Published:
06:55 13.05.2008 GMT+2 /HUGIN /Source: Crew Gold Corporation /OSE: CRU /ISIN:
CA2265301036
Financial Results for Quarter Ended March
31, 2008
Press Release - 13th May 2008
LONDON,
United Kingdom: Crew Gold Corporation ("Crew" or "the Company") (TSX: CRU)
(OSE: CRU) (Frankfurt: KNC) (OTC-BB-Other; CRUGF.PK) today announces:-
Financial Results for Quarter Ended
March 31, 2008
-
Quarterly production increased by 36% to 61,189 ounces ("oz") from
44,914 oz in Q4 2007
-
Sold remaining 10.4 million Intex Resources ASA ("Intex") shares for
aggregate net proceeds of $13.3 million
-
EBITDA of $0.5 million (quarter ended March 31, 2007 - negative $5.0 million)
-
Net loss of $27.6 million (quarter ended March 31, 2007 - net loss of $19.1
million) primarily due to non cash foreign exchange losses on translation of
NOK denominated debt of $18.3 million and depletion and depreciation of $2.4
million and LEFA and Maco not being in commercial production
-
43,811 oz produced in the quarter , representing a 59% increase over Q4 2007 of
27,579 oz
-
Upgrade and rectification program nearing completion
-
Average plant recoveries increase from 88% to 94% in the quarter
-
Encouraging results from exploration drilling in Q1 2008 at Firifirini and Camp
de Base
-
Quarterly production from pilot plant of 4,704 oz (up 140% from Q4 2007
production of 1,957 oz)
-
Infrastructure development and ore development progressing, including
construction of new tailings facility
-
Technical review of the mill expansion and mine plan nearing completion
·
Nalunaq Gold Mine and Nugget Pond Processing Facility
-
Quarterly production of 12,674 oz (down 18% from 15,378 oz in Q4 2007)
-
Nugget Pond facility continued to operate satisfactorily
-
Continued production growth following commissioning
-
LEFA reserve and resource expansion to continue with reserve and resource
updates expected to be released during Q2 2008.
-
Continued focus on securing new strategic land claims
Crew is an
international mining company focused on identifying, acquiring and developing
gold resource projects worldwide.
Our
objective is to become a significant mid-tier gold producer. We believe
we have the assets in place and under development to achieve our strategic
objective of an annual production rate in excess of 500,000 oz per year in the
near term.
Operating
revenues and costs at both the LEFA and Maco operations during the quarter were
capitalised as these two operations have not attained commercial production
status.
For the
quarter ended March 31, 2008, Crew reported EBITDA of $0.5 million (quarter
ended March 31, 2007 - negative $5.0 million). EBITDA from operations of $2.5
million and gains from the sale of Intex shares of $2.6 million were offset by
corporate expenditures of $4.3 million.
Net loss
for the quarter ended March 31, 2008 was $27.6 million (quarter ended March 31,
2007 - net loss of $19..1 million). The losses in the period were mainly due to
non cash foreign exchange losses of $18.3 million (following a 5.7% appreciation
of the Norwegian Kroner against the US dollar), interest and finance costs on
the bonds and long term debt of $5.7 million, depletion and depreciation of
$2.4 million and corporate expenditures of $4.3 million, partially offset by
gains on the sale of Intex shares of $2.6 million.
Crew
produced 61,189 oz of gold during the quarter ended March 31, 2008 (quarter
ended March 31, 2007 - 12,912 oz). Gold sold during the quarter ended March 31,
2008 was 60,660 oz (quarter ended March 31, 2007 - 8,836 oz).
For Full
Results, please see attached file.
Certain
statements contained herein that are not statements of historical fact, may
constitute "forward-looking statements" and are made pursuant to
applicable and relevant national legislation (including the Safe-Harbour
provisions of the United States Private Securities Litigation Reform Act of
1995) in countries where Crew is conducting business and/or investor relations.
