Richmont Mines Reports Record Sales for the Fourth Quarter and Full Year 2008
MONTREAL, QUEBEC--(Marketwire - Feb. 26, 2009) - Richmont Mines Inc. (TSX:RIC)(NYSE ALTERNEXT US:RIC)
- Fourth quarter revenue more than doubled to $22.9 million
- Full year revenue increased 85% to $70.6 million
- Gold sales at 70,945 ounces were 54% above 2007
- Acquisition of Patricia Mining completed in the fourth quarter
Richmont Mines Inc. (TSX:RIC)(NYSE ALTERNEXT US:RIC), a gold exploration, development and production company with operations in Canada, today announced financial and operational results for its fourth quarter and year ended December 31, 2008. Financial results are based on Canadian GAAP and dollars in Canadian currency, unless otherwise noted.
Revenue for the fourth quarter of 2008 was $22.9 million, a 122% increase compared with $10.3 million in the fourth quarter of 2007. Net income for the fourth quarter of 2008 was $2.1 million, or $0.09 per share, compared with a net loss of $1 million, or $0.03 per share, in the fourth quarter of 2007, as the significant revenue increase in the 2008 fourth quarter more than offset increased operating and exploration costs. Total precious metals revenue was up $12.6 million, or 148%, to $21.1 million in the fourth quarter of 2008 compared with $8.5 million in the fourth quarter of 2007 as a result of a 102% increase in ounces of gold sold combined with 23% higher selling prices per ounce in Canadian dollars. In the 2008 fourth quarter, 22,116 ounces of gold were sold at an average price of US$897 (CAN$956) per ounce compared with 10,949 ounces of gold sold in the same period last year at an average price of US$724 (CAN$778) per ounce.
Solid Fourth Quarter Results
Operating costs, including royalties, for the fourth quarter of 2008 were $13.0 million compared with $6.5 million in the same period the prior year. However, the average cash cost of production was lower at US$550 (CAN$586) per ounce of gold sold in the fourth quarter of 2008 compared with US$556 (CAN$598) in last year's fourth quarter. The average cash cost per ounce during the reported quarter benefited from improved grades when compared with the prior year's period.
Exploration and project evaluation costs were $2.4 million in the fourth quarter of 2008 (see accompanying exploration cost summary table), $1.1 million above exploration and project evaluation costs of $1.3 million in the 2007 fourth quarter reflecting the Company's continued efforts to grow its reserves and resources. Approximately $0.7 million in exploration costs were incurred at the Beaufor Mine, $0.9 million at the Island Gold Mine and $0.5 million at the Golden Wonder Project in the 2008 fourth quarter. During the 2007 fourth quarter, approximately $0.5 million in exploration costs were incurred at the Beaufor Mine, $0.2 million at Island Gold, and $0.5 million at Golden Wonder. Richmont announced in October the termination of the Joint Venture option at the Golden Wonder Project.
Strong Cash Position and No Debt
At December 31, 2008, cash and cash equivalents were $26.0 million, compared with $27.3 million at December 31, 2007 and $29.6 million at September 30, 2008. During the quarter, Richmont acquired all the outstanding shares of Patricia Mining Corp. using a combination of cash and common shares resulting in the lower cash balance compared with the end of the 2008 third quarter. Richmont Mines has no long-term debt obligations and has working capital of $26.8 million. The cash equivalents included $18.3 million of Canadian bankers acceptance and bank discount notes with high level credit ratings and $7.7 million in cash deposited in a major Canadian chartered bank.
