com/alert_subscription.php?lang=en&isin=CA2280241050</a>
Mitteilung übermittelt durch IRW-Press.com. Für den Inhalt ist der Aussender
verantwortlich.
Kostenloser Abdruck mit Quellenangabe erlaubt.
CROWFLIGHT MINERALS INC. (“Crowflight” or the “Company”) (TSX: CML) today announces its financial results for the fourth quarter and year end of 2009.
Complete audited annual 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.
2009 IN REVIEW - HIGHLIGHTS FOR THE YEAR
• The Bucko Lake Nickel Mine (“Bucko”) located in the Thompson Nickel Belt near Wabowden, Manitoba shipped its first nickel concentrate in February 2009. The commencement of nickel concentrate shipments marked a major milestone for the Company as it transitioned from an exploration and development company to a nickel producer.
• In February 2009, the Company was able to monetize 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 $55 debt facility used to build the Bucko Mine. As a result of this transaction, Crowflight was free of any long-term debt used to build the mine.
• An updated National Instrument (NI) 43-101 compliant Minerals Reserve and Resource estimate in March 2009 increased Proven & Probable reserves at Bucko by 22% from the 2007 Bankable Feasibility Study.
• The Company raised a total of $47.8 million through private placements throughout the year. This included two strategic investments in Crowflight made by Pala Investments Holdings Limited (“Pala”) and Kingplace Enterprises Limited. These strategic investments provided Crowflight with strong financial partners committed to maximizing the potential of the Bucko Mine.
• In June 2009, commercial production was declared at the Bucko Lake Nickel Mine (commercial production being defined as throughput greater than 60% of mill nameplate capacity).
• In November 2009, Crowflight temporarily suspended all production mining and milling operations at the Bucko Mine for three months in order to complete ramp development, review the mining method (subsequently redesigned the mine method, please see press release dated February 1st, 2010), accelerate mine development, continue with diamond drilling underground and upgrade the backfill plant. The Bucko Mine subsequently resumed milling operations and shipments of nickel concentrate in March 2010.
• For the year 2009, the Company produced approximately 1,382,000 pounds of nickel and sold 1,152,000 pounds of payable nickel.
HIGHLIGHTS FOR THE FOURTH QUARTER OF 2009
• For the quarter ended December 31, 2009, 183,000 pounds of nickel were produced, and 287,000 pounds of commercial production nickel sold as compared to nil in the fourth quarter of 2008 as the mine was not yet in production.
• Total metal revenue for the quarter ended December 31, 2009 was $2.4 million compared to nil for the fourth quarter last year.
• Operating cash flow for the quarter ended December 31, 2009 was negative $4.2 million compared to operating cash flow of $61.8 million in the fourth quarter last year (due to a gain on derivative instruments in 2008).
• Loss for the quarter ended December 31, 2009 was $22.3 million or ($0.04) per share compared to income of $28.9 million or $0.11 per share in the fourth quarter last year (due to a gain on derivative instruments in 2008.) The loss for Q4-2009 included a $33.7 million write down to property, plant and equipment and certain exploration assets which generated a tax benefit of $15 million, giving an after tax write down of $18.7 million.
• Commercial nickel sales settled during the quarter ended December 31, 2009 were realized at an average price of US$7.35 per pound.
• Net working capital (non-GAAP measure, see “Non-GAAP Measures” section) as at December 31, 2009 was $3.2 million (including cash and cash equivalents of $10.0 million) compared to $7.7 million as at December 31, 2008.
• On October 14, 2009, Crowflight closed the second tranche of its private placement financing with Kingplace Enterprises Limited for gross proceeds of approximately $8.8 million. Pursuant to the second tranche, Crowflight issued 35,266,779 common shares of the Company at a price of $0.25 per share. The primary intended use for the proceeds from the financing was the continued development of the Bucko Lake Project and the balance for general corporate purposes. The first tranche of the financing for $11.2 million closed during the third quarter of 2009.
• In addition to the temporary three-month suspension of all production mining and milling operations at the Bucko Mine mentioned above in the “2009 in Review – Highlights for the Year” section, the Company also announced on November 16, 2009 that Paul Keller stepped down as Crowflight’s Vice President Operations and Chief Operating Officer, effective November 16, 2009.
