Campbell Resources Reports Year End Results.Business Editors TORONTO--(BUSINESS WIRE)--April 11, 2001 Campbell Campbell, city, United States Campbell, city (1990 pop. 36,048), Santa Clara co., W Calif., in the fertile Santa Clara valley; founded 1885, inc. 1952. Resources (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :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) .) (NYSE NYSE See: New York Stock Exchange :CCH) The continuing low gold price and operating problems have resulted in a very disappointing year for the Corporation. Operations at the Joe Mann Mine were temporarily 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. in mid November November: see month. after a very difficult re-start Verb 1. re-start - start an engine again, for example restart start up, start - get going or set in motion; "We simply could not start the engine"; "start up the computer" 2. of production in the second quarter. Problems implementing the new cut and fill mining method coupled with the lack of information on the continuation of the veins substantially reduced productivity and considerably increased costs. In early October October: see month. , operations at the Santa Gertrudis Santa Gertrudis Heaviest breed of beef cattle, developed in the 20th century by the King Ranch in Texas by crossing Brahman bulls with shorthorn cows. It is usually solid red with occasional small white markings on the forehead or the flanks. Mine were also suspended due to limited reserves and lower than expected production. In announcing its third quarter results, the Corporation advised that it would be reviewing the carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of its mining properties given the gold price environment and status of the various operations and properties. As a result of the continuing decline in gold prices in 2000, and the unlikelihood of a strong price recovery in the near term, Campbell conducted this review using a gold price of US$280 per ounce ounce, in zoology ounce, in zoology: see leopard. ounce, unit of measurement ounce: see English units of measurement. for 2001, US$290 per ounce for 2002, and US$300 per ounce thereafter. The overall write-downs of mining properties total $45.7 million, of which $26.0 million is attributable to the Joe Mann Mine with $10.6 million taken in respect of the Santa Gertrudis property in Mexico and the additional $9.1 million relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Cerro Quema Property in Panama. The review of carrying values and the update of mineral reserves at the Joe Mann Mine resulted in the decision to write down the carrying value of the Joe Mann mine by $26.0 million to $14.8 million. Decreased gold production from the Joe Mann and Santa Gertrudis mines and the write-downs in the carrying value of mining interests resulted in Campbell recording a loss of $63.6 million, or $4.04 per share for the year ended December 31, 2000, compared to a net loss of $12.7 million, or $0.81 per share in 1999. Excluding the write-downs of $45.7 million (nil in 1999), there was a loss from operations of $20.4 million in 2000 compared to a loss from operations of $14.4 million in 1999. The loss per share amounts for 1999 have been restated to take account of the consolidation of the Company's shares on a one-for-ten basis in May 2000. For the year ended December 31, 2000, there was negative cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses after the net change in non-cash operating working capital of $13.8 million compared to negative cash flow of $10.3 million for the 1999 fiscal year and a positive cash flow of $3 million for 1998. The Company's working capital at December 31, 2000 decreased to $7.4 million, including cash and short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. deposits of $4.5 million, compared to working capital $31.4 million a year earlier. Total gold production in the twelve months ended December 31, 2000 was 38,400 ounces compared to 53,700 ounces in 1999. The decrease in 2000 production was attributable to the lower than expected production and the temporary suspension of operations at the Joe Mann Mine in November 2000 and the disappointing performance and suspension of the Santa Gertrudis operation early in the fourth quarter. Overall, cash operating costs operating costs npl → gastos mpl operacionales in 2000 were US$463 per ounce of gold produced compared with US$292 per ounce a year earlier. The higher costs resulted from the low level of production with both mines operating for only a portion of the year and high fixed costs fixed costs, n.pl the costs that do not change to meet fluctuations in enrollment or in use of services (e.g., salaries, rent, business license fees, and depreciation). at both the Joe Mann and Santa Gertrudis mines. Campbell's realized gold revenue was US$279 per ounce in 2000. The average market price in 2000 was also US$279 per ounce. This compares to a realized gold revenue of US$276 per ounce and an average market price of US$279 in 1999. During 2000, the Joe Mann mine operated from April until mid November during which time 26,300 ounces of gold were produced, at a cash cost of approximately US $465, compared to 51,300 ounces in 1999 at a cash cost of approximately US$292 per ounce. Mill head grades were 0.208 ounces gold per ton in 2000 compared to 0.204 ounces gold per ton in 1999 with a gold recovery rate of 93.1% compared to 94.2 % in 1999. During the twelve months ended December 31, 2000, 12,300 ounces of gold were produced at the Santa Gertrudis mine from limited mining and leaching leaching, method of extraction in which a solvent is passed through a mixture to remove some desired substance from it. A simple example is the passage of boiling water through ground coffee to dissolve and carry out the chemicals necessary for producing the beverage. of the heaps on the leach leach v. leached, leach·ing, leach·es v.tr. 1. To remove soluble or other constituents from by the action of a percolating liquid. 