Positive Production Trend at the Island Gold Mine(1)-------------------------------------------------------------------------------------------------------------------------------------------------- Three months ended Fiscal year ended December 31, December 31, December 31, December 31, 2008 2007 2008 2007-------------------------------------------------------------------------
Tonnes 47,898 35,202 161,320 35,202Head grade (g/t) 9.34 6.84 7.65 6.84Gold recovery (%) 96.71 94.36 95.83 94.36Recovered grade (g/t) 9.04 6.45 7.33 6.45Ounces sold 13,915 7,302 38,037 7,302Cash cost per ounce (US$) 546 621 659 621
Investment in property, plant and equipment (thousands of CAN$) 1,591 1,653 3,079 4,495Exploration expenses (thousands of CAN$) 868 239 2,293 505
Diamond drilling (metres) Exploration and definition 5,888 2,722 16,665 12,940--------------------------------------------------------------------------------------------------------------------------------------------------
During the 2008 fourth quarter, 47,898 tonnes of ore from the Island Gold Mine were processed at an average recovered grade of 9.04 g/t, and 13,915 ounces of gold were sold at an average price of US$890 (CAN$949) per ounce. For the same period last year, 35,202 tonnes of ore were processed at an average recovered grade of 6.45 g/t, and 7,302 ounces of gold were sold at an average price of US$726 (CAN$780) per ounce. Cash costs at Island Gold decreased to US$546 (CAN$582) from US$621 (CAN$668) in last year's fourth quarter. The fourth quarter of 2007 was the Island Gold Mine's initial quarter of production.
For the year ended December 31, 2008, 161,320 tonnes of ore were processed at an average recovered grade of 7.33 g/t, and 38,037 ounces of gold were sold at an average price of US$867 (CAN$924) per ounce. During the first nine months of 2008, the mine produced at approximately 65% of its design capacity. In the fourth quarter of 2008, production was at around 80% of design capacity resulting in a notable improvement in the cash cost of production.
(1) Prior to its acquisition of Patricia Mining, which held a 45% interest in the Island Gold Project, Richmont Mines reported 100% of the consolidated results of the Island Gold Mine, in compliance with AcG-15, which stipulates that a holder of variable interests must consolidate the accounts if it intends to assume the majority of the expected losses and/or receive the majority of the residual returns of the variable interest entity (VIE). Richmont held a 55% stake in the unincorporated joint venture, and as its share of the earnings and/or losses differed from the percentage that it owned, the Company was therefore considered the primary beneficiary of the VIE.
Mr. Martin Rivard, President and CEO of Richmont Mines, commented, "Production at Island Gold continued to improve in the fourth quarter and reached more than 500 tonnes per day, well ahead of production from the previous quarter. Better availability of experienced miners, an improved management team and access to higher grade mining areas contributed to the improved results. We will maintain our efforts to improve production and increase exploration and development work."
Continued Steady Performance at the Beaufor Mine-------------------------------------------------------------------------------------------------------------------------------------------------- Three months ended Fiscal year ended December 31, December 31, December 31, December 31, 2008 2007 2008 2007-------------------------------------------------------------------------
Tonnes 30,343 13,921 115,674 97,429Head grade (g/t) 8.64 8.21 9.00 8.47Gold recovery (%) 97.27 98.28 98.31 98.72Recovered grade (g/t) 8.41 8.07 8.85 8.36Ounces sold 8,201 3,613 32,908 26,182Cash cost of production per ounce (US$) 555 430 509 468
Investment in property, plant and equipment (thousands of CAN$) 15 217 127 1,060Exploration expenses (thousands of CAN$) 706 524 2,921 1,874
Diamond drilling (metres) Definition 4,699 436 11,439 3,095 Exploration 9,298 6,309 33,765 25,157--------------------------------------------------------------------------------------------------------------------------------------------------
During the fourth quarter of 2008, 30,343 tonnes of ore from the Beaufor Mine were processed at an average recovered grade of 8.41 g/t, and 8,201 ounces of gold were sold at an average price of US$908 (CAN$968) per ounce. In the same quarter of 2007, 13,921 tonnes of ore were processed at an average recovered grade of 8.07 g/t, and 3,613 ounces of gold were sold at an average price of US$719 (CAN$773) per ounce. Cash costs at the Beaufor Mine increased to US$555 (CAN$592) from US$430 (CAN$462) in last year's fourth quarter, largely due to higher mining costs. During the current quarter, Richmont processed 32,643 tonnes of custom milling ore at the Camflo Mill, compared with 46,317 tonnes during the 2007 fourth quarter.
