Financial Results for the Quarter Ended March 31, 2010
(Thomson Reuters ONE) -
Crew Gold Corporation / Financial Results for the Quarter Ended March 31, 2010 processed and transmitted by Hugin AS. The issuer is solely responsible for the content of this announcement.
DATE: May 17, 2010
TRADING SYMBOLS;
TORONTO AND OSLO - CRU
N E W S R E L E A S E
Financial Results for the Quarter Ended March 31, 2010
LONDON, United Kingdom, May 17, 2010 - Crew Gold
Corporation ("Crew" or "the Company") (TSE & OSE: CRU)
INTRODUCTION
As a result of the debt-to-equity restructuring
completed on December 11, 2009, and the Canadian
accounting implications surrounding it, the quarter
ended March 31, 2010 ("Q1 2010") reflects the
unaudited results of operations and cash flows of the
post-reorganization Company and the quarter ended
March 31, 2009 ("Q1 2009") reflects the results of
operations and cash flows of the pre-reorganization
Company. Prior period financial information has not
been restated to reflect the impact of the financial
reorganization and accordingly certain amounts in the
pre-reorganization Company are not directly
comparable. Unless the context otherwise requires,
all references to yearly and quarterly periods are to
calendar years and quarters and all amounts are in US
dollars unless otherwise stated. Additional
information relating to the Company is available in
the Company's Annual Information Form dated March 31,
2010 which is filed on SEDAR at www.sedar.com.
HIGHLIGHTS
LEFA
Gold production in Q1 2010 of 57,930 oz, up 30% on
44,606 oz produced in Q1 2009
All four mills operating and plant availability
target of 86% achieved
Process plant throughput rates averaged 17,500 tonnes
per day ("tpd") in the quarter (Q1 2009 - average of
11,000 tpd)
Financial Results
EBITDA (excluding discontinued operations) for the
quarter ended March 31, 2010 of $17.1 million
(quarter ended March 31, 2009 - $10.0 million)
Net profit (including discontinued operations) of
$9.8 million for the quarter ended March 31, 2010
(quarter ended March 31, 2009 - net loss of $11.9
million)
Outlook
All mills at LEFA are expected to be operational
during 2010. An average process plant throughput rate
of 15,000 tpd has been budgeted to take into account
the last of the planned major shutdowns
Work will continue on improving plant availability,
reliability and efficiency through the $75 million
capital program which includes the purchase of
insurance spares, progressive refurbishment and
debottlenecking projects with the goal of improved
throughput and reduced operating costs per oz. The
$75 million capital program also includes
expenditures to refurbish the mining fleet, the
purchase of additional mobile equipment and an
exploration program and is planned to be completed
prior to the end of 2012.
OVERVIEW
Crew is a mining company currently focused on
maximizing the performance of its gold mining
operations and exploration projects in Guinea.
Results
Following the sales of the assets of Nalunaq, Nugget
Pond and the Maco property in 2009, these operations
were reclassified as discontinued operations and the
results of the continuing operations of the Company
reflect LEFA and corporate overheads. The comparative
profit and loss statement and balance sheet amounts
have been reclassified where applicable.
For the quarter ended March 31, 2010, EBITDA
(excluding discontinued operations) was $17.1 million
(quarter ended March 31, 2009 - $10.0 million) with
mineral sales of $57.6 million and a gain of $1.1
million from the disposal of Maco, partly offset by
direct mining and mine site administration costs of
$38.7 million and general corporate expenditures of
$2.7 million.
Loss from discontinued operations (Nalunaq/Nugget
Pond and Maco) totalled $28,000 in the quarter ended
March 31, 2010 (quarter ended March 31, 2009 - profit
of $3.2 million).
Net profit (including discontinued operations) for
the quarter ended March 31, 2010 was $9.8 million
(quarter ended March 31, 2009 - net loss of $11.9
million). This net profit arises from the EBITDA of
$17.1 million and non-cash foreign exchange gains of
$0.7 million, offset by depletion and depreciation
charges of $5.6 million and interest and finance
costs on long-term debt and other liabilities of $2.4
million.
LEFA produced 57,930 oz of gold in the quarter ended
March 31, 2010 (quarter ended March 31, 2009 - 44,606
oz). Gold sold in the quarter ended March 31, 2010
was 52,048 oz at an average price of $1,105/oz
(quarter ended March 31, 2009 - 55,510 oz at an
average price of $894/oz).
