15th Nov 2006 07:01
Caledonia Mining Corporation15 November 2006 Caledonia Mining Corporation 3rd Quarter Results 2006 Toronto, Ontario - November 14, 2006: Caledonia Mining Corporation ("Caledonia")(TSX: CAL, NASDAQ-OTCBB: CALVF and AIM:CMCL) is pleased to announce its keyfinancial and operating results for the third quarter ended September 30, 2006. Operational Highlights Barbrook Gold Mine - South Africa • Gold production totaled 1,548 ounces during the quarter (Q3 2005:1,497 ounces).• Plant throughput rose steadily during July (13,292 tonnes) and August (12,500 tonnes) until production was disrupted in September by a legal strike between contract labourers and the labour broker resulting in total of 29,092 tonnes (Q3 2005: 20,451 tonnes) for the quarter.• Industrial action at the mine during October impacts on gold production, with only 88 ounces produced, culminating in illegal activities which severely damaged the offices and security buildings. The mine has now been placed on 'care and maintenance' until further notice, whilst a compensation claim is being pursued against the mine's labour broker. Blanket Gold Mine - Zimbabwe • Gold production for the third quarter totaled 6,475 ounces. Corporate/Financial • Consideration given for the Blanket Mine purchase was a payment of US$1 million and the issue of 20,000,000 Caledonia shares to Kinross.• Completed a private placement in July 2006 and raised $2.160 million after expenses through the issue of 17,000,000 common shares and 17,000,000 share purchase warrants. For the quarter ended September 30, 2006 Caledonia recorded a net loss of $3.074million ($0.007 per share) compared to a net loss of $2.564 million ($0.008 pershare) during the same period in 2005. The loss in 2006 results from ongoingexploration costs, operations at Barbrook, and the normal administrationexpenses during the quarter. Included in the loss for the quarter is anunrealized foreign exchange loss of $1.659 million (profit of $125,000 inquarter ended June 30, 2006 and a profit of $104,000 for the quarter ended March30, 2006) of which Blanket Mine contributed a loss a $1.595 million due to thedevaluation of the Zimbabwe dollar in August 2006. At an operating profit level, Caledonia recorded a profit of $1.524 million forthe period ended September 30, 2006 (loss of $1.309 million for the same periodin 2005) and a year to date operating loss of $1.982 million in 2006 (loss of $4.004 million for the same period in 2005). Reviewing the quarter, Stefan Hayden, President and CEO, said "The group's goldproduction for the quarter began well, with the Barbrook plant nearing theplanned throughput target of 15,000 tonnes a month and on target to match thesecond quarter's production. However an industrial dispute between the contractlabourers and the labour broker impacted on Barbrook's production in Septemberand unfortunately continued into October. Furthermore the dispute resulted inillegal activities in late October which led to the mine being placed on 'careand maintenance' in November. We are, of course, pursuing a claim forcompensation against the labour broker. The Blanket Mine in Zimbabwe has had a good quarter, with gold production up by400 ounces and net sales of $4.538 million. The mine is on track to meet thefourth quarter target. The expansion project, at shaft 4, is progressing and duefor completion in Q3 2007. This will almost double gold production to 40,000ounces. At the Nama cobalt deposit in Zambia, work is progressing well towards producinga NI 43-101 statement on anomalies "A", "C" & "D" which is expected to beavailable during December 2006." Caledonia Management's Discussion and Analysis was published on November 14,2006 and is available on the company's website: www.caledoniamining.com. For more information, please contact: Stefan Hayden Alex Buck / Nick BiasPresident and CEO, Caledonia Mining buck-biasTel: +27 11 447 2499 Tel: +44 7932 740 452 Further information regarding Caledonia's exploration activities and operationsalong with its latest financials may be found at www.caledoniamining.com. Certain statements included herein are "forward-looking statements". Managementcautions that forward-looking statements are not guarantees and that actualresult could differ materially from those expressed or implied in theforward-looking statements. Important factors that could cause the actualresults of