Close X Cookies are necessary for the proper functioning of 24hGold.com. By continuing your navigation on our website, you are accepting the use of cookies.
To learn more about cookies ...
EnglishFrench
Gold & Silver Prices in
( 0 vote, 0/5 ) Print article
  Article Comments Comment this article Rating Follow Company  
0
Send
0
comment

March 28, 2008

Fronteer reports fiscal 2007 results

08-10

Fronteer Development Group Inc. ("Fronteer" or the "Company") (FRG – TSX/AMEX) reports its financial and operating results for the year ended December 31, 2007.  Details of the Company’s financial results are described in the audited consolidated financial statements and Management’s Discussion and Analysis for the year ended December 31, 2007.  Further details on each of Fronteer’s projects and activities can be found on the Company’s website: http://www.fronteergroup.com and on SEDAR at http://www.sedar.com.  All amounts are presented in Canadian dollars unless otherwise stated. Fronteer will be hosting its annual general meeting on May 6, 2008 in Toronto, Ontario.

Overview
Fronteer is a gold-focused exploration and development company committed to discovering and advancing big deposits with strong production potential. The Company has an interest in several major gold and copper-gold projects throughout Nevada and northwest Turkey. Among its large portfolio of precious metal mineral rights in Nevada, the company’s key projects include Northumberland, one of the largest undeveloped Carlin-style gold deposits in the region; Long Canyon, a discovery defining an entirely new gold trend; and, Sandman, a property which Newmont Mining Corporation has agreed to advance to a production decision within 36 months. In Turkey, Fronteer has built and retained a 40% interest in a new mineral belt that includes two robust gold deposits and a third deposit boasting all the hallmarks of a world-class copper-gold porphyry in terms of size and grade. Fronteer also has a 42.3% interest in Aurora Energy Resources Inc. ("Aurora") (AXU – TSX), a Canadian uranium company.

Highlights of the year include:

  • In December 2007, the Company granted Teck Cominco’s Turkish subsidiary ("TCAM"), an extension to December 31, 2008 on its election whether to earn an additional 10% interest in the Halilaga property.  To earn the additional 10% interest in Halilaga, TCAM must notify Fronteer before December 31, 2008, that it intends to complete a feasibility study within four years of the notification date. If a production decision is made, TCAM will use its best efforts to arrange project debt financing for at least 60% of the capital costs and offer to loan Fronteer the remaining equity component of project financing at commercial lending rates. If TCAM fails to complete a feasibility study within four years from the notification date, its ownership percentage in Halilaga will remain at 60%.  TCAM has agreed to solely fund a US$3,000,000 exploration program on Halilaga in 2008, in exchange for the extension.

  • On September 24, 2007, the Company completed the acquisition of NewWest Gold Corporation ("NewWest").  The Company issued 15,181,920 Common Shares with a value of $160,017,437 in exchange for 100% of the issued and outstanding shares of NewWest.  NewWest has one of the most strategic precious metal exploration portfolios assembled in Nevada with a pipeline of 19 projects covering approximately 620,000 acres.  The Company believes that there is significant potential for further discovery and resource expansion and future production potential on these projects.  This transaction provides an excellent fit with Fronteer’s business model of providing the opportunity of high returns by making large discoveries and growing organically.
  • In July and August 2007, TCAM completed the earn back on the Company’s Kirazli, Agi Dagi and Halilaga gold and copper-gold deposits in northwest Turkey.  As a result, the Company now owns 40% of each of these properties.  The Company will develop Agi Dagi and Kirazli together with TCAM, on a 40%/60% basis, while the Company awaits TCAM’s decision in December 2008, regarding earning back on an additional 10% of Halilaga.  

  • On March 15, 2007, the Company closed a short-form prospectus offering (the "Offering") to sell 4,498,000 common shares (including overallotment) at a price of $14.75 per share, raising gross proceeds of $66,345,500. 

