Owner
Post by Franko10 ™ on May 11, 2005 14:41:49 GMT -5
Shore Gold Inc. announces first quarter results
15:34 EDT Wednesday, May 11, 2005
Stock Symbol: SGF: TSX
SASKATOON, May 11 /CNW/ - Shore Gold Inc. ("Shore") reports the unaudited results of Shore's operations for the quarter ended March 31, 2005 have been filed and may be viewed at www.sedar.com. A summary of key financial and operating results for the quarter follows:
Highlights
- A modeled value of US$135 per carat was determined from Shore's
3,050 carat parcel of diamonds recovered from the Star Kimberlite
Property
- Completed the largest equity financing in the Company's history during
the quarter for gross proceeds of $116.6 million
- Working capital of $142.7 million at March 31, 2005
- Issued and outstanding shares of 93,681,846 at March 31, 2005
Valuation
On February 23, 2005, Shore announced that a modeled value of US$135 per carat had been determined from the 3,050 carat parcel of diamonds recovered from the Star Kimberlite Property. As of February 28, 2005 a total of 3,498.84 carats of commercial sized diamonds were recovered from a total of 24,548.32 dry tonnes of kimberlite. The last 9 batches of 1,787.43 dry tonnes of kimberlite are currently being evaluated for final diamond recovery.
Financing
Results achieved during 2004 and the first quarter of 2005 from the Star Kimberlite Property allowed the Company to successfully market the largest equity financing in the Company's history during the quarter. The financing resulted in the issuance of an additional 21,200,000 shares for gross proceeds of $116.6 million. Newmont Mining Corporation of Canada Limited ("Newmont") subscribed for 9.25 million of the common shares under this offering resulting in Newmont owning 9.9% of the issued and outstanding shares of Shore. Magma Diamond Resources Ltd. also participated in the public offering to increase its interest in the Company from 8.6% to 8.8%.
Quarter End Results
As at March 31, 2005, Shore's cash balance, which included cash, cash-in-trust, and short-term investments totaled $143.3M. Shore recorded a net loss of $1,599,327 ($0.02 per share) for the quarter ended March 31, 2005, which compares with a net loss of $459,972 ($0.01 per share) for the quarter ended March 31, 2004. Operating expenses increased to $1,942,895 compared to $492,186 for the quarters ended March 31, 2005 and 2004, respectively. The increase in expenses is predominately due to the fair-value of stock-based compensation expensed during the first quarter of 2005 compared to 2004.
Selected financial highlights include:
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March 31, December 31,
Consolidated Balance Sheets 2005 2004
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Current assets $ 144.2 M $ 29.6 M
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Capital and other assets 39.4 M 33.9 M
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Current liabilities 1.5 M 2.0 M
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Share capital 189.4 M 69.3 M
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Contributed surplus 2.9 M 0.8 M
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Deficit 10.3 M 8.7 M
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March 31, March 31,
Consolidated Statements of Loss 2005 2004
-------------------------------------------------------------------------
Interest Income $ 0.3 M $ 0.0 M
-------------------------------------------------------------------------
Operating Expenses 1.9 M 0.5 M
-------------------------------------------------------------------------
Loss for the period before income taxes 1.6 M 0.5 M
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Net loss for the period 1.6 M 0.5 M
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Loss per share 0.02 0.01
-------------------------------------------------------------------------
-------------------------------------------------------------------------
March 31, March 31,
Consolidated Statements of Cash Flows 2005 2004
-------------------------------------------------------------------------
Cash flows from operating activities $ 0.8 M $ (0.3)M
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Cash flows from investing activities (6.3)M (4.2)M
-------------------------------------------------------------------------
Cash flows from financing activities 120.1 M 10.8 M
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Net increase in cash 114.6 M 6.3 M
-------------------------------------------------------------------------
Cash - beginning of period 28.7 M 4.4 M
-------------------------------------------------------------------------
Cash - end of period 143.3 M 10.7 M
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Outlook
As at March 31, 2005, the Company has $143.3 million in cash and cash
equivalents that will partially be used to complete a proposed pre-feasibility
study that is estimated to cost $40 million and take approximately three
years. The pre-feasibility study of the Star Kimberlite Property will be
conducted in order to determine the project viability under current economic
conditions. This will entail the collection of additional exploration
information, such as geological, geotechnical, geometallurgical, geochemical,
assaying and other relevant information to delineate and define the Star
Kimberlite, with a sufficient level of confidence, to estimate a Mineral
Resource conforming to National Instrument 43-101 and Canadian Institute of
Mining, Metallurgy and Petroleum ("CIM") standards.
The balance of cash and cash equivalents will be used to fund general
corporate matters as well as further work on the Star Kimberlite Property once
further programs are defined and various other exploration activities and
opportunities develop.
Caution Regarding Forward-looking Information
Some of the statements contained in this report are forward-looking
statements, such as estimates that describe the Company's future plans,
objectives or goals. This includes words to the effect that the Company or
management expects a stated condition or result to occur. Since forward-
looking statements address future events or conditions, by their very nature
they involve inherent risks and uncertainties. Actual results in each case
could differ materially from those currently anticipated in such statements.
