Owner
Post by Franko10 ™ on Aug 11, 2005 17:02:56 GMT -5
Shore Gold Inc. announces second quarter results
18:00 EDT Thursday, August 11, 2005
SASKATOON, SK, Aug. 11 /CNW/ - Shore Gold Inc. ("Shore") reports that the unaudited results of Shore's operations for the quarter ended June 30, 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
- Commencement of the $43 million, thirty-month, pre-feasibility study
- Working capital of $139.3 million at June 30, 2005
- Issued and outstanding shares of 94,394,891 at June 30, 2005
Pre-feasibility Study
On May 19, 2005, Shore announced that the thirty-month, pre-feasibility study on the Star Diamond Project had commenced. The study will include the extraction of an additional 10,000 tonnes of kimberlite from the existing underground workings as well as 21,000 metres of PQ drilling from surface, followed by 17,000 metres of large diameter (1.20 metre) drilling. The large diameter drilling is estimated to produce an additional 10,000 tonnes of kimberlite. The aim of the pre-feasibility study is to define a National Instrument 43-101 compliant mineral reserve for the Star Kimberlite. Results of the program will be released as progress is made.
Quarter End Results
As at June 30, 2005, Shore's cash balance, which included cash and short-term investments, totaled $140.3 million. Shore recorded a net loss of $180,272 ($0.00 per share) for the quarter ended June 30, 2005, which compares with a net loss of $567,480 ($0.01 per share) for the quarter ended June 30, 2004. Operating expenses increased to $940,244 compared to $607,085 for the quarters ended June 30, 2005 and 2004, respectively. The increase in expenses was more than offset by increased interest income received from investing excess cash in short-term deposits that generated $809,655 in revenue for the quarter. This increase in income has allowed the Company to be virtually break-even from an operating perspective. The Company also spent, during the quarter ended June 30, 2005, approximately $4.8 million on mineral properties for pre-feasibility study costs while receiving approximately $1.4 million from the exercise of warrants and options.
Year to Date Results
Shore recorded a net loss of $1.8 million ($0.02 per share) for the six-month period ended June 30, 2005, which compares with a net loss of $1.0 million ($0.02 per share) for the same period in 2004. Operating expenses increased to $2.9 million compared to $1.1 million for the six-month period ended June 30, 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. During the first quarter of 2005 the Company completed the largest equity financing in the Company's history for gross proceeds of $116.6 million. Approximately $9.5 million was spent during the first 6 months of 2005 on the completion of the 25,000 tonne bulk sample and the commencement of the $43 million pre-feasibility program. The completion of the bulk sample resulted in a diamond parcel totaling 4,049 carats from 27,837 dry tonnes of kimberlite. Diamond valuation, completed on the first 3,050 carats of this diamond parcel, reported a modeled value of US$135 per carat.
<<
Selected financial highlights include:
-------------------------------------------------------------------------
As at As at
June 30, December 31,
Consolidated Balance Sheets 2005 2004
-------------------------------------------------------------------------
Current assets $ 140.8M $ 29.6M
-------------------------------------------------------------------------
Capital and other assets 44.1M 33.9M
-------------------------------------------------------------------------
Current liabilities 1.6M 2.0M
-------------------------------------------------------------------------
Share capital 191.0M 69.3M
-------------------------------------------------------------------------
Contributed surplus 2.8M 0.8M
-------------------------------------------------------------------------
Deficit 10.4M 8.7M
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Three Three Six Six
months months months months
Ended Ended Ended Ended
Consolidated Statements June 30, June 30, June 30, June 30,
of Loss 2005 2004 2005 2004
-------------------------------------------------------------------------
Interest Income $ 0.8M $ 0.0M $ 1.1M $ 0.1M
-------------------------------------------------------------------------
Operating Expenses 0.9M 0.6M 2.9M 1.1M
-------------------------------------------------------------------------
Loss for the period before
other items 0.1M 0.6M 1.8M 1.0M
-------------------------------------------------------------------------
Net loss for the period 0.2M 0.6M 1.8M 1.0M
-------------------------------------------------------------------------
Loss per share 0.00 0.01 0.02 0.02
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Three Three Six Six
months months months months
Ended Ended Ended Ended
Consolidated Statements June 30, June 30, June 30, June 30,
of Cash Flows 2005 2004 2005 2004
-------------------------------------------------------------------------
Cash flows from operating
activities $ (1.1)M $ (0.6)M $ (0.2)M $ (0.9)M
-------------------------------------------------------------------------
Cash flows from investing
activities (3.4)M (3.4)M (9.7)M (7.6)M
-------------------------------------------------------------------------
Cash flows from financing
activities 1.4M 0.3M 121.5M 11.1M
-------------------------------------------------------------------------
Net increase (decrease) in cash (3.0)M (3.7)M 111.6M 2.6M
-------------------------------------------------------------------------
Cash - beginning of period 143.3M 10.7M 28.7M 4.4M
-------------------------------------------------------------------------
Cash - end of period 140.3M 7.0M 140.3M 7.0M
-------------------------------------------------------------------------
Outlook
As at June 30, 2005, the Company has $140.3 million in cash and cash equivalents that will partially be used to complete the pre-feasibility study announced in May of 2005 that is estimated to cost $43 million and take approximately 30 months. 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, further work on the Star Kimberlite Property as programs are defined, various exploration activities and other opportunities as they 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
18:00 EDT Thursday, August 11, 2005
SASKATOON, SK, Aug. 11 /CNW/ - Shore Gold Inc. ("Shore") reports that the unaudited results of Shore's operations for the quarter ended June 30, 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
- Commencement of the $43 million, thirty-month, pre-feasibility study
- Working capital of $139.3 million at June 30, 2005
- Issued and outstanding shares of 94,394,891 at June 30, 2005
Pre-feasibility Study
On May 19, 2005, Shore announced that the thirty-month, pre-feasibility study on the Star Diamond Project had commenced. The study will include the extraction of an additional 10,000 tonnes of kimberlite from the existing underground workings as well as 21,000 metres of PQ drilling from surface, followed by 17,000 metres of large diameter (1.20 metre) drilling. The large diameter drilling is estimated to produce an additional 10,000 tonnes of kimberlite. The aim of the pre-feasibility study is to define a National Instrument 43-101 compliant mineral reserve for the Star Kimberlite. Results of the program will be released as progress is made.
