Post by Zoinkers on Aug 15, 2006 0:54:25 GMT -5
Press Release Source: Shore Gold Inc.
Shore Gold Inc. announces second quarter results
Monday August 14, 10:41 pm ET
Stock Symbol: SGF: TSX
SASKATOON, Aug. 14 /CNW/ - Shore Gold Inc. ("Shore") reports that the unaudited results of Shore's operations for the quarter ended June 30, 2006 have been filed and may be viewed at www.sedar.com. A summary of key financial and operating results for the quarter are as follows: Highlights
- Shore announced Phase III of its pre-feasibility study on the Star
Diamond Property.
- Shore and the Fort à la Corne Joint Venture ("FALC-JV") participants
announced a $42.3 million, 2006 Exploration Program on the Joint
Venture Property.
- The Company's spending until June 30, 2006 on the Star Diamond
Property and FALC-JV has been $33.2 million and $3.0 million,
respectively.
- De Beers Canada Inc. was unsuccessful in their appeal regarding the
Voting Arrangement among Shore/Kensington, Cameco Corporation and UEM
Inc.
- The Fidelity Group of Funds acquired a 12.5% interest in the Company.
- Working capital of $235.4 million at June 30, 2006.
- Issued and outstanding shares of 176,123,860 at June 30, 2006.
Star Diamond Property Pre-feasibility Program and FALC-JV Exploration
Program
During the first and second quarter of 2006, the Company's exploration efforts continued to focus on the Fort à la Corne area of central Saskatchewan on its 100% owned Star Diamond Property and its 42.245% interest in the Fort à la Corne Joint Venture ("FALC-JV"). The FALC-JV participants include Kensington Resources Ltd. ("Kensington"), a wholly owned subsidiary of Shore, De Beers Canada Inc. ("De Beers") (the operator), Cameco Corporation ("Cameco") and UEM Inc. ("UEM"), (collectively called the "JV Participants").
Management of Shore has been actively working on its Star Diamond Property pre-feasibility program. With Phase I completed, and Phase II well underway, management announced Phase III in April of 2006. Phase III was deemed necessary after core drilling results warranted further infill drilling of highly prospective targets. Interpretation of results of the first two bulk samples also required further bulk-sampling to ensure a representative sample was taken of two other kimberlite types (Pense and Cantuar) that comprise a significant volume of the Star Kimberlite. The Phase III announcement brings the budgets for Phase II and III of the Star Property to approximately $60 million.
In addition to working on the Star Diamond Property, the JV Participants have commenced an exploration program on the FALC-JV Property. By mid April 2006, the JV Participants were able to come to a unanimous agreement on a $43.2 million budgeted program for the 2006 fiscal year on the FALC-JV Property of which Shore will fund approximately $20 million. This consensus was reached despite DeBeers having launched an action to void the Voting Agreement between Kensington, Cameco and UEM and to restrain the parties from holding a Management Committee meeting. The action and subsequent appeal were both dismissed by the courts. By the end of June, two of the expected five core drilling rigs had begun drilling on the Orion Kimberlite Cluster. Drilling is projected to be complete by late December. The program is to include approximately 200 PQ (75 millimetres) core holes and between five to nine large diameter drill (1.2 metre) holes.
Quarterly results
For the quarter ended June 30, 2006, the Company recorded net income of $0.6 million or $0.00 per share compared to a net loss of $0.2 million or $0.00 per share for the same period in 2005. The increase in income from June 30, 2005 compared to June 30, 2006 is predominately related to increased interest revenue for the second quarter of 2006. The increase in interest revenue was somewhat moderated as expenses continue to increase as the Company grows. Finally, the generation of income from operations for the second straight quarter resulted in the recognition of further future income taxes as loss carryforwards have begun to be utilized.
During the second quarter, financing activities included 3.2 million shares being issued as a result of the final outstanding warrants and broker warrants from the former Kensington security holders being exercised for gross proceeds of $12.4 million.
