Crew Development: Corporate Update and Third Quarter Financial Results.Business Editors 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)--May 31, 2002 Crew Development (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :CRWVF)(TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :CRU)(OSLO STOCK EXCHANGE Oslo Stock Exchange An exchange founded in 1819 and trading stocks, bonds, and stock options that is considered the options market of Norway. :CRU) (FRANKFURT:KNC KNC Knowledge Navigation Center KNC Kensey Nash Corporation KNC Kawan Ng Cordero (Philippines: Flock of Lamb) ) is pleased to announce that it has executed a term sheet with Standard Bank London London, city, Canada London, city (1991 pop. 303,165), SE Ont., Canada, on the Thames River. The site was chosen in 1792 by Governor Simcoe to be the capital of Upper Canada, but York was made capital instead. London was settled in 1826. Limited for the provision of a US$8 million Senior Revolving Credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. Facility. Completion of the financing is subject to customary conditions including approval by the Bank's credit committee. The bulk of the proceeds will be utilized to develop the Company's Nalunaq Gold Deposit. In addition, the term sheet also contemplates that the Revolving Facility will be converted, as soon as practicable practicable adj. when something can be done or performed. , and subject to customary conditions to a Limited Recourse Limited recourse A term describing a type of loan in which the lender has limited or no claim against the parent company if the collateral is insufficient to repay the debt. See:Nonrecourse. Project Facility for Nalunaq. The Company also announces a change in project plans that will allow ore from Nalunaq to be initially shipped to an external processing plant. This setup See BIOS setup and install program. is feasible (algorithm) feasible - A description of an algorithm that takes polynomial time (that is, for a problem set of size N, the resources required to solve the problem can be expressed as some polynomial involving N). because of Nalunaq's unique location next to tidewater tidewater, in U.S. history, that part of the Atlantic coastal plain between the shoreline and the farthest upstream points in rivers reached by oceanic tides. In many cases the fall line is given as the western boundary. . In addition to making the project self-financing self-financing adj → autofinanziado self-financing self adj → selbstfinanzierend with the proceeds of the Limited Recourse Project Facility, without the need for equity funding Equity funding An investment consisting of a life insurance policy and a mutual fund. The insurance policy is paid by the collateral value of fund shares, giving the investor the advantages of insurance protection with the growth potential of a mutual fund. , the change of plan is anticipated to provide Crew and its partner, Nunaminerals, with positive net cash flow years earlier than previously estimated. Nalunaq is in the process of finalizing its application for exploitation in order to start mining in 2002, subject to approval by relevant authorities. Furthermore, independent of this, the company has applied for permits on certain conditions to transport the existing stockpile stock·pile n. A supply stored for future use, usually carefully accrued and maintained. tr.v. stock·piled, stock·pil·ing, stock·piles To accumulate and maintain a supply of for future use. to a processing facility as a pre-mining activity. The shipping of this material is estimated to commence before year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. . Nalunaq has today approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 45,000 tons (Transparent Optical Networking Services) A marketing term for providing dark fiber to a customer. The customer is responsible for generating the transmission signal and interpreting it at the other end. See dark fiber. of ore on stockpile, which contains around 20,000 oz of gold. As a part of the continued exploration program this summer, another 10,000 to 15,000 tones of ore will, if time permits, be added to the existing stockpile and be available for shipping. In addition to the planned construction of infrastructure, Crew