Crowflight Announces Third Quarter 2009 Financial Results

(firmenpresse) - Crowflight Announces Third Quarter 2009 Financial Results


For Immediate Release: November 16, 2009No. 25/09


Crowflight Minerals Inc. (“Crowflight” or the “Company”) (TSX: CML) today announces its financial results for the third quarter of 2009.

Complete interim 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.

Q3 2009 Financial and Operational Highlights:

•For the quarter ended September 30, 2009, there was 384,327 pounds of nickel produced, and 276,918 pounds of commercial production nickel sold as compared to nil in the third quarter of last year as the mine was not yet in production.

•Total metal revenue for the quarter ended September 30, 2009 was $2.3 million compared to nil for the third quarter last year.

•Operating cash flow for the quarter ended September 30, 2009 was $389,211 compared to operating cash flow of negative $634,800 in the third quarter last year.

•Loss for the quarter ended September 30, 2009 was $2.9 million or ($0.01) per share compared to net income of $9.9 million or $0.04 per share in the third quarter last year (due to a gain on derivative instruments in 2008).

•Commercial nickel sales settled during the quarter ended September 30, 2009 were realized at an average price of US$7.41 per pound.

•Net working capital4 as at September 30, 2009 was $15.2 million (including cash and cash equivalents of $13.7 million) compared to $7.7 million as at December 31, 2008.


For financial data, please follow the link to view the original news on the company´s website:
http://www.crowflight.com/s/NewsReleases.asp?ReportID=372340&_Type=News-Release&_Title=Crowflight-Announces-Third-Quarter-2009-Financial-Results

•In July 2009, the Company announced a private placement financing with Pala Investments Holdings Ltd (“Pala”), whereby the Company raised $15,000,000 through the issuance of 60,000,000 units of the Company at a price of $0.25 per unit. Each Unit consisted of one common share of the Company and one-half of one common share purchase warrant (each full warrant, a “Warrant”), each whole Warrant being exercisable to acquire one common share of the Company at a price of $0.30 until July 23, 2011. Net proceeds from the Offering were used to pay outstanding indebtedness, including $5.0 million to its mining contractor (an affiliate of Pala), and for capital development and general working capital purposes. The Offering also enabled the Bucko operation to complete an upgrade to its effluent treatment capabilities so that Crowflight continues to maintain strict compliance with all environmental guidelines.

•Mill operations were temporarily suspended during July due to a lack of available ore from the main production stope. Poor ground conditions in the stope entrance required the development of a new stope access drift so that mining operations could resume safely. The new access was successfully completed by the end of the month. During the month of July, a new water treatment facility was also installed and commissioned at the Bucko Mine due to water issues that were encountered at the end of June. Thirty mill employees were temporarily laid off for four weeks until the mill resumed operation on August 4, 2009.

•In September 2009, Crowflight announced a private placement financing with Kingplace Enterprises Limited (“Kingplace”) for a $20 million private placement financing, pursuant to which Kingplace agreed to purchase an aggregate of 80,000,000 common shares of the Company at a price of $0.25 per share. The primary purpose of the proceeds from the financing will be for the continued development of the Bucko Lake Project and the balance for general corporate purposes. The first tranche closed on September 29, 2009 for gross proceeds of $11,183,305 and the second tranche closed subsequent to the quarter’s end on October 14, 2009 for gross proceeds of $8,816,695.

Outlook

As announced earlier today, the Company will be temporarily suspending all production mining and milling operations at the Bucko Lake Nickel Mine (Bucko) located in the Thompson Nickel Belt near Wabowden, Manitoba for three months, effective immediately to complete ramp development, accelerate mine development and upgrade the backfill plant.

As a result, Crowflight has revised its production guidance for 2009 and now expects to produce 1.3 million pounds of nickel, generating approximately 1.2 million pounds of payable nickel. Average cash cost of sales per pound of nickel4 for the full year 2009 is expected to be approximately US$7.50 - $8.50 per pound at an exchange rate of CDN$1.10 to US$1.00, primarily from costs incurred for the year-to-date and lower than expected production for the remainder of the year. Management expects that costs will decrease significantly as full capacity production is sustained at Bucko in 2010.

Capital expenditures for the remainder of 2009 are expected to be $6-7 million (consistent with the disclosure in the second quarter MD&A).

The Company also plans to spend $1.0 million dollars in exploration activity around the M11A deposit located 5 km from the Bucko mine site during the fourth quarter of 2009. This work will allow Crowflight to vest a 30% interest in the combined land package in the Thompson Nickel Belt held under option from Xstrata. Exploration drilling is expected to commence shortly with updates expected to be released over the coming weeks.

The Company plans to issue comprehensive guidance regarding 2010 production and costs in January 2010. It is anticipated that by the end of the first quarter 2010, the Bucko mine will be sufficiently developed and have adequate working places (stopes) available to sustain the full production rate of at least 1,000 tonnes per day.

The Company also announces the resignation of Mike Kelly from the Company’s Board of Directors. Mr. Kelly’s resignation follows his departure from the Company as President and CEO (refer to press release dated August 21, 2009).

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, who is a Qualified Person under the National Instrument 43-101 guidelines.

Crowflight Minerals -- Canada's Newest Nickel Producer

Crowflight Minerals Inc. (TSX: CML) is a Canadian junior mining company that owns the Bucko Lake Nickel Mine near Wabowden, Manitoba. The Company is also focused on 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.

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(at)crowflight.com


TSX Trading Symbol:CML
Total Shares Outstanding: 509.2MM
Fully Diluted: 624.4MM
52-Week Trading Range: C$0.09 - $0.35


To view the Consolidated Balance Sheet, please follow the link:
http://www.crowflight.com/s/NewsReleases.asp?ReportID=372340&_Type=News-Release&_Title=Crowflight-Announces-Third-Quarter-2009-Financial-Results

Unternehmensinformation / Kurzprofil:
Leseranfragen:
Bereitgestellt von Benutzer: irw
Datum: 17.11.2009 - 18:37 Uhr
Sprache: Deutsch
News-ID 8274
Anzahl Zeichen: 0

contact information:
Town:

Wien

Kategorie:

Business News

Diese Pressemitteilung wurde bisher 203 mal aufgerufen.


Die Pressemitteilung mit dem Titel:
"Crowflight Announces Third Quarter 2009 Financial Results
"
steht unter der journalistisch-redaktionellen Verantwortung von

Crowflight Minerals Inc. (Nachricht senden)

Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).

Alle Meldungen von Crowflight Minerals Inc.