/For further information: please contact: Mr. Kenneth MacNeill, Chief
Executive Officer and President, 300 - 224 4th Avenue South, Saskatoon,
SK S7K 5M5, PH: (306) 664-2202, FAX: (306) 664-7181 OR Mr. Harvey Bay, Chief
Financial Officer, 300 - 224 4th Avenue South, Saskatoon, SK S7K 5M5,
PH: (306) 664-2202, FAX: (306) 664-7181/
15:34 EDT Wednesday, May 11, 2005
Stock Symbol: SGF: TSX
SASKATOON, May 11 /CNW/ - Shore Gold Inc. ("Shore") reports the unaudited results of Shore's operations for the quarter ended March 31, 2005 have been filed and may be viewed at www.sedar.com. A summary of key financial and operating results for the quarter follows:
Highlights
- A modeled value of US$135 per carat was determined from Shore's
3,050 carat parcel of diamonds recovered from the Star Kimberlite
Property
- Completed the largest equity financing in the Company's history during
the quarter for gross proceeds of $116.6 million
- Working capital of $142.7 million at March 31, 2005
- Issued and outstanding shares of 93,681,846 at March 31, 2005
Valuation
On February 23, 2005, Shore announced that a modeled value of US$135 per carat had been determined from the 3,050 carat parcel of diamonds recovered from the Star Kimberlite Property. As of February 28, 2005 a total of 3,498.84 carats of commercial sized diamonds were recovered from a total of 24,548.32 dry tonnes of kimberlite. The last 9 batches of 1,787.43 dry tonnes of kimberlite are currently being evaluated for final diamond recovery.
Financing
Results achieved during 2004 and the first quarter of 2005 from the Star Kimberlite Property allowed the Company to successfully market the largest equity financing in the Company's history during the quarter. The financing resulted in the issuance of an additional 21,200,000 shares for gross proceeds of $116.6 million. Newmont Mining Corporation of Canada Limited ("Newmont") subscribed for 9.25 million of the common shares under this offering resulting in Newmont owning 9.9% of the issued and outstanding shares of Shore. Magma Diamond Resources Ltd. also participated in the public offering to increase its interest in the Company from 8.6% to 8.8%.
Quarter End Results
As at March 31, 2005, Shore's cash balance, which included cash, cash-in-trust, and short-term investments totaled $143.3M. Shore recorded a net loss of $1,599,327 ($0.02 per share) for the quarter ended March 31, 2005, which compares with a net loss of $459,972 ($0.01 per share) for the quarter ended March 31, 2004. Operating expenses increased to $1,942,895 compared to $492,186 for the quarters ended March 31, 2005 and 2004, respectively. The increase in expenses is predominately due to the fair-value of stock-based compensation expensed during the first quarter of 2005 compared to 2004.
Selected financial highlights include:
-------------------------------------------------------------------------
March 31, December 31,
Consolidated Balance Sheets 2005 2004
-------------------------------------------------------------------------
Current assets $ 144.2 M $ 29.6 M
-------------------------------------------------------------------------
Capital and other assets 39.4 M 33.9 M
-------------------------------------------------------------------------
Current liabilities 1.5 M 2.0 M
-------------------------------------------------------------------------
Share capital 189.4 M 69.3 M
-------------------------------------------------------------------------
Contributed surplus 2.9 M 0.8 M
-------------------------------------------------------------------------
Deficit 10.3 M 8.7 M
-------------------------------------------------------------------------
-------------------------------------------------------------------------
March 31, March 31,
Consolidated Statements of Loss 2005 2004
-------------------------------------------------------------------------
Interest Income $ 0.3 M $ 0.0 M
-------------------------------------------------------------------------
Operating Expenses 1.9 M 0.5 M
-------------------------------------------------------------------------
Loss for the period before income taxes 1.6 M 0.5 M
-------------------------------------------------------------------------
Net loss for the period 1.6 M 0.5 M
-------------------------------------------------------------------------
Loss per share 0.02 0.01
-------------------------------------------------------------------------
-------------------------------------------------------------------------
March 31, March 31,
Consolidated Statements of Cash Flows 2005 2004
-------------------------------------------------------------------------
Cash flows from operating activities $ 0.8 M $ (0.3)M
-------------------------------------------------------------------------
Cash flows from investing activities (6.3)M (4.2)M
-------------------------------------------------------------------------
Cash flows from financing activities 120.1 M 10.8 M
-------------------------------------------------------------------------
Net increase in cash 114.6 M 6.3 M
-------------------------------------------------------------------------
Cash - beginning of period 28.7 M 4.4 M
-------------------------------------------------------------------------
Cash - end of period 143.3 M 10.7 M
-------------------------------------------------------------------------
Outlook
As at March 31, 2005, the Company has $143.3 million in cash and cash
equivalents that will partially be used to complete a proposed pre-feasibility
study that is estimated to cost $40 million and take approximately three
years. The pre-feasibility study of the Star Kimberlite Property will be
conducted in order to determine the project viability under current economic
conditions. This will entail the collection of additional exploration
information, such as geological, geotechnical, geometallurgical, geochemical,
assaying and other relevant information to delineate and define the Star
Kimberlite, with a sufficient level of confidence, to estimate a Mineral
Resource conforming to National Instrument 43-101 and Canadian Institute of
Mining, Metallurgy and Petroleum ("CIM") standards.
The balance of cash and cash equivalents will be used to fund general
corporate matters as well as further work on the Star Kimberlite Property once
further programs are defined and various other exploration activities and
opportunities develop.
Caution Regarding Forward-looking Information
Some of the statements contained in this report are forward-looking
statements, such as estimates that describe the Company's future plans,
objectives or goals. This includes words to the effect that the Company or
management expects a stated condition or result to occur. Since forward-
looking statements address future events or conditions, by their very nature
they involve inherent risks and uncertainties. Actual results in each case
could differ materially from those currently anticipated in such statements.
/For further information: please contact: Mr. Kenneth MacNeill, Chief
Executive Officer and President, 300 - 224 4th Avenue South, Saskatoon,
SK S7K 5M5, PH: (306) 664-2202, FAX: (306) 664-7181 OR Mr. Harvey Bay, Chief
Financial Officer, 300 - 224 4th Avenue South, Saskatoon, SK S7K 5M5,
PH: (306) 664-2202, FAX: (306) 664-7181/
