Campbell Resources' Total Assets Exceed $44 Million At the End Of The Second Quarter.Business Editors MONTREAL--(BUSINESS WIRE)--Aug. 14, 2001 Campbell Resources (NYSE NYSE See: New York Stock Exchange :CCH CCH Colegio de Ciencias y Humanidades (Spanish) CCH Certified Clinical Hypnotherapist CCH Cook County Hospital CCH Certified in Classical Homeopathy CCH Country Club Hills (Fairfax City, VA, USA) ) (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :CCH.) With the completion of the merger of MSV mSv Millisievert (measure of radiation dose) MSV Medical Society of Virginia MSV Maize Streak Virus MSV Mobile Satellite Ventures LP (Reston, Virginia) MSV Men Stopping Violence Resources Inc. ("MSV") and GeoNova Explorations Inc. ("GNE GNE Gateway Network Element (data communications) GNE Game Neverending (MMORPG) GNE Gross National Expenditure GNE Game Networking Engine GNE Graphical Network Editor (Nortel) ") into Campbell effective June 30, 2001, the financial statements for the period ended June 30, 2001 reflect the impact of the merger. Total assets increased by $15 million to $44.6 million. At June 30, 2001 the Corporation had cash and short-term deposits of $3,376,000 including restricted cash of $836,000 which secures the Corporation's contingent obligations with respect to outstanding calls for 16,600 ounces of gold maturing during 2001 at US$350 per ounce. Mining interests increased by $8.2 million. Total Shareholders' Equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. of the Corporation increased to $22.6 million from $13.5 million at December 31, 2000. Pursuant to the merger, 15,610,294 common shares have been issued resulting in the number of issued and outstanding common shares increasing to 31,398,922 common shares currently outstanding. Campbell recorded a loss of $931,000 or $0.06 per share in the three months ended June 30, 2000 and a loss of $2.9 million or $0.19 per share in the six months ended June 30, 2001. This compares to a loss of $4.7 million or $0.30 per share and a loss of $6.5 million or $0.41 per share in the comparable periods of 2000. The results for the first six months of 2001 include care and maintenance costs at the Corporation's Joe Mann Mine in Chibougamau, Quebec Chibougamau is a town in central Quebec, Canada, located on Lake Gilman. where operations have been suspended sus·pend v. sus·pend·ed, sus·pend·ing, sus·pends v.tr. 1. To bar for a period from a privilege, office, or position, usually as a punishment: suspend a student from school. since mid November, 2000 and care and maintenance costs relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Corporation's properties in Mexico and Panama and are not comparable to the same period of 2000. Copper Rand Rand See Witwatersrand. rand 1 n. See Table at currency. [Afrikaans, after(Witwaters)rand. Mine As previously announced on July 25, 2001, Campbell has acquired an additional 10% interest in Corporation Copper Rand ("CCR 1. CCR - condition code register. 2. CCR - (Database) concurrency control and recovery. "). SOQUEM INC. and the Societe de developpement de la Baie La Baie (lə bī), city (1991 pop. 20,995), S Que., Canada, on Ha! Ha! Bay, an arm of the Saguenay River. Formed by the amalgamation of Bagotville, Port Alfred, and the parishes of Grande-Baie and Bagotville, La Baie has a natural harbor that James ("SDBJ SDBJ San Diego Business Journal ") have exchanged part of their interest in CCR into MSV convertible debentures Convertible Debenture Any type of debenture that can be converted into some other security. Notes: For example, a convertible bond can be converted into stock. totaling $2,500,000 bearing interest at a base rate of 8% annually plus added interest based on metals prices and CCR's production volume. These debentures are convertible into common shares of Campbell at a price of $1.025 per share. Campbell Resources now holds 26% of the capital in CCR through MSV, and MSV remains the operator. CCR was created to facilitate the $45,000,000 financing of the Copper Rand 5000 Project. Following this exchange, the Solidarity Fund QFL QFL Quebec Federation of Labour (Canada) QFL Queensland Football League QFL Quoted for Lies (internet slang) QFL Qualified Products List holds 28% of the capital in CCR with SDBJ and SOQUEM each holding 23%. Investissement-Quebec has granted CCR a term loan of up to $22 million. Work on modifying the Copper Rand's hoisting system and preparations for the deepening deep·en tr. & intr.v. deep·ened, deep·en·ing, deep·ens To make or become deep or deeper. Noun 1. deepening - a process of becoming deeper and more profound of shaft no. 4, will be completed as scheduled in a few weeks. The shaft deepening contract has been awarded to Ross Finlay of Val d'Or Val d'Or (väl dôr), town (1991 pop. 23,842), SW Que., Canada, SE of Rouyn-Noranda. It is a mining center. Gold was discovered in the region in 1909; copper, zinc, lead, and