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CAMPBELL
RESOURCES INC.
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/s/ Réal
Savoie
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Réal
Savoie
Vice-President
Finance
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99.1
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Press Release – November 14, 2008 – Campbell Resources reports third quarter 2008 financial results |
Exhibit 99.1
News release via CNW Telbec, Montreal 514-878-2520
Attention Business/Financial Editors:
Campbell Resources reports third quarter 2008 financial results
- Announces changes to Board of Directors
- Campbell and Nuinsco agree to terminate consulting agreement
- $26.3 million write-down charge taken for Copper Rand mine
MONTREAL, Nov. 14 /CNW Telbec/ - Campbell Resources Inc. (the "Company")
("Campbell") (TSX: CCH, OTC Bulletin Board: CBLRF) today announced financial
results for the third quarter and first nine months of fiscal 2008 ended
September 30, 2008.
<<
RECENT EVENTS
- On September 9, 2008, the Company announced that it will be
discontinuing mining operations at its Copper Rand mine by December 31,
2008. Campbell has 100% ownership of the Copper Rand mine, an
underground copper and gold mine located near the town of Chibougamau,
Quebec.
- On October 15, 2008, the Company announced that it suspended its bulk
sample exploration program at the Corner Bay property. Campbell owns
100% of the project subject to a 50-50 sharing of future cash flow with
Nuinsco Resources Limited ("Nuinsco"). Corner Bay is currently fully
permitted for the extraction of a 42,000 ton bulk sample. Despite the
suspension of the bulk sample exploration program, the Company is
moving ahead with an application for an environmental permit to allow
for commercial mining of the deposit once extraction of the bulk sample
is ultimately completed.
- Also on October 15, Campbell announced that James McCartney and James
Raymond resigned from the Board of Directors. Andre Fortier was named
Chairman of the Board, replacing Mr. McCartney.
>>
"With the Company's recent decisions to discontinue mining operations at
Copper Rand by year-end and to suspend the bulk sample exploration program at
Corner Bay because of extreme difficulties in securing financing in the
current marketplace and the decline in copper prices, there is uncertainty
about the Company's ability to successfully execute its operating plans," said
Andre Fortier, Campbell's President and Chief Executive Officer. "We are still
looking at various scenarios for the Company, but because these scenarios are
largely dependent on items outside our control, there is no assurance that the
Company will be able to continue to operate as a going concern."
FINANCIAL RESULTS
As of January 1, 2007, results from the Copper Rand mine have been
included in the consolidated operating results. Prior to this, Copper Rand
mine was considered to be in the preproduction development stage and, as such,
all costs, net of revenue from development ore, were deferred as mine
development costs.
As of September 11, 2007, operations at Joe Mann mine ceased and the mine
was put on care and maintenance. The Joe Mann mine was Campbell's principal
gold-mining operation.
In October 2007, the Company commenced production at Merrill Pit.
In the third quarter of 2008, Campbell operations produced 64,572 tons of
ore yielding 2,080 ounces of gold and 2,343,188 pounds of copper. In the third
quarter of 2007, 70,223 tons of ore were milled, yielding 5,030 ounces of gold
and 1,625,926 pounds of copper. Production was slowed in August because of
equipment and liquidity issues.
For the first nine months of fiscal 2008, Campbell operations produced
227,765 tons of ore yielding 6,103 ounces of gold and 6,290,973 pounds of
copper. In the first nine months of fiscal 2007, 161,749 tons of ore were
milled, yielding 13,853 ounces of gold and 3,631,764 pounds of copper.
A total of 1,600 ounces of gold and 1,894,123 pounds of copper were sold
in the third quarter of 2008 compared to 8,341 ounces of gold and 2,463,726
pounds of copper for the same period of 2007. The average market price for
gold in the third quarter of 2008 was $872 (US$838) per ounce compared to $711
(US$680) per ounce for the same period in 2007. The average market price for
copper in the third quarter of 2008 was $3.49 (US $3.35). In the third quarter
of 2008, the average sale price for gold was $930 per ounce compared to $682
in the same period of 2007. For copper, the average sale price was 4.10 per
pound in the third quarter of 2008 compared to $3.41 in the same period of
2007.
Net metal sales for the third quarter of 2008 reached $6.0 million
compared to $12.8 million for the same period last year. For the first nine
months of fiscal 2008, net metal sales totalled $15.8 million, compared to
$15.9 million in the corresponding period in 2007.