Year to Date Results
For the six-month period ended June 30, 2006, the Company recorded net income of $1.0 million or $0.01 per share compared to a net loss of $1.8 million or $0.02 per share for the same period in 2005. The $2.8 million positive change between the six-month period ended June 30, 2005 to June 30, 2006 is predominately from increased interest revenue as well as an approximate $1.3 million larger expense during the first quarter of 2005 related to fair-value of stock options expensed. The positive variances from the above items were offset by general increases in expenses for growth achieved by the Company as well as the recognition of future income taxes after the increased interest revenue for the first two quarters of 2006 resulted in the generation of income from operations; something not normally associated with an exploration company.
Selected financial highlights include:
-------------------------------------------------------------------------
As at As at
June 30, December 31,
Consolidated Balance Sheets 2006 2005
-------------------------------------------------------------------------
Current assets $ 244.3 M $ 267.4 M
-------------------------------------------------------------------------
Capital and other assets 546.4 M 509.3 M
-------------------------------------------------------------------------
Current liabilities 8.9 M 14.8 M
-------------------------------------------------------------------------
Future income tax liability 148.5 M 147.6 M
-------------------------------------------------------------------------
Share capital 631.6 M 600.4 M
-------------------------------------------------------------------------
Contributed surplus 17.8 M 31.0 M
-------------------------------------------------------------------------
Deficit 16.1 M 17.1 M
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Three Three Six Six
Months Months Months Months
Ended Ended Ended Ended
Consolidated Statements June 30, June 30, June 30, June 30,
of Loss 2006 2005 2006 2005
-------------------------------------------------------------------------
Interest and other income $ 2.6 M $ 0.8 M $ 4.8 M $ 1.1 M
-------------------------------------------------------------------------
Operating expenses 1.4 M 0.8 M 2.9 M 2.8 M
-------------------------------------------------------------------------
Income (loss) for the
period before other items 1.2 M 0.0 M 1.9 M (1.7) M
-------------------------------------------------------------------------
Net income (loss) for the
period 0.6 M (0.2)M 1.0 M (1.8) M
-------------------------------------------------------------------------
Income (loss) per share 0.00 (0.00) 0.01 (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 2006 2005 2006 2005
-------------------------------------------------------------------------
Cash flows from operating
activities $ 0.9 M $ (1.0)M $ 2.1 M $ (0.2)M
-------------------------------------------------------------------------
Cash flows from investing
activities (21.2)M (3.4)M (41.3)M (9.7)M
-------------------------------------------------------------------------
Cash flows from financing
activities 13.1 M 1.4 M 17.8 M 121.5 M
-------------------------------------------------------------------------
Net increase (decrease)
in cash (7.2)M (3.0)M (21.4)M 111.6 M
-------------------------------------------------------------------------
Cash - beginning of period 247.5 M 143.3 M 261.7 M 28.7 M
-------------------------------------------------------------------------
Cash - end of period 240.3 M 140.3 M 240.3 M 140.3 M
-------------------------------------------------------------------------
Outlook
As at August 14, 2006, the Company had approximately $234.7 million in cash and cash equivalents. This will be used to complete certain aspects of Phase II and the recently announced Phase III of the Star Diamond Property pre-feasibility study as well as to fund the Company's share of exploration on the FALC-JV Property. The exploration projects on both the Star Diamond Property and the FALC-JV Property will be conducted in order to assist in determining both projects' 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 properties 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 various other exploration activities, acquisition and exploration of additional diamond properties (as opportunities warrant), and for general corporate matters.