operations, exploration or development programs, or the financialcondition of the Company, to differ include, but are not necessarily limited to,the risks and uncertainties discussed in documents filed by the Company with thevarious regulatory authorities having jurisdiction. CALEDONIA MINING CORPORATION REPORT FOR QUARTER ENDED SEPTEMBER 30, 2006 HIGHLIGHTS FOR THE QUARTER ENDED SEPTEMBER 30, 2006 (Q3) Barbrook Gold Mine - South Africa • Following the completion of the plant expansion in late January from a capacity of 6,000 tonnes per month to a projection of 15,000 tonnes per month, plant throughput has increased steadily reaching 12,397 tonnes in June, 13,292 tonnes in July, 12,500 tonnes in August but only 3,300 tonnes in September. Production was disrupted during September when contract labourers embarked on a legal strike over a wage dispute with the labour broker who supplies labour to the mine. As a result 29,092 tonnes (32,133 tonnes in quarter ended June 30th, 2006) were treated in the plant during the quarter.• Gold production totaled 1,548 ounces (1,749 ounces in quarter ended June 30th 2006) during the quarter and only 88 ounces in October due to the industrial action at the mine.• In October workers embarked on illegal activities that resulted in severe damage to the offices and security buildings at Barbrook. No damage was caused to the metallurgical plant or underground workings, the Barbrook operations have now been placed on "care and maintenance". Blanket Gold Mine - Zimbabwe • Acquired a 100% interest in the Blanket Gold Mine in Zimbabwe from Kinross Gold Corporation of Toronto with effect from 1 April 2006.• Gold production during the three months ending June 30, 2006 totaled 6,045 ounces, 6,475 ounces were produced in the 3 months ended September 30, 2006 and 2,109 ounces in October, 2006. Corporate/Financial • Consideration given for the Blanket Mine purchase was a payment of US$1 million and the issue of 20,000,000 Caledonia shares.• Completed a private placement in July 2006 and raised $2,160,000 after expenses through the issue of 17,000,000 common shares and 17,000,000 share purchase warrants. 2006 OBJECTIVES • Subsequent to the industrial action at Barbrook Mine and the extent of the damaged caused to certain buildings a decision around the future of Barbrook Mine must be taken. On the assumption that Barbrook continues in operation: - Improve safety awareness at Barbrook Mine and further develop necessary programs to ensure a safe operation. - Optimise gold production at Barbrook Mine in South Africa by treating at least 15,000 tonnes per month. - Continue developing additional reserves/resources at Barbrook Mine. - Complete metallurgical studies to confirm viability of economic gold recovery from Daylight & Victory zones at Barbrook Mine.• Continue with negotiations to conclude agreements with cobalt refiners to purchase cobalt concentrate produced at Nama and/or form strategic alliances to achieve this objective.• Seek a joint-venture partner to commence an exploration program at the Kadola copper/cobalt and the Eureka copper/gold properties in Zambia.• Further explore the polymetallic resource on the Rooipoort and Grasvally properties which form the Rooipoort PGE/Ni/Cu Exploration Project in South Africa.• Increase the land holdings around the Rooipoort Exploration property.• Drill identified extensions to the known ore zones on the Eersteling and Zandrivier Mining Licence areas.• Pursue possible acquisitions and/or strategic partnerships to expand Caledonia's portfolio of properties.• Expand the Board of Directors to address ongoing Corporate Governance requirements.• Implement succession plans for senior executive and operational staff.• Strengthen the Investor Relations and Public Relations functions within Caledonia.• Conclude necessary agreements to satisfy the South African Black Economic Empowerment ("BEE") requirements.• Arrange necessary financing to support the activities required to meet these objectives.