will also conduct exploration in 2002, in the remaining portion of the License Area, where visible gold has been found in several other target areas. It is Crew's belief that the Nalunaq project has a potential well beyond what is currently reflected in today's resource estimates. Crew will present its overall strategy to the shareholders through a letter to the shareholders. This will confirm earlier statements that the company will focus on small to medium-sized Me´di`um-sized` a. 1. Having a medium size; as, a medium-sized man s>. Adj. 1. medium-sized - intermediate in size medium-size, moderate-size, moderate-sized , advanced and /or developed projects with near term cash flow. Such projects will typically be precious metal projects. Operating results: For the three months ended March 31, 2002, the Company achieved operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. of $1,430 (2001 - $3,955) on revenues of $36,699 (2001 - $32,056). Also included in the results for the quarter are a provision for the impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. of $17,979 (2001 - $nil) in the value of the Company's investment in Asia Pacific Resources Ltd, and a provision of $5,000 (2001 - $nil) for the impairment of other mineral property interests. Other non-recurring expenditures related to changes in the board of directors during the quarter totaled $2,591. This resulted in a loss for the quarter ended March 31, 2002 of $22,896 (2001 - income of $126). The loss for the quarter is net of income of $1,564 (2002 - $1,657) which can be attributed to the consolidation of Metorex results. For the nine months ended March 31, 2002, the Company incurred a loss of $34.7 million ($0.27 per share), compared with a net income of $1.5 million ($0.02 per share) for the nine months ended March 31 2001. Costs of $1,266 (2001 - $nil) related to the public listing of the geothermal ge·o·ther·mal also ge·o·ther·mic adj. Of or relating to the internal heat of the earth. ge asset, had been recorded during the second quarter of this fiscal year. The Company's operating results for the period ended March 31, 2002, include the consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: financial results of its 53% subsidiary, Metorex Ltd. Subsequent to the quarter end, Metorex issued 18.1 million shares in a private placement completed April 24, 2002. On April 26, 2002, the Company sold 6.5 million shared of Metorex Ltd. for proceeds of $2.9 million. As a result of these transactions, the Company's interest in Metorex was reduced to 41%. Consequently, the Company will no longer consolidate Consolidate To combine the assets, liabilities, and other financial items of two or more entities into one. Notes: This term is generally used in the context of consolidated financial statements. its interest in Metorex Ltd. in its financial statements effective April 24, 2002. Metorex Ltd. Overall, Crew's share of the net losses of Metorex for the nine months amounted to C$5.8 million compared with a net income of C$5.5 million for the corresponding period in 2001 Operating performance of the Metorex group for the quarter to March 2002 improved on the previous two quarters of this fiscal year with net income for the quarter of C$1.5 million, compared with a net income of C$1.6 million for the quarter ended March 31, 2001. This was assisted by generally improved commodity prices and continued weakness of the South African Rand “ZAR” redirects here. For the former republic, see South African Republic. The rand is the currency of South Africa. It takes its name from the Witwatersrand (White-waters-ridge against the US Dollar. Gross margins improved during the quarter as a result. The Company completed construction of the O'okiep slag dump retreatment Re`treat´ment n. 1. The act of retreating; specifically, the Hegira. plant during the quarter. Included in the net loss for the nine months ended March 31, 2002 is an impairment provision of C$16 million relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Chibuluma copper mine in Zambia Zambia (zăm`bēə), officially Republic of Zambia, republic (2005 est. pop. 11,262,000), 290,584 sq mi (752,614 sq km), central Africa. . Corporate Overview Crew is an established, multi-commodity, Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. mining