  • During the second quarter of 2007, Fronteer made two additional investments in Latin American Minerals Inc. ("LAT").  The Company acquired 900,000 common shares from an existing shareholder at a price of $0.45 per share in April 2007.  In May 2007, Fronteer purchased 2,000,000 units offered by LAT at a price of $1.00 per unit. Each unit was comprised of one common share and one-half of a common share purchase warrant.  Each whole warrant entitles Fronteer to acquire one common share of LAT at a price of $1.25 for a period of 12 months.  As at December 31, 2007, Fronteer owned 17.4% of the issued and outstanding common shares of LAT. Subsequent to year end, Fronteer sold its common share investment in LAT for gross proceeds of $5,336,500 resulting in an overall cash profit of $1,562,950

Exploration Projects
Exploration and acquisition expenditures, net of recoveries for the year ended December 31, 2007 and 2006 totalled $907,559 and $4,266,412 in Turkey, $480,827 and $1,267,475 in Mexico, and $5,246,273 and $2,624,285 in the Yukon, Canada, respectively.  The Company has also expended $1,781,905 on its properties in the USA from the date of acquisition of NewWest on September 24, 2007 up to December 31, 2007.

Operations

Selected Financial Data
This summary of selected financial data should be read in conjunction with the Management Discussion and Analysis ("MD&A") of the financial position and operating results of the company for the twelve months ended December 31, 2007 and 2006 and the audited consolidated financial statements and related notes for the same period.

 

 

Year Ended December 31

 

2007

2006

Earnings for year

$20,374,741

$15,011,639

Basic and diluted earnings per share

$0.29; $0.28

$0.27; $0.25

Cash invested in mineral properties

$8,309,527

$6,298,162

Cash generated by financing activities

$68,909,573

$48,003,046

Cash and cash equivalents

$99,039,334

$40,391,913

Marketable securities (at cost) (1)

--

$3,536,397

Working capital

$96,903,057

$43,338,290

Investment in Aurora (2)

$76,696,684

$37,508,155

Investment in Turkish Properties (3)

$12,957,378

--

Total assets

$426,437,437

$102,311,386

Shareholders’ equity

$366,849,777

$99,364,065

 (1)     The market value for marketable securities at December 31, 2006, was $4,177,285.
(2)     The Company accounts for its investment in Aurora using the equity method of accounting.  At December 31, 2007, the Company owns 42.3% (2006-47.2%) of Aurora.  Total market capitalization of Aurora at December 31, 2007, was approximately $989.7 million (2006 - $887.5 million).
(3)     The Company began to account for its investments in the Agi Dagi, Kirazli and Halilaga projects as an equity accounted investment in 2007.  The Company owns 40% of three TCAM subsidiaries.  All exploration properties and deferred exploration expenditures relating to these properties have been re-classed to Investment in Turkish Properties during the year.

The Company’s net income before discontinued operations for the year ended December 31, 2007 was $20,374,741 or $0.29 per share compared to net income before discontinued operations of $15,015,635 or $0.27 for year ended December 31, 2006.  Contributing to the year-over-year differences was the recognition of increased dilution gains on the Company’s investment in Aurora, and an increase in interest income earned on cash reserves.  Offsetting the increases in other income were year over year increases in operating expenses such as stock-based compensation expense, property investigation costs, wages and benefits expense, investor relations and promotion expenses, office and general expenses, legal fees, listing and filing fees and accounting and audit fees.

The Company recognized a dilution gain of $43,039,000 for the year ended December 31, 2007 as compared to a dilution gain of $26,489,773 for the year ended December 31, 2006.  The Company recognizes a dilution gain when its interest in Aurora is reduced as Aurora issues additional shares.  It represents the fair value of the Company’s share of the consideration paid by new investors in Aurora, in excess of the amount that the carrying value of the Company’s investment in Aurora is reduced. In 2007, Aurora raised gross funds of $111,672,000 by way of a bought deal financing at prices in excess of those raised in 2006, resulting in an increase in the dilution gain realized.