• Expedite the Number 4 shaft expansion project at the newly acquired Blanket Gold Mine to increase gold production to 50,000 ounces per annum. PRESIDENT'S MESSAGE The acquisition of the Blanket Gold Mine in Zimbabwe is a significant steptowards Caledonia's goal of developing the asset base into a significantdiversified international mining company. Gold has been mined in the Blanketarea for close to 100 years. As of 2005 Blanket's reported historic life-timegold production exceeded one million ounces. With the reported proven andprobable ore reserves exceeding 3 million tonnes Blanket should continue toproduce gold for many years to come. I am delighted to welcome the Blanketmanagement team and staff to Caledonia where I am sure they will make asignificant positive impact on Caledonia's future revenue. The Number 4 shaft expansion project at Blanket is currently well underway andshould be completed by third quarter 2007 (originally second quarter 2007) dueto delays beyond Blanket's control. The new shaft should allow Blanket toprogressively increase gold production to 40,000 ounces per year. The latestmonetary policy in Zimbabwe allows mines to retain 67.5% of their foreignexchange proceeds (increased from 40%) - which will have a positive impact onBlanket together with the cost cutting program which is rapidly beingimplemented. The metallurgical tests proposed by Caledonia have been completedand the circuit changes are being finalized. These should result in increasedgold recoveries, lower reagent consumption and costs. The accompanying Highlights and 3rd quarter MD&A contain information withrespect to the Barbrook Mine. Further samples from the "A" anomally on the Namaproperty in Zambia were taken and shipped to China for confirmatory testwork.Samples where also sent for furnance testing in South Africa. Negotiationsregarding long term cobalt sales agreements with a number of large cobaltrefiners are advancing. Technical and economic studies related to the productionof saleable cobalt carbonates and hydroxides at Nama are presently underway inSouth Africa and China. S. E. HaydenPresident and Chief Executive Officer CALEDONIA MINING CORPORATION November 14th, 2006Management's Discussion and Analysis This Interim MD & A covers the Company's third fiscal quarter from July 1, 2006to September 30, 2006 - and the period thereafter to November 6, 2006. It is tobe read in conjunction with the Company's Annual Management Discussion andAnalysis for the fiscal year ended December 31, 2005, the audited financialstatements of the Company prepared to December 31, 2005, the Company's 2005Annual Report and with the Interim MD&As and unaudited financial statementscontained in the Interim Quartely Reports for the first and second quarters. Allof these documents have been filed on SEDAR and are available at www.sedar.comor on the Corporation's website at www.caledoniamining.com. Note that all currency references in this document are to Canadian dollars. 1. OPERATIONAL REVIEW, OVERALL PERFORMANCE AND RESULTS OF OPERATIONS (a) Barbrook Mine South Africa Barbrook Mine is temporarily on "care and maintenance". In early August metallurgical testing by Mintek of South Africa identifiedoperating parameters which successfully reduced the previously unexplained goldlosses in the oxidation circuit in the laboratory. Efforts were commenced tomodify the plant to duplicate these parameters in the full scale operation, butbefore these changes could be fully tested during continuous operations thecontractor's labour commenced a legal strike on August 28th . Some replacementworkers were supplied by the contractor but due to intimidation there was a highturnover, which when coupled with necessary safety training, adversely affectedproductivity. The strike was terminated on October 13th and employees were requested to returnto work on October 16th. However, following a re-organisation and reduction ofthe workforce there were significant disruptions on site and several surfacebuildings and facilities were destroyed. All facilities at Barbrook areuninsured and a claim has been lodged against the labour contractor in terms ofthe contract with them. The reduction in Gold Sales Revenue for the quarter compared with that in thesecond quarter is due to the lack of production in September resulting from thelabour strike. Underground work continued in the Taylors, French Bob and Twalas zones todevelop additional resources in these zones, but was stopped in late August whenlimited manpower was redeployed in production areas. Barbrook Mine - 2006 Production Results 1st Qtr 2nd Qtr 3rd Qtr October 1 Jan - 1 Apr - 1 Jul - 1 Oct - 31 Mar 30 Jun 30 Sept 31 Oct Ore Mined Tonnes 27,565 29,886 30,134 0DevelopmentAdvance Meters 795 737 378 0Ore Milled Tonnes 19,357 32,133 29,092 1,700Grade Milled g/t 3.78 3.37 3.79 3.20Gold Recovered Ounces 902 1,749 1,548 88 The table below summarizes the Reserve and Resource data as at September 30,2006. MINERAL RESERVES Classification Mineral Grade Content Content (Tonnes) Au kg OuncesProven Ore 256,500 5.88 1,508 48,490Probable Ore 53,000 6.11 324 10,410TOTAL PROVEN & PROBABLE ORE 309,500 5.92 1,832 58,900 MINERAL RESOURCES * Measured 495,000 2.96 1,465 47,100Indicated 1,196,000 5.29 6,330 203,400Inferred 2,400,000 5.91 ** *** The mineral resources figures are not included in the mineral reserve figures.