For full results, please see attached pdf file.
William LeClair
Chief Executive Officer
Safe Harbour Statement
Certain statements contained herein that are not
statements of historical fact, may
constitute "forward-looking statements" and are made
pursuant to applicable and relevant national
legislation (including the Safe-Harbour provisions of
the United States Private Securities Litigation
Reform Act of 1995) in countries where Crew is
conducting business and/or investor relations.
Forward-looking statements, include, but are not
limited to those with respect to (1) the expected
availability of the SAG mills at LEFA, (2) the
political environment in Guinea, (3) future
operations at LEFA, (4) the expected reduction in
corporate costs, (5) the effect of discontinued
operations on Crew's ongoing operations, (6) expected
expenditures at LEFA, (7) the expected future
capacity and success of the LEFA mine and its
expansion potential, (8) government regulation of
mining operations, and (9) the price of gold. Often,
but not always, forward-looking statements can be
identified by the use of words such
as "plans", "expects", "does not expect", "is
expected", "targets", "budget", "estimates", "forecast
s", "intends", "anticipates" or "does not
anticipate", or "believes", or equivalents or
variation, including negative variation, of such
words and phrases, or state that certain actions,
events or results, "may", "could", "would", "might"
or "will" be taken, occur or be achieved.
Forward-looking statements involve known and unknown
risks, uncertainties and other factors that could
cause the actual results of the Company to be
materially different from the historical results or
from any future results expressed or implied by such
forward-looking statements. Such risks and
uncertainties include, among others, (1) the actual
results of current exploration activities, (2)
conclusions of economic evaluations, (3) changes in
project parameters as plans continue to be refined,
(4) possible variations in grade and ore densities or
recovery rates, (5) failure of plant, equipment or
processes to operate as anticipated, (6) accidents,
labour disputes and other risks of the mining
industry, (7) delays in obtaining government
approvals or financing or in completion of
development or construction activities, (8) actual
cash flow and capital expenditure requirements being
greater than anticipated, and (9) risks and
uncertainties existing in world capital markets
generally. Although Crew has attempted to identify
important factors that could cause actual events or
results to differ from those described in forward-
looking statements contained herein, there can be no
assurance that the forward-looking statements will
prove to be accurate as actual results and future
events could differ materially from those anticipated
in such statements.
The material factors and assumptions used to develop
forward-looking statements which may be incorrect,
include, but are not limited to, (1) there being no
significant disruptions affecting operations, whether
due to labour disruptions, supply disruptions, damage
to equipment or otherwise, (2) continued development,
operation and production at LEFA consistent with our
current expectations, (3) foreign exchange rates
among the currencies the Crew does business in being
approximately consistent with current levels, (4)
certain price assumptions for gold, (5) prices for
electricity, fuel oil and other key supplies
remaining consistent with current levels, (6)
production forecasts meeting expectations, (7) the
accuracy of our current mineral reserve and mineral
resource estimates, (8) materials and labour costs
increasing on a basis consistent with Crew's
expectations, and (9) the actions of the government
of Guinea.
Except as may be required by applicable law or stock
exchange regulation, the Company undertakes no
obligation to update publicly or release any
revisions to these forward-looking statements to
reflect events or circumstances after the date of
this document or to reflect the occurrence of
unanticipated events. Accordingly, readers should not
place undue reliance on forward-looking statements.
Cautionary Note to US investors - The United States
Securities and Exchange Commission permits US mining
companies, in their filings with the SEC, to disclose
only those mineral deposits that a company can
economically and legally extract or produce. We use
certain terms in this document, such
as "measured", "indicated",
and "inferred" "resources", which the SEC guidelines
strictly prohibit US registered companies from
including in their filings with the SEC. US Investors
are urged to consider closely the disclosure from the
SEC's website at http://www.sec.gov/edgar.shtml.
[HUG#1416192]
--- End of Message ---
Crew Gold Corporation
Abbey House, Wellington Way, Weybridge Surrey United Kingdom
Listed: Open Market (Freiverkehr) in Frankfurter Wertpapierbörse;
Q1 2010 Financial Results: http://hugin.info/90/R/1416192/366875.pdf
Unternehmensinformation / Kurzprofil:
Datum: 17.05.2010 - 07:38 Uhr
Sprache: Deutsch
News-ID 20931
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contact information:
Town:
Surrey
Kategorie:
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