Caution Regarding Forward-looking Information
Caution Regarding Forward-Looking Statements
From time to time, Shore makes written or oral forward-looking statements within the meaning of certain securities laws, including the "safe harbour" provisions of the Ontario Securities Act and the United States Private Securities Litigation Reform Act of 1995. Shore may make such statements in this press release, in other filings with Canadian regulators or the United States Securities and Exchange Commission, in reports to shareholders or in other communications. These forward-looking statements include, among others, statements with respect to Shore's objectives for the ensuing year, our medium and long-term goals, and strategies to achieve those objectives and goals, as well as statements with respect to our beliefs, plans, objectives, expectations, anticipations, estimates and intentions. The words "may," "could," "should," "would," "suspect," "outlook," "believe," "plan," "anticipate," "estimate," "expect," "intend," and words and expressions of similar import are intended to identify forward-looking statements. In particular, statements regarding Shore's future operations, future exploration and development activities or the anticipated results of Shore's pre-feasibility study or other development plans contain forward-looking statements.
All forward-looking statements and information are based on Shore's current beliefs as well as assumptions made by and information currently available to Shore concerning anticipated financial performance, business prospects, strategies, regulatory developments, development plans, exploration, development and mining activities and commitments. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.
By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that predictions, forecasts, projections and other forward-looking statements will not be achieved. We caution readers not to place undue reliance on these statements as a number of important factors could cause the actual results to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates and intentions expressed in such forward-looking statements. These factors include, but are not limited to, developments in world diamond markets, changes in diamond valuations, risks relating to fluctuations in the Canadian dollar and other currencies relative to the US dollar, changes in exploration, development or mining plans due to exploration results and changing budget priorities of Shore or its joint venture partners; the effects of competition in the markets in which Shore operates; the impact of changes in the laws and regulations regulating mining exploration and development; judicial or regulatory judgments and legal proceedings; operational and infrastructure risks and the additional risks described in Shore's most recently filed Annual Information Form, annual and interim MD&A and short form prospectus, and Shore's anticipation of and success in managing the foregoing risks.
Shore cautions that the foregoing list of factors that may affect future results is not exhaustive. When relying on our forward-looking statements to make decisions with respect to Shore, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Shore does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by Shore or on our behalf.
For further information
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 Operating Officer and Chief Financial Officer, 300 - 224 4th Avenue South, Saskatoon, SK, S7K 5M5, PH: (306) 664-2202, FAX: (306) 664-7181
--------------------------------------------------------------------------------
Source: Shore Gold Inc.
Shore Gold Inc. announces second quarter results
Monday August 14, 10:41 pm ET
Stock Symbol: SGF: TSX
SASKATOON, Aug. 14 /CNW/ - Shore Gold Inc. ("Shore") reports that the unaudited results of Shore's operations for the quarter ended June 30, 2006 have been filed and may be viewed at www.sedar.com. A summary of key financial and operating results for the quarter are as follows: Highlights
- Shore announced Phase III of its pre-feasibility study on the Star
Diamond Property.
- Shore and the Fort à la Corne Joint Venture ("FALC-JV") participants
announced a $42.3 million, 2006 Exploration Program on the Joint
Venture Property.
- The Company's spending until June 30, 2006 on the Star Diamond
Property and FALC-JV has been $33.2 million and $3.0 million,
respectively.
- De Beers Canada Inc. was unsuccessful in their appeal regarding the
Voting Arrangement among Shore/Kensington, Cameco Corporation and UEM
Inc.
- The Fidelity Group of Funds acquired a 12.5% interest in the Company.
- Working capital of $235.4 million at June 30, 2006.
- Issued and outstanding shares of 176,123,860 at June 30, 2006.
Star Diamond Property Pre-feasibility Program and FALC-JV Exploration
Program
During the first and second quarter of 2006, the Company's exploration efforts continued to focus on the Fort à la Corne area of central Saskatchewan on its 100% owned Star Diamond Property and its 42.245% interest in the Fort à la Corne Joint Venture ("FALC-JV"). The FALC-JV participants include Kensington Resources Ltd. ("Kensington"), a wholly owned subsidiary of Shore, De Beers Canada Inc. ("De Beers") (the operator), Cameco Corporation ("Cameco") and UEM Inc. ("UEM"), (collectively called the "JV Participants").
