CROWFLIGHT MINERALS INC. (Crowflight, the Company) (TSX VENTURE:
CML) today announced its financial results for the third quarter of
2008. Complete unaudited 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 Highlights
- At September 30, 2008, cash and cash equivalents balances were
$13.0 million. At the end of the third quarter 2008, the loan
facility balance was $50.0 million.
- Net income for the quarter ended September 30, 2008 was $9.9
million ($0.04 per share) compared to a net loss of $2.2 million
(loss of $0.01 per share) for the quarter ended September 30, 2007.
This net income is attributed to a non-cash gain of $18.3 million
related to the change in value of the forward sale contracts
entered into in July 2008, as at September 30, 2008.
- Production of a nickel concentrate is scheduled to commence in
November 2008. Bucko Lake Nickel Mine capital and development
spending has totaled $25.1 million for the quarter and $57.7
million for the nine months ended September 30, 2008.
Unaudited Third Quarter 2008 Results
Cash used in Investing Activities during the quarter ended
September 30, 2008 was $18.0 million compared to $11.1 million used
in investing activities during the same period last year.
Cash spending on exploration and development of properties
primarily in the Thompson Nickel Belt, Manitoba as well as the
acquisition of capital assets related to exploration and
development for the current quarter was $25.1 million, net of
government assistance, compared to $12.1 million during the third
quarter of 2007. Specifically, the Company used $25.1 million in
cash in the development of the Bucko Lake Nickel Mine during the
quarter.
During the nine months ended September 30, 2008 and 2007, the
Company used $52.2 million compared to $20.1 million in investing
activities, respectively. Cash spending on exploration and
development properties primarily in the Thompson Nickel Belt,
Manitoba as well as the acquisition of capital assets related to
exploration and development for the nine months ended September 30,
2008 was $61.0 million, compared to $25.7 million during the same
period in 2007. Specifically, the Company used $57.7 million in
cash in the development of the Bucko Lake Nickel Mine during the
period. The expected cost to complete the Bucko Lake Nickel Mine is
$17 million. The Company has these funds available following the
restructuring of its debt facility announced October 28, 2008,
subsequent to the quarter's end. Additional capital compared to
previous estimates is required due to lower pre-production revenues
of $20 million due to lower projected nickel prices and lower
nickel pre-production and higher project capital costs of $4
million.
The Company recognized a net income for the quarter ended
September 30, 2008 of $9.8 million ($0.04 per share) compared to a
net loss of $2.2 million (loss of $0.01 per share) for the quarter
ended September 30, 2007. This net income is attributed to a
non-cash gain of $18.3 million related to the change in value of
the forward sale contracts entered into in July 2008, as at
September 30, 2008.
The net income for the nine months ended September 30, 2008 was
$5.5 million ($0.02 per share) compared to a net loss of $4.1
million (loss of $0.02 per share) for the nine months ended
September 30, 2007. The majority of this variance is attributable
to the non-cash gain of $18.3 million recognized on the change in
value of the forward sale nickel contracts entered into in
July.
At September 30, 2008, cash and cash equivalents balances were
$13.0 million, compared to $9.0 million as at December 31,
2007.
The loan facility balance was $50.0 million as at September 30,
2008, which was subsequently reduced to $7.6 million in October
following the restructuring of the debt facility, compared to nil
as at December 31, 2007.
Outlook
For the balance of 2008, Crowflight will continue to focus on
completion of the Bucko Lake Nickel Mine, expects to produce
concentrate for shipment and will work toward ramping up to full
production in early 2009.
