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Kimber
Resources Inc. (NYSE Amex:KBX)(Toronto:KBR.TO) today announced its financial results for the
three and six months ended December 31, 2010
which were prepared in accordance with Canadian generally accepted accounting
principles. All amounts in this news release are in
Canadian dollars. Kimber's interim unaudited consolidated financial
statements and management's discussion & analysis for the three and six
months ended December 31, 2010,
are available on SEDAR at www.sedar.com and on EDGAR at http://www.sec.gov/edgar.shtml
Kimber
had working capital of $13.74 million,
including $13.73 million in cash, as of December 31, 2010, a significant
increase over the $4.50 million as of June 30, 2010. Kimber's net loss
for the three months ended December 31, 2010
was $636,114 or $0.01 per common share compared with a net
loss of $541,303 or $0.01 loss per share for the three months
ended December 31, 2009.
Kimber's
shareholders' equity increased by $11.13 million
during the three months ended December 31, 2010
primarily due to a public offering of shares offset by ongoing expenditures.
Certain expenditures, mainly related to exploration and technical advancement
at Monterde, were capitalized as unproven mineral right interests.
"During
the three months ended December 31, 2010
Kimber successfully completed a public offering with gross proceeds of $12.7 million and released high
grade gold-silver surface trench results at the Carmen Deposit which
supported continuity of mineralization and showed potential for extension
along strike south of Carmen," said Gordon
Cummings,
President & CEO of Kimber. "Kimber has now commenced work to
complete a pre-feasibility study in 2011 and is progressing with a 30,000
metre drill program to upgrade and expand gold-silver mineral resources at depth
and along strike at the existing deposits and to drill test three new targets
with potential to host new discoveries that are located less than three
kilometres north of the mineral resources in the Carmen structure."
Selected
information
The
following information is for the three months ended December
31, 2010
and 2009:
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For Three months ended
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December 31,
2010
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December 31,
2009
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Results of operations
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Net loss
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$
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(636,114)
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$
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(541,303)
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Net loss per share - basic and diluted
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$(0.01)
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$(0.01)
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Net cash used in operations
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$
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(498,685)
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$
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(440,063)
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Net cash used in investing activities
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$
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(771,878)
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$
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(673,230)
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Net cash provided by financing
activities
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$
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11,868,239
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$
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2,166
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The
following information is as at December 31, 2010
with comparable information at June 30, 2010.
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December 31,
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June 30,
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2010
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2010
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Financial position
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Cash
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$
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13,734,513
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$
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4,560,493
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Current assets
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14,360,325
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5,046,917
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Unproven mineral right interests
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43,992,497
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42,647,361
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Total assets
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58,867,269
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48,192,238
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Current liabilities
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619,814
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541,627
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Total liabilities
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619,814
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541,627
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Shareholders' equity
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58,247,455
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47,650,611
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Working capital
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$
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13,740,511
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$
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4,505,290
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The
net losses for Kimber for the three months ended December
31, 2010
and 2009 include non-cash charges for stock-option compensation of $74,359 in 2010 and $43,886
in 2009.
Pre-Feasibility
Study
Kimber
has contracted a senior geologic engineer, James McKay, to assist in
coordinating the completion of the pre-feasibility study for the Monterde
project in 2011. Mr. McKay
has a Bachelor of Science in geological engineering, an M.B.A. from the
University of Nevada and over 35 years of experience in the mineral
exploration and mining sector including director, officer and consulting
roles with public companies.
About
Kimber
Kimber
owns mineral concessions covering in excess of 39,000 hectares in the
prospective Sierra Madre gold-silver belt,
including the Monterde property, where three gold-silver mineral resources
have already been defined. The most advanced of these, the Carmen deposit, has
been extensively drilled and has undergone detailed geologic modeling. The
completion of the Preliminary Assessment for Monterde in 2010 represented a
significant step forward for Kimber and is expected to lead to further
development and more advanced economic studies at the Monterde deposits
including the completion of a pre-feasibility study during 2011.
Forward
looking statements
Statements in this release may be viewed as forward-looking statements,
including statements regarding estimates of mineral resources at Monterde,
the preliminary assessment of the Monterde project, the conversion of
inferred mineral resources to measured and indicated mineral resources, the
conversion of mineral resources to mineral reserves, life of mine estimates,
the potential for gold and silver mineral resources in the Carmen and Veta
Minitas deposits and other targets within the Monterde project, the further
development, expected results and future economic assessments of the Monterde
project. When used in this press release, the words "expect",
"intend", "hopes", "should",
"believe", "may", "will", "if",
"anticipates" and similar expressions are intended to identify
forward-looking statements. Such statements involve risks and uncertainties
that could cause actual results to differ materially from those projected.
Such risks and uncertainties include, among others, uncertainty of mineral
reserve and resource estimates, risks relating to fluctuations in the price
of gold, the inherently hazardous nature of mining-related activities,
potential effects on Kimber's operations of environmental regulations in the
countries in which it operates, risks due to legal proceedings, risks
relating to political and economic instability in certain countries in which
it operates, risks related to the use of inferred mineral resources in the
preliminary assessment, and uncertainty of being able to raise capital on
favourable terms or at all, as well as those risk factors discussed under the
headings "Cautionary Note Regarding Forward-Looking Statements" and
"Risk Factors" in Kimber's latest Annual Report on Form 20-F as
recently filed on SEDAR and EDGAR. There are no assurances the Company
can fulfil such forward-looking statements and the Company undertakes no
obligation to update such statements, except as required by law. Such
forward-looking statements are only predictions; actual events or results may
differ materially as a result of risks facing the Company, some of which are
beyond the Company's control.
Cautionary
Note to U.S. Investors - The United
States Securities and Exchange Commission
permits U.S. mining companies, in their filings with the SEC, to disclose
only those mineral deposits that a company can economically and legally
extract or produce. Kimber Resources uses certain terms on its website
(and certain press releases), such as "measured,"
"indicated," and "inferred," "mineral
resources," which the SEC guidelines strictly prohibit U.S. companies
from including in their filings with the SEC. U.S. Investors are urged
to consider closely the disclosure under the heading "Cautionary Note to
U.S. Investors Regarding Mineral Resource and Reserve Estimates" in our
latest annual report on Form 20-F which may be secured from us, or from the
SEC's website at http://www.sec.gov/edgar.shtml.
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