During the year ended December 31, 2008, 115,674 tonnes of ore were processed at an average recovered grade of 8.85 g/t, and 32,908 ounces of gold were sold at an average price of US$886 (CAN$944) per ounce. In 2007, 97,429 tonnes of ore were processed at an average recovered grade of 8.36 g/t, and 26,182 ounces of gold were sold at an average price of US$693 (CAN$745) per ounce. The cash cost per ounce was US$509 (CAN$543) during the current period compared with US$468 (CAN$503) last year.
2008 Review of Operations
For the year ended December 31, 2008, revenue was $70.6 million or 85% above revenue of $38.1 million in 2007, reflecting increased gold sales at higher prices. In 2008, 70,945 ounces of gold were sold at an average price of US$876 (CAN$934) per ounce compared with 46,193 ounces of gold sold in 2007 at an average price of US$699 (CAN$751) per ounce.
Operating costs, including royalties, for the year ended December 31, 2008 were $44.6 million compared with $24.8 million last year, primarily due to the costs associated with advancing the Island Gold Mine to current production levels as well as higher operating costs at the Beaufor Mine. Island Gold began production during last year's fourth quarter.
Exploration and project evaluation costs were $10.5 million for 2008 compared with $3.3 million in 2007, as the Company focused its exploration efforts on the Island Gold and Beaufor mines, which had 2008 exploration costs of $2.3 million and $2.9 million, respectively. In addition, Richmont spent $4.2 million at the Golden Wonder exploration project prior to its October 2008 decision to terminate this project.
Net income in 2008 was $1.6 million, or $0.07 per share, compared with net earnings of $6.7 million, or $0.28 per share, in 2007, which included an $8.1 million gain on the sale of mining assets.
Gold Production Up 62% in 2008------------------------------------------------------------- Gold Production------------------------------------------------------------- 2008Mine Tonnes Mill Recovered Ounces (metric) recovery grade (%) (g/t)-------------------------------------------------------------Island Gold(1) 165,941 95.83 7.35 39,224Beaufor 123,958 98.31 8.62 34,353East Amphi(2) - - - --------------------------------------------------------------
Total 73,577-------------------------------------------------------------
------------------------------------------------------------- Gold Production------------------------------------------------------------- 2007Mine Tonnes Mill Recovered Ounces (metric) recovery grade (%) (g/t)-------------------------------------------------------------Island Gold(3) 35,403 94.36 6.46 7,348Beaufor 96,943 98.72 8.41 26,204East Amphi(4) 118,179 96.95 3.09 11,752-------------------------------------------------------------
Total 45,304-------------------------------------------------------------
(1) Commercial production started on October 1, 2007 - Prior to its acquisition of Patricia Mining, which held a 45% interest in the Island Gold Project, Richmont Mines reported 100% of the consolidated results of the Island Gold Mine, in compliance with AcG-15, which stipulates that a holder of variable interests must consolidate the accounts if it intends to assume the majority of the expected losses and/or receive the majority of the residual returns of the variable interest entity (VIE). Richmont held a 55% stake in the unincorporated joint venture, and as its share of the earnings and/or losses differed from the percentage that it owned, the Company was therefore considered the primary beneficiary of the VIE.
(2) Closed at the end of the second quarter of 2007.
Island Gold produced 165,941 tonnes of ore at an average recovered grade of 7.35 g/t, for 39,224 ounces in 2008, compared with 35,403 tonnes at 6.46 g/t and 7,348 ounces in 2007. The Island Gold Mine commenced production on October 1, 2007. The Beaufor Mine produced 123,958 tonnes of ore at 8.62 g/t for production of 34,353 ounces in 2008, compared with production of 96,943 tonnes at 8.41 g/t for 26,204 ounces in 2007. In 2007, the East Amphi Mine produced 118,179 tonnes of ore at 3.09 g/t for 11,752 ounces, prior to its sale in June of 2007. Richmont's total gold production in 2008 was 73,577 ounces, 62% above 2007 production of 45,304 ounces.