company with operations in Africa, Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of , Greenland Greenland, Green. Kalaallit Nunaat, Dan. Grønland, the largest island in the world (2005 est. pop. 56,000), 836,109 sq mi (2,166,086 sq km), self-governing overseas administrative division of Denmark, lying largely within the Arctic Circle. , Norway Norway, Nor. Norge, officially Kingdom of Norway, constitutional monarchy (2005 est. pop. 4,593,000), 125,181 sq mi (324,219 sq km), N Europe, occupying the western part of the Scandinavian peninsula. and the Philippines Philippines officially Republic of the Philippines Island country, western Pacific Ocean, on an archipelago off the southeast coast of Asia. Area: 122,121 sq mi (316,294 sq km). Population (2005 est.): 84,191,000. . In addition to a variety of projects that are at various stages of development and discovered by Crew, the company is well positioned to focus on specific projects, and to respond to changing market forces. Crew shares are listed as CRU on the TSE (Canada) and OSE OSE - Open Systems Environment (Norway), as KNC on the Frankfurt Exchange (Germany Germany (jûr`mənē), Ger. Deutschland, officially Federal Republic of Germany, republic (2005 est. pop. 82,431,000), 137,699 sq mi (356,733 sq km). ), and as CRWVF on the OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). BB (USA). Hans HANS Head and Neck Support/System (brace worn by motor sport drivers; trademark of Hubbard/Downing, Inc.) HANS Health Action Network Society HANS Heavy Aromatic Naphtha Solvent Christian Christian flees the City of Destruction. [Br. Lit.: Pilgrim’s Progress] See : Escape Christian travels to Celestial City with cumbrous burden on back. [Br. Lit. Qvist, Chairman
CREW DEVELOPMENT CORPORATION
Consolidated Balance Sheets
(Expressed in thousands of Canadian Dollars)
March 31 June 30
2002 2001
------------------------
(unaudited) (audited)
------------------------
ASSETS
CURRENT
Cash $ 11,825 $ 40,156
Accounts receivable 15,029 23,397
Inventories 8,342 8,694
Prepaid expenses 331 296
Future income taxes 1,045 1,045
------------------------
36,572 73,588
FUNDS RESERVED FOR INVESTMENT PURPOSES 5,000 -
INVESTMENT IN GEOTHERMAL PROJECT 1,925 250
MINING PROPERTY, PLANT AND EQUIPMENT 80,190 94,111
OTHER MINERAL PROPERTY INTERESTS 37,945 33,502
REHABILITATION TRUST FUND 2,992 3,764
OTHER INVESTMENTS 1,636 19,615
OTHER ASSETS 231 325
------------------------
$ 166,491 $ 225,155
------------------------
------------------------
LIABILITIES
CURRENT
Bank indebtedness $ 216 $ 1,361
Accounts payable and accrued liabilities 16,195 29,605
Income taxes payable 1,997 2,547
Current portion of long-term debt 5,039 7,748
Current portion of provisions 2,820 3,483
------------------------
26,267 44,744
LONG TERM DEBT 17,666 10,484
FUTURE INCOME TAXES 13,270 16,413
PROVISIONS 5,226 6,454
EMPLOYEE FUTURE BENEFITS 2,157 2,782
NON-CONTROLLING INTEREST 32,600 36,995
------------------------
97,186 117,872
SHAREHOLDERS' EQUITY
Share capital 160,126 156,751
Deficit (77,728) (42,697)
Cumulative translation adjustment (13,093) (6,771)
------------------------
69,305 107,283
------------------------
$ 166,491 $ 225,155
------------------------
------------------------
CREW DEVELOPMENT CORPORATION
Consolidated Income Statements
(Expressed in thousands of Canadian Dollars, except per-share amounts)
Three months ended Nine months ended
March 31 March 31
-------------------------------------------
2002 2001 2002 2001
-------------------------------------------
MINERAL SALES $ 36,699 $ 32,056 $ 100,385 $ 38,386
DIRECT COSTS OF
MINERAL SALES 27,100 23,179 78,627 27,495
AMORTIZATION 1,310 1,592 4,443 2,106
------------------------------------------
8,289 7,285 17,315 8,785
------------------------------------------
EXPENSES
Administration, office
and general 4,855 2,956 11,616 6,357
Amortization 51 33 89 99
Interest 762 129 1,299 262
Professional fees 1,191 212 1,570 530
------------------------------------------
6,859 3,330 14,574 7,248
------------------------------------------
OTHER INCOME (EXPENSES)
Equity in income of
associated companies - - - 3,540
Foreign exchange gain (loss) 822 (239) 1,464 (269)
Interest income and other (574) 292 185 1,105
