16th Apr 2009 10:23
Press Release
April 16, 2009
Symbols: TSXV: UME; AIM: UGY
Uruguay Mineral Exploration Inc. Announces Resultsfor the Third Quarter of Fiscal Year 2009
Uruguay Mineral Exploration Inc. (UME), a South American focused gold production and exploration company, today reported results for the third quarter of fiscal 2009 ended February 28, 2009.
David Fowler, Chief Executive Officer commented: "This quarter showed a significant improvement over the prior quarter. We produced 19,371 ounces of gold at an average cash cost of $US 547 per ounce. Production was in line with our expectation, and represented a 22 percent increase over the previous quarter. Average cash costs fell by 33 percent during the same period reflecting the increase in head grade, the initial success of the company-wide cost reduction program implemented during the quarter and the decline in the price of oil and other consumables."
Mr. Fowler continued: "On the exploration front, we have received the result of an independent resource estimate for Arenal Deeps, which indicates a measured and indicated resource of 3.16 million tones at 2.2 g/t Au using a 1.5 g/t cut off. We expect to release the results of an underground pre-feasibility study in June 2009 with potential production levels, capital investment and operating costs. Infill and extension drilling and feasibility studies are anticipated to follow. "
"Despite good surface anomalies in the Rincon district along strike to the east of the Arenal mine, to date drilling has not returned significant results to identify a new bulk open pit resource. Additional targets are however being defined in the Rincon district and will be tested in coming quarters. First pass drilling was completed over the Peru/Esperanza trend during the quarter to test for higher grade open pit vein resources. Two high priority targets have been defined for further definition in coming quarters. Best results were six meters at 5.4 g/t au from 37 meters in MCRC010 and three meters at 8.26 g/t au in PRRC042. "
"Away from the mine first pass drilling at Paso de Lugo reported a best result of 9 meters at 2.95 g/t au from 92 meters in hole PLD09005" Mr. Fowler closed.
| Summary of Results1 | Three months ended February 28, | Nine months ended February 28, | |||||||||
| Q3 2009 | Q3 2008 | 2009 | 2008 | ||||||||
| Operating Results | |||||||||||
| Gold produced | Ounces | 19,371 | 25,150 | 51,647 | 69,931 | ||||||
| Average cash cost | US$/oz | 547 | 342 | 706 | 375 | ||||||
| Average price received | US$/oz | 822 | 888 | 841 | 777 | ||||||
| Financial Results | |||||||||||
| Revenue | $US '000s | 17,125 | 22,220 | 46,505 | 56,653 | ||||||
| Net income (loss) for the period | $US '000s | (1,098) | 5,942 | (11,859) | 11,535 | ||||||
| Cash flow from operations2 | $US '000s | 4,091 | 4,416 | 3,289 | 17,359 | ||||||
| Basic earnings per share | $US | (0.02) | 0.12 | (0.24) | 0.24 | ||||||
| Cash at the end of the period | $US '000s | 8,051 | 14,942 | 8,051 | 14,942 | ||||||
| Total debt at the end of the period | $US '000s | 71 | 2,309 | 71 | 2,309 | ||||||
1 Results are based on Canadian GAAP and expressed in U.S. dollars.
2 Before non-cash working capital movements.
REVIEW FOR THE THIRD QUARTER ENDED FEBRUARY 28, 2009
Production and Costs
Gold production for the third quarter of fiscal 2009 was 19,371 ounces, 22% above production for the previous quarter, and in line with management's expectations. As anticipated, increased grade was encountered at the Arenal pit as mining returned to the core of the deposit. Arenal provided most of the plant feed, but considerable tonnage was sourced from the Zapucay area while smaller amounts of high grade Veta material provided supplementary feed.
Aggregate production for the first nine months of fiscal 2009 was 51,647 ounces. UME confirms its previously announced production forecast for fiscal 2009 of 72,000 to 75,000 ounces.
