Financial Results for the Quarter and Nine Months Ended September 30,
2009
(Thomson Reuters ONE) - Corporate news announcement processed and transmitted by Hugin AS.The issuer is solely responsible for the content of this announcement. ------------------------------------------------------------------------------------ DATE: November 16, 2009TRADING SYMBOLS;TORONTO AND OSLO - CRU N E W S R E L E A S EFinancial Results for the Quarter and Nine Months Ended September 30, 2009LONDON, United Kingdom, November 15, 2009 - Crew Gold Corporation("Crew" or "the Company") (TSE & OSE: CRU)HIGHLIGHTS* Overview§ As a result of reaching agreements for the sale of the assets ofNalunaq Gold Mine, the Nugget Pond Processing facility and the Macoproperty, the results of the continuing operations of the Companywill reflect only LEFA and corporate overheads§ Total gold sold in the quarter was 45,663 oz at an averagerealised price of $957/oz (Q3 2008 - 71,769 oz sold at an averagerealised price of $871/oz)§ Total gold sold for the nine months ended September 30, 2009 was182,596 oz at an average price of $921/oz (nine months endedSeptember 30, 2008 - 198,166 oz at an average price of $898/oz)* Financial Results§ EBITDA for the quarter of negative $8.8 million (quarter endedSeptember 30, 2008 - positive $2.7 million)§ Net loss of $23.1 million for the quarter ended September 30,2009 (quarter ended September 30, 2008 - net loss of $111.1 millionmainly due to impairment charges of $131.3 million)* LEFA- Quarterly gold production of 37,458 oz, due to reduced SAGmill capacity while repairs were undertaken (Q3 2008 - 46,078 oz)- SAG Mill 1 ("SAG1") was returned to service in Septemberafter the replacement of the trunnion bearings.- The transformer damaged in July by lightning at Lerocrusher was reinstated in September.- Environmental bond agreed with the Government of Guineawith an unbudgeted $5 million being deposited in June and July, to befollowed by further analysis to reconfirm the estimated amounts ofreclamation costs and the annual review process* Maco- Quarterly gold production of 6,669 oz, (Q3 2009 - 5,053oz)- Agreement signed in September for the sale of the projectin its entirety for cash consideration of $7m; $6m of proceedsreceived to date* Nalunaq Gold Mine ("Nalunaq") and Nugget Pond Processing Facility ("Nugget Pond")- The final gold recovery of the ore processed fromNalunaq and the treatment of the residual material from the processplant is now completed- Toll milling at Nugget Pond continued in the quarter(commenced on June 29, 2009)- Sale of all Nalunaq gold mine's assets, infrastructureand inventories completed in October for total cash consideration of$1.5 million- Sale of Nugget Pond processing facility completed inOctober for consideration of CDN$3.5 million (US$3.3 million)* Outlook- Both SAG mills at LEFA are expected to be operationalduring the majority of the last quarter (gold production in Octoberwas 18,000 ozs). Work is continuing on improving plant availabilitiesthrough purchase of insurance spares, progressive refurbishment anddebottlenecking projects.- The recent events in Conakry, have impacted deliveriesof fuel and this may continue over the next few months untilpolitical stability in the country returns. This may result in therescheduling of mining to conserve fuel.- Further significant capital expenditures will berequired to refurbish the LEFA mining fleet as it reaches its midlife and to improve process plant reliability and efficienciesthrough the acquisition of insurance spares and additional mobileequipment with the goal being improved throughput and operating costsper oz at LEFA- The Company did not repay its debt facility that camedue on October 27, 2009. A proposal has been made by the Company'slenders to undertake a debt for equity restructuring of theCompany's debt. This proposal is subject to the approval ofbondholders and is detailed in the Liquidity and Capital Resourcessection of this MD&A.- Continued reduction of corporate costsOVERVIEWCrew is currently focused on financial restructuring and maximizingthe performance of its gold project in Guinea.ResultsThe Company adopted Canadian Institute of Chartered Accountantsstatement 3064 "Goodwill and Intangible Assets" during the year endedDecember 31, 2008. As a result prior period pre-operating revenuesand costs for LEFA and Maco were recognised in the profit and lossstatement and comparative unaudited profit and loss statement andbalance sheet amounts have been restated where applicable. Followingagreements reached for the sale of the assets of Nalunaq Gold Mine,the Nugget Pond Processing facility and the Maco property, theresults and financial position of these operations have beenreclassified as discontinued operations.For the quarter ended September 30, 2009, EBITDA was negative $8.8million (quarter ended September 30, 2008 - positive $2.7 million)with mineral sales of $34.2 million offset by direct mining and minesite administration costs of $36.2 million and general corporateexpenditures of $3.3 million.Loss from discontinued operations (Nalunaq/Nugget Pond and Maco)totalled $2.8 million in the quarter ended September 30, 2009(quarter ended September 30, 2008 -loss of $65.6 million due mainlyto impairment charges of $48.9 million for Nalunaq/Nugget Pond).Net loss for the quarter ended September 30, 2009 was $23.1 million(quarter ended September 30, 2008 - net loss of $111.1 million) withEBITDA of negative $8.8 