Carrying costs related to
Mindoro Nickel Project (222) - (1,373) -
Impairment of Chibuluma mine - - (16,013) -
Impairment of other
investments (17,979) - (17,979) -
Impairment of other mineral
property interests (5,000) - (5,000) -
Costs related to public
listing of geothermal asset - - (1,266) -
Gain on sale of assets - 172 - 172
------------------------------------------
(22,953) 225 (39,982) 4,548
------------------------------------------
(LOSS) INCOME BEFORE PROVISION
FOR INCOME TAXES AND
NON-CONTROLLING INTEREST (21,523) 4,180 (37,241) 6,085
------------------------------------------
PROVISION FOR INCOME TAXES
Current 2,211 2,399 4,452 2,656
Future (2,787) - (3,113) -
------------------------------------------
(576) 2,399 1,339 2,656
------------------------------------------
(LOSS) INCOME BEFORE
NON-CONTROLLING INTEREST (20,947) 1,781 (38,580) 3,429
NON-CONTROLLING INTEREST (1,949) (1,655) 3,894 (1,894)
------------------------------------------
NET (LOSS) INCOME FOR
THE PERIOD (22,896) 126 (34,686) 1,535
DEFICIT, BEGINNING OF
FISCAL PERIOD (54,832) (13,543) (42,697) (14,952)
Dividends - - (175) -
Net liabilities acquired
on reverse takeover of
North Pacific - - (170) -
------------------------------------------
DEFICIT, END OF
FISCAL PERIOD $ (77,728) $ (13,417) $ (77,728) $ (13,417)
------------------------------------------
------------------------------------------
(LOSS) INCOME PER
SHARE - BASIC & DILUTED $ (0.17) $ 0.00 $ (0.27) $ 0.02
------------------------------------------
CREW DEVELOPMENT CORPORATION
Consolidated Statements of Cash Flows
(Expressed in thousands of Canadian Dollars)
Three months ended Nine months ended
March 31 March 31
-------------------------------------------
2002 2001 2002 2001
-------------------------------------------
OPERATING ACTIVITIES
Net (loss) income $ (22,896) $ 126 $ (34,686) $ 1,535
Add (deduct) items not
affecting cash:
Amortization 1,361 1,625 4,532 2,205
Deferred and future
income taxes (2,787) (24) (3,113) 14
Non-controlling interest 1,949 1,656 (3,894) 1,895
Equity in income of
associated companies - - - (3,540)
Dividends received from
associated companies - - - 805
Provision for impairment
of Chibuluma mine - - 16,013 -
Provision for impairment
of other investments 17,979 - 17,979 -
Provision for impairment of
other mineral property
interests 5,000 - 5,000 -
Gain on sale of assets - (140) - (172)
Change in non-cash working
capital items 75 (3,631) (6,523) (5,639)
------------------------------------------
681 (388) (4,692) (2,897)
------------------------------------------
FINANCING ACTIVITIES
Increase in (repayment of)
long term debt 2,952 7,926 2,952 6,557
Metorex shareholder loans 190 - 1,162 -
Dividends paid to
non-controlling interest - - (1,165) -
Issuance of common shares 3,375 1,598 3,375 16,098
------------------------------------------
6,517 9,524 6,324 22,655
------------------------------------------
INVESTING ACTIVITIES
Acquisition of mining property,
plant and equipment (2,609) (4,920) (13,501) (11,428)
Expenditures on other mineral
property interests (1,749) (5,466) (8,535) (8,149)
Investment in geothermal
project (1,294) - (1,675) -
Cash acquired on acquisition
of Metorex - - - 13,643
Investment in shares
of Metorex - - - (8,799)
Acquisition of other
investments 15 (39) (107) (841)
Funds reserved for
investment purposes (5,000) - (5,000) -
Proceeds from sale of long
term investments - 381 - 381
------------------------------------------
(10,637) (10,044) (28,818) (15,193)
------------------------------------------
NET CHANGE IN CASH (3,439) (908) (27,186) 4,565
CASH, BEGINNING OF PERIOD 15,048 17,277 38,795 11,804
------------------------------------------
CASH, END OF PERIOD $ 11,609 $ 16,369 $ 11,609 $ 16,369
------------------------------------------
------------------------------------------
Cash is represented by:
Cash $ 11,825 $ 17,220 $ 11,825 $ 17,220
Bank indebtedness (216) (851) (216) (851)
------------------------------------------
$ 11,609 $ 16,369 $ 11,609 $ 16,369
------------------------------------------
------------------------------------------
This News Release was prepared by the Board of Directors on behalf of Crew Development Corp. which is solely responsible for its contents. |
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