Cash costs for the quarter were $US 547 per ounce, and represent a 33% reduction from the previous quarter. As expected, the decline in cash costs was principally the result of:
increased head grade; a company-wide cost cutting program, including a 20% reduction in headcount and elimination of discretionary expenditure; lower oil prices and the depreciation of the US dollar against the Uruguayan peso; and re-negotiation with suppliers resulting in a decline in the price of other consumables such as explosives and grinding media.Cost reduction will continue to be an important focus during the last quarter of fiscal 2009. The average cash cost estimate for the 2009 financial year has been revised to the range of $US 650 to $US 680 per ounce from the previous estimate of $US 600 to $US 630. This reflects a change in the mine plan to defer mining of higher levels of medium grade ore at San Gregorio east from the fourth quarter of 2009 into the first quarter of 2010. These higher levels of medium grade ore were expected to produce an inventory credit of approximately $US 3 million which affects cash operating costs, but not the Company's cash position.
Financial Performance
Results for the quarter improved to a net loss after tax of $US 1.1 million from a net loss after tax of $US 7.9 million in the previous quarter. This compares against the $US 5.9 million net profit after tax posted in the corresponding quarter last year. The average gold sales price was $US 822 per ounce, against a cash cost of $US 547 per ounce.
The quarter on quarter improvement was principally the result of increased head grade and the positive impact from the company-wide cost cutting program. This was offset by an unrealized loss of $US 0.9 million on gold forward sales, a $US 0.8 million write-off of exploration expenses, and the depreciation of mine properties that have entered into production during the quarter. Year-on-year, however, results were negatively impacted by lower ounces produced and sold, as well as higher depreciation resulting from the shortfall in high grade ore at Arenal.
Cash flow generated by operations was $US 4.1 million after working capital items compared to $US 4.4 million in the year-ago quarter. The Company's cash position improved to US$ 8.1 million at the end of February 2009, from US$ 6.4 million at the end of November 2008. UME maintains its objective of achieving a cash position at May 31, 2009 of between $US 8 million to 10 million. This position is expected to be achieved after funding exploration expenditure of approximately US$ 10 million for fiscal 2009.
Capital expenditure for the quarter was $US 0.5 million invested in property, plant and equipment and $US 1.9 million in exploration. Investment in exploration included $US 1.2 million in exploration activities near the mine and in the Isla Cristalina belt and, $US 0.4 million in other gold projects in the Florida and Don Feliciano Belts and $US 0.1 million on Lascano.
Exploration and Development
A geological map of Uruguay and UME's key projects can be viewed at this link: http://www.uruguayminerals.com/explorations/introduction/intro/
Arenal Deeps
On April 6, 2009 the Company published a new resource estimate for Arenal Deeps. A 3,164,000 tonne Measured and Indicated Resource below the designed limit of the open pit has been estimated at 2.21 g/t using a gold cut-off of 1.5 g/t. The open pit is expected to be completed to design by April 15, 2009.
Mineral Resource Estimate*
| Cut off | Resource | Tonnes | Au | Measured + Indicated | |||||||||
| Au g/t | Category | (dry metric) | g/t | Tonnes | Au g/t | Contained Au Oz | |||||||
| 0.5 | Measured | 991,000 | 1.32 | 9,126,000 | 1.39 | 408,000 | |||||||
| Indicated | 8,135,000 | 1.40 | |||||||||||
| Inferred | 484,000 | 1.33 | |||||||||||
| 1.0 | Measured | 616,000 | 1.65 | 5,780,000 | 1.77 | 328,000 | |||||||
| Indicated | 5,164,000 | 1.78 | |||||||||||
| Inferred | 254,000 | 1.84 | |||||||||||
| 1.5 | Measured | 308,000 | 2.07 | 3,164,000 | 2.21 | 224,000 | |||||||
| Indicated | 2,856,000 | 2.22 | |||||||||||
| Inferred | 152,000 | 2.27 | |||||||||||
| 2.0 | Measured | 130,000 | 2.54 | 1,557,000 | 2.70 | 135,000 | |||||||
| Indicated | 1,427,000 | 2.71 | |||||||||||
| Inferred | 75,000 | 2.79 | |||||||||||
| 2.5 | Measured | 49,000 | 3.09 | 790,000 | 3.16 | 80,000 | |||||||
| Indicated | 741,000 | 3.16 | |||||||||||
| Inferred | 40,000 | 3.27 | |||||||||||
* Totals have been rounded † 359 drill holes were used in an estimation process incorporating ordinary kriging for a high grade domain and inverse distance weighting for a low grade domain
The measured, indicated and inferred resource detailed above is outside of the final pit design used for reserve estimation. The 780,167 tonnes at 2.21 g/t using a 1.5 g/t cut of measured and indicated resource shown above have been included in the last resource statement for Arenal published June 1, 2008.