Beaufor Mine Reserves and Resources-------------------------------------------------------------------------------------------------------------------------------------------------- December 31, 2008 December 31, 2007Reserves Tonnes Grade Ounces Tonnes Grade Ounces (metric) (g/t Au) (metric) (g/t Au)-------------------------------------------------------------------------Proven 96,678 7.17 22,287 90,822 7.56 22,085Probable 147,385 10.03 47,505 164,879 10.10 53,547Total Proven and Probable 244,063 8.89 69,792 255,701 9.20 75,632--------------------------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------------------------------- December 31, 2008 December 31, 2007Reserves(4) Tonnes Grade Ounces Tonnes Grade Ounces (metric) (g/t Au) (metric) (g/t Au)-------------------------------------------------------------------------Measured 101,767 5.46 17,861 101,160 5.73 18,639Indicated 635,839 6.37 130,139 591,534 6.45 122,628Total Measured and Indicated 737,606 6.24 148,000 692,694 6.34 141,267
Inferred 655,804 7.35 154,927 133,962 7.03 30,278--------------------------------------------------------------------------------------------------------------------------------------------------
Proven and probable reserves at the Beaufor Mine were stable at 69,792 ounces at the end of 2008 compared with 75,632 ounces at the end of 2007 as reserves identified in the Company's exploration program nearly offset production for the year. Measured and indicated resources were estimated at 148,000 ounces compared with 141,267 ounces at the end of 2007. The 2008 exploration program resulted in a significant increase in inferred resources which grew from 30,278 ounces in 2007 to 154,927 ounces at the end of 2008.
In 2009, Richmont plans to complete more than 45,000 meters of drilling to increase the Company's level of confidence of the potential for further development at depth.
Island Gold Reserves and Resources------------------------------------------------------------------------------------------------------------------------------------------------------Island and Lochalsh Zones December 31, 2008 December 31, 2007Reserves Tonnes Grade Ounces Tonnes Grade Ounces (metric) (g/t Au) (metric) (g/t Au)---------------------------------------------------------------------------Proven 308,205 9.08 89,925 369,325 8.91 105,773Probable 722,982 8.57 199,144 689,555 8.11 179,763Total Proven and Probable 1,031,187 8.72 289,069 1,058,880 8.39 285,536------------------------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------------------------Island, Lochalsh and Goudreau Zones December 31, 2008 December 31, 2007Reserves (1) Tonnes Grade Ounces Tonnes Grade Ounces (metric) (g/t Au) (metric) (g/t Au)---------------------------------------------------------------------------Measured 18,948 8.70 5,300 8,135 6.45 1,687Indicated 403,249 10.87 140,954 582,032 10.19 190,735Total Measured and Indicated 422,197 10.77 146,254 590,167 10.14 192,422
Inferred 676,608 9.65 209,985 613,635 9.80 193,350------------------------------------------------------------------------------------------------------------------------------------------------------
At the Island Gold Mine, proven and probable reserves were estimated at 289,069 ounces of gold at the end of 2008, compared with 285,536 ounces last year as the company's exploration program identified new reserves sufficient to replace 2008 production. Overall, more than 26,000 meters of definition and exploration drilling are planned for 2009 at Island Gold.
(1) Resources presented in the above table are exclusive of reserves and do not have demonstrated economic viability at this time.
Outlook
Mr. Rivard concluded: "The improvements we made at Island Gold combined with continued strong production at Beaufor have established a solid operating foundation for the Company. We enter 2009 with a strong balance sheet with no long-term debt and we are positioned to take immediate advantage of rising gold prices. Also, we will be actively looking for acquisitions or partnerships to expand our pipeline of projects, further increase our reserve base, and increase future production rates."
Martin Rivard
President and Chief Executive Officer
About Richmont Mines Inc.
Richmont produces gold from its operations in Canada and is focused on building its reserves in North America, and has extensive experience in gold exploration, development and mining. Since it began production in 1991, Richmont has produced more than one million ounces of gold from its holdings in Quebec, Ontario and Newfoundland. Richmont's strategy is to cost-effectively develop and exploit its gold mining assets, acquire properties, or develop partnerships to expand its reserve base. Richmont routinely posts news and other important information on its website at: www.richmont-mines.com.