** In keeping with the requirements of NI 43-101 Inferred Resources are reportedwithout estimates of metal quantities. Dr Trevor Pearton, PhD, FGSSA. Technical Director of Barbrook, is Caledonia's "Qualified Person" with respect to the Barbrook Mine property for the purposes of National Instrument 43-101 and has approved this property description. The above Reserve and Resource data is compiled using Caledonia's internal standardsand National Instrument 43-101 compliant Reserve and Resource data will be madeavailable as soon as practicable. (b) Blanket Mine Zimbabwe In July 2006 Caledonia completed the purchase of the Blanket Gold Mine inZimbabwe - the purchase being effective as of April 1, 2006. The Blanket mine isan underground gold mine which currently mines and processes approximately 550tonnes per day. Recent average gold production has been approximately 2,100ounces per month. A variety of mining methods are employed to suit the changing ore zones atBlanket. Methods used include underhand stoping, shrinkage stoping and long-holestoping. The ROM (run-of-mine underground ore) metallurgical process consists of threestage crushing with a feed size of 350mm producing a final product of 80%passing 8mm. This product is fed into an open circuit Rod mill at a rate of 24metric tph. From the Rod mill the discharge combines with the regrind millproduct and is pumped to the Knelson Concentrators. Three different sized millsoperating in closed circuit with a hydro cyclone and two 30" CD KnelsonConcentrators comprise the regrind circuit. Knelson concentrates are furthertreated on the Gemini table to produce a much cleaner concentrate, which iscalcined before smelting on-site. Dewatering of the hydro cyclone overflow to 50% solids is undertaken beforefeeding it into the CIL head tank. Six contact tanks make up the CIL. Tailings from the CIL stream are pumped to the tailings dam with the effluentrecycled to the plant. These tailings are partially treated to reduce the freecyanide levels before pumping to the tailings deposition area. Production results for the Blanket Mine from April 1, 2006 - the effective dateof the acquisition - are given in the table below. Blanket Mine - 2006 Production Results since the April 1, 2006 acquisition date Information only 1st Qtr 2nd Qtr 3rd Qtr October 1 Jan - 31 1 Apr - 30 1 Jul - 30 1 Oct - 31 Mar Jun Sept Oct Not ConsolidatedOre Minedand Hoisted Tonnes 54,100 50,700 52,146 15,713DevelopmentAdvance Meters 395 772 903 300Ore Milled Tonnes 47,800 51,500 53,375 17,789Grade Milled g/t 4.10 4.10 4.15 3.86Gold Recovered Ounces 5,653 6,045 6,475 2,109 As announced in June, a US$2.5 million project to complete the new #4 shaft andincrease the milling throughput to 1000 tpd and gold production to 40,000 ouncesper year is underway and is proposed to be completed during Q3 2007. The slypingof the shaft from the 630 meter level to the 750 meter level, the blind sinkingto the 810 meter level, the establishment of the bin loading arrangements on 780meter level, and the equipping of the shaft with steel ladders and platformsfrom the 630 meter level to the 810 meter level have all been completed. Themining of the ore and waste bins from 765 meter level to 750 meter level and thecrusher chamber are in progress. The table below summarizes the Reserve and Resource data as at June 30, 2006. MINERAL RESERVESClassification Mineral Grade Content Content (Tonnes) Au kg OuncesProven Ore 1,310,400 3.82 5,002 160,820Probable Ore 2,326,000 4.10 9,540 306,700TOTAL PROVEN & PROBABLE ORE 3,636,400 4.00 14,542 467,500 MINERAL RESOURCES *Indicated 380,000 4.12 1,600 51,000Inferred 2,400,000 5.91 ** *** The mineral resources figures are not included in the mineral reserve figures.