Management of Shore has been actively working on its Star Diamond Property pre-feasibility program. With Phase I completed, and Phase II well underway, management announced Phase III in April of 2006. Phase III was deemed necessary after core drilling results warranted further infill drilling of highly prospective targets. Interpretation of results of the first two bulk samples also required further bulk-sampling to ensure a representative sample was taken of two other kimberlite types (Pense and Cantuar) that comprise a significant volume of the Star Kimberlite. The Phase III announcement brings the budgets for Phase II and III of the Star Property to approximately $60 million.
In addition to working on the Star Diamond Property, the JV Participants have commenced an exploration program on the FALC-JV Property. By mid April 2006, the JV Participants were able to come to a unanimous agreement on a $43.2 million budgeted program for the 2006 fiscal year on the FALC-JV Property of which Shore will fund approximately $20 million. This consensus was reached despite DeBeers having launched an action to void the Voting Agreement between Kensington, Cameco and UEM and to restrain the parties from holding a Management Committee meeting. The action and subsequent appeal were both dismissed by the courts. By the end of June, two of the expected five core drilling rigs had begun drilling on the Orion Kimberlite Cluster. Drilling is projected to be complete by late December. The program is to include approximately 200 PQ (75 millimetres) core holes and between five to nine large diameter drill (1.2 metre) holes.
Quarterly results
For the quarter ended June 30, 2006, the Company recorded net income of $0.6 million or $0.00 per share compared to a net loss of $0.2 million or $0.00 per share for the same period in 2005. The increase in income from June 30, 2005 compared to June 30, 2006 is predominately related to increased interest revenue for the second quarter of 2006. The increase in interest revenue was somewhat moderated as expenses continue to increase as the Company grows. Finally, the generation of income from operations for the second straight quarter resulted in the recognition of further future income taxes as loss carryforwards have begun to be utilized.
During the second quarter, financing activities included 3.2 million shares being issued as a result of the final outstanding warrants and broker warrants from the former Kensington security holders being exercised for gross proceeds of $12.4 million.
Year to Date Results
For the six-month period ended June 30, 2006, the Company recorded net income of $1.0 million or $0.01 per share compared to a net loss of $1.8 million or $0.02 per share for the same period in 2005. The $2.8 million positive change between the six-month period ended June 30, 2005 to June 30, 2006 is predominately from increased interest revenue as well as an approximate $1.3 million larger expense during the first quarter of 2005 related to fair-value of stock options expensed. The positive variances from the above items were offset by general increases in expenses for growth achieved by the Company as well as the recognition of future income taxes after the increased interest revenue for the first two quarters of 2006 resulted in the generation of income from operations; something not normally associated with an exploration company.
Selected financial highlights include:
-------------------------------------------------------------------------
As at As at
June 30, December 31,
Consolidated Balance Sheets 2006 2005
-------------------------------------------------------------------------
Current assets $ 244.3 M $ 267.4 M
-------------------------------------------------------------------------
Capital and other assets 546.4 M 509.3 M
-------------------------------------------------------------------------
Current liabilities 8.9 M 14.8 M
-------------------------------------------------------------------------
Future income tax liability 148.5 M 147.6 M
-------------------------------------------------------------------------
Share capital 631.6 M 600.4 M
-------------------------------------------------------------------------
Contributed surplus 17.8 M 31.0 M
-------------------------------------------------------------------------
Deficit 16.1 M 17.1 M
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Three Three Six Six
Months Months Months Months
Ended Ended Ended Ended
Consolidated Statements June 30, June 30, June 30, June 30,
of Loss 2006 2005 2006 2005
-------------------------------------------------------------------------
Interest and other income $ 2.6 M $ 0.8 M $ 4.8 M $ 1.1 M
-------------------------------------------------------------------------
Operating expenses 1.4 M 0.8 M 2.9 M 2.8 M
-------------------------------------------------------------------------
Income (loss) for the
period before other items 1.2 M 0.0 M 1.9 M (1.7) M
-------------------------------------------------------------------------
Net income (loss) for the
period 0.6 M (0.2)M 1.0 M (1.8) M
-------------------------------------------------------------------------
Income (loss) per share 0.00 (0.00) 0.01 (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 2006 2005 2006 2005