Forward-looking statements, include, but are not limited to those with respect
to (1) the price of gold, (2) the estimation of mineral reserves and resources,
(3) the realization of mineral reserves estimates, (4) the timing and amount of
estimated future success of exploration activities, (5) the timing and amount
of production estimates, (6) targeted production cash costs and forecasted cash
reserves, (7) Crew's hedging practices, (8) currency fluctuations, (9)
requirements for additional capital, (10) government regulation of mining
operations, (11) environmental risk, (12) title disputes or claims limitations
on insurance coverage and (13) the timing and possible outcome of pending
litigation. Often, but not always, forward-looking statements can be identified
by the use of words such as "plans", "expects", "does
not expect", "is expected", "targets",
"budget", "estimates", "forecasts",
"intends", "anticipates" or "does not
anticipate", or "believes", or equivalents or variation,
including negative variation, of such words and phrases, or state that certain
actions, events or results, "may", "could",
"would", "might" or "will" be taken, occur or be
achieved.
Forward-looking
statements involve known and unknown risks, uncertainties and other factors
that could cause the actual results of the Company to be materially different
from the historical results or from any future results expressed or implied by
such forward-looking statements. Such risks and uncertainties include, among
others, (1) the actual results of current exploration activities, conclusions
of economic evaluations, (2) changes in project parameters as plans continue to
be refined, (3) possible variations in grade and ore densities or recovery
rates, (4) failure of plant, equipment or processes to operate as anticipated,
(5) accidents, labour disputes and other risks of the mining industry, (6)
delays in obtaining government approvals or financing or in completion of
development or construction activities. Although Crew has attempted to identify
important factors that could cause actual actions, events or cause actions
events or results not to be anticipated, estimated or intended, there can be no
assurance that forward looking statements will prove to be accurate as actual
results and future events could differ materially from those anticipated in
such statements.
The
material factors and assumptions used to develop forward-looking statements
which may be incorrect, include, but are not limited to, (1) there being no
significant disruptions affecting operations, whether due to labour
disruptions, supply disruptions, damage to equipment or otherwise, (2)
continued development, operation and production at LEFA, Nalunaq and Maco
consistent with our current expectations, (3) foreign exchange rates among the
currencies the Crew does business in being approximately consistent with
current levels, (4) certain price assumptions for gold, (5) prices for
electricity, fuel oil and other key supplies remaining consistent with current
levels, (6) production forecasts meeting expectations, (7) the accuracy of our
current mineral reserve and mineral resource estimates, and (8) materials and
labour costs increasing on a basis consistent with Crew's expectations.
Except as
may be required by applicable law or stock exchange regulation, the Company
undertakes no obligation to update publicly or release any revisions to these
forward-looking statements to reflect events or circumstances after the date of
this document or to reflect the occurrence of unanticipated events.
Accordingly, readers should not place undue reliance on forward-looking
statements.
Cautionary
Note to US investors - The United States Securities and Exchange Commission
permits US mining companies, in their filings with the SEC, to disclose only
those mineral deposits that a company can economically and legally extract or
produce. We use certain terms in this document, such as "measured",
"indicated", and "inferred" "resources", which
the SEC guidelines strictly prohibit US registered companies from including in
their filings with the SEC. US Investors are urged to consider closely the disclosure
from the SEC's website at http://www.sec.gov/edgar.shtml.
"EBITDA"
is a non-GAAP measure of performance that describes earnings before interest,
taxes, depletion and depreciation, stock compensation charges and non-cash
foreign exchange movements.
"Operating
cash cost" is a non-GAAP measure calculated in accordance with the Gold
Institute Production Cost Standard and includes site costs for all mining
(excluding deferred stripping costs), processing and administration, royalties
and production taxes, but exclusive of depletion, depreciation, reclamation,
financing costs, capital costs, and exploration costs. Operating
cash cost is presented as we believe it represents an industry standard of
comparison.
"Operating
cash cost per ounce" is a non-GAAP measure derived from the operating cash
cost of ounces produced as a measure of total ounces produced. "Sales
price per ounce" is a non-GAAP measure derived by dividing the total cash
amounts received on gold sales by the number of ounces sold in the period.
EBITDA,
operating cash cost per ounce and sales price per ounce are not terms defined
under Canadian generally accepted accounting principles, nor do they have a
standard, agreed upon meaning. As such, EBITDA, operating cash cost per
ounce and sales price per ounce may not be directly comparable to EBITDA,
operating cash cost per ounce and sales price per ounce reported by other
similar issuers.
Q1 31 March 2008
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