** In keeping with the requirements of NI 43-101 Inferred Resources are reportedwithout estimates of metal quantities. A Report on the Blanket Mine, dated August 4th, 2006 as required by NationalInstrument 43-101 was prepared by Applied Geology Services cc of South Africa.Mr. David Grant, Pr.Sci.Nat. is the Independent Qualified Person responsible forthe report. The Technical Report has been filed on SEDAR and is available atwww.sedar.com or on the Corporation's website at www.caledoniamining.com. TheReserve and Resource information above has been taken from that NI 43-101compliant report. (c) Nama Cobalt Project, Zambia During the quarter work continued on the preparation of a NI 43-101 statement onanomalies "A", "C" & "D" which is expected to be available during December 2006.A detailed geological interpretation has revealed a hitherto unknown geologicalstructure and has facilitated the interpretation of the mineralisation model andlikely areas of extension. A follow-up drilling program is planned for the firsthalf of 2007 dependant on the access to the sites as permitted by the rainyseason. Follow-up geochemical work is being carried out across the Nama "A" anomaly inorder to test continuity of potentially mineralized zones in the lower soilprofile. The results of the further two stage Wet High Intensity Magnetic Separation(WHIMS) test work show cobalt recoveries of over 70% and the amenability of thecobalt mineralization to further concentration by flotation has been confirmed,despite previous test work findings. Further samples were collected from the same bulk sample site and screened to+5mm and -5mm fraction sizes on site. The samples were then shipped formetallurgical testing in South Africa and in China. The weight of the combinedsample was 2 tonnes. Results of this testwork are expected before year end. Current and immediate future funding is provided from available working capital. Caledonia has been granted an extension to its exploration licences at Nama inthe form of a "Retention Licence". (d) Financing In July 2006 the company completed a private placement to raise additionalfunds. This placement of17 million units, each consisting of one common share and one share purchasewarrant, was completed in July 2006 and raised $2.16 million after expenses. 2. SUMMARY OF QUARTERLY RESULTS The following information is provided for eachof the eight most recently completed quarters of the company - ending on thedates specified - in thousands of Canadian dollars and using the same principlesas used to produce the annual financial statements. C$000's Sept June Mar Dec Sept June Mar Dec 30/06 30/06 31/06 31/05 30/05 30/05 31/05 31/04 -------- -------- -------- -------- -------- -------- -------- ------- ---------------- -------- -------- -------- -------- -------- -------- ------- --------Net SalesorTotal $5,637 $1,304 $418 $453 $743 $965 $481 $469Revenues-------- -------- -------- ------- ------- ------- ------- ------- -------Net (loss) - total ($3,074) ($2,893) ($2,266) ($2,054) ($2,564) ($3,276) ($1,786) ($4,569) - per ($0.007) ($0.007) ($0.006) ($0,006) ($0.008) ($0.011) ($0.007) ($0,015)shareundiluted- per ($0.007) ($0.007) ($0.006) ($0,006) ($0.008) ($0.011) ($0.007) ($0,015)sharediluted-------- -------- -------- ------- ------- ------- ------- ------- ------- Note: As there are no extraordinary items the disclosed net losses per share areidentical to the total loss before extraordinary items. For the period ended September 30, 2006 Caledonia had a net loss of $3.074million ($0.007 per share) compared to a net loss of $2.564 million ($0.008 pershare) during the same period in 2005 and a net loss of $2.25 million ($0.008per share) in the same period 2004. At an operating profit level Caledonia had a profit of $1.524 million for theperiod ended September 30, 2006 ( loss of $1.309 million in 2005 and loss of$1.852 million in 2004) and a year to date operating loss of $1.982 million in2006 ( loss $4.004 million in 2005 and loss $4.393 million in 2004) The results for the quarter ended September 30 , 2006 are affected by theinclusion of Blanket Mine results, and the lower results for Barbrook Mine dueto the industrial action that took place during the quarter. Net sales forBarbrook Mine for the quarter ended September 30 , 2006 were $1.098 million($1.303 million quarter ended June 30th and $417 for quarter ended Mar 31st).Net sales for Blanket Mine for the quarter ended September 30 , 2006 were $4.538million. Included in the loss for the quarter is