Skye Resources Inc.

Published : May 13th, 2008

Updates Fenix Project and Announces Q1 Results

( 0 vote, 0/5 ) Print article
  Article Comments Comment this article Rating Follow Company  
0
Send
0
comment

SKYE PROVIDES UPDATE ON FENIX PROJECT AND ANNOUNCES FIRST QUARTER RESULTS

 

VANCOUVER, BC, May 13, 2008 -- Skye Resources Inc. (“Skye” or the “Company”) (TSX:SKR) today released an update on its Fenix Project and its unaudited consolidated interim financial statements for the three months ended March 31, 2008.

 

First Quarter Activities and Project Update

Skye continues to explore alternatives to finance the development of the Fenix Ferro-Nickel Project in Guatemala, following the January announcement that it was temporarily deferring a proposed high yield debt financing. 

 

“We are committed and determined to see this project developed as it is without a doubt the most advanced brownfield ferro-nickel project in the world.  The Fenix Project is fully permitted, it has the support of the government and the people of Guatemala, it contains excellent geological resources and it is based on time proven technology,” said Colin K. Benner, Skye’s Chief Executive Officer.

 

During the first quarter, management focused on rescheduling construction activities and reviewing project alternatives.  The Company is in discussion with vendors to hold the existing equipment orders open until late in the summer of 2008.   Vendor engineering is continuing on all long lead time items and some fabrication has been completed.  The Engineering Procurement and Construction Management contractor is maintaining a core team of key engineering personnel on the project and is continuing with detailed engineering, albeit at a reduced level.  Skye intends to continue this level of engineering until the end of the summer.

 

While the original Fenix Project plan envisioned producing ferro-nickel in late 2009, it is possible that the project could be delayed by up to a year assuming the financing for the project is in place by the end of this summer.

 

2008 First Quarter Financial Results

(all amounts are in U.S. dollars unless otherwise indicated)

The Company is reporting a loss of $10,916,000 for the first quarter of 2008 (basic and diluted loss per share of $0.21) compared with a loss of $5,731,000 (basic and diluted loss per share of $0.14) for the three months ended March 31, 2007.  The loss for the quarter is principally related to exploration and indirect development costs for Skye’s Fenix Ferro-Nickel Project, general and administrative costs and non-cash stock-based compensation expense.  In the quarter, the Company capitalized $25,820,000 of Fenix Project direct development costs (engineering, project management and procurement costs) bringing the total capitalized expenditures to date to $72,341,000.

 

Skye’s unaudited consolidated interim financial statements and Management’s Discussion and Analysis (MD&A) for the quarter ended March 31, 2008 will be filed on SEDAR and available for download at www.sedar.com.

 

About Skye

Skye is an international mining company focused on becoming a mid-tier nickel producer.  Skye acquired the rights to its Guatemalan lateritic nickel project (the Fenix project) in December 2004 and in October 2006 completed a feasibility study for a ferro-nickel project at Fenix using proven conventional smelting technology. In 2007 Skye received its environmental permits for the project, completed basic engineering and filed a Technical Report.  Skye is preparing to initiate construction once financing is in place.  www.skyeresources.com

 