CONSOLIDATED BALANCE SHEETS
As at
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September 30, December 31,
2008 2007
ASSETS (unaudited) (audited)
Current
Cash and cash equivalents $ 13,039,999 $ 9,004,788
Amounts receivable 1,145,451 1,281,466
Prepaid expenses and deposits 144,566 276,164
Current portion of derivative asset 3,620,873 -
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17,950,889 10,562,418
Deposits and advances 536,709 952,263
Equipment 75,627 102,769
Derivative assets 14,647,107 -
Exploration property, plant and equipment
and deferred exploration expenditures 137,615,537 76,596,884
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$ 170,825,869 $ 88,214,334
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LIABILITIES
Current
Accounts payable and accrued liabilities $ 15,775,537 $ 8,465,682
Current portion of long term debt 8,122,356 -
Equipment leases 121,200 188,856
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24,019,093 8,654,538
Long term debt 39,548,701 -
Asset retirement obligations 352,000 331,000
Future income tax liability 10,983,000 2,490,000
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74,902,794 11,475,538
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SHAREHOLDERS' EQUITY
Common Shares 95,421,561 86,671,512
Warrants 3,964,310 2,025,712
Contributed surplus 13,167,976 10,193,512
Deficit (16,630,772) (22,151,940)
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95,923,075 76,738,796
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$ 170,825,869 $ 88,214,334
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These financial statements should be read in conjunction with the notes and
management's discussion and analysis available online at www.sedar.com and
on the Company's website www.crowflight.com.
CONSOLIDATED STATEMENTS OF OPERATIONS AND DEFICIT
For the three and nine months ended September 30,
(UNAUDITED - prepared by management)
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Three months ended Nine months ended
September 30, September 30,
2008 2007 2008 2007
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Expenses
Professional,
consulting and
management fees $ 704,210 $ 2,393,567 $ 2,642,092 $ 4,163,486
Shareholder
communications and
investor relations 39,182 32,987 287,429 286,976
General and office 128,439 105,253 328,083 227,416
Travel 32,173 10,770 142,405 114,686
Amortization 1,437 882 5,560 3,329
Interest expenses
and bank charges 4,123 11,220 9,332 13,675
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909,564 2,554,679 3,414,901 4,809,568
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(Loss) before the
undernoted (909,564) (2,554,679) (3,414,901) (4,809,568)
Interest income 66,605 315,169 199,126 724,406
Interest on long
term debt (482,309) - (901,140) -
General exploration (106,921) - (106,921)
Debt facility
transaction costs (499,594) - (2,544,796) -
Accretion expense (299,695) - (789,180) -
Change in value
of derivative
instruments 18,267,980 18,267,980
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Income/(loss) before
income taxes 16,036,502 (2,239,510) 10,710,168 (4,085,162)
Future income taxes (6,145,000) - (5,189,000) -
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Income/(loss) for
the period 9,891,502 (2,239,510) 5,521,168 (4,085,162)
DEFICIT, beginning
of period (26,522,274) (19,532,323) (22,151,940) (17,686,671)
------------- ------------ ------------ ------------
DEFICIT, end of
period $(16,630,772) $(21,771,833) $(16,630,772) $(21,771,833)
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Earnings/(loss) per
share - basic $ 0.04 $ (0.01) $ 0.02 $ (0.02)
Earnings/(loss) per
share - diluted $ 0.04 $ (0.01) $ 0.02 $ (0.02)
Weighted average
number of shares -
basic 269,683,888 247,901,936 261,202,344 226,373,752
Weighted average
number of shares -
diluted 270,572,514 247,901,936 264,263,983 226,373,752
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These financial statements should be read in conjunction with the notes and
management's discussion and analysis available online at www.sedar.com and
on the Company's website www.crowflight.com.
