Crew Development Corporation: Results For The Financial Year Ended June 30, 2002.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)--Nov. 18, 2002 Crew Development Corporation (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :CRWVF) (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :CRU.TO) (OSE OSE - Open Systems Environment :CRU) (FRANKFURT:KNC KNC Knowledge Navigation Center KNC Kensey Nash Corporation KNC Kawan Ng Cordero (Philippines: Flock of Lamb) ): For the year ended June June: see month. 30, 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 CAD CAD: see computer-aided design. (Computer-Aided Design) Using computers to design products. CAD systems are high-speed workstations or desktop computers with CAD software. 20.2 million (2001 - CAD 9.2 million) on revenues of CAD 111.7 million (2001 - CAD 79.7 million). 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 CAD 19.6 million (2001 - CAD nil) in the value of the Company's investment in Asia Pacific Resources Ltd, and a provision of CAD 5 million (2001 - CAD nil) for the impairment of other mineral property interests, resulting in a net loss for the year ended June 30, 2002 of CAD 40.8 million (2001 - CAD 26.3 million). The Company's operating results for the period 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 Metorex Ltd., for the 10 months ended April 30, 2002. On April 24, 2002, Metorex issued 18.1 million shares in a private placement to other shareholders. On April 26, 2002, Crew sold 6.5 million shared of Metorex Ltd. for proceeds of CAD 2.9 million. As a result of these transactions, Company's interest in Metorex was reduced to 41%. Consequently, the Company no longer consolidates its interest in Metorex Ltd., effective April 30, 2002. On October October: see month. 22, 2002, Crew further reduced its holding in Metorex by selling 28 million shares for proceeds of ZAR ZAR In currencies, this is the abbreviation for the South African Rand. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 83.2 million (CAD 12.6 million). Crew is in the final stages of planning the commencement of production from the Nalunaq Gold Mine. Nalunaq has an 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. containing approximately 28,000 oz of gold. Mine construction is expected to start in the first half of 2003, and the economics of the operation are considered to be robust. The average annual production is projected to be 90,000 oz at a cash operating cost of USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. $168 per oz, based on an average ore production of 350 tonnes per day. A Memorandum of Understanding A Memorandum of Understanding (MoU) is a legal document describing a bilateral or multilateral agreement between parties. It expresses a convergence of will between the parties, indicating an intended common line of action and may not imply a legal commitment. has recently been signed with Richmont Mines Ltd. for the batch treatment of Nalunaq ore at the Nugget Nugget A 15 year Gold FHLMC (Freddie Mac) bond; similar to a Dwarf. Pond processing plant in Newfoundland Newfoundland, breed of dog Newfoundland, breed of massive, powerful working dog developed in Newfoundland, probably in the 17th cent., and later perfected in England. It stands from 25 to 28 in. (63.5–71. . Relevant authorities are currently reviewing the feasibility fea·si·ble adj. 1. Capable of being accomplished or brought about; possible: a feasible plan. See Synonyms at possible. 2. and the environmental impact studies, and a mining permit is pending. Assuming all the necessary permits are received as anticipated, Nalunaq should be in production during 2003. GOING FORWARD Crew has over the last six months changed its strategy from having the ambition Ambition Alger, Horatio author of a series of rags-to-riches stories. [Am. Lit.: Ragged Dick] Bart, Lily sacrifices her principles and her chance for love in schemes to climb the social ladder. [Am. Lit. of becoming a broadly diversified diversified (di·verˑ·s multi-commodity mining company to focus primarily on precious metals Precious Metals Valuable metals such as gold, iridium, palladium, platinum, and silver. Notes: Investing in precious metals can be done either by purchasing the physical asset, or by purchasing futures contracts for the particular metal. . This change in strategy is a result of a management and board evaluation of where the main potential for near term income is, as well as where the company can see further growth based on the companies own financial and human resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. . Management will focus on further reduction of costs, identify new projects with near term cash flow potential as well as developing existing assets. It is management's view that Crew is well positioned to meet the future with an attractive portfolio of projects, a solid balance sheet and treasury. The company is of the opinion that Nalunaq as well as the other 3 structures with visual gold on 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. , Lake-410, Ippatit and Nanisiaq individually and together plus Crew's 51% ownership in Hwini-Butre, Ghana Ghana, country, Africa Ghana, officially Republic of Ghana, republic (2005 est. pop. 21,030,000), 92,099 sq mi (238,536 sq km), W Africa, on the Gulf of Guinea, an arm of the Atlantic Ocean. The capital and largest city is Accra. , represents a considerable upside Upside The potential dollar amount by which the market or a stock could rise. Notes: This is basically an educated guess on how high a stock could go in the near future. See also: Bull, Downside for Crew. There is a clear focus from management to develop these assets. Jan A. Vestrum, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board.