molybdenum are also mined. , Quebec and the deepening will begin shortly. Joe Mann Mine During the second quarter, work has continued on mining plans at the Joe Mann Mine. An internal feasibility study The analysis of a problem to determine if it can be solved effectively. The operational (will it work?), economical (costs and benefits) and technical (can it be built?) aspects are part of the study. Results of the study determine whether the solution should be implemented. has been completed that contemplates that, with an investment of $10 million for development and exploration, mining operations could be restarted at a daily mining rate of 1,040 tons. It is expected that this investment will consist of equity, grant and loan. The study indicates that the mine should generate positive cash flow of $14.3 million over two and a half years with cash production costs (excluding pre-production development, exploration and reclamation Reclamation A claim for the right to return or the right to demand the return of a security that has been previously accepted as a result of bad delivery or other irregularities in the delivery and settlement process. costs) of approximately US$195 per ounce. During this period, exploration will be carried out with a view to extending the mine life. Discussions regarding equity and other financing as well as labour and contractual negotiations regarding proposed concessions, required to ensure that the mining operations are profitable in the long term, are well advanced and a decision regarding the re-start of mining operations should be made by the end of the third quarter. Campbell Resources is a mining company focusing mainly in the Chibougamau region of Quebec, holding interests in gold and gold-copper mining properties. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. Certain information contained in this release contains "Forward-Looking Statements" within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 and is subject to certain risks and uncertainties, including those "Risk Factors" set forth in the Campbell's current Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 2000. Such factors include, but are not limited to: differences between estimated and actual mineral reserves and resources; changes to exploration, development and mining plans due to prudent reaction of management to ongoing exploration results, engineering and financial concerns; and fluctuations in the gold price which affect the profitability and mineral reserves and resources of Campbell. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" . Campbell undertakes no obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect unanticipated events or developments.
CAMPBELL RESOURCES INC.
CONSOLIDATED BALANCE SHEETS
(Expressed in thousands of Canadian dollars)
Unaudited
June 30 December 31
2001 2000
---- ----
$ $
ASSETS
CURRENT ASSETS 11,266 12,031
OTHER ASSETS 1,681 628
INVESTMENTS (note 2) 6,576 -
FUTURE INCOME TAX ASSET 1,742 1,742
MINING INTERESTS 23,348 15,199
--------- ---------
44,613 29,600
--------- ---------
--------- ---------
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES 5,460 4,671
ACCRUED RECLAMATION 8,022 6,513
DEFFERRED INCOME 522 -
CONVERTIBLE DEBENTURES (note 3) 7,017 3,864
FUTURE INCOME AND MINING TAX LIABILITY 856 856
OTHER LIABILITIES 121 228
SHAREHOLDERS' EQUITY
Capital stock (note 4) 23,744 125,355
Foreign currency translation adjustment 1,333 1,258
Deficit (2,462) (113,145)
--------- ---------
22,615 13,468
--------- ---------
44,613 29,600
--------- ---------
--------- ---------
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Expressed in thousands of Canadian dollars except per share amounts)
Three months ended Six months ended
------------------ ----------------
June 30 June 30
------- -------
2001 2000 2001 2000
---- ---- ---- ----
$ $ $ $
METAL SALES - 3,547 - 4,803
-------- -------- -------- --------
EXPENSES
Mining - 6,649 - 8,121
General administration 413 650 901 1,359
Indemnity in lieu of notice 300 300
Depreciation and amortization 6 917 12 1,206
Exploration - 385 - 1,079
Care and maintenance 476 80 1,807 217
-------- -------- -------- --------
1,195 8,681 3,020 11,982
-------- -------- -------- --------
Loss from operations (1,195) (5,134) (3,020) (7,179)
-------- -------- -------- --------
Other income (expense)
Other income 151 442 167 800
Metal sales adjustment
previous year 42 - (76) (156)
Convertible debenture
interest expense (73) (79) (146)
-------- -------- -------- --------
120 363 (55) 644
-------- -------- -------- --------
Loss before taxes (1,075) (4,771) (3,075) (6,535)
Income and mining
tax recovery 144 50 113 18
-------- -------- -------- --------
NET LOSS (931) (4,721) (2,962) (6,517)
-------- -------- -------- --------
-------- -------- -------- --------
LOSS PER SHARE (0.06) (0.30) (0.19) (0.41)
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