This resource estimate is being used by Golder Associates S.A. in its underground mining pre-feasibility study for Arenal Deeps which is expected to be released in June 2009. This study will provide preliminary estimates of mining recoveries, operating cost and capital.
Concurrent with the completion of prefeasibility work, in April 2009 UME has commenced a 4,500 meter drill campaign to further define and increase this resource. A follow up15,000 meter infill drill program would follow as part of a bankable feasibility study. The total cost of completing feasibility studies and drilling is estimated at $US 3 million and is expected to be funded from operating cash flow.
Following completion of a bankable feasibility study mine plans are expected to be updated to reflect underground mining with the objective of contributing to production within two years and extending mine life to beyond five years. Once the economics of underground mining for Arenal Deep are understood and equipment is available additional exploration targets at San Gregorio, Ombú, the Vetas and other areas are expected to be tested to incrementally add resources.
A cross section of the down dip drilling at Arenal can be viewed at this link: http://www.uruguayminerals.com/explorations/isla_cristalina_belt/san_gregorio/
Veta Sur
Definition and extension drilling was completed at Veta Sur during the quarter. Selected significant drill results include:
| HOLE ID | FROM | Intercept g/t Au | |||
| VSRC138 | 22 | 5m @ 3.33g/t | |||
| VSRC139 | 32 | 2m @ 8.11g/t | |||
| VSRC142 | 35 | 2m @ 3.47g/t | |||
| VSRC144 | 14 | 4m @ 4.48g/t | |||
| VSRC145 | 28 | 5m @ 3.90g/t | |||
| VSRC146 | 49 | 7m @ 3.86g/t | |||
| VSRC147 | 52 | 5m @ 2.47g/t | |||
| VSRC148 | 37 | 13m @ 13.67g/t | |||
| VSRC149 | 32 | 4m @ 4.64g/t | |||
| VSRC150 | 36 | 6m @ 6.68g/t | |||
| VSRC151 | 54 | 3m @ 4.7g/t | |||
| VSRC152 | 50 | 4m @ 2.90g/t |
As a result of this drilling, 137,650 tones at 2.64 g/t, equivalent to 11,600 ounces have been added to reserves. Mining has commenced in this area and is expected to continue during the fourth fiscal 2009 quarter and the first fiscal 2010 quarter.
Zapucay
Drilling at Knob Hill, to the south of Zapucay, has returned the following significant results:
| HOLE ID | from | Intercept | |||
| ZPRC096 | 16 | 6m @ 4.05g/t | |||
| ZPRC096 | 35 | 2m @ 2.73g/t | |||
| ZPRC096 | 39 | 5m @ 1.11g/t | |||
| ZPRC103 | 15 | 5m @ 5.27g/t |
As a result of this drilling an extension of the Zapucay resource by approximately 5,000 ounces is expected to be defined during the forth quarter.
