Osisko - Virginia Gold Royalties
gold royalty company - 5% NSR on Malartic.
Message: Osisko Releases Year-End Results
| March 24, 2009 | ||
| Osisko Releases Year-End Results | ||
|
MONTREAL, QUEBEC--(Marketwire - March 24, 2009) - Osisko Mining Corporation (TSX:OSK)(FRANKFURT:EWX) is pleased to report its financial results for the period ended December 31, 2008. During the fourth quarter, the Company incurred a loss of $2.1 million ($0.01 per share), compared to a loss of $1.8 million ($0.01 per share) in the corresponding period of 2007. The 2008 loss was mainly attributable to the write-off of an exploration project in Brazil, and a loss of $0.7 million for the dismantlement and the disposal of the East Malartic mill. The losses were partially offset by the gain on foreign exchange of $4.1 million due to the weakening of the Canadian dollar against the US currency. For the year ended December 31, 2008, the Company incurred a profit of $1.5 million ($0.01 per share) compared to a loss of $11.8 million ($0.09 per share) in 2007. The variation in net income in 2008 is mainly attributable to: i) Foreign exchange gain of $5.8 million (compared to a loss in 2007 of $3.3 million) due to the weakening of the Canadian dollar against the US currency; ii) Recognition of a future income tax recovery following the renunciation of exploration expenses to the subscribers in 2007 of $25 million flow-through financing; iii) Higher interest income due to higher cash balances following an equity issue late in 2007. The Company has no operating income as it is in development stage. The Company has continued to advance the development of its flagship asset, the Canadian Malartic Project. Key achievements during the year included: - Completion of a positive feasibility study that defined the following
material factors:
- Proven and probable reserves of 6.3 million ounces of gold (183.3 M
tonnes @ 1.07 g/t Au based on 0.36 g/t cut-off).
- Capital investment of US$789 million.
- Annual estimated gold production of 591,000 ounces for ten-year period
at a cash operating cost of US$319 per ounce.
- Significant progress on the relocation program including the relocation
of 60 homes and the initiation of construction on three institutional
buildings.
- Filing of the Environmental Impact Assessment Study with the Quebec
Government and the commencement of the public hearings in early 2009
- Negotiation of two credit facilities.
- US$83 million equipment leasing facility.
- $20 million unsecured term loan.
- Completion of 238,326 metres of drilling on the project.
- Issuance of a NI 43-101 inferred resource calculation on the Barnat
deposit with an estimated 2.0 million ounces of gold (36 million tonnes @
1.74 g/t Au based on a 0.36 g/t cut-off).
- Creation of a sustainability fund for the residents of Malartic.
Key financial highlights are as follows:
--------------------------------------------------------------------------
December 31, 2008 December 31, 2007
($000) ($000)
--------------------------------------------------------------------------
Cash Position 95,655 182,078
Working Capital 92,689 183,476
Total Assets 318,192 264,394
Shareholders' Equity 267,269 252,538
--------------------------------------------------------------------------
The 2008 year-end financial statements and Management Discussion and Analysis (MD&A) will be filed on SEDAR by March 31, 2009. Osisko Mining Corporation is currently developing the Canadian Malartic gold deposit and evaluating adjacent areas for a large-scale open pit, bulk-tonnage mining operation. The Company is well-funded with approximately $450 million on hand. Cautionary Notes Concerning Estimates of Mineral Resources This news release uses the terms measured, indicated and inferred resources as a relative measure of the level of confidence in the resource estimate. Readers are cautioned that the South Barnat mineral resources are not economic mineral reserves and that the economic viability of resources that are not mineral reserves has not been demonstrated. In addition, inferred resources are considered too geologically speculative to have any economic considerations applied to them. