MONTREAL, Aug. 14 /CNW Telbec/ - Canadian Royalties Inc. (TSX:CZZ - News; “Canadian Royalties” or the “Corporation”) announces that it filed its financial results on August 14, 2008, for the quarter ended June 30, 2008 together with the management’s discussion and analysis of the financial condition and results of operations for the six-month period ended June 30, 2008.
inancial Results Quarter Ended June 30, 2008
On May 21, 2008, the Corporation obtained the Environmental Certificate of Authorization for the Nunavik Nickel Project from the Ministère des Ressources naturelles et de la Faune du Québec and the Corporation commenced construction work on the Nunavik Nickel Project. Engineering designs and construction plans are being modified to adjust infrastructure capacity and mining equipment to 4,500 tonnes per day, an increase which is to occur 24 months following the start of production, as per the revised mine plan compared to 3,500 tonnes per day in the SNC-Lavalin bankable feasibility study. As a result of this change, modifications to the wharf design and increased mining equipment have increased the total construction budget from $465.6 million to $517.6 million. Readers are directed to the management’s discussion and analysis of the financial condition and results of operations for the six-month period ended June 30, 2008 for additional information.
As of June 30, 2008, the Corporation had spent and committed approximately $179.5 million in investments for the engineering and equipment for the Nunavik Nickel Project. The balance of funds required by the Corporation to complete the construction and start-up the Nunavik Nickel Project are anticipated to be derived from strategic partner contributions and a project term loan.
The following table sets forth the income statement highlights.
————————————————————————-
Income Statement Highlights
(in thousands of Cdn dollars, except per share amounts)
Three Months Six Months
2008 2007 2008 2007
———— ———— ———— ————
Net loss 1,551 1,294 3,453 1,700
Net loss per share 0.016 0.020 0.035 0.026
————————————————————————-
The Net loss for the six months reflects the cost of additional support
staff due to the increased activity level and increased professional fees.
————————————————————————-
Balance Sheet Highlights
(in thousands of Cdn dollars)
June 30 December 31
2008 2007
———— ————
Cash and cash equivalents 112,595 37,008
Working Capital (excluding
cash and cash equivalents) 6,962 6,130
Total Assets 305,414 163,301
Long-term debt 95,935 7,776
Shareholders’ Equity 192,088 141,290
————————————————————————-
Implementation of Asset Conservation Plan
As previously announced in the Corporation’s press release dated August 5, 2008, on August 4, 2008, the Board of Directors approved an Asset Conservation Plan intended to conserve the Corporation’s assets by deferring project expenditures until project financing is in place for the Nunavik Nickel Project. The Asset Conservation Plan has been prompted by the dramatic changes in capital markets, combined with challenges in accessing infrastructure and delays in resolution of litigation which have impaired the Corporation’s ability to raise the balance of funds required to bring the Nunavik Nickel Project into production during the middle of 2010.
Engineering and other test work for the Nunavik Nickel Project will continue as scheduled but only essential construction work will be carried out at the Nunavik Nickel Project for the balance of 2008. Exploration work on all properties of Canadian Royalties will continue as scheduled.
Exploration activities in the first semester of 2008 were confined mainly to analyzing the results of the 2007 exploration program and planning the 2008 program including further exploration of new discoveries on the sites of Allammaq and Puimajuq.
Qualified Person
Glenn J. Mullan is the Qualified Person in accordance with NI 43-101, and is responsible for the technical information presented in this news release.
About Canadian Royalties and the Nunavik Nickel Project
Canadian Royalties has initiated the development of an independent, stand-alone nickel-copper mine on its Nunavik Nickel Project, located 20 kilometers south of Xstrata Nickel’s Raglan Mine in Nunavik, Québec. Canadian Royalties has received its Environmental Certificate of Authorization on May 21, 2008 and Mine Leases for the Expo, Mesamax, Ivakkak and Mequillon sites of the Nunavik Nickel Project on July 29, 2008.
Forward-looking Statement
This news release contains certain forward-looking statements or forward-looking information. These forward-looking statements are subject to a variety of risks and uncertainties beyond the Corporation’s ability to control or predict which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. Such risks and uncertainties are disclosed under the heading “Risk Factors” in the Corporation’s Annual Information Form for the year ended December 31, 2007 and dated March 31, 2008. Further, forward-looking information is in addition based on various assumptions, including, without limitation, the expectation and beliefs of management, the assumed long term price of nickel, that the Nunavik Nickel Project is a technical viable and economic operation, that it can be successfully completed by the Corporation, that the Corporation will receive the required permits and access to surface rights, and that the Corporation can access financing, appropriate equipment, and sufficient labour. Should one or more of these risks and uncertainties materialize, or should the underlying assumption prove incorrect or different, actual results may vary materially from those described in the forward-looking statements. All forward-looking statements speak only as of the date of this news release and the Corporation does not undertake any obligation to update or publicly disclose any revisions to such forward-looking statements to reflect events, circumstances or changes in expectations after the date hereof, except as required by law. Accordingly, readers should not place undue reliance on forward-looking statements.
For additional information please visit our website at www.canadianroyalties.com.
For further information
please visit our website at www.canadianroyalties.com or contact: Richard R. Faucher, President & CEO, Canadian Royalties Inc., (514) 879-1688, richard.faucher@canadianroyalties.com
—– Marc Chaput, VP, Investor Relations and Communications, Canadian Royalties Inc., (514) 879-1688, ext. 1223, marc.chaput@canadianroyalties.com
—– Renmark Financial Communications Inc.: Jason Roy: jroy@renmarkfinancial.com
Dan Symons: dsymons@renmarkfinancial.com
Média - Adam Ross: aross@renmarkfinancial.com, (514) 939-3989, Téléc.: (514) 939-3717, www.renmarkfinancial.com
No comments:
Post a Comment