an unrealized exchange loss of $1.659million (profit of $125 in quarter ended June 30 , 2006 and profit of $104 inquarter ended March 31 , 2006) of which Blanket Mine's contribution to this lossamounted to $1.595 million due to the devaluation of the Zimbabwe dollar inAugust 2006. Also included in the loss for the quarter is an amortization charge of $1.846million ($965 quarter ended June 30, 2006 and $181 for quarter ended March 31,2006 ). The amortization charge has increased as the Barbrook Mine plantexpansion started to be amortised during quarter ended June 30, 2006 and theamortization rate at Barbrook has increased from 13% pa to 16,5% pa based onlife of mine calculations. The loss in 2006 results from mining operations at Barbrook and Blanket, thenormal administration expenses and ongoing exploration costs during the quarter. 3. LIQUIDITY Blanket Mine is financially self sufficient relating to working capitalresources and the costs of the #4 shaft expansion project. The future ofBarbrook Mine will determine the future cash needs of Caledonia. Settlement ofcurrent working capital liabilities will continue to be funded via the receiptof funds from shareholders as and when necessary. 4. CAPITAL RESOURCES The only commitments towards capital expenditure are related to the completionof #4 shaft expansion project at Blanket Mine. This project will continue to beinternally funded by Blanket Mine.There are no other capital projects associatedwith any Caledonia operations that require funding. 5. CRITICAL ACCOUNTING ESTIMATES There are no critical accounting estimates made by Caledonia that wouldmaterially affect the financial condition or results of the company if the basisof the estimate was changed. 6. ADDITIONAL INFORMATION (a) As at October 31, 2006 the following securities of the Company were outstanding: - 457,981,021 common shares. - 17,238,000 common share purchase options at an average price of $0.21 maturing at various dates until May 11, 2016. - 17,850,000 common share purchase warrants exercisable at a price of $0.20 per share until December 28, 2007 - 10,000,000 common share purchase warrants exercisable at a price of $0.20 per share until January 31, 2008 - 5,437,626 common share purchase warrants exercisable at a price of $0.20 per share until February 3, 2008. - 22,890,000 share purchase warrants exercisable at a price of $0.15 per share until April 28, 2007. - 9,748,259 share purchase warrants exercisable at a price of $0.15 per share until May 12, 2007. - 2,190,000 share purchase warrants exercisable at a price of $0.18 per share until May 12, 2007. - 17,000,000 share purchase warrants exercisable at a price of $0.16 per share until July 27, 2007. (b) For further information about Caledonia reference is also made to its 2005 20F Annual Registration Statement dated March 31, 2006 filed with the U.S. Securities and Exchange Commission on its EDGAR . Management's Responsibility for Financial Reporting To the Shareholders of Caledonia Mining Corporation: The accompanying unaudited consolidated financial statements of Caledonia wereprepared by management in accordance with accounting principles generallyaccepted in Canada, consistently applied and within the framework of the summaryof significant accounting policies in these consolidated financial statements.Management is responsible for all information in the quarterly report. Allfinancial and operating data in the quarterly report is consistent, whereappropriate, with that contained in the consolidated financial statements. The Board of Directors discharges its responsibilities for the consolidatedfinancial statements primarily through the activities of its Audit Committeecomposed of three directors, two of whom are not members of management. ThisCommittee meets with management to assure that it is performing itsresponsibility to maintain financial controls and systems and to approve thequarterly consolidated financial statements of Caledonia. The consolidated financial statements have not been reviewed by Caledonia'sauditors. S. E. Hayden S.R. CurtisPresident and Vice-President FinanceChief Executive Officer and Chief Financial Officer Consolidated Balance Sheets(in thousands of Canadian Dollars) September 30, December 31, September 30, (Unaudited) 2006 2005 2005Assets Current AssetsCash and short term deposits 906 1,076 94Accounts Receivable 2,514 768 361Inventories 2,306 