Peru/Esperanza
First pass drilling has tested the 4.5 kilometer strike length of the Peru/Esperanza trend. Best results include
| HOLE ID | FROM | Intercept Au g/t | |||
| MCRC010 | 37 | 6m @ 5.40g/t | |||
| PRRC042 | 63 | 3m @ 8.26g/t |
Drill result composites of >0.5g/t, includes intervals of 1.0mt
This drilling has identified two zones of interest that have the potential to deliver resources. Follow up drilling will continue in the coming quarters.
Rincon District
The Rincon district covers an area of 10 kilometers by 5 kilometers immediately east along strike of the Arenal mine. Detailed surface exploration commenced in this area a year ago targeting a bulk open pit target. Three targets have been identified to date with additional targets currently being developed. During the second quarter of fiscal 2009 UME announced that very promising surface samples were reported in the Los Castillos area. Despite these encouraging surface results no significant mineralization was reported from 2,334 meters of drilling in the area during the quarter. Structures were encountered but surface mineralization did not extend to depth.
Additional targets continue to be developed and are expected to be drilled during calendar 2009.
Paso de Lugo
Paso de Lugo is located in the Arroyo Grande Belt in Central Uruguay approximately 235 kilometers from the San Gregorio mine. Drilling at the project commenced during the quarter with a 13 hole program designed to test approximately 2 kilometers of a defined anomalous structure. Results have been obtained for the first six holes. Quartz veining and anomalous mineralization have been encountered in all holes with the best result being 9 meters at 2.95 g/t from 92 meters in PDL-09-005. Drilling will continue in the fourth quarter of the 2009 financial year.
Other Projects
Work on other projects includes the following:
A 13 hole drill program was completed at the Madre con Hijos project in December 2008. This drilling intercepted anomalous vein material but failed to define significant thickness or grade. Surface mapping and sampling at Texas has defined an anomalous area of interest 4.5 kilometers in length and up to 1.5 kilometers wide. Mineralization is associated with quartz veins in granite including zones of sheeting and stockworking. The target is expected to be further developed with surface mapping and geophysics. Drilling is planned early in the 2010 financial year. At Rocha, 60 kilometers south of Lascano, follow up soil sampling and surface geophysical surveys over a 15 kilometer structural/vein corridor commenced during the quarter and this work is expected to be completed during the fourth fiscal 2009 quarter. Preliminary results indicate that several new targets will be generated in outcropping and soil covered areas. Strong sulfide mineralization composed of arsenopyrite and occasional galena has been identified in the principal vein selvages. An induced polarization survey is planned over the more prospective zones to help define drill targets that are expected to be drilled in the 2010 financial year. Stream sediment sampling in the eastern end of the Isla Cristalina belt is defining new strongly anomalous areas that are expected to be followed up during calendar 2009.Further details on exploration results for the quarter can be found in the company's exploration report for the quarter at the following link: http://www.uruguayminerals.com/investors/quarterly_results/
Corporate
Mergers and Acquisitions
On February 25, 2009 the Company announced a potential offer for all of its issued capital. After exploring the potential offer in detail and in consultation with key shareholders, UME's Board of Directors rejected the potential offer as it significantly undervalues the Company. UME is actively considering other growth opportunities.
Lascano
The Lascano exploration target is composed of three large circular geophysical features which are each approximately 20 kilometers in diameter. Drilling has confirmed that a strong hydrothermal system is associated with the underlying intrusive suite of rocks. All rock types encountered show evidence of hydrothermal alteration and analytical results had locally defined weak but anomalous copper mineralization.
Due to its size and complexity, the project is being offered for joint venture. Four major companies have expressed an interest in the project. To date, two confidentiality agreements have been signed and data reviews have commenced.
Other Properties
A final report was received from GeoDiscovery on UME's nickel properties. Carpentaria was identified as very prospective for nickel and PGE minerals. Evaluation of continued work to identify drill targets is underway.
A non binding letter of intent has been signed with a Canadian junior on the Company's Cinco Rios diamond project. While significant progress has been made on preparation of documents a number of final points require resolution. If these issues can be resolved during April the agreement is expected to be signed.