Forward-Looking Statements
This news release contains forward-looking statements that include risks and uncertainties. When used in this news release, the words "project", "expect", "may" and similar expressions, as well as "will" and other indications of future tense, are intended to identify forward-looking statements. The forward-looking statements are based on current expectations and apply only as of the date on which they were made. The factors that could cause actual results to differ materially from those indicated in such forward-looking statements include changes in the prevailing price of gold, the Canadian-United States exchange rate, grade of ore mined and unforeseen difficulties in mining operations that could affect revenues and production costs. Other factors such as uncertainties regarding government regulations could also affect the results. Other risks may be set out in Richmont's Annual Information Form, Annual Reports and periodic reports.
National Instrument 43-101 (NI 43-101)
The reserve and resource calculation of the Island Gold and the Beaufor properties as of December 31, 2008 was performed by qualified persons as defined by NI 43-101 and was supervised by Mr. Daniel Adam, Geo., Ph.D., Exploration Director, an employee of Richmont Mines Inc. The reserve and resources calculation of the Island Gold as of December 31, 2008 and December 31, 2007 was prepared by Ms. Nicole Rioux, Geo., of Genivar, a qualified person under the terms of this instrument. The reserves and resources calculation of the Beaufor Mine as of December 31, 2008 was prepared by Mr. Richard Dubuc, P.Geo., an employee of Richmont Mines Inc., a qualified person under the terms of this instrument. The reserve calculations were prepared using a gold price of US$785 (CAN$785) for 2008 and US$650 (CAN$650) for 2007.
Cautionary Note to U.S. Investors Concerning Resource Estimates
The resource estimate in this news release is prepared in accordance with Regulation 43-101 adopted by the Canadian Securities Administrators. The requirements of R 43-101 differ significantly from the requirements of the United States Securities and Exchange Commission (the "SEC"). In this news release, we use the terms "measured", "indicated" and "inferred" resources. Although these terms are recognized and required in Canada, the SEC does not recognize them. The SEC permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that constitute "reserves". Under United States standards, mineralization may not be classified as a reserve unless the determination has been made that the mineralization could be economically and legally extracted at the time the determination is made. United States investors should not assume that all or any portion of a measured or indicated resource will ever be converted into "reserves". Further, "inferred resources" have a great amount of uncertainty as to their existence and whether they can be mined economically or legally, and United States investors should not assume that "inferred resources" exist or can be legally or economically mined, or that they will ever be upgraded to a higher category.
FINANCIAL DATA-------------------------------------------------------------------------------------------------------------------------------------------------- Three months ended Fiscal year ended December 31, December 31, December 31, December 31,CAN$ 2008 2007 2008 2007-------------------------------------------------------------------------RESULTS (IN THOUSANDS OF $)REVENUE 22,908 10,321 70,591 38,071NET EARNINGS (LOSS) 2,086 (986) 1,635 6,671CASH FLOW FROM (USED IN) OPERATIONS 7,428 (744) 12,117 5,999
RESULTS PER SHARE ($)NET EARNINGS (LOSS) BASIC AND DILUTED 0.09 (0.03) 0.07 0.28
Basic weighted average number of common shares outstanding (thousands) 23,827 24,053 24,047 24,159
Average selling price of gold per ounce 956 778 934 751Average selling price of gold per ounce (US$) 897 724 876 699-------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------------------------------- December 31, 2008 December 31, 2007-------------------------------------------------------------------------Financial position (in thousands of $)Total assets 82,881 85,976Working capital 26,753 33,970Long-term debt - --------------------------------------------------------------------------