Quarter End Results
As at June 30, 2005, Shore's cash balance, which included cash and short-term investments, totaled $140.3 million. Shore recorded a net loss of $180,272 ($0.00 per share) for the quarter ended June 30, 2005, which compares with a net loss of $567,480 ($0.01 per share) for the quarter ended June 30, 2004. Operating expenses increased to $940,244 compared to $607,085 for the quarters ended June 30, 2005 and 2004, respectively. The increase in expenses was more than offset by increased interest income received from investing excess cash in short-term deposits that generated $809,655 in revenue for the quarter. This increase in income has allowed the Company to be virtually break-even from an operating perspective. The Company also spent, during the quarter ended June 30, 2005, approximately $4.8 million on mineral properties for pre-feasibility study costs while receiving approximately $1.4 million from the exercise of warrants and options.
Year to Date Results
Shore recorded a net loss of $1.8 million ($0.02 per share) for the six-month period ended June 30, 2005, which compares with a net loss of $1.0 million ($0.02 per share) for the same period in 2004. Operating expenses increased to $2.9 million compared to $1.1 million for the six-month period ended June 30, 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. During the first quarter of 2005 the Company completed the largest equity financing in the Company's history for gross proceeds of $116.6 million. Approximately $9.5 million was spent during the first 6 months of 2005 on the completion of the 25,000 tonne bulk sample and the commencement of the $43 million pre-feasibility program. The completion of the bulk sample resulted in a diamond parcel totaling 4,049 carats from 27,837 dry tonnes of kimberlite. Diamond valuation, completed on the first 3,050 carats of this diamond parcel, reported a modeled value of US$135 per carat.
<<
Selected financial highlights include:
-------------------------------------------------------------------------
As at As at
June 30, December 31,
Consolidated Balance Sheets 2005 2004
-------------------------------------------------------------------------
Current assets $ 140.8M $ 29.6M
-------------------------------------------------------------------------
Capital and other assets 44.1M 33.9M
-------------------------------------------------------------------------
Current liabilities 1.6M 2.0M
-------------------------------------------------------------------------
Share capital 191.0M 69.3M
-------------------------------------------------------------------------
Contributed surplus 2.8M 0.8M
-------------------------------------------------------------------------
Deficit 10.4M 8.7M
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Three Three Six Six
months months months months
Ended Ended Ended Ended
Consolidated Statements June 30, June 30, June 30, June 30,
of Loss 2005 2004 2005 2004
-------------------------------------------------------------------------
Interest Income $ 0.8M $ 0.0M $ 1.1M $ 0.1M
-------------------------------------------------------------------------
Operating Expenses 0.9M 0.6M 2.9M 1.1M
-------------------------------------------------------------------------
Loss for the period before
other items 0.1M 0.6M 1.8M 1.0M
-------------------------------------------------------------------------
Net loss for the period 0.2M 0.6M 1.8M 1.0M
-------------------------------------------------------------------------
Loss per share 0.00 0.01 0.02 0.02
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Three Three Six Six
months months months months
Ended Ended Ended Ended
Consolidated Statements June 30, June 30, June 30, June 30,
of Cash Flows 2005 2004 2005 2004
-------------------------------------------------------------------------
Cash flows from operating
activities $ (1.1)M $ (0.6)M $ (0.2)M $ (0.9)M
-------------------------------------------------------------------------
Cash flows from investing
activities (3.4)M (3.4)M (9.7)M (7.6)M
-------------------------------------------------------------------------
Cash flows from financing
activities 1.4M 0.3M 121.5M 11.1M
-------------------------------------------------------------------------
Net increase (decrease) in cash (3.0)M (3.7)M 111.6M 2.6M
-------------------------------------------------------------------------
Cash - beginning of period 143.3M 10.7M 28.7M 4.4M
-------------------------------------------------------------------------
Cash - end of period 140.3M 7.0M 140.3M 7.0M
-------------------------------------------------------------------------
Outlook
As at June 30, 2005, the Company has $140.3 million in cash and cash equivalents that will partially be used to complete the pre-feasibility study announced in May of 2005 that is estimated to cost $43 million and take approximately 30 months. 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, further work on the Star Kimberlite Property as programs are defined, various exploration activities and other opportunities as they 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