Qualified Person's Statement
The technical information presented in this press release has been reviewed and verified by Mr. John Sadek, Vice President Operations and a Mining Engineer, and Mr. George Schroer Vice President Exploration and a Certified Professional Geologist. Mr. Sadek and Mr. Schroer are the Qualified Persons for the purposes of the AIM Guidance Note on Mining, Oil and Gas Companies dated March 2006. Mr. Sadek has a Bachelor of Engineering (Mining) from the University of Sydney and is a member of the AusIMM and SME. He has over 20 years of international experience in mining. Mr. Schroer has a Masters of Science in Geology from Colorado State University and is a member of SEG and AIPG. He has over 20 years of international experience in exploration.
Forward Looking Statements
All statements, other than statements of historical fact, contained or incorporated by reference in this news release, including any information as to the future financial or operating performance of UME, constitute "forward-looking statements" within the meaning of certain securities laws, including the "safe harbour" provisions of the Securities Act (Ontario) and the United States Private Securities Litigation Reform Act of 1995 and are based on expectations estimates and projections as of the date of this news release. There can be no assurance that such statements will prove to be accurate, such statements are subject to significant risks and uncertainties, and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements include, without limitation success of exploration activities; permitting time lines; the failure of plant; equipment or processes to operate as anticipated; accidents; labour disputes; requirements for additional capital title disputes or claims and limitations on insurance coverage. UME disclaims any intention or obligation to update or revise any forward looking statements whether as a result of new information, future events and such forward-looking statements, except to the extent required by applicable law.
ENDS
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
About Uruguay Mineral Exploration Inc.
Uruguay Mineral Exploration Inc. (UME) is a gold production and exploration company that identifies and develops mineral opportunities in South America. UME is a fully integrated mining company, possessing the skills necessary to explore and develop its discoveries. UME operates San Gregorio, the only producing gold mine in Uruguay, and is the leading mineral exploration company in Uruguay with an exploration portfolio of gold, diamonds and base metal prospects, including copper, nickel, lead, and zinc.
Uruguay Mineral Exploration Inc. is quoted in Canada (TSXV) and London (AIM) and RBC Capital Markets is its Nominated Adviser and Broker. More information can be found at www.uruguayminerals.com
For further information, please contact:
Uruguay Mineral Exploration Inc
Tony Shearer, Chairman: +44 20 7602-1570; [email protected]
David Fowler, CEO: 598 2 6016354; [email protected]
Investor/Media Relations
Susan Borinelli, Breakstone Group: +1-646-330-5907; [email protected]
RBC Capital Markets
Sarah Wharry: +44 (0) 20 7653 4667; [email protected]
Consolidated Balance Sheets
(Unaudited)
(Thousands of United States Dollars, except where indicated
| As at | ||||
| February 28, 2009 | May 31, 2008 | |||
| $ | $ | |||
| Assets | ||||
| Current assets | ||||
| Cash | 8,051 | 18,601 | ||
| Accounts receivable | 4,267 | 2,810 | ||
| Inventories (Note 2) | 18,208 | 16,749 | ||
