OSISKO RELEASES YEAR-END RESULTS
(Montreal, March 24, 2009) Osisko Mining Corporation (OSK: TSX, EWX: Deutsche Boerse) is pleased to report its financial results for the period ended December 31, 2008.
During the fourth quarter, the Company incurred a loss of $2.1 million ($0.01 per share), compared to a loss of $1.8 million ($0.01 per share) in the corresponding period of 2007. The 2008 loss was mainly attributable to the write-off of an exploration project in Brazil, and a loss of $0.7 million for the dismantlement and the disposal of the East Malartic mill. The losses were partially offset by the gain on foreign exchange of $4.1 million due to the weakening of the Canadian dollar against the US currency.
For the year ended December 31, 2008, the Company incurred a profit of $1.5 million ($0.01 per share) compared to a loss of $11.8 million ($0.09 per share) in 2007. The variation in net income in 2008 is mainly attributable to:
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Foreign exchange gain of $5.8 million (compared to a loss in 2007 of $3.3 million) due to the weakening of the Canadian dollar against the US currency;
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Recognition of a future income tax recovery following the renunciation of exploration expenses to the subscribers in 2007 of $25 million flow-through financing;
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Higher interest income due to higher cash balances following an equity issue late in 2007. The Company has no operating income as it is in development stage. The Company has continued to advance the development of its flagship asset, the Canadian Malartic Project. Key achievements during the year included:
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Completion of a positive feasibility study that defined the following material factors:
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Proven and probable reserves of 6.3 million ounces of gold (183.3 M tonnes @ 1.07 g/t Au based on 0.36 g/t cut-off).
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Capital investment of US$789 million.
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Annual estimated gold production of 591,000 ounces for ten-year period at a cash operating cost of US$319 per ounce.
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Significant progress on the relocation program including the relocation of 60 homes and the initiation of construction on three institutional buildings.
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Filing of the Environmental Impact Assessment Study with the Quebec Government and the commencement of the public hearings in early 2009
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Negotiation of two credit facilities.
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Completion of 238,326 metres of drilling on the project.
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Issuance of a NI 43-101 inferred resource calculation on the Barnat deposit with an estimated 2.0 million ounces of gold (36 million tonnes @ 1.74 g/t Au based on a 0.36 g/t cut-off).
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Creation of a sustainability fund for the residents of Malartic.
In addition, the Company completed a $403 million equity financing on February 25, 2009, by issuing 88,550,000 units at a price of $4.55 per unit. Each unit was comprised of a common share and one-half warrant. Each warrant gives right to purchase a common share before November 17, 2009, at a price of $5.45.
Key financial highlights are as follows:
|
December 31, 2008 ($000) |
December 31, 2007 ($000) |
Cash Position |
95,655 |
182,078 |
Working Capital |
92,689 |
183,476 |
Total Assets |
318,192 |
264,394 |
Shareholder's Equity |
267,269 |
252,538 |
Mr. Sean Roosen, President and CEO, commented on the past year�s performance: �We have again delivered against our objectives of fast tracking the exploration and development of the Canadian Malartic Project. With our recent successful equity financing, we have the financial capacity to pursue our goal of developing this world-class deposit and becoming a leading intermediate gold producer by 2011. We are now one of the best financed and most advanced developer companies in the gold sector. Our strong balance sheet is a testament to our great project in a great community.�
The 2008 year-end financial statements and Management Discussion and Analysis (MD&A) will be filed on SEDAR by March 31, 2009.
Osisko Mining Corporation is currently developing the Canadian Malartic gold deposit and evaluating adjacent areas for a large-scale open pit, bulk-tonnage mining operation. The Company is well-funded with ap proximately $450 million on hand.
THIS PRESS RELEASE CONTAINS FINANCIAL STATEMENTS. CLICK HERE TO VIEW ORIGINAL VERSION OF THIS DOCUMENT.
Cautionary Notes Concerning Estimates of Mineral Resources
This news release uses the terms measured, indicated and inferred resources as a relative measure of the level of confidence in the resource estimate. Readers are cautioned that the South Barnat mineral resources are not economic mineral reserves and that the economic viability of resources that are not mineral reserves has not been demonstrated. In addition, inferred resources are considered too geologically speculative to have any economic considerations applied to them. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies or economic studies except for Preliminary Assessment as defined under NI 43-101. Readers are cautioned not to assume that further work on the inferred re sources will lead to mineral reserves that can be mined economically.
Forward Looking Statements
Certain statements contained in this Press Release, may be deemed �forward-looking statements�. All statements in this release, other than statements of historical fact, that address events or developments that the Corporation expects to occur, are forward looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words �expects�, �plans�, �anticipates�, �believes�, �intends�, �estimates�, �projects�, �potential� and similar expressions, or that events or conditions �will�, �would�, �may�, �could� or �should� occur. Although the Corporation believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, including, without limitation that all technical, economical and financial conditions will be met in order to put the Canadian Malartic Project into commercial production, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Factors that could cause the actual results to differ materially from those in forwardlooking statements include gold prices, access to skilled mining development and mill production personnel, results of exploration and development activities, the Corporation�s limited experience with production and development stage mining operations, uninsured risks, regulatory changes, defects in title, availability of materials and equipment, timeliness of government approvals, actual performance of facilities, equipment and processes relative to specifications and expectations, unanticipated environmental impacts on operations market prices, continued availability of capital and financing and general economic, market or business conditions. These factors are discussed in grea ter detail in the Corporation�s most recent Annual Information Form filed on SEDAR, which also provides additional general assumptions in connection with these statements. The Corporation cautions that the foregoing list of important factors is not exhaustive. Investors and others who base themselves on the Corporation�s forward-looking statements should carefully consider the above factors as well as the uncertainties they represent and the risk they entail. The Corporation believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this Press Release should not be unduly relied upon. These statements speak only as of the date of this Press Release.
Pour la version fran�aise de ce communiqu�, veuillez visiter notre site : www.osisko.com
For further information please contact:
John Burzynski Daniel Boase
Vice-President Corporate Development
Tel. (514) 735-7131
www.osisko.com
Daniel Boase
Investor Relations
Tel. (416) 742-5600
Toll Free: 1-866-580-8891
Renmark Financial Communications Inc.
John Boidman : jboidman@renmarkfinancial.com
Dan Symons : dsymons@renmarkfinancial.com
Montreal - Tel.: (514) 939-3989 / Fax: (514) 939-3717
Toronto - Tel.: (416) 644-2020 / Fax: (416) 644-2021
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