European Minerals loses $77.59-million (U.S.) in 2007
2008-04-14 09:37 ET - News Release
Mr. Tony Williams reports
EUROPEAN MINERALS CORPORATION: RESULTS FOR THE YEAR ENDED DECEMBER 31, 2007-FILING OF ANNUAL FINANCIAL STATEMENTS, MD&A, AIF & RESTATED QUARTERLY FINANCIAL STATEMENTS AND RELATED MD&A
European Minerals Corp. (EMC) has provided its results for the year ended Dec. 31, 2007, and has filed the annual consolidated financial statements, management discussion and analysis, and annual information form for the company's financial year ended Dec. 31, 2007, and its restated interim financial statements for the first, second and third quarters of 2007. All amounts are expressed in U.S. dollars unless otherwise indicated.
Tony Williams, chairman of EMC, commented:
"The construction phase at Varvarinskoye is now complete and the plant is being commissioned. We're resolving ongoing issues which are inevitable during this process and continue to progress towards out target of achieving commercial production by the end of third quarter, 2008."
Highlights
Operational:
- Construction of the Varvarinskoye plant completed;
- Plant commissioning commenced;
- First gold poured;
- Updated estimate of mineral resources and reserves estimates at Varvarinskoye;
- Drilling for additional mineralization is under way;
- Private placement of new shares concluded;
- Project loan fully used
- President Nursultan Nazarbayev of Kazakhstan visited Varvarinskoye;
- Resolution of ABSA claim (March, 2008).
Financial:
- The company's focus continued to be the development of the Varvarinskoye gold and copper mine.
- As at Dec. 31, 2007, the company had assets of $271.1-million with cash balances totalling of $25.2-million.
- Cash spend on the development of the Varvarinskoye project amounted to approximately $61-million for the year.
- Earnings before interest, taxes, depreciation and amortization (EBITDA) loss of $9.2-million (2006 -- $9.7-million), which includes non-cash share option expense of $2.9-million (2006 -- $5.7-million).
CONSOLIDATED STATEMENTS OF OPERATIONS, COMPREHENSIVE LOSS AND DEFICIT
Years ended Dec. 31
(in thousands of U.S. dollars)
2007 2006
Income
Interest $1,341 $1,794
Expenses
Unrealized loss on derivative instruments 70,980 -
Investor relations 456 240
Administration 6,211 2,466
Legal and professional fees 643 665
Stock-based compensation 2,913 5,698
Foreign exchange gain (720) (440)
Write-off of property, plant and equipment - 1,001
Project and development expenditure 668 1,091
Gain on disposal of development properties (400) -
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80,751 10,721
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Net (loss) before income tax recovery (79,410) (8,927)
Income tax recovery (1,820) (328)
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Net (loss) and comprehensive (loss) for the year (77,590) (8,599)
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Basic and diluted (loss) per common share (0.28) (0.03)
(Deficit) -- beginning of year (70,724) (62,125)
Transitional adjustment (69,641) -
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(Deficit) -- adjusted (140,365) (62,125)
(Loss) for the year (77,590) (8,599)
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(Deficit) -- end of year (217,955) (70,724)
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We seek Safe Harbor.