| Prepaid expenses | 1,092 | 1,004 | ||
| Total Current Assets | 31,618 | 39,164 | ||
| Property plant and equipment and mineral properties (Note 3) | 22,440 | 29,681 | ||
| Deferred exploration (Note 4) | 13,031 | 8,948 | ||
| Future income tax assets | 3,477 | 5,375 | ||
| Restricted cash | 176 | 191 | ||
| Total Non Current assets | 39,124 | 46,079 | ||
| Total assets | 70,742 | 83,359 | ||
| Liabilities and Shareholders' Equity | ||||
| Current liabilities | ||||
| Accounts payable and accrued liabilities | 8,343 | 8,816 | ||
| Fair value of derivatives (Note 9) | 1,696 | 0 | ||
| Restructure plan (Note 11) | 307 | 0 | ||
| Current portion of long term debt (Note 5) | 71 | 2,275 | ||
| Total Current liabilities | 10,417 | 11,091 | ||
| Long term tax payable | 2,414 | 2,414 | ||
| Long term debt (Note 5) | 0 | 25 | ||
| Asset retirement obligation | 2,975 | 2,869 | ||
| Total Non current liabilities | 5,389 | 5,308 | ||
| Total liabilities | 15,806 | 16,399 | ||
| Capital stock (Note 6) | 34,642 | 35,043 | ||
| Warrants and convertible notes (Note 6) | 12 | 12 | ||
| Contributed surplus | 4,118 | 3,882 | ||
| Accumulated other comprehensive income | (19) | (19) | ||
| Retained earnings | 16,183 | 28,042 | ||
| Total shareholders' equity | 54,936 | 66,960 | ||
| Total liabilities and shareholders' equity | 70,742 | 83,359 | ||
Consolidated Statements of Income, other comprehensive income and Retained Earnings
(Unaudited)
(Thousands of United States Dollars except for earnings per share and weighted average number of shares outstanding)
| Three months ended February 28 | Nine months ended February 28 | ||||||||
| 2009 | 2008 | 2009 | 2008 | ||||||
| $ | $ | $ | $ | ||||||
| Net Sales | 17,125 | 22,220 | 46,505 | 56,653 | |||||
| Operating expenses | (11,071) | (9,244) | (38,225) | (26,914) | |||||
| Amortization and depreciation | (4,600) | (3,567) | (13,571) | (10,772) | |||||
| Operating expenses | (15,671) | (12,811) | (51,796) | (37,686) | |||||
| Sub-total | 1,454 | 9,409 | (5,291) | 18,967 | |||||
| Other income (expenses) | |||||||||
| Stock based compensation expense | 50 | (264) | (236) | (770) | |||||
| General and administrative expense | (910) | (1,069) | (3,173) | (3,235) | |||||
| Exploration expenses written off | (775) | 0 | (775) | 0 | |||||
| Non-hedged derivative | (901) | 0 | (1,696) | 0 | |||||
| Interest expense and debt accretion | (80) | (99) | (218) | (291) | |||||
| Foreign exchange | 13 | 4 | 37 | 54 | |||||
| Interest earned and other income | 32 | 215 | 309 | 595 | |||||
| (2,571) | (1,213) | (5,752) | (3,647) | ||||||
| Income (loss) before taxes | (1,117) | 8,196 | (11,043) | 15,320 | |||||
| Current income taxes (provision) recovery | (29) | (3,467) | 1,081 | (5,903) | |||||
| Future income taxes (provision) recovery | 48 | 1,213 | (1,897) | 2,118 | |||||
| Net income (loss) and comprehensive income (loss) for the period | (1,098) | 5,942 | (11,859) | 11,535 | |||||
| Retained earnings, beginning of period | 17,281 | 26,803 | 28,042 | 22,896 | |||||
| Dividends | 0 | (1,000) | 0 | (2,776) | |||||
| Retained earnings, end of period | 16,183 | 31,745 | 16,183 | 31,745 | |||||
| Earnings (loss) per common share | |||||||||
| Basic | (0.02) | 0.12 | (0.24) | 0.24 | |||||
| Diluted | (0.02) | 0.12 | (0.24) | 0.24 | |||||
| Weighted average shares outstanding | |||||||||
| Basic | 48,667,068 | 48,882,801 | 48,672,890 | 48,911,779 | |||||
| Diluted | 48,667,068 | 48,904,758 | 48,871,567 | 48,929,474 | |||||
Consolidated Statements of Cash Flows
