Cheni Resources -- Fourth Quarter Results.VANCOUVER Vancouver, city, Canada Vancouver, city (1991 pop. 471,844), SW British Columbia, Canada, on Burrard Inlet of the Strait of Georgia, opposite Vancouver Island and just N of the Wash. border. , BRITISH COLUMBIA--(BUSINESS WIRE)--March 5, 1997-- Cheni Resources Inc.(TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :CHB.) CHENI RESOURCES INC. ("the Company") reports that operations for the fourth quarter resulted in a net profit of $620,000, or $0.05 earnings per share, as compared to a net loss of $263,000, or $0.01 loss per share, for the same period in 1995. For the fiscal year ended December December: see month. 31, 1996, operations resulted in a small net profit of $27,000 as compared to a net loss of $266,000 for the comparable period in 1995. The fourth quarter operating results benefited from a $350,000 adjustment (netted against minesite operations expense) with respect to a reduction in the Lawyers minesite 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. liability. This adjustment was made to reflect managements present estimate of the Company's outstanding liability with regard to future reclamation costs at the Lawyers minesite. Revenues for the period amounted to $434,000 (1995-$625,000) and were derived de·rive v. de·rived, de·riv·ing, de·rives v.tr. 1. To obtain or receive from a source. 2. from interest and other income, and gains on sale of assets and investments. Operating costs operating costs npl → gastos mpl operacionales , before taking into account the above described reclamation adjustment, were approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $210,000 less than in 1995 principally because the Company significantly reduced care and maintenance, and reclamation costs associated with the Lawyers minesite. At December 31, 1996, Cheni had working capital of $1.3 million, including $0.6 million in cash, and no long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. . On January January: see month. 10, 1997, the Company increased its working capital by completing the final private placement to Mine Or S.A., an affiliated af·fil·i·ate v. af·fil·i·at·ed, af·fil·i·at·ing, af·fil·i·ates v.tr. 1. To adopt or accept as a member, subordinate associate, or branch: company, under the terms of the Subscription Agreement. The Company issued 2,896,032 common shares for proceeds of $2,463,312, or $0.851 per share. These funds are available for project acquisitions. On December 30th the Company entered into an agreement with Hutton Hut·ton , James 1726-97. Scottish physician and geologist whose ideas, presented in A Theory of the Earth (1785), form the basis of modern geology. Noun 1. Capital Corporation whereby Hutton agreed to purchase 200,000 Class A shares of Meota Resources Corporation from Cheni for $0.97 per share (completed) and, in addition, Hutton paid Cheni $50,000 in exchange for Cheni granting to Hutton an option to purchase 1.4 million additional Class A shares of Meota at $1.25 per share until June June: see month. 30, 1997. Regarding Cheni's investments in Meota and Cambridge Cambridge, city, Canada Cambridge (kām`brĭj), city (1991 pop. 92,772), S Ont., Canada, on the Grand River, NW of Hamilton. It was formed in 1973 with the amalgamation of Galt, Hespeler, and Preston, all founded in the early 19th cent. Minerals Ltd., there was no significant change in the affairs of either company during the fourth quarter. However, subsequent to year end, Cambridge has announced that it has renegotiated the terms of its option agreement with Arauco Arauco may refer to:
See Canadian Venture Exchange (CDNX). , Cambridge will acquire a 100 percent interest in three Chilean mineral properties. Two of the properties are gold prospects and are at a drill-ready stage of exploration development. During the quarter the Company continued to review project proposals with the principal focus being gold prospects located in the Americas A·mer·i·cas , the See America. . -0-
CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands except per share amounts)
(prepared without audit)
Year Ended December 31,
1996 1995
REVENUE
Interest and other income $ 356 $ 261
Gain on sale of assets 147 703
Gain on sale of investment 141 -
Gain on sale of marketable securities - 102
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644 1,066
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COSTS AND EXPENSES
Minesite operations (1) 18 313
Exploration 33 133
General and administrative 548 628
Share of investee's equity loss 16 75
Interest expense 2 183
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617 1,332
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NET INCOME (LOSS) $ 27 $ (266)
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INCOME (LOSS) PER SHARE $ 0.00 $(0.01)
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Note (1): Netted against fourth quarter 1996 minesite
operations is a $350,000 year-to-date reduction with
respect to reclamation obligations.
Three Months Ended December 31,
1996 1995
REVENUE
Interest and other income $ 213 $ 134
Gain on sale of assets 80 400
Gain on sale of investment 141 -
Gain on sale of marketable securities - 91
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434 625
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COSTS AND EXPENSES
Minesite operations(1) (325) 152
Exploration 10 80
General and administrative 113 124
Share of investee's equity loss 16 -
Interest expense - 6
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(186) 362
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NET INCOME $ 620 $ 263
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INCOME PER SHARE $ 0.05 $ 0.01
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CONSOLIDATED STATEMENT OF CHANGES IN FINANCIAL POSITION
(in thousands)
(prepared without audit)
Year Ended December 31,
1996 1995
CASH PROVIDED BY (USED IN) OPERATING
ACTIVITIES
Net loss $ 27 $ (266)
Item not affecting cash
Gain on sale of assets (147) (703)
Gain on sale of investment (141) -
Gain on sale of marketable securities - (102)
Share of investee's equity loss 16 75
Depreciation and amortization - 5
------------------------------------------------------
(245) (991)
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(Increase) decrease in operating
working capital (900) (22)
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(1,145) (1,013)
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CASH PROVIDED BY (USED IN) FINANCING
ACTIVITIES
Issue of share capital 921 4,392
Long-term debt (792) (7,058)
Provision for minesite reclamation (350) -
------------------------------------------------------
(221) (2,666)
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CASH PROVIDED BY (USED IN) INVESTING
ACTIVITIES
Note Receivable 1,000 -
Investments (441) (82)
Sale of assets 147 4,566
Sale of marketable securities - 178
Other assets (3) 3
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703 4,665
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(DECREASE) INCREASE IN CASH (663) 986
CASH - BEGINNING OF PERIOD 1,275 289
---------------------------------------------------------
CASH - END OF PERIOD $ 612 $1,275
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CONSOLIDATED BALANCE SHEET
(in thousands)
(prepared without audit)
December 31,
1996 1995
ASSETS
Current assets $1,670 $2,511
Investments 890 324
Other assets 298 295
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$2,858 $3,130
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LIABILITIES
Current liabilities $ 358 $ 948
Long-term debt - 130
Provision for minesite reclamation - 500
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358 1,587
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SHAREHOLDERS' EQUITY
Share capital 4,048 5,892
Contributed surplus 2,765 -
Deficit (4,313) (4,340)
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2,500 1,552
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$2,858 $3,130
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CONTACT: Cheni Resources Inc. R.G. McMorran, 604/688-2321 604/684-0642 (FAX) 1-888-303-3232 Toll Free |
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