Stock-based compensation expense for the year ended December 31, 2007 increased to $8,732,286 from $3,035,209 for the year ended December 31, 2006.    Stock-based compensation expense is comprised of the fair value of stock options granted to employees, directors and consultants that vest in the period.  The increase is directly attributable to approval by shareholders of new option grants at the May 2, 2007, annual general meeting in conjunction with approval of a new option plan. 

On September 24, 2007, the Company completed the acquisition of 100% of the issued and outstanding shares of NewWest on the basis of 0.26 shares of the Company for each share of NewWest.  The transaction has been accounted for as an acquisition of assets, and has resulted in the Company acquiring 19 precious metals exploration properties primarily located in the state of Nevada of the United States.   Based upon the September 24, 2007, balance sheet of NewWest, the allocation of the purchase price, is summarized in the table below:

Purchase price:

 

 

$

  15,181,920 common shares of Fronteer

160,017,437

  518,050 stock options of Fronteer

 

1,615,416

  Acquisition costs

 

 

2,889,781

 

 

 

164,522,634

 

 

 

 

Net assets acquired:

 

 

 

  Current assets

 

 

3,356,579

  Other assets

 

 

2,353,343

Exploration properties and deferred exploration

212,052,383

  Asset retirement obligations - current

(503,268)

  Asset retirement obligations - long term

(746,450)

  Other liabilities

 

 

(1,012,132)

  Future income tax liability

 

 

(50,977,821)

 

 

 

164,522,634

Liquidity

The Company currently has no operating revenues other than interest income and relies primarily on equity financing as well as the exercise of options to fund its exploration and administrative costs. 

The Company has no debt.  The only long-term lease commitments are the operating leases for the Company’s office premises and equipment totaling $2,220,996 over the next four years.  The Company also has long term reclamation obligations recorded totaling $765,479. 

At December 31, 2007, the Company had cash on its balance sheet of $99,039,334 and working capital of $96,903,057 as compared to cash of $40,391,913 and working capital of $43,338,290 at December 31, 2006.  The change in cash and working capital of $58,647,421 and $53,564,767, respectively, is primarily due to the receipt of gross proceeds of $66,345,500 from the March 2007 prospectus financing and the exercise of stock options and warrants during 2007, offset by cash exploration expenditures of $8,309,527 and cash used in operations of $3,371,807 during the year. 

ABOUT FRONTEER
Fronteer is an exploration and development company with a track record of making big discoveries. Fronteer has a 40% interest in three excellent gold and copper-gold projects in western Turkey, an extensive portfolio of advanced stage gold projects in Nevada, and a 42.3% interest in Aurora Energy Resources (TSX – AXU), a leading Canadian uranium company.  For further information on Fronteer visit www.fronteergroup.com or contact:

Mark O’Dea, Ph.D, P.Geo President and CEO
Glen Edwards, Director of Communications
Sean Tetzlaff, Chief Financial Officer

PH) 604-632-4677 or Toll Free 1-877-632-4677
info@fronteergroup.com

Except for the statements of historical fact contained herein, certain information presented constitutes "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. The above contains forward-looking statements that are subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in our forward-looking statements. Such factors include, among others, risks related to international operations,  the actual results of current exploration activities, changes in project parameters as plans continue to be refined, future prices of metals, economic and political instability in Turkey and Mexico, environmental risks and hazards, increased infrastructure and/or operating costs, labor and employment matters, and government regulation as well as those factors discussed in the section entitled "Risk Factors" in the Company’s latest Annual Information Form and Form 20-F on file with the Canadian Securities Commissions and United States Securities and Exchange Commission. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Accordingly, readers should not place undue reliance on forward-looking statements.