(Unaudited)
(Thousands of United States Dollars, except where indicated)
| Three months ended February 28 | Nine months ended February 28 | ||||||||
| 2009 | 2008 | 2009 | 2008 | ||||||
| $ | $ | $ | $ | ||||||
| Operating activities | |||||||||
| Net income (loss) for the period | (1,098) | 5,942 | (11,859) | 11,535 | |||||
| Adjustments for: | |||||||||
| Amortization and depletion | 4,600 | 3,567 | 13,571 | 10,772 | |||||
| Exploration expenses written off | 775 | 0 | 775 | 0 | |||||
| Fair value of derivatives | 901 | 0 | 1,696 | 0 | |||||
| Accretion of debt | 36 | 66 | 118 | 202 | |||||
| Future income taxes | (48) | (1,213) | 1,897 | (2,118) | |||||
| Stock based compensation | (50) | 264 | 236 | 770 | |||||
| Restructure plan | (175) | 0 | 307 | 0 | |||||
| Other | 12 | 45 | 25 | 102 | |||||
| 4,953 | 8,671 | 6,766 | 21,263 | ||||||
| Net change in non-cash working capital balances (Note 8)) | (862) | (4,255) | (3,477) | (3,904) | |||||
| 4,091 | 4,416 | 3,289 | 17,359 | ||||||
| Financing activities | |||||||||
| Proceeds from the issue of share capital | 0 | 0 | 0 | 593 | |||||
| Payments of finance lease net of draw downs | (46) | (46) | (140) | (141) | |||||
| Share repurchase | 0 | (270) | (401) | (270) | |||||
| Dividend payment | 0 | 0 | 0 | (1,776) | |||||
| (46) | (316) | (541) | (1,594) | ||||||
| Investing activities | |||||||||
| Purchase of property, plant and equipment and development costs | (537) | (1,669) | (4,994) | (7,770) | |||||
| Exploration expenditure | (1,896) | (2,230) | (8,304) | (7,031) | |||||
| (2,433) | (3,899) | (13,298) | (14,801) | ||||||
| Increase (Decrease) in cash | 1,612 | 201 | (10,550) | 964 | |||||
| Cash at the beginning of period | 6,439 | 14,741 | 18,601 | 13,978 | |||||
| Cash at the end of period | 8,051 | 14,942 | 8,051 | 14,942 | |||||
Consolidated Statements of Changes in Shareholders' Equity
(Unaudited)
(Thousands of United States Dollars, except where indicated)
|
| Three months ended February 2009 | Nine month ended February 2009 | |||||||
| Number (000's) | Amount | Number (000's) | Amount | ||||||
| Common shares | |||||||||
| Balance at beginning of period | 48,667 | $ 34,642 | 48,811 | $ 35,043 | |||||
| Exercise of stock options | 0 | 0 | 0 | 0 | |||||
| Share repurchases | 0 | 0 | (144) | (401) | |||||
| Balance at end of period | 48,667 | $ 34,642 | 48,667 | $ 34,642 | |||||
| Warrants and Convertible notes (Note 6) | |||||||||
| Balance at beginning of period | 20 | $ 12 | 270 | $ 12 | |||||
| Expired warrants and convertible notes | (0) | 0 | (250) | ||||||
| Balance at end of period | 20 | $ 12 | 20 | $ 12 | |||||
| Contributed surplus | |||||||||
| Balance at beginning of period | $ 4,168 | $ 3,882 | |||||||
| Employee stock based compensation recognized | (50) | 236 | |||||||
| Transfer to common shares | (0) | ||||||||
| Balance at end of period | $ 4,118 | $ 4,118 | |||||||
| Accumulated other comprehensive income | |||||||||
| Balance at beginning of period | $ (19) | $ (19) | |||||||
| Movement for the period | 0 | 0 | |||||||
| Balance at end of period | $ (19) | $ (19) | |||||||
| Retained earnings | |||||||||
| Balance at beginning of period | $ 17,281 | $ 28,042 | |||||||
| Net income for the period | (1,098) | (11,859) | |||||||
| Dividends | 0 | 0 | |||||||
| Balance at end of period | $ 16,183 | $ 16,183 | |||||||
| Shareholders' equity at end of period | $ 54,936 | $ 54,936 | |||||||
Copyright Business Wire 2009
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