2. pads that continued until the end of the fourth quarter. As a result of the lower production levels, the cash cost per ounce for the year to date was US$449 per ounce. The cash cost included all overhead costs overhead costs see fixed costs. associated with keeping the mine infrastructure in place while the exploration efforts continued until December, 2000. As previously reported, mining operations were suspended on October 15, 2000 as a result of the continuing weak gold price, lower than expected gold production and lack of sufficient reserves. On April 2, 2001, the Corporation filed a Notification of Late Filing with respect to its Annual Report on Form 10K for the year ended December 31, 2000. The Corporation intends to file this Annual Report by the April 17, 2001 deadline, in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with Rule 12b-25 of the Securities Act of 1934. OUTLOOK On December 7, 2000, a strategic decision was made to re-focus on the Corporation's Quebec mining assets, a new president and chief executive officer was appointed and the Corporation's executive office was re-located to Montreal, Quebec. Since December 2000, a review of mineral resources Noun 1. mineral resources - natural resources in the form of minerals natural resource, natural resources - resources (actual and potential) supplied by nature and reserves has been carried out, and a development and exploration plan has been prepared that would permit resumption RESUMPTION. To reassume; to promise again; as, the resumption of payment of specie by the banks is general. It also signifies to take things back; as the government has resumed the possession of all the lands which have not been paid for according to the requisitions of the law, and the of operations based on certain assumptions. The 2001 Plan concluded that current development was insufficient to permit the required production rates to be achieved and maintained and that a development and long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. exploration program was required to permit planning and development between the 2350 and 3400 foot levels. With the completion of this plan in early March 2001, alternative sources of financing for the development and exploration work are being pursued. It is expected that initial financing will be arranged in the second quarter of 2001. On March 28, 2001, the Corporation, 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. and GeoNova Explorations Inc., announced approval in principle of a merger of the three companies. The transaction is subject to final approval by each Board of Directors as well as regulatory and shareholder approvals. It is expected that details of the transaction will be finalized See finalization. and forwarded to shareholders of each company by the end of April. The planned merger is being undertaken in order to consolidate the operations of the three companies in the Chibougamau mining camp in northwestern Quebec. It is expected that operating synergies and elimination of multiple public company costs will contribute to making the Chibougamau operations of the continuing company more competitive at current depressed gold and copper prices. At the Santa Gertrudis Property, exploration continued until late November when the program was terminated. Discussions are continuing with certain major gold companies to determine their level of interest in pursuing a deep drilling program to search for sulphide sulphide: see sulfide. mineralization Mineralization The process by which the body uses minerals to build bone structure. Mentioned in: Rickets mineralization, n the bioprecipitation of an inorganic substance. on the property. In late December, 2000 Campbell engaged Geographe Corporate Advisory Limited of Vancouver to assist with this process and to help identify a potential purchaser for the near surface potential of the property . These efforts are ongoing. Given the sustained lower gold prices and the Corporation's change in corporate strategy, the Corporation reached a verbal understanding in March 2001, to sell its investment in Cerro Quema in return for a 9% net profits interest. The Corporation will also be released from its environmental and mining bonds and the Purchaser will assume all obligations with respect to Cerro Quema project. Documentation is currently being completed and the transaction is expected to close in the second quarter. 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 AForward-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 ARisk Factors@ set forth in the Company=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, 1999. Such factors include, but are not limited to: differences between estimated and actual ore reserves; 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 ore reserves of the Company. 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" . The Company undertakes no obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date hereof or to reflect unanticipated events or developments.
CAMPBELL RESOURCES INC.
CONSOLIDATED BALANCE SHEETS
as at December 31,
(Expressed in thousands of Canadian dollars)
2000 1999
---- ----
ASSETS
CURRENT ASSETS
Cash and short-term deposits $4,548 $18,219
Money market instruments - 7,958
Receivables 1,684 1,999
Restricted cash 840 -
Inventories 4,420 4,891
Prepaids 539 460
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Total current assets 12,031 33,527
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OTHER ASSETS 628 194
FUTURE INCOME TAX ASSETS 1,742 -
MINING INTERESTS 15,199 53,413
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Total assets $ 29,600 $ 87,134
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LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 2,195 $ 1,104
Accrued liabilities 1,590 1,003
Future Income tax liabilities 886 -
--------- ---------
Total current liabilities 4,671 2,107
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ACCRUED RECLAMATION 6,513 2,169
CONVERTIBLE DEBENTURES 3,864 3,718
FUTURE INCOME TAX LIABILITIES 856 1,716
OTHER LIABILITIES 228 1,751
SHAREHOLDERS' EQUITY
Captial Stock 125,355 125,339
Foreign currency translation adjustment 1,258 593
Deficit (113,145) (50,259)
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Total shareholders' equity 13,468 75,673
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Total liabilities and shareholders' equity $ 29,600 $ 87,134
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CAMPBELL RESOURCES INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
for the Years Ended December 31,
(Expressed in thousands of Canadian dollars except per share amounts)
2000 1999 1998
---- ---- ----
METAL SALES $ 15,682 $ 22,465 $ 36,388
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EXPENSES
Mining 25,272 25,646 33,449
General administration 2,633 2,875 2,648
Severance pay 761 - -
Depreciation and amortization 4,641 4,699 8,191
Exploration 2,370 2,299 2,219
Care and maintenance 383 1,394 -
--------- --------- ---------
36,060 36,913 46,507
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Loss from operations before writedown
and loss on sale of mining interests (20,378) (14,448) (10,119)
Writedown and loss on sale of
mining interests 45,674 - 12,508
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Loss from operations (66,052) (14,448) (22,627)
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Other income (expense)
Other income 1,900 843 2,396
Convertible debenture interest
expense (318) (351) (526)
--------- --------- ---------
1,582 492 1,870
--------- --------- ---------
Loss before taxes (64,470) (13,956) (20,757)
Income and mining tax recovery(expense) 900 1,254 (91)
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NET LOSS $(63,570) $(12,702) $(20,848)
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LOSS PER SHARE $ (4.04) $ (0.81) $ (1.36)
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