Cautionary Notice:  This document contains certain forward-looking statements that involve risks and uncertainties, such as statements of Skye’s plans, objectives, strategies, expectations and intentions.  The words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” and similar expressions, as they relate to Skye, or its management, are intended to identify such forward-looking statements.  Many factors could cause Skye’s actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements.  Forward-looking statements may include mineral reserve and resource estimates, commodity prices, estimates of future production, unit costs, construction schedules and construction cost estimates, costs of capital projects and timing of commencement of operations, and are based on current expectations and beliefs concerning future developments and their potential effects on Skye.  Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to failure to construct the mine facilities in the time frame and within estimated costs as planned; variations in capital and operating costs from estimated costs; unavailability of key personnel, skilled labor, supplies, equipment, machinery, parts, contractors and necessary components of Skye’s project; variations in the grade and recovery of ore from estimated amounts; fluctuations in global demand, supply of and price for nickel; inability to obtain financing on commercially suitable terms; delays in obtaining or failures to obtain required governmental, environmental or other project permits, licenses or approvals; changes in tax or mining laws; failure to build and maintain good relationships with the local community; illegal land occupations; civil disturbances; changes in the regulatory environment; unforeseen geological, physical or meteorological conditions; natural disasters or industrial accidents; labor shortages or stoppages; industrial disputes; inflation; changes in exchange rates; political factors; fluctuations in power, fuel and other commodity prices; and other factors including those described under the heading “Risk Factors” in Skye’s most recent Annual Information Form filed on Sedar.  The forward-looking statements included in this document represent Skye’s views as of the date of this document.  While Skye anticipates that subsequent events and developments may cause its views to change, it specifically disclaims any obligation to update these forward-looking statements.  These forward-looking statements should not be relied upon as representing its views as of any date subsequent to the date of this document.  All subsequent written and oral forward-looking statements attributable to Skye or persons acting on its behalf are expressly qualified in their entirety by this notice.

 

FOR FURTHER INFORMATION PLEASE CONTACT:

Cindy Burnett

Vice President, Investor Relations

Tel: (604) 648-4133

cburnett@skyeresources.com

Skye Resources Inc.

EXPLORATION STAGE
CODE : SKR.TO
ISIN : CA83081N1078
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

Skye Res. is a nickel exploration company based in Canada.

Skye Res. holds various exploration projects in Guatemala.

Its main exploration properties are FENIX and FENIX (EXMIBAL) in Guatemala.

Skye Res. is listed in Canada, in Germany and in United States of America. Its market capitalisation is CA$ 339.2 millions as of today (US$ 280.8 millions, € 190.0 millions).

Its stock quote reached its highest recent level on May 12, 2006 at CA$ 9.94, and its lowest recent point on August 27, 2008 at CA$ 6.66.

Skye Res. has 50 931 000 shares outstanding.

Your feedback is appreciated, please leave a comment or rate this article.
Rate : Average note :0 (0 vote) View Top rated
 
Annual reports of Skye Resources Inc.
Annual Report 2007
Nominations of Skye Resources Inc.
6/19/2008Appoints David Bryson CFO
2/29/2008Appoints C. K. Benner as Chief Executive Officer and Vice Ch...
12/12/2007APPOINTS MORGAN STANLEY TO FINANCE FENIX PROJECT
Financials of Skye Resources Inc.
8/14/2008Announces Second Quarter Results
11/14/2007(Fenix (exmibal)) Announces Third Quarter Results and Updates Fenix Project
5/14/2007Announces first quarter results
Project news of Skye Resources Inc.
5/13/2008(Fenix) Updates Fenix Project and Announces Q1 Results
3/20/2008(Fenix)Fenix Project Update and 2007 Results
2/13/2008(Fenix) Reports Increased Resource Estimates for Fenix
9/19/2007files Fenix project Technical Report
Corporate news of Skye Resources Inc.
8/26/2008HudBay Minerals Completes Business Combination with Skye Res...
8/19/2008Securityholders Approve Business Combination with HudBay Min...
6/24/2008Vale Inco Notifies Skye it Will Not Exercise Pre-Emptive Fin...
6/23/2008HudBay and Skye Announce Proposed Business Combination
5/20/2008 COO Retires
5/6/2008Announces Director Change
3/27/2008John Bracale Joins Skye Resources
2/19/2008Successfully Completes Pilot Leaching Tests
1/30/2008Defers Fenix Project Financing in View of Credit Market Cond...
12/3/2007Announces New Director
10/30/2007announces power purchase agreement with Duke Energy Internat...
10/26/2007announces closing of previously announced unit offering and ...
8/29/2007provides Fenix project update
7/31/2007announces agreement with Guatemalan government
7/3/2007announces receipt of construction permit for Fenix project
6/8/2007receives environmental permits for Fenix Project
4/23/2007nominates three new directors
Comments closed
 