As per the contract for the sale of concentrate between Campbell and
Ocean Partners UK Limited ("OP"), revenues for concentrate inventory shipped
cannot be recognized until the transfer of ownership is completed when the
concentrate is delivered to the discharge port. As at September 30, 2008, $6.9
million of inventory valued at lowest of cost and net realizable value was
stored at Port of Quebec. On this amount of inventory, provisional payments in
the amount of $7.7 million were received from OP. The contract was amended in
March 2008 to allow the Company to borrow money on concentrate to be shipped.
As at September 30, 2008, the credit facility was not used.
The loss from operations totalled $30.2 million in the third quarter of
2008, compared to a loss of $4.0 million in the prior period. This loss from
operation includes a write-down of properties of $26.3 million which relates
to the discontinuation of operations at the Copper Rand mine. For the first
nine months of 2008, the loss from operations totalled $36.7 million, compared
to a $13.9 million loss from operations in the corresponding period in 2007.
For the third quarter of 2008, Campbell recorded a net loss of $29.9
million or $0.06 per share, compared to a net loss of $3.9 million or $0.01
per for the same period in 2007. For the first nine months, Campbell recorded
a net loss of $36.1 million or $0.08 per share, compared to a net loss of
$10.0 million or $0.03 per share for the same period in 2007.
BOARD CHANGES
Campbell also announced today that Graham Clow, Warren Holmes and Rene
Galipeau have resigned from the Board of Directors. The Board expressed its
gratitude for the many contributions Messrs. Clow, Holmes and Galipeau have
made to the Company, and wishes them well in their future endeavours.
TERMINATION OF CONSULTING AGREEMENT
The Company also announced today that Campbell and Nuinsco have jointly
agreed to terminate their Operating Consulting Agreement, which was originally
signed in 2006.
About Campbell Resources
Campbell Resources Inc. concentrates on the development and exploitation
of copper and gold mining properties in the Chibougamau region of Quebec. The
Company's headquarters are located in Montreal, Quebec.
Certain information contained in this release may contain
"Forward-Looking Statements" within the meaning of the Private Securities
Litigation Reform Act of 1995 and is subject to certain risks, assumptions and
uncertainties, including those "Risk Factors" set forth in the Campbell's
current Annual Report on Form 20-F for the year ended December 31, 2007, which
may cause actual future results to differ materially from those expressed or
implied in any forward-looking statement. Such factors include, but are not
limited to: differences between estimated and actual mineral reserves and
resources; changes to exploration, development and mining plans due to prudent
reaction of management to ongoing exploration results, engineering and
financial concerns; and fluctuations in the gold and copper prices which
affect the profitability and mineral reserves and resources of Campbell. The
key assumptions underlying the forward-looking statements contained in this
release are that the gold and copper prices remain equal to or above the
prices disclosed herein. Readers are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date hereof.
Forward-looking statements are expressly qualified in their entirety by this
cautionary statement.
<<
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Expressed in thousands of Canadian dollars)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
September 30 December 31
2008 2007
----------------------------------------------
$ $
Assets
Current assets
Cash 471 474
Restricted cash 2,028 1,113
Short-term investments 28 33
Receivables 1,560 3,066
Settlements receivable 2,178 739
Concentrate and metal inventories 7,282 1,218
Supply inventories 824 2,882
Prepaids 226 408
-------------------------------------------------------------------------
14,597 9,933
Amount receivable from Copper Rand/Portage
Restoration Fiduciary Trust 3,160 3,028
Restricted cash 1,158 1,158
Future income tax assets 1,338 1,317
Property, plant and equipment 30,381 45,017
Accrued benefit asset 5,132 4,897
-------------------------------------------------------------------------
55,766 65,350
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Liabilities
Current liabilities
Short-term loan 7,193 1,996
Accounts payable 20,030 15,411
Accrued liabilities 9,832 5,954
Prepayments for concentrate 7,672 965
Current portion of long-term debt 23,145 18,337
-------------------------------------------------------------------------
67,872 42,663
Asset retirement obligations 7,716 7,396
Long-term debt 121 2,688
Future income and mining tax liabilities 6,661 6,472
-------------------------------------------------------------------------
82,370 59,219
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Shareholders' (deficiency) equity
Capital stock 98,810 96,639