million, amortisation charges of $5.1million, interest and finance costs on the bonds and other long termdebt of $6.1 million, non-cash foreign exchange losses of $2.8million and losses from discontinued operations of $2.8 million.Total group gold produced in the quarter ended September 30, 2009 was44,127 oz (quarter ended September 30, 2008 - 66,996 oz). Total groupgold sold during the quarter ended September 30, 2009 was 45,663 oz(quarter ended September 30, 2008 - 71,769 oz).For the nine months ended September 30, 2009, EBITDA was $7.8 million(nine months ended September 30, 2008 - negative $10.6 million) withmineral sales of $119.7 million, realized gains of $1.9 million onthe repurchase of a portion of the Company's outstanding long-termbonds in the period, direct mining and mine site administration costsof $100.3 million and general corporate expenditures of $8.9 million.Profit from discontinued operations (Nalunaq/Nugget Pond and Maco)totalled $10.6 million in the nine months ended September 30, 2009(nine months ended September 30, 2008 -loss of $79.2 million duemainly to impairment charges of $48.9 million for Nalunaq/NuggetPond).Net loss for the nine months ended September 30, 2009 was $30.9million (nine months ended September 30, 2008 - net loss of $185.5million). This net loss arises from the EBITDA of $7.8 million andprofit from discontinued operations of $10.6 million, offset byhigher amortisation charges of $27.2 million (due mainly to theacceleration of the amortisation of some major components of the openpit mining equipment at LEFA), interest and finance costs on thebonds and other long term debt of $18.9 million and non-cash foreignexchange losses of $7.1 million.Total group gold produced in the nine months ended September 30, 2009was 168,295 oz (nine months ended September 30, 2008 - 198,288 oz).Total gold sold during the nine months ended September 30, 2009 was182,596 oz (nine months ended September 30, 2008 - 198,166 oz).For full results, please see attached pdf file.William LeClairChief Executive OfficerSafe Harbour StatementCertain statements contained herein that are not statements ofhistorical fact may constitute forward-looking statements and aremade pursuant to applicable and relevant national legislation(including the Safe-Harbour provisions of the United States PrivateSecurities Litigation Reform Act of 1995) in countries where Crew isconducting business and/or investor relations. The words "expect","anticipate", "will", "believe" and "may", and other similarexpressions, are often used to identify forward-looking statements.Forward-looking statements included herein relate, but are notlimited to, statements regarding (1) the completion of the proposedRestructuring, (2) the expected impact of the Restructuring, (3) theresults of the resource and reserve reviewing currently underway atthe LEFA gold mine, and (4) expected shareholdings followingcompletion of the Restructuring.Forward-looking statements involve known and unknown risks,uncertainties and other factors that could cause actual events orresults to be materially different from the events or resultsexpressed or implied by such forward-looking statements. Inevaluating these statements, prospective purchasers shouldspecifically consider various factors that may cause actual events orresults to be materially different from the events or resultsexpressed or implied by such forward-looking statements. Risk factorsthat could impact the Company include, without limitation, risksrelating to (1) receipt of all necessary approvals of theRestructuring, (2) the actions of bondholders in enforcing theexisting terms of the bonds, (3) production levels at the LEFA goldmine. Although Crew has attempted to identify important factors thatcould cause actual events or results to differ from those describedin forward-looking statements contained herein, there can be noassurance that the forward-looking statements will prove to beaccurate as actual events or results could differ materially fromthose anticipated in such statements.The material factors and assumptions used to develop forward-lookingstatements include, without limitation, (1) there being nosignificant disruptions affecting operations, whether due to labourdisruptions, supply disruptions, damage to equipment or otherwise,(2) continued development, operation and production at LEFAconsistent with our current expectations, (3) foreign exchange ratesamong the currencies that Crew does business in being approximatelyconsistent with current levels, (4) certain price assumptions forgold, (5) prices for electricity, fuel oil and other key suppliesremaining consistent with current levels, (6) production forecastsmeeting expectations, and (7) materials and labour costs increasingon a basis consistent with our expectations.Except as may be required by applicable law or stock exchangeregulation, the Company undertakes no obligation to update publiclyor release any revisions to these forward-looking statements toreflect events or circumstances after the date of this document or toreflect the occurrence of unanticipated events. Accordingly, readersshould not place undue reliance on forward-looking statements.http://hugin.info/90/R/1355156/328844.pdf --- End of Message ---Crew Gold CorporationAbbey House, Wellington Way, Weybridge Surrey United KingdomWKN: 226534105 ; ISIN: CA2265344028; ;
Datum: 16.11.2009 - 08:09 Uhr
Sprache: Deutsch
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