I haven't told Lorraine YET....LOL.. NEWS on RPD out:
Repadre Capital Corp - News Release
Repadre posts doubled earnings of $3,086,000 in 2002
Repadre Capital Corp RPD
Shares issued 39,186,000 Aug 6 2002 close $ 6.70
Wednesday August 7 2002 News Release
Mr. Joseph Conway reports
REPADRE REPORTS 2ND QUARTER FINANCIAL RESULTS
Repadre Capital has posted earnings of $3.1-million or nine cents per share for the three-month period ended June 30, 2002, compared with earnings of $1.3-million or five cents per share for the same period in 2001. Gross income for the second quarter totalled $4.1-million, compared with $2.2-million in the second quarter of 2001.
Overview
Net income for the second quarter of 2002 was $3.1-million or nine cents per share. The increase in earnings is attributable to: i) a higher realized gold price; ii) higher income from the company's interest in Gold Fields Ghana Limited (GFGL); and iii) a full quarter of income from the company's 18.9-per-cent interest in Abosso Goldfields Limited acquired Jan. 23, 2002.
The price of gold was 16 per cent higher in the second quarter of 2002, as compared with the second quarter of 2001, averaging $312 (U.S.) per ounce, compared with $268 (U.S.) for the earlier period.
Income
Royalty revenue in the second quarter of 2002 was steady at $592,000, a level comparable with the levels achieved in prior quarters. The company expects that the Magistral project in Mexico will begin production in the fourth quarter of this year and will provide enhanced royalty revenue at that time. The company also expects to receive additional royalty revenue in 2003 with the commencement of production at the Diavik diamond mine in the Northwest Territories and the Don Mario gold operation in Bolivia.
Investment income for the quarter was negative due to unrealized foreign exchange losses resulting from an appreciating Canadian dollar. The Canadian dollar stood at 63 U.S. cents at the start of the quarter and ended the quarter at 66 U.S. cents.
Royalty revenue and investment income
Income from the company's interest in GFGL for the second quarter 2002 was $2.9-million, compared with $1.7-million for the second quarter of 2001. The increase in income is primarily attributable to the increase in the price of gold and a recapture of previously provided deferred taxes. The level of gold production at Tarkwa is expected to gradually increase in future periods due to improvement in the level of gold recovery from the ore heaps. Distributions of cash in excess of the needs of the operation commenced during the second quarter with Repadre receiving $4.0-million (U.S.) as its proportionate share. The cash balances within GFGL were $16.6-million (U.S.) at June 30, 2002.
Gold Fields Ghana Limited
SUMMARIZED RESULTS
Three months ended June 30
2002 2001
100-per-cent basis
Ore crushed (thousands
of tonnes) 3,727 3,761
Yield (grams per
tonne) 1.17 1.25
Gold production
(ounces) 120,000 117,000
Cash cost (U.S.
dollars per ounce) $ 184 $ 169
Repadre
-- 18.9 per cent
basis
Income from GFGL
(thousands of
dollars) $ 2,906 $ 1,732
A full quarter of income from the company's interest in Abosso (acquired Jan. 24, 2002) was recognized in the second quarter and totalled $1.2-million, as compared with $300,000 of income from the partial first quarter. The transition of the operation to new ownership has progressed smoothly and production at an annualized rate of approximately 325,000 ounces of gold is expected to continue. During the second quarter, Abosso repaid all of its bank indebtedness, which totalled $15.0-million (U.S.). The cash balances within Abosso were $12.7-million (U.S.) at June 30, 2002. Distributions of cash in excess of the needs of the operation will commence during the third quarter.
Abosso Goldfields Limited
SUMMARIZED RESULTS
Three months ended June 30
2002
100-per-cent basis
Ore milled (thousands
of tonnes) 1,224
Grade (grams per tonne) 2.46
Gold production (ounces) 85,700
Cash cost (U.S. dollars
per ounce) $ 190
Repadre -- 18.9 per cent basis
Income from Abosso
(thousands of dollars) $ 1,221
Expenses
General and administrative expenses for the second quarter of 2002 were $823,000, compared with $678,000 in the second quarter of 2001.