FRG - TSX ©2008 Fronteer Development Group | fronteergroup.com
FRG - AMEX Subscribe |
Suite 1650, 1055 West Hastings, Vancouver, BC V6E 2E9

Fronteer Gold

DEVELOPMENT STAGE
CODE : FRG.TO
Follow and Invest
Add to watch list Add to your portfolio Add or edit a note
Add Alert Add to Watchlists Add to Portfolio Add Note
ProfileMarket
Indicators
VALUE :
Projects & res.
Press
releases
Annual
report
RISK :
Asset profile
Contact Cpy
Your feedback is appreciated, please leave a comment or rate this article.
Rate : Average note :0 (0 vote) View Top rated
 
In the News and Medias of Fronteer Gold
12/17/2010Paladin to buy uranium assets from Fronteer Gold
8/30/2010Fronteer Gold to buy explorer AuEx
Annual reports of Fronteer Gold
2006 Annual report
Financials of Fronteer Gold
3/29/2011reports year-end results
11/13/2010reports third quarter financial results and advancement of o...
8/12/2010Gold Reports Strong Second Quarter Financial Results and Sig...
5/12/2010Continues to report strong financial results and advancement...
11/16/2009reports third quarter results
8/14/2009reports second quarter and first half 2009 results
5/15/2009reports first quarter 2009 results
11/14/2008reports third quarter results
8/14/2008reports second quarter results
5/14/2008reports first quarter 2008 results
Project news of Fronteer Gold
1/12/2011(Long Canyon)reports interim resource estimate for Long Canyon gold depos...
1/18/2011(Long Canyon)Step-Out Drilling at Long Canyon Expands Deposit by 200 Metr...
1/18/2011(Long Canyon)Step-Out Drilling at Long Canyon Expands Deposit by 200 Metr...
12/13/2010(Long Canyon)Drilling to west of resource area at Long Canyon returns 9.8...
12/2/2010(Northumberland)Open-pit testwork returns 6.06 g/t gold over 16.92 metres an...
11/30/2010(Long Canyon)Drilling delivers more high-grade to Long Canyon deposit, in...
11/15/2010(Long Canyon)intersects 12.30 g/t gold over 50.4 metres at Long Canyon go...
11/8/2010(Long Canyon)builds additional high-grade gold at Long Canyon with 10.46 ...
10/13/2010(Sandman)New drill program targeting Sandman's fourth gold deposit re...
10/5/2010(Northumberland)Gold extends high-grade gold zone and awards construction co...
9/8/2010(Northumberland)Gold intersects 33 metres of 5.96 g/t gold and begins declin...
8/18/2010Drilling along northern extension intersects 44.2 metres of ...
8/9/2010(Northumberland)Gold continues to intersect high-grade gold at Northumberlan...
8/3/2010(Northumberland)Second high-grade zone returns 7.10 g/t gold over 37.4 metre...
7/20/2010(Long Canyon)Drilling Along Northern Extension of Deposit Intersects 64 M...
6/21/2010(Sandman)Drilling hits 2.35 ounces/ton gold and 33.18 ounces/ton silv...
6/9/2010(Long Canyon)Drilling returns 16.4 g/t gold over 21.2 metres
6/7/2010(Sandman)New high-grade drill results and expanded Plan of Operations
5/19/2010(Long Canyon)New resource estimate
4/14/2010(Halilaga)Drilling returns 308 metres of 0.34 g/t gold and 0.30% coppe...
4/5/2010(Halilaga)Reports metallurgical results and 2010 work-program
3/25/2010(Sandman)Near-surface oxide gold intercepts highlight open-pit potent...
3/5/2010(Sandman)Drilling returns 1.23 ounces per ton gold over 24.8 feet at ...
3/1/2010(Northumberland)Initial Northumberland metallurgical testing reports gold re...
2/22/2010(Halilaga)New drilling expands Halilaga copper-gold porphyry in northw...
2/18/2010(Northumberland)Drilling further defines high-grade gold