Warrants, stock options and conversion rights 8,269 9,432
Contributed surplus 6,421 4,109
Deficit (140,090) (104,040)
Accumulated other comprehensive loss (14) (9)
-------------------------------------------------------------------------
(140,104) (104,049)
-------------------------------------------------------------------------
(26,604) 6,131
-------------------------------------------------------------------------
-------------------------------------------------------------------------
55,766 65,350
-------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Expressed in thousands of Canadian dollars except per share amounts)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Three months ended Nine months ended
September 30 September 30
2008 2007 2008 2007
----------------------------------------------
$ $ $ $
Gross metal sales 7,069 14,201 18,550 17,397
Treatment charges 1,028 1,420 2,786 1,490
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Net metal sales 6,041 12,781 15,764 15,907
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Expenses
Cost of sales 7,900 15,025 19,240 24,988
Depreciation and
amortization 904 814 2,940 2,203
Write-down of properties 26,283 - 26,283 -
General administration 610 539 2,103 1,901
Stock-based compensation - 336 - 336
Warrants issued as fee for
short-term financial
arrangement - - 427 -
Reorganisation and CCAA
costs 114 74 148 281
Care and maintenance 434 15 1,336 91
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36,245 16,803 52,477 29,800
-------------------------------------------------------------------------
Loss before the following
items (30,204) (4,022) (36,713) (13,893)
Interest expense on
short-term loan (9) (24) (211) (185)
Interest and financial
expenses on long-term
debt (314) (712) (1,106) (1,280)
Interest income 1 9 20 37
-------------------------------------------------------------------------
Loss from operations (30,526) (4,749) (38,010) (15,321)
Other income (expense)
Other (expense) income 645 809 338 5,295
-------------------------------------------------------------------------
Loss before taxes (29,881) (3,940) (37,672) (10,026)
Income and mining taxes - - 1,622 -
-------------------------------------------------------------------------
Net loss (29,881) (3,940) (36,050) (10,026)
-------------------------------------------------------------------------
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Weighted average number of
common shares ('000) 468,712 409,205 449,325 385,151
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Loss per share undiluted
and diluted 0.06 0.01 0.08 0.03
-------------------------------------------------------------------------
-------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF CONTRIBUTED SURPLUS AND DEFICIT (UNAUDITED)
(Expressed in thousands of Canadian dollars)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Three months ended Nine months ended
September 30 September 30
2008 2007 2008 2007
----------------------------------------------
$ $ $ $
Contributed surplus
Balance, beginning of period 6,421 3,991 4,109 1,996
Stock options expired and
cancelled - 5 69 5
Warrants expired - - 2,243 1,995
-------------------------------------------------------------------------
Balance, end of period 6,421 3,996 6,421 3,996
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Deficit
Balance, beginning of
period 110,209 91,138 104,040 85,052
Net loss 29,881 3,940 36,050 10,026
-------------------------------------------------------------------------
Balance, end of period 140,090 95,078 140,090 95,078
-------------------------------------------------------------------------
-------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(Expressed in thousands of Canadian dollars)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Three months ended Nine months ended
September 30 September 30
2008 2007 2008 2007
----------------------------------------------
$ $ $ $
Net Loss 29,881 3,940 36,050 10,026
Other comprehensive income,
net of income tax:
Unrealized losses (gain)
on available-for-sale
investments arising
during the period 3 36 5 115
-------------------------------------------------------------------------
Comprehensive loss 29,884 3,976 36,055 10,141
-------------------------------------------------------------------------
-------------------------------------------------------------------------
>>
%SEDAR: 00001579EF %CIK: 0000718053
/For further information: Campbell Resources Inc.: Andre Fortier,
President and Chief Executive Officer, (514) 875-9037, Fax: (514) 875-9764,
afortier(at)campbellresources.com; Alain Blais, Vice-president and General
Manager of Operations, (418) 748-7691, Fax: (418) 748-7696,
ablais(at)campbellresources.com; Renmark Financial Communications Inc.: Henri
Perron: hperron(at)renmarkfinancial.com; John Boidman:
jboidman(at)renmarkfinancial.com, (514) 939-3989, Fax: (514) 939-3717,
www.renmarkfinancial.com/
(CCH. CBLRF)
CO: CAMPBELL RESOURCES INC.
CNW 11:48e 14-NOV-08