Cash flow
Cash flow provided by operations was $5.8-million (16 cents per share) for the second quarter of 2002, compared with negative $300,000 for the second quarter of 2001. The increased operating cash flow is almost entirely attributable to the start of cash distributions from GFGL. Cash flow was supplemented during the quarter by the sale of $1.0-million of marketable securities from the company's portfolio of stockholdings. The company's convertible debenture was fully repaid in the second quarter with the disbursement of the final $1.7-million to the debentureholder.
Liquidity and capital resources
In June, the company issued 3.45 million common shares from treasury. These shares were sold to the public by a syndicate of underwriters at a price of $8.20 per common share. In April, the majority of the outstanding share purchase warrants issued in conjunction with the 1999 acquisition of Golden Knight Resources Inc. were exercised at a price of $4 per share. These two items, along with the cash distributions from GFGL, augmented the company's treasury to $44-million by the end of the quarter. With the final payment made on the convertible debenture, the company is now debt-free and possesses a strong balance sheet.
Risks and uncertainties
Commodity price risks
The price of gold, although currently improving, has gone through a period of depressed prices from 1998 to 2001 and could revert to these lower price levels in future. The company does not use any derivative products to mitigate its exposure to changes in the price of gold.
Foreign currency exchange risk
The value of the Canadian dollar appreciated by 5 per cent during the quarter. As 100 per cent of the company's royalty revenue and income from GFGL and Abosso was based on the United States dollar, this appreciation had a negative affect on earnings. The company does not currently use any derivative products to manage its exposure to changes in U.S. dollar exchange rates.
Outlook
The financial results of the company are currently largely influenced by the results of GFGL's and Abosso's operations in Ghana. These operations are providing good levels of performance which are expected to continue for the foreseeable future. All production from Tarkwa and Damang are free of price hedges and will fully participate in the benefits of any rally in the price of gold. The company's treasury has grown during the quarter to $44-million. The improved treasury allows the company to become more aggressive in its search for new investment opportunities.
WARNING: The company relies upon litigation protection for "forward-looking" statements.
CONSOLIDATED STATEMENT OF OPERATIONS
Six months ended June 30
(in thousands of dollars)
2002 2001
Income
Royalty revenue $ 592 $ 605
Income from
working interests 4,117 1,732
Investment income (636) (120)
-------- --------
4,073 2,217
-------- --------
Expenses
General and
administrative 823 678
Amortization of
royalty
interests 202 188
Amortization
of deferred
financing costs - 29
Amortization of
capital assets 5 5
Royalty development
costs - 3
-------- --------
1,030 903
-------- --------
Income before
income taxes 3,043 1,314
Income taxes
(recovery) (43) (31)
-------- --------
Net income for
the period $ 3,086 $ 1,345
======== ========
Net income per
common share
Basic $ 0.09 $ 0.05
Diluted $ 0.08 $ 0.05
CONSOLIDATED STATEMENT OF OPERATIONS
Six months ended June 30
(in thousands of dollars)
2002 2001
Income
Royalty revenue $ 1,131 $ 1,160
Income from
working interests 6,782 3,204
Investment income 142 210
-------- --------
8,055 4,574
-------- --------
Expenses
General and
administrative 1,589 1,372
Amortization of
royalty
interests 388 350
Amortization
of deferred
financing costs - 57
Amortization of
capital assets 9 10
Royalty development
costs - 24
-------- --------
1,986 1,813
-------- --------
Income before
income taxes 6,069 2,761
Income taxes
(recovery) 59 (44)
-------- --------
Net income for
the period $ 6,010 $ 2,805
======== ========
Net income per
common share
Basic $ 0.18 $ 0.10
Diluted $ 0.17 $ 0.10
CONSOLIDATED STATEMENT OF RETAINED
EARNINGS (DEFICIT)
Three months ended June 30
2002 2001
Retained earnings
(deficit),
beginning of
period $ (2,585) $ 10,225)
Net income for
the period 3,086 1,345
-------- --------
Retained
earnings
(deficit),
end of period $ 501 $ (8,880)
======== ========
CONSOLIDATED STATEMENT OF RETAINED
EARNINGS (DEFICIT)
Six months ended June 30
2002 2001
Retained earnings
(deficit),
beginning of
period $ (5,509) $(11,685)
Net income for
the period 6,010 2,805
-------- --------
Retained
earnings
(deficit),
end of period $ 501 $ (8,880)
======== ========
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