1/25/2010(Sandman)Sandman delivers more high-grade gold to Fronteer's Nevada p...
1/11/2010(Sandman)Sandman gold project on track to potential production decisi...
1/6/2010(Agi Dagi)& Teck complete the sale of the Agi Dagi & Kirazli gold proj...
12/21/2009(Long Canyon)Drilling advancing Long Canyon gold deposit to feasib ility
12/9/2009(Northumberland)Drilling highlights large high-grade zone at Northumberland ...
12/4/2009(Michelin (open Pit))Independent study: Michelin Uranium Project to generate regi...
12/1/2009(Long Canyon)Preliminary economic assessment for Long Canyon Project gene...
10/5/2009(Long Canyon)Long Canyon extends 100 metres to the north, returning 6.57 ...
10/1/2009(Long Canyon)Step-out drilling at Long Canyon extends gold mineralization...
9/17/2009(Long Canyon)Long Canyon deposit expansion ramps up: step-out drilling re...
8/20/2009(Long Canyon)provides global update on its development-stage gold pro jec...
8/12/2009(Long Canyon)Emerging zone returns more wide intervals of gold at Long Ca...
8/5/2009(Sandman)High-grade gold intersected in footwall zone of Sandman gold...
7/16/2009(Northumberland)initiates permitting for underground access at Northumbe rla...
6/30/2009(Long Canyon)Metallurgical drilling returns 4.15 grams per tonne gold ove...
6/23/2009(Jacques Lake)reports 87.5% uranium recovery from Aurora's pilot plant te...
6/16/2009(Sandman)Ongoing work-program underlines strong production potential ...
6/11/2009(Long Canyon)Long Canyon column-leach tests return gold recoveries averag...
6/1/2009(Sandman)Sandman gold project returns 25.58 grams per tonne gold over...
4/27/2009(Long Canyon)Initial metallurgical tests at Long Canyon return gold recov...
4/15/2009(Yuntdag)options out new Turkish gold property
4/3/2009Drilling intersects 14.30 grams per tonne gold over 12.77 me...
3/20/2009(Long Canyon)2009 work-program to build on initial gold resource at Long ...
3/13/2009(Long Canyon)First resource estimate for Long Canyon confirms high-grade ...
1/26/2009(Long Canyon)Drilling returns 5.32 grams per tonne gold over 25.4 metres ...
1/19/2009(Agi Dagi - Deli Zone)Discovery of additional gold zone underlines open-ended pote...
12/29/2008(Long Canyon)Drilling returns 9.03 grams per tonne gold over 25.8 metres ...
12/23/2008(Halilaga)Regional drilling at Halilaga intersects new areas of coppe...
12/8/2008Shallow drilling demonstrates high-grade nature of mineraliz...
11/20/2008(Northumberland)Drilling strengthens continuity at Fronteer's Northumberland...
11/18/2008(Long Canyon)Drilling continues to extend gold mineralization at Long Can...
11/12/2008(Agi Dagi - Deli Zone)JV update: Drilling begins at Agi Dagi gold project
10/27/2008(Long Canyon)hits more wide intervals of high-grade gold at Long Canyon, ...
10/23/2008(Dixie Lake/ Fronteer)work progresses at Fronteer's Sandman gold project
9/29/2008(Long Canyon)Drilling extends strike 400 metres at Fronteer's Long Canyon...
9/24/2008(Long Canyon)Earns Majority Interest in Long Canyon Gold Project, Nevada
9/11/2008(Long Canyon)Drilling, road building unearth more near-surface gold at Fr...
8/19/2008(Long Canyon)discovers new high-grade gold zone at Long Canyon, Nevada
8/9/2008(Northumberland)reclassifies Northumberland resource ounces
7/29/2008(Long Canyon)hits more high-grade gold at Nevada property
6/5/2008(Northumberland)Northumberland gold deposit increases in size and significan...
3/11/2008(Labrador Iocg)Nunatsiavut government considers proposed change