• Crowflight completed an exploration drill program around its M11A deposit located 5 kilometres from the Bucko mine site during the fourth quarter of 2009. The work was designed to infill and explore for extensions to mineralization identified at the M11A North deposit while meeting the Company’s ongoing commitment to fund exploration under its option agreement with Xstrata. Expenditures made during this program will allow Crowflight to vest its initial 35% interest in the combined land package in the Thompson Nickel Belt held under option from Xstrata.
Please find the table under the following link: http://www.irw-press.com/dokumente/CrowflightTable01042010.pdf
Outlook
As announced February 24, 2010, Crowflight’s production targets for 2010 from Bucko are approximately 8.6 million pounds of payable nickel based on projections of 342,000 tonnes at a 1.63% nickel grade and assuming a 78% recovery. The average operating cash costs (non-GAAP measure, see “Non-GAAP Measures” section) for the entire year are projected to be between US$5.70 - $5.90 per pound of payable nickel (using a USD: CAD exchange rate of 0.94) as a result of lower tonnages in the first half of 2010 as the mine resumes production. The average operating cash cost projected for the second half of the year is expected to average US$5.15 - $5.35 per pound of payable nickel when the mine is expected to be in full production.
Crowflight currently estimates capital requirements for 2010 to be approximately CAD$14 million for continued mine development, upgrading of the backfill plant and increasing the tailings pond capacity.
Further to the Bucko operational updates that Crowflight provided in the press releases dated February 1 and 24, 2010, the ramp connecting surface to the 1,000’ Level has been completed. The ramp connection has been designed to develop access to new areas for mining and allow for the use of large 40-tonne class trucks to haul ore directly from the stoping levels to surface. The trucking via ramp is important to allow for efficient mining cycle time as well as the continuous transport of ore to surface from a number of operating mining levels.
Production mining, milling and nickel concentrate shipments resumed at Bucko in March, 2010 and the mine is ramping up to achieve the second quarter target of 1,000 tonnes per day (tpd) of ore which is planned to increase to 1,200 tpd in the second half of 2010.
Greg Radke has replaced Jan Castro as a member of the Board of Directors. Mr. Radke has been appointed by Pala. The Company would like to thank Mr. Castro for his contribution to, and continuing support of, the Company.
Non-GAAP Measures
This press release refers to net working capital and cash cost per pound which are not recognized measures under Canadian GAAP. These non-GAAP performance measures do not have any standardized meaning prescribed by Canadian GAAP and are therefore unlikely to be comparable to a similar measures presented by other issuers. Management uses these measures internally. The use of these measures enables management to better assess performance trends. Management understands that a number of investors and others who follow the Company's performance assess performance in this way. This data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with Canadian GAAP.
Qualified Person/Quality Control Procedures
This press release has been prepared and reviewed by Mr. Greg Collins, P.Geo. (APGO/APEGM) VP Exploration of Crowflight and Steve Davies, P.Eng, and Chief Operating Officer of Crowflight, both of whom are Qualified Persons under the National Instrument 43-101 guidelines.
About Crowflight Minerals
Crowflight Minerals Inc. (TSX: CML) is a Canadian junior mining company that owns the Bucko Lake Nickel Mine near Wabowden, Manitoba that recently resumed production. The Company also holds 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; foreign exchange rates; 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.
Please find the Consolidated Balance Sheets under the following link: http://www.irw-press.com/dokumente/ConsolidatedBalanceSheets.pdf
Further information is available on the Company's website at www.crowflight.com or contact:
Anna M. Ladd
VP Finance and CFO
Crowflight Minerals
Tel: (416) 861-5891
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:
<a href="http://www.irw-press.com/alert_subscription.php?lang=en&isin=CA2280241050">http://www.irw-press.com/alert_subscription.php?lang=en&isin=CA2280241050</a>
Mitteilung übermittelt durch IRW-Press.com. Für den Inhalt ist der Aussender
verantwortlich.
Kostenloser Abdruck mit Quellenangabe erlaubt.