SALES AND PRODUCTION DATA---------------------------------------------------------------------------------------------------------------------------------------------------- Three-month period ended December 31,---------------------------------------------------------------------------------------------------------------------------------------------------- Ounces of gold Cash cost Year Sales Production (per ounce sold)-------------------------------------------------------------------------- US$ CAN$--------------------------------------------------------------------------Island Gold Mine 2008 13,915 12,850 546 582 2007 7,302 7,348 621 668--------------------------------------------------------------------------Beaufor Mine 2008 8,201 7,628 555 592 2007 3,613 3,805 430 462--------------------------------------------------------------------------East Amphi Mine 2008 - - - - 2007 34 34 - ---------------------------------------------------------------------------Total 2008 22,116 20,478 550 586 2007 10,949 11,187 556 598----------------------------------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------------------------------- Fiscal year ended December 31,-------------------------------------------------------------------------- Ounces of gold Cash cost Year Sales Production (per ounce sold)-------------------------------------------------------------------------- US$ CAN$--------------------------------------------------------------------------Island Gold Mine 2008 38,037 39,224 659 703 2007 7,302 7,348 621 668--------------------------------------------------------------------------Beaufor Mine 2008 32,908 34,353 509 543 2007 26,182 26,204 468 503--------------------------------------------------------------------------East Amphi Mine 2008 - - - - 2007 12,709 11,752 492 529--------------------------------------------------------------------------Total 2008 70,945 73,577 590 629 2007 46,193 45,304 499 536-------------------------------------------------------------------------- Average exchange rate used for 2007: US$1 equals CAN$1.0748 Average exchange rate used for 2008: US$1 equals CAN$1.0660
CONSOLIDATED STATEMENTS OF EARNINGS-------------------------------------------------------------------------------------------------------------------------------------------------- (in thousands of Canadian dollars)(Unaudited) Three months ended Fiscal year ended December 31, December 31, December 31, December 31, 2008 2007 2008 2007 $ $ $ $-------------------------------------------------------------------------
REVENUE Precious metals 21,142 8,513 66,237 34,691 Other 1,766 1,808 4,354 3,380-------------------------------------------------------------------------
22,908 10,321 70,591 38,071-------------------------------------------------------------------------
EXPENSES Operating costs 12,457 6,314 42,998 24,199 Royalties 494 227 1,591 565 Custom milling 807 1,023 1,785 1,023 Administration 1,233 992 3,665 3,315 Exploration and project evaluation 2,377 1,266 10,547 3,288 Accretion expense - asset retirement obligations 52 45 182 178 Depreciation and depletion 1,541 1,077 5,687 5,628 Loss (gain) on disposal of mining assets 8 (37) 29 (8,066)-------------------------------------------------------------------------
18,969 10,907 66,484 30,130-------------------------------------------------------------------------
EARNINGS (LOSS) BEFORE OTHER ITEMS 3,939 (586) 4,107 7,941
MINING AND INCOME TAXES 404 455 437 1,306-------------------------------------------------------------------------
3,535 (1,041) 3,670 6,635
MINORITY INTEREST 1,449 (55) 2,035 (36)-------------------------------------------------------------------------
NET EARNINGS (LOSS) 2,086 (986) 1,635 6,671--------------------------------------------------------------------------------------------------------------------------------------------------
NET EARNINGS (LOSS) PER SHARE basic and diluted 0.09 (0.03) 0.07 0.28
BASIC WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING (thousands) 23,827 24,053 24,047 24,159-------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEETS-------------------------------------------------------------------------------------------------------------------------------------------------- (in thousands of Canadian dollars) December 31, December 31, 2008 2007 $ $------------------------------------------------------------------------- (Unaudited) (Audited)
ASSETS
CURRENT ASSETS Cash and cash equivalents 26,021 27,291 Restricted cash 116 - Short-term investments 121 1,826 Accounts receivable 986 2,859 Mining and income taxes receivable 1,586 1,677 Inventories 6,012 5,438-------------------------------------------------------------------------
34,842 39,091
ADVANCE TO A MINORITY PARTNER - 1,875
PROPERTY, PLANT AND EQUIPMENT 48,039 45,010-------------------------------------------------------------------------
82,881 85,976--------------------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
CURRENT LIABILITIES Accounts payable and accrued charges 6,912 5,005 Mining and income taxes payable 1,177 116-------------------------------------------------------------------------
8,089 5,121
ASSET RETIREMENT OBLIGATIONS 4,664 3,358
MINORITY INTEREST 2,024 14,238
FUTURE MINING AND INCOME TAXES 1,086 1,446-------------------------------------------------------------------------