CREW DEVELOPMENT CORPORATION
Consolidated Balance Sheets
(expressed in Canadian dollars)
As at June 30, 2002 2001
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ASSETS
CURRENT
Cash $ 4,376,481 $ 40,156,933
Accounts receivable (Note 3) 198,812 23,396,808
Inventories (Note 4) - 8,693,470
Prepaid expenses 250,389 295,823
Due from Metorex Limited (Note 23) 2,263,232 -
Future income taxes (Note 13) - 1,044,899
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7,088,914 73,587,933
NALUNAQ MINERAL PROPERTY INTEREST
(Note 5) 34,460,247 25,994,352
INVESTMENT IN METOREX LIMITED (Note 6) 28,809,532 -
GEOTHERMAL PROJECT (Note 7) 2,613,596 249,853
INVESTMENT IN ASIA PACIFIC RESOURCES
(Note 8) 4,950,000 19,543,056
PROPERTY, PLANT AND EQUIPMENT (Note 9) 891,347 93,512,669
OTHER MINERAL PROPERTY INTERESTS
(Note 10) 3,245,298 8,106,818
REHABILITATION TRUST FUND (Note 18) - 3,763,882
OTHER 27,000 396,723
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$ 82,085,934 $ 225,155,286
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LIABILITIES
CURRENT
Bank indebtedness (Note 11) $ - $ 1,361,120
Accounts payable and accrued
liabilities 2,648,712 29,584,363
Income taxes payable - 2,567,968
Current portion of long-term
debt (Note 12) - 7,748,460
Current portion of provisions
(Note 14) - 3,482,998
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2,648,712 44,744,909
LONG-TERM DEBT (Note 12) - 10,484,144
FUTURE INCOME TAXES (Note 13) 3,338,484 16,412,842
PROVISIONS (Note 14) - 6,453,365
EMPLOYEE FUTURE BENEFITS - 2,781,730
NON-CONTROLLING INTEREST 2,324,649 36,995,376
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8,311,845 117,872,366
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SHAREHOLDERS' EQUITY
Share capital (Note 15) 160,114,934 156,750,902
Share purchase warrants (Note 15 (g)) 275,250 -
Deficit (83,846,598) (42,697,223)
Cumulative translation adjustment
(Note 16) (2,769,497) (6,770,759)
73,774,089 107,282,920
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$ 82,085,934 $ 225,155,286
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See accompanying notes to the Consolidated Financial Statements
On behalf of the Board:
Jan Vestrum - Director Cameron Belsher - Director
CREW DEVELOPMENT CORPORATION
Consolidated Statements of Loss and Deficit
(expressed in Canadian dollars)
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Year ended Year ended
June 30, 2002 June 30, 2001
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MINERAL SALES $ 111,730,701 $ 79,702,138
DIRECT COSTS OF MINERAL SALES (87,425,868) (66,508,590)
AMORTIZATION (4,108,590) (3,985,344)
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20,196,243 9,208,204
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EXPENSES
Administration, office and general (13,798,260) (8,132,725)
Amortization (242,525) (83,138)
Interest (1,530,963) (634,274)
Professional fees (1,857,503) (795,648)
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(17,429,251) (9,645,785)
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OTHER INCOME (EXPENSES)
(Loss) gain on investment in Metorex
Limited (Note 6 (d)) (8,036,773) 3,540,665
Provision for impairment of
Chibuluma South Mine (Note 6(b)) (8,450,857) -
Loss on dilution of interest in
geothermal asset (Note 7) (1,503,055) -
Provision for impairment in
investment in Asia Pacific
Resources (Note 8) (19,593,056) -
Provision for decline in value of
investment in Mindoro Nickel
Project (Note 10) - (34,024,132)
Costs related to Mindoro Nickel
Project (Note 10) (1,572,585) -
Provision for impairment of other
mineral property interests (Note 10) (5,009,878) -
Foreign exchange gain (loss) 736,095 (1,043,032)
Gain on sale of other assets 431,480 211,113
Interest and other income 1,726,067 4,225,236
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(41,272,562) (27,090,150)
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LOSS BEFORE PROVISION FOR INCOME
TAXES AND NON-CONTROLLING INTEREST (38,505,570) (27,527,731)
PROVISION FOR INCOME TAXES (Note 13)
Current 4,875,053 3,151,223
Future (4,228,918) (7,499,169)
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646,135 (4,347,946)
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LOSS BEFORE NON-CONTROLLING INTEREST (39,151,705) (23,179,785)
NON-CONTROLLING INTEREST (1,598,984) (3,103,752)
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NET LOSS (40,750,689) (26,283,537)
DEFICIT, BEGINNING OF THE
YEAR (42,697,223) (16,413,686)
DIVIDEND (Note 7) (228,284) -
NET LIABILITIES ACQUIRED ON
REVERSE TAKEOVER OF NORTH
PACIFIC GEOPOWER CORP. (Note 7) (170,402) -
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DEFICIT, END OF YEAR $ (83,846,598) $ (42,697,223)
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LOSS PER SHARE - BASIC AND
DILUTED $ (0.31) $ (0.26)
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WEIGHTED AVERAGE NUMBER OF
SHARES OUTSTANDING 131,790,183 101,708,357
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See accompanying Notes to the Consolidated Financial Statements
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