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies or economic studies except for Preliminary Assessment as defined under NI 43-101. Readers are cautioned not to assume that further work on the inferred resources will lead to mineral reserves that can be mined economically. Forward Looking Statements Certain statements contained in this Press Release, may be deemed "forward-looking statements". All statements in this release, other than statements of historical fact, that address events or developments that the Corporation expects to occur, are forward looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Corporation believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, including, without limitation that all technical, economical and financial conditions will be met in order to put the Canadian Malartic Project into commercial production, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include gold prices, access to skilled mining development and mill production personnel, results of exploration and development activities, the Corporation's limited experience with production and development stage mining operations, uninsured risks, regulatory changes, defects in title, availability of materials and equipment, timeliness of government approvals, actual performance of facilities, equipment and processes relative to specifications and expectations, unanticipated environmental impacts on operations market prices, continued availability of capital and financing and general economic, market or business conditions. These factors are discussed in greater detail in the Corporation's most recent Annual Information Form filed on SEDAR, which also provides additional general assumptions in connection with these statements. The Corporation cautions that the foregoing list of important factors is not exhaustive. Investors and others who base themselves on the Corporation's forward-looking statements should carefully consider the above factors as well as the uncertainties they represent and the risk they entail. The Corporation believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this Press Release should not be unduly relied upon. These statements speak only as of the date of this Press Release. Osisko Mining Corporation
(a development stage company)
Consolidated Balance Sheets
As at December 31, 2008 and 2007
--------------------------------------------------------------------------
(unaudited, expressed in thousands of dollars)
2008 2007
--------------------------------------------------------------------------
$ $
Assets
Current assets
Cash and cash equivalents 57,799 108,133
Short-term investments - 55,000
Restricted cash 18,000 -
Cash collateral investments 19,856 17,592
Accounts receivable 21,651 13,957
Prepaids and deposits 1,966 650
--------------------------------------------------------------------------
119,272 195,332
Cash collateral investments - 1,353
Property, plant and equipment 66,184 24,783
Mineral properties and deferred expenditures 132,736 42,926
--------------------------------------------------------------------------
318,192 264,394
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Liabilities
Current liabilities
Accounts payable and accrued liabilities 25,170 11,856
Current portion of
asset retirement obligations 355 -
Current portion of long-term debt 1,058 -
--------------------------------------------------------------------------
26,583 11,856
Long-term debt 24,340 -
--------------------------------------------------------------------------
50,923 11,856
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Shareholders' Equity
Share capital 256,450 246,999
Warrants 17,164 19,481
Contributed surplus 18,007 11,800
Deficit (24,352) (25,742)
--------------------------------------------------------------------------
267,269 252,538
--------------------------------------------------------------------------
318,192 264,394
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Osisko Mining Corporation
(a development stage company)
Consolidated Statements of Deficit
--------------------------------------------------------------------------
(unaudited, expressed in thousands of dollars)
--------------------------------------------------------------------------
Three months ended Twelve months ended
December December December December
31, 31, 31, 31,
2008 2007 2008 2007
--------------------------------------------------------------------------
$ $ $ $
Deficit - Beginning of period (22,198) (23,915) (25,742) (13,950)
Net income (loss)
for the period (2,081) (1,827) 1,463 (11,792)
Premium on purchase of common
shares for cancellation (73) - (73) -
--------------------------------------------------------------------------
Deficit - End of period (24,352) (25,742) (24,352) (25,742)
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Osisko Mining Corporation
(a development stage company)
Consolidated Statements of Operations, Comprehensive Income (Loss)
--------------------------------------------------------------------------
(unaudited, expressed in thousands of dollars, except for per share amount)
--------------------------------------------------------------------------
Three months ended Twelve months ended