15,863 24,163-------------------------------------------------------------------------
SHAREHOLDERS' EQUITY
Capital stock 64,672 61,016 Contributed surplus 5,678 5,092 Deficit (3,096) (4,647) Accumulated other comprehensive income (236) 352-------------------------------------------------------------------------
67,018 61,813-------------------------------------------------------------------------
82,881 85,976--------------------------------------------------------------------------------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF CASH FLOW-------------------------------------------------------------------------------------------------------------------------------------------------- (in thousands of Canadian dollars)(Unaudited) Three months ended Fiscal year ended December 31, December 31, December 31, December 31, 2008 2007 2008 2007 $ $ $ $-------------------------------------------------------------------------
CASH FLOW FROM (USED IN) OPERATINGACTIVITIES Net earnings (loss) 2,086 (986) 1,635 6,671 Adjustments for: Depreciation and depletion 1,541 1,077 5,687 5,628 Stock-based compensation 142 164 526 575 Accretion expense - asset retirement obligations 52 45 182 178 Loss (gain) on disposal of mining assets 8 (37) 29 (8,042) Loss (gain) on disposal of short-term investments - (47) 11 (444) Minority interest 1,449 (55) 2,035 (36) Future mining and income taxes (26) 190 (359) (334)-------------------------------------------------------------------------
5,252 351 9,746 4,196
Net change in non-cash working capital items 2,176 (1,095) 2,371 1,803-------------------------------------------------------------------------
7,428 (744) 12,117 5,999-------------------------------------------------------------------------
CASH FLOW FROM (USED IN) INVESTINGACTIVITIES Acquisition of Patricia Mining Corp. (6,984) - (6,984) - Acquisition of short-term investments - (296) (23) (642) Disposal of short-term investments - 651 712 6,454 Disposal of mining assets 24 37 91 3,435 Property, plant and equipment - Island Gold Mine (1,591) (1,653) (3,079) (4,495) Property, plant and equipment - Beaufor Mine (15) (217) (127) (1,060) Property, plant and equipment - East Amphi Mine - - - (34) Other property, plant and equipment (383) (706) (1,987) (582) Cash received from an advance to a minority partner - 375 750 1,125-------------------------------------------------------------------------
(8,949) (1,809) (10,647) 4,201-------------------------------------------------------------------------
CASH FLOW FROM (USED IN) FINANCINGACTIVITIES Issue of common shares - - 25 183 Redemption of common shares (85) - (768) (658) Repayment of the long-term debt (1,950) - (1,950) - Contribution from (distribution to) a minority partner (47) 540 (47) 1,440-------------------------------------------------------------------------
(2,082) 540 (2,740) 965-------------------------------------------------------------------------
Net increase (decrease) in cash and cash equivalents (3,603) (2,013) (1,270) 11,165
Cash and cash equivalents, beginning of period 29,624 29,304 27,291 16,126-------------------------------------------------------------------------
Cash and cash equivalents, end of period 26,021 27,291 26,021 27,291--------------------------------------------------------------------------------------------------------------------------------------------------
EXPLORATION AND PROJECT EVALUATION-------------------------------------------------------------------------------------------------------------------------------------------------- (in thousands of Canadian dollars)(Unaudited) Three months ended Fiscal year ended December 31, December 31, December 31, December 31, 2008 2007 2008 2007 $ $ $ $-------------------------------------------------------------------------
Exploration costs - Mines Beaufor Mine 706 524 2,921 1,874 Island Gold Mine 868 239 2,293 505-------------------------------------------------------------------------
1,574 763 5,214 2,379
Exploration costs - Other properties Golden Wonder property 539 502 4,202 665 Francoeur/Wasamac properties 59 1 184 142 Valentine Lake property 153 (3) 347 1,017 Camflo Northwest property - (11) - 112 Other properties 5 7 20 50 Project evaluation 122 32 373 124-------------------------------------------------------------------------
878 528 5,126 2,110
Exploration tax credits (75) (25) (643) (1,201)Reclassification of exploration tax credits from previous years - - 850 --------------------------------------------------------------------------
2,377 1,266 10,547 3,288--------------------------------------------------------------------------------------------------------------------------------------------------
For more information, please contact
Kei Advisors LLC
James Culligan
Investor Relations
716-843-3874
jculligan@keiadvisors.com
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