90 621Prepaid expenses 302 330 168 __________ __________ __________ 6,028 2,264 1,244 Investment at cost 79 79 79Capital assets 8,427 9,156 6,897Mineral properties 13,087 10,839 11,452 __________ __________ __________ 21,593 20,074 18,428 __________ __________ __________Total assets 27,621 22,338 19,672 __________ __________ __________ Liabilities and ShareholderEquity Current LiabilitiesBank overdraft - 197 -Accounts payable 4,768 2,392 1,066 Long term debt 45Prov for site restoration 1,043 377 407 __________ __________ __________ 5,856 2,966 1,473 Shareholders equityShare capital 190,626 180,053 176,539Contributed surplus 975 923 742Compensation warrants 468Deficit (169,837) (161,604) (159,550) __________ __________ __________ 21,765 19,372 18,199 __________ __________ __________Total Capital and liabilities 27,621 22,338 19,672 __________ __________ __________ Consolidated Statement of Deficit(in thousands of Canadian Dollars) Three month period ended Nine month period ended September 30, September 30,(Unaudited) 2006 2005 2004 2006 2005 2004------------------- ------- ------- ------- -------- ------- -------Deficit,beginning (166,763) (156,986) (145,180) (161,604) (151,924) (141,945)Net(loss) forthe period (3,074) (2,564) (2,250) (8,233) (7,626) (5,485) ----------------- -------- -------- -------- -------- -------- --------Deficit, endof period (169,837) (159,550) (147,430) (169,837) (159,550) (147,430) Consolidated Statement of Operations(in thousands of Canadian Dollars) Three month period ended Nine month period ended September 30, September 30,(Unaudited) 2006 2005 2004 2006 2005 2004------------------- ------- ------- -------- ------- ------- ---------Revenue andoperating costsRevenue fromsales 5,637 743 202 7,359 2,189 372Operatingcosts 4,114 2,052 2,054 9,342 6,193 4,765 ------- ------- -------- ------- ------- ---------Operatingprofit (loss) 1,524 (1,309) (1,852) (1,982) (4,004) (4,393) ------- ------- -------- ------- ------- --------- Costs andexpensesGen and admin 987 341 365 1,719 1,565 1,324Interest (3) 4 (10) 1 9 53Unrealisedforexloss(gain) 1,659 284 - 1,433 979 334Other expenses(income) 1,955 626 43 3,098 1,069 (681) ------- ------- -------- ------- ------- --------- 4,597 1,255 398 6,250 3,622 1,030 ------- ------- -------- ------- ------- --------- (Loss) beforenoncontrollinginterest (3,074) (2,564) (2,250) (8,233) (7,626) (5,423)noncontrollinginterest (13)------------------- ------- ------- -------- ------- ------- ---------Net (loss) forthe period (3,074) (2,564) (2,250) (8,233) (7,626) (5,410) ------------------- ------- ------- -------- ------- ------- --------- Operatingprofit/(loss)per share $0.0033 ($0.004) ($0.006) ($0.005) ($0.013) ($0.015) Basic and fullydiluted Net (loss) pershare ($0.007) ($0.008) ($0.008) ($0.020) ($0.024) ($0.019) Basic and fullydiluted Consolidated Statement of Cashflows(in thousands of Canadian Dollars) Three month period ended Nine month period ended September 30, September 30,(Unaudited) 2006 2005 2004 2006 2005 2004Cash providedby (used in) OperatingactivitiesOperatinggain/(loss)for the period 1,523 (1,309) (1,852) (1,982) (4,004) (4,393) Other costsand expensesandnon-controllinginterests (4,597) (1,255) (398) (6,250) (3,622) (1,017) Adjustments toreconcile netcash fromoperations 373 690 162 1,558 1,208 (430) Changes innon-cashworkingcapitalbalances 1,175 107 (203) (1,513) (135) (360) ________ ________ ________ ________ ________ ________ (1,527) (1,767) (2,291) (8,188) (6,553) (6,200) ________ ________ ________ ________ ________ ________InvestingactivitiesCapitalexpenditure (518) (79) (451) (1,305) (335) (1,565)Expenditureson mineralproperties (523) (611) (563) (1,053) (2,723) (1,242) ________ ________ ________ ________ ________ ________ (1,041) (690) (1,014) (2,358) (3,058) (2,807)FinancingactivitiesReduction ofoverdraft (197)Issue of sharecapital net ofcosts 2,160 69 - 10,573 3,235 14,167 ________ ________ ________ ________ ________ ________ 2,160 69 - 10,376 3,235 14,167 ________ ________ ________ ________ ________ ________ Increase(decrease) in cashfor the period (408) (2,388) (3,305) (170) (6,376) 5,160Cash beginningperiod 1,314 2,482 12,644 1,076 6,470 4,179 ________ ________ ________ ________ ________ ________Net Cash endperiod 906 94 9,339 906 94 9,339 ________ ________ ________ ________ ________ ________ This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Caledonia Min