December December December December
31, 31, 31, 31,
2008 2007 2008 2007
--------------------------------------------------------------------------
$ $ $ $
Expenses
Salaries and fringe benefits 2,229 1,469 4,154 2,560
General and administrative
expenses 1,264 567 2,964 1,814
Stock-based compensation 502 650 1,808 5,701
Investor relations and
corporate development 869 529 2,251 1,975
Amortization of property,
plant and equipment 32 54 184 119
Write-down of property,
plant and equipment 191 - 191 -
Write-off of mineral
properties and
deferred expenditures 1,141 - 1,141 -
--------------------------------------------------------------------------
Loss before the
following items (6,228) (3,269) (12,693) (12,169)
Interest income 785 1,412 4,589 3,638
Foreign exchange gain (loss) 4,103 30 5,832 (3,261)
Loss on disposal of property,
plant and equipment (741) - (741) -
--------------------------------------------------------------------------
Loss before income taxes (2,081) (1,827) (3,013) (11,792)
Future income tax recovery - - 4,476 -
--------------------------------------------------------------------------
Net income (loss) and
comprehensive income (loss)
for the period (2,081) (1,827) 1,463 (11,792)
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Basic and diluted net
income (loss) per share (0.01) (0.01) 0.01 (0.09)
Weighted average number of
shares outstanding
- Basic 165,889,000 138,351,000 162,450,000 131,740,000
- Diluted 165,889,000 138,351,000 168,067,000 131,740,000
Osisko Mining Corporation
(a development stage company)
Consolidated Statements of Cash Flows
--------------------------------------------------------------------------
(unaudited, expressed in thousands of dollars)
--------------------------------------------------------------------------
Three months ended Twelve months ended
December December December December
31, 31, 31, 31,
2008 2007 2008 2007
--------------------------------------------------------------------------
$ $ $ $
Cash flows from
Operating activities
Net income (loss) for
the period (2,081) (1,827) 1,463 (11,792)
Adjustments for
Stock-based compensation 502 650 1,808 5,701
Amortization of property,
plant and equipment 32 54 184 119
Write-down of property,
plant and equipment 191 - 191 -
Write-off of mineral
properties and deferred
expenditures 1,141 - 1,141 -
Unrealized foreign
exchange loss (gain) (3,911) 158 (5,230) 3,286
Loss on disposal of
property, plant and
equipment 741 - 741 -
Future income tax recovery - - (4,476) -
--------------------------------------------------------------------------
(3,385) (965) (4,178) (2,686)
Change in non-cash
working capital items (3,426) (1,983) 704 (375)
--------------------------------------------------------------------------
(6,811) (2,948) (3,474) (3,061)
--------------------------------------------------------------------------
Financing activities
Long-term debt - - 20,000 -
Capital lease payments (240) - (369) -
Deferred transaction costs - - (552) -
Purchase of common shares
for cancellation (764) - (764) -
Issuance of common shares,
net of issue expenses (382) 2,189 13,110 104,959
Issuance of warrants,
net of issue expenses - 118,131 - 118,131
--------------------------------------------------------------------------
(1,386) 120,320 31,425 223,090
--------------------------------------------------------------------------
Investing activities
Deposit in escrow - 250 - -
Acquisition of short-term
investments - - - (55,000)
Disposal of short-term
investments - - 55,000 7,013
Increase in Restricted cash (1,500) - (15,435) -
Increase in Cash
collateral investments - - (9,588) (22,231)
Decrease in Cash
collateral investments 1,380 - 12,206 -
Property, plant
and equipment (10,168) (3,869) (41,131) (17,569)
Proceeds on disposal
of property, plant
and equipment - - 1,675 -
Mineral properties and
deferred expenditures (29,924) (11,256) (89,104) (33,270)
Tax credit and mining
duties received 696 111 8,092 3,279
--------------------------------------------------------------------------
(39,516) (14,764) (78,285) (117,778)
--------------------------------------------------------------------------
Increase (decrease) in cash
and cash equivalents (47,713) 102,608 (50,334) 102,251
Cash and cash equivalents -
beginning of period 105,512 5,525 108,133 5,882
--------------------------------------------------------------------------
Cash and cash equivalents -
end of period 57,799 108,133 57,799 108,133
--------------------------------------------------------------------------
--------------------------------------------------------------------------
|
9 Recommendations
Loading...
Loading...
New Message
Please
login
to post a reply