Latest comment posted for this article
Be the first to comment
Add your comment
TORONTO (SKR.TO)FRANKFURT (S7R.F)
6.66+0.30%4.30-0.23%
TORONTO
CA$ 6.66
08/27 15:10 0.020
0.3%
Prev close Open
6.64 6.61
Low High
6.46 6.75
Year l/h YTD var.
 -  -
52 week l/h 52 week var.
- -  6.66 -%
Volume 1 month var.
28,800 -%
24hGold TrendPower© : -11
Produces
Develops
Explores for Nickel
 
 
 
Analyse
Interactive chart Add to compare
Interactive
chart
Print Compare Export
You must be logged in to use the porfolio and watchlists (free)
Top Newsreleases
MOST READ
Annual variation
DateVariationHighLow
 
5 years chart
 
3 months chart
 
3 months volume chart
 
 
Mining Company News
Plymouth Minerals LTDPLH.AX
Plymouth Minerals Intersects Further High Grade Potash in Drilling at Banio Potash Project - Plannin
AU$ 0.12-8.00%Trend Power :
Santos(Ngas-Oil)STO.AX
announces expected non-cash impairment
AU$ 7.18+0.84%Trend Power :
Oceana Gold(Au)OGC.AX
RELEASES NEW TECHNICAL REPORT FOR THE HAILE GOLD MINE
AU$ 2.36-4.45%Trend Power :
Western Areas NL(Au-Ni-Pl)WSA.AX
Advance Notice - Full Year Results Conference Call
AU$ 3.86+0.00%Trend Power :
Canadian Zinc(Ag-Au-Cu)CZN.TO
Reports Financial Results for Q2 and Provides Project Updates
CA$ 0.12+4.55%Trend Power :
Stornoway Diamond(Gems-Au-Ur)SWY.TO
Second Quarter Results
CA$ 0.02+100.00%Trend Power :
McEwen Mining(Cu-Le-Zn)MUX
TO ACQUIRE BLACK FOX FROM PRIMERO=C2=A0
US$ 3.37+2.43%Trend Power :
Rentech(Coal-Ngas)RTK
Rentech Announces Results for Second Quarter 2017
US$ 0.20-12.28%Trend Power :
KEFIKEFI.L
Reduced Funding Requirement
GBX 0.59+0.51%Trend Power :
Lupaka Gold Corp.LPK.V
Lupaka Gold Receives First Tranche Under Amended Invicta Financing Agreement
CA$ 0.02+0.00%Trend Power :
Imperial(Ag-Au-Cu)III.TO
Closes Bridge Loan Financing
CA$ 2.70+0.75%Trend Power :
Guyana Goldfields(Cu-Zn-Pa)GUY.TO
Reports Second Quarter 2017 Results and Maintains Production Guidance
CA$ 1.84+0.00%Trend Power :
Lundin Mining(Ag-Au-Cu)LUN.TO
d Share Capital and Voting Rights for Lundin Mining
CA$ 7.35+3.09%Trend Power :
Canarc Res.(Au)CCM.TO
Canarc Reports High Grade Gold in Surface Rock Samples at Fondaway Canyon, Nevada
CA$ 0.26-11.86%Trend Power :
Havilah(Cu-Le-Zn)HAV.AX
Q A April 2017 Quarterly Report
AU$ 0.34+19.64%Trend Power :
Uranium Res.(Ur)URRE
Commences Lithium Exploration Drilling at the Columbus Basin Project
US$ 6.80-2.86%Trend Power :
Platinum Group Metals(Au-Cu-Gems)PTM.TO
Platinum Group Metals Ltd. Operational and Strategic Process ...
CA$ 2.08+3.48%Trend Power :
Devon Energy(Ngas-Oil)DVN
Announces $340 Million of Non-Core Asset Sales
US$ 65.55+1.69%Trend Power :
Precision Drilling(Oil)PD-UN.TO
Announces 2017Second Quarter Financial Results
CA$ 8.66-0.35%Trend Power :
Terramin(Ag-Au-Cu)TZN.AX
2nd Quarter Report
AU$ 0.03+0.00%Trend Power :