2/15/2008(Long Canyon)Drilling extends strike of high-grade gold at Nevada propert...
Corporate news of Fronteer Gold
4/7/2011Announces Completion of Acquisition by Newmont
3/20/2011ISS Proxy Advisory Services and Glass Lewis & Co. Recommend ...
2/1/2011completes sale of uranium assets to Paladin Energy
1/24/2011reports objectives, work plan and budget for 2011
12/16/2010options 11 exploration properties to West Kirkland Mining
12/17/2010enters into agreement to sell its uranium assets to Paladin ...
11/2/2010 completes acquisition of AuEx Ventures
10/25/2010announces sale of 10 exploration projects to Bridgeport Vent...
9/2/2010Drilling begins at TV Tower gold project in Turkey
8/30/2010Gold to acquire AuEx Ventures
8/25/2010Emerging Copper-Gold Porphyry Returns 646.50 Metres of Conti...
6/28/2010Provides mid-year update on advancement of its key gold proj...
4/26/2010expands gold portfolio in Nevada with acquisition ...
3/29/2010Strong year-end results
1/6/2010Exceptional gold intercepts expand mineralization at Long Ca...
12/9/2009Agreement signed for the sale of the Agi Dagi and Kirazli go...
9/24/2009and Teck announce proposed sale of projects to Alamos
6/10/2009to subscribe for six million units of East Asia Minerals
6/2/2009grants option to International Enexco on Loomis gold pro per...
5/4/2009Northumberland metallurgical program to test identified proc...
4/29/2009to hold Annual General Meeting in Toronto, May 7
4/22/2009Mr. Troy Fierro joins Fronteer as Chief Operating Officer
4/21/2009completes acquisition of Aurora
3/31/2009US$5M work-program commences at Fronteer's Sandman gold proj...
3/30/2009reports fiscal 2008 results
3/3/2009acquires additional shares and now owns 92.1% of Aurora Ener...
1/23/2009launches formal bid for Aurora Energy Resources Inc.
12/22/2008announces intention to acquire Aurora Energy Resources I nc.
11/5/2008hits more gold 'off-trend' in Nevada's Eastern Great Basin
10/21/2008establishes 51%-49% joint venture at its majority-owned Long...
6/18/2008finalizes Newmont deal to fast-track Nevada gold project to ...
4/18/2008 to hold Annual General Meeting in Toronto, May 6
4/8/2008Nunatsiavut Government's three-year moratorium to allow uran...
3/28/2008 reports fiscal 2007 results
3/25/2008's global exploration program aims to double gold resource b...
2/25/2008's Aurora exceeds annual resource target, adds four projects
4/5/2007Closes C$5,870,500 Over-Allotment Option
Comments closed
 
Latest comment posted for this article
Be the first to comment
Add your comment
TORONTO (FRG.TO)AMEX (FRG)
14.78+0.07%15.35+1.19%
TORONTO
CA$ 14.78
04/08 16:38 0.010
0.07%
Prev close Open
14.77 14.71
Low High
14.71 14.84
Year l/h YTD var.
 -  -
52 week l/h 52 week var.
- -  14.78 -%
Volume 1 month var.
5,867,254 -%
24hGold TrendPower© : 34
Produces
Develops Uranium
Explores for Copper - Gold - Indium - Silver - Uranium
 
 
 
Analyse
Interactive chart Add to compare
Interactive
chart
Print Compare Export
Last updated on : 11/19/2010
You must be logged in to use the porfolio and watchlists (free)
Top Newsreleases
Annual variation
DateVariationHighLow
201125.15%9.9910.12
2010181.19%9.8410.22
 
5 years chart
 
3 months chart
 
3 months volume chart
 
 
Subscribe to 24hGold’s daily market briefing
  • Prices and data of precious metals in 119 currencies and world mining companies
  • Daily analysis of the economy, markets and more
  • Free, daily and indispensable
Stay informed, subscribe now !
* Your email will never be shared.