-------------------------------------------------------------------------
Cash flows from operating
activities $ 0.9 M $ (1.0)M $ 2.1 M $ (0.2)M
-------------------------------------------------------------------------
Cash flows from investing
activities (21.2)M (3.4)M (41.3)M (9.7)M
-------------------------------------------------------------------------
Cash flows from financing
activities 13.1 M 1.4 M 17.8 M 121.5 M
-------------------------------------------------------------------------
Net increase (decrease)
in cash (7.2)M (3.0)M (21.4)M 111.6 M
-------------------------------------------------------------------------
Cash - beginning of period 247.5 M 143.3 M 261.7 M 28.7 M
-------------------------------------------------------------------------
Cash - end of period 240.3 M 140.3 M 240.3 M 140.3 M
-------------------------------------------------------------------------
Outlook
As at August 14, 2006, the Company had approximately $234.7 million in cash and cash equivalents. This will be used to complete certain aspects of Phase II and the recently announced Phase III of the Star Diamond Property pre-feasibility study as well as to fund the Company's share of exploration on the FALC-JV Property. The exploration projects on both the Star Diamond Property and the FALC-JV Property will be conducted in order to assist in determining both projects' 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 properties 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 various other exploration activities, acquisition and exploration of additional diamond properties (as opportunities warrant), and for general corporate matters.
Caution Regarding Forward-looking Information
Caution Regarding Forward-Looking Statements
From time to time, Shore makes written or oral forward-looking statements within the meaning of certain securities laws, including the "safe harbour" provisions of the Ontario Securities Act and the United States Private Securities Litigation Reform Act of 1995. Shore may make such statements in this press release, in other filings with Canadian regulators or the United States Securities and Exchange Commission, in reports to shareholders or in other communications. These forward-looking statements include, among others, statements with respect to Shore's objectives for the ensuing year, our medium and long-term goals, and strategies to achieve those objectives and goals, as well as statements with respect to our beliefs, plans, objectives, expectations, anticipations, estimates and intentions. The words "may," "could," "should," "would," "suspect," "outlook," "believe," "plan," "anticipate," "estimate," "expect," "intend," and words and expressions of similar import are intended to identify forward-looking statements. In particular, statements regarding Shore's future operations, future exploration and development activities or the anticipated results of Shore's pre-feasibility study or other development plans contain forward-looking statements.
All forward-looking statements and information are based on Shore's current beliefs as well as assumptions made by and information currently available to Shore concerning anticipated financial performance, business prospects, strategies, regulatory developments, development plans, exploration, development and mining activities and commitments. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.
By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that predictions, forecasts, projections and other forward-looking statements will not be achieved. We caution readers not to place undue reliance on these statements as a number of important factors could cause the actual results to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates and intentions expressed in such forward-looking statements. These factors include, but are not limited to, developments in world diamond markets, changes in diamond valuations, risks relating to fluctuations in the Canadian dollar and other currencies relative to the US dollar, changes in exploration, development or mining plans due to exploration results and changing budget priorities of Shore or its joint venture partners; the effects of competition in the markets in which Shore operates; the impact of changes in the laws and regulations regulating mining exploration and development; judicial or regulatory judgments and legal proceedings; operational and infrastructure risks and the additional risks described in Shore's most recently filed Annual Information Form, annual and interim MD&A and short form prospectus, and Shore's anticipation of and success in managing the foregoing risks.
Shore cautions that the foregoing list of factors that may affect future results is not exhaustive. When relying on our forward-looking statements to make decisions with respect to Shore, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Shore does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by Shore or on our behalf.
For further information
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 Operating Officer and Chief Financial Officer, 300 - 224 4th Avenue South, Saskatoon, SK, S7K 5M5, PH: (306) 664-2202, FAX: (306) 664-7181
--------------------------------------------------------------------------------
Source: Shore Gold Inc.