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three and nine months ended September 30,
(UNAUDITED - prepared by management)
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Three months ended Nine months ended
September 30, September 30,
2008 2007 2008 2007
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OPERATING ACTIVITIES:
Net income/(loss)
for the period $ 9,891,502 $ (2,239,510) $ 5,521,168 $ (4,085,162)
Charges not
affecting cash:
Amortization 1,437 882 5,560 3,329
Stock-based
compensation
expense 508,473 1,699,259 2,047,060 3,216,483
Debt facility costs 499,594 2,544,796 -
Capitalized interest 203,525 - 622,356 -
Accretion expense 299,695 - 789,180 -
Change in value
of derivative
instruments (18,267,980) - (18,267,980) -
Future income tax
expense 6,145,000 - 5,189,000 -
Net change in
non-cash working
capital 83,954 818,524 (1,036,472) (856,884)
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(634,800) 279,155 (2,585,332) (1,722,234)
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FINANCING ACTIVITIES:
Common shares issued
through private
placements - 364 10,184,706 21,411,350
Warrants issued
through private
placements - - - 1,359,375
Debt facility, net
of transaction costs 39,500,406 - 62,673,758 -
Retirement of debt
facility (15,000,000) - (15,000,000) -
Shares issued from
exercise of
warrants and
options 11,250 954,000 1,015,866 8,358,789
Payments on equipment
leases (20,312) - (67,656)
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24,491,344 954,364 58,806,674 31,129,514
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INVESTING ACTIVITIES:
Exploration property,
plant and equipment,
and deferred
exploration
expenditures (25,076,313) (12,094,968) (60,997,071) (25,684,841)
(Increase) decrease
in deposits and
prepaid exploration
expenditure - 62,915 318,554 408,882
(Decrease) increase
in accounts payable
attributable to
property exploration 6,888,246 953,660 8,492,386 4,495,369
Property, plant and
equipment - (12,503) - (65,723)
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(18,188,067) (11,090,896) (52,186,131) (20,846,313)
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CHANGE IN CASH AND
CASH EQUIVALENTS $ 5,668,477 $ (9,857,377) $ 4,035,211 $ 8,560,967
CASH AND CASH
EQUIVALENTS,
beginning of
period $ 7,371,522 $ 32,219,264 $ 9,004,788 $ 13,800,920
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CASH AND CASH
EQUIVALENTS, end
of period $ 13,039,999 $ 22,361,887 $ 13,039,999 $ 22,361,887
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Cash and cash
equivalents
consists of:
Cash 5,488,999 914,971 5,488,999 914,971
Equivalents 7,551,000 21,446,916 7,551,000 21,446,916
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$ 13,039,999 $ 22,361,887 $ 13,039,999 $ 22,361,887
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These financial statements should be read in conjunction with the notes and
management's discussion and analysis available online at www.sedar.com and
on the Company's website www.crowflight.com.
Crowflight Minerals - Canada's Next Nickel Producer
Crowflight Minerals Inc. (TSX VENTURE: CML) is a Canadian junior
mining company that is bringing the Bucko Lake Nickel Mine near
Wabowden, Manitoba into production. Full commercial production is
expected to be achieved at Bucko in early 2009. 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
Except for statements of historical fact contained herein, the
information in this press release constitutes "forward-looking
information" within the meaning of Canadian securities law. Such
forward-looking information may be identified by words such as
"plans", "proposes", "estimates", "intends", "expects", "believes",
"may", "will" and include without limitation, statements regarding
estimated capital and operating costs, expected production
timeline, benefits of updated development plans, foreign exchange
assumptions and regulatory approvals. There can be no assurance
that such statements will prove to be accurate; actual results and
future events could differ materially from such statements. Factors
that could cause actual results to differ materially include, among
others, metal prices, competition, risks inherent in the mining
industry, and regulatory risks. Most of these factors are outside
the control of the Company. Investors are cautioned not to put
undue reliance on forward-looking information. Except as otherwise
required by applicable securities statutes or regulation, the
Company expressly disclaims any intent or obligation to update
publicly forward-looking information, whether as a result of new
information, future events or otherwise.
TSX-V Trading Symbol: CML
Total Shares Outstanding: 269.7MM
Fully Diluted: 307.9MM
52-Week Trading Range: C$0.09 - $0.80
The TSX Venture Exchange does not accept responsibility for the
adequacy or accuracy of this release.
Contacts: Crowflight Minerals Inc. Mike Hoffman President and
CEO (416) 861-2964 Crowflight Minerals Inc. Heather Colpitts
Manager, Investor and Public Relations (416) 861-5803 Email:
info@crowflight.com Website: www.crowflight.com
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