Lexam Explorations Inc.: 2005 Second Quarter Results.TORONTO Toronto (tərŏn`tō), city (1998 est pop. 2,400,000), provincial capital, S Ont., Canada, on Lake Ontario. Toronto is the largest city in Canada and since the 1970s has been one of the fastest-changing cities in North America, experiencing -- Lexam Lexam Explorations is a North America oil and gas exploration Company. The Company's most significant property is the Baca project located in a frontier basin in southern Colorado. Explorations Inc. (NEX NEX abbr. Navy exchange :LEX.H) - (All amounts in this news release are expressed in Canadian dollars Noun 1. Canadian dollar - the basic unit of money in Canada; "the Canadian dollar has the image of loon on one side of the coin" loonie dollar - the basic monetary unit in many countries; equal to 100 cents .) MANAGEMENT'S DISCUSSION AND ANALYSIS Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial Financial Results Lexam recorded a loss of $43,620 during the three months ended June June: see month. 30, 2005, compared to a loss of $48,322 during the corresponding period in 2004. During the six months ended June 30, 2005, Lexam recorded a loss of $64,313 compared to a loss of $71,593 during the first half of 2004. The loss during the second quarter and first half of 2005 can be attributed to expenditures for administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. of $43,638 and $63,361 for those periods, reduced from $47,879 and $71,979 during the same periods in 2004 respectively.
Three months ended Six months ended
June 30, June 30,
2005 2004 2005 2004
---------- ---------- ---------- -----------
Loss $ (43,620) $ (48,322) $ (64,313) $ (71,593)
Loss per share nil nil nil nil
Financial Condition Lexam is currently not able to continue its exploration efforts and discharge its liabilities in the normal course of business, and may not be able to ultimately realize 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 assets, subject to, among other things, being able to raise sufficient additional financing to fund its exploration programs including the review and evaluation of the technical data received from Petro-Hunt relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Baca Oil & Gas property. The Company is evaluating alternatives to address these issues, including joint venturing certain properties and seeking additional sources of debt or equity. On February February: see month. 18, 2005, the Company's listing on the TSX Venture Exchange TSX Venture Exchange Originally called the Canadian Venture Exchange (CDNX), this was a result of the merger of the Vancouver and Alberta stock exchanges. The goal of TSX Venture Exchange is to provide venture companies with effective access to capital while protecting investors. ("TSX-V") was transferred to the NEX board of the TSX-V due primarily to the Company's lack of sufficient operating capital Noun 1. operating capital - capital available for the operations of a firm (e.g. manufacturing or transportation) as distinct from financial transactions and long-term improvements capital, working capital - assets available for use in the production of further assets . The NEX board allows Lexam's shares to continue trading while it seeks alternative financing or other joint venture partners to resume exploration activities. Without such alternative funds or joint venture partners, Lexam is not expected to be able to conduct any exploration or development work. Corporate Developments On August 26, 2005, it was announced that Goldcorp Goldcorp (TSX: G, NYSE: GG) is one of the world’s largest gold mining companies with the strongest production growth profile among all major gold companies. Inc. will be selling its 49.8% interest (18,990,641 shares) in Lexam to a company wholly-owned by Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. R. McEwen, the Chairman 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. of the Company and the Chairman of Goldcorp for aggregate total consideration of $400,000. As part of the sale, Lexam's debt owed to Goldcorp of $402,720 will be extinguished ex·tin·guish tr.v. ex·tin·guished, ex·tin·guish·ing, ex·tin·guish·es 1. To put out (a fire, for example); quench. 2. To put an end to (hopes, for example); destroy. See Synonyms at abolish. 3. . The transaction is expected to be completed on September 1, 2005. Financial Information and Notice to Reader Attached are the Consolidated Financial Statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge of Lexam Explorations Inc. for the three and six months ended June 30, 2005. These interim financial statements have not been subject to auditor auditor n. an accountant who conducts an audit to verify the accuracy of the financial records and accounting practices of a business or government. A proper audit will point out deficiencies in accounting and other financial operations. review.
Corporate Office: Transfer Agent and Registrar:
145 King Street West Computershare Trust Company of Canada
Suite 2700 100 University Avenue, 9th Floor
Toronto, Ontario Toronto, Ontario
Canada M5H 1J8 Canada M5J 2Y1
Telephone: (416) 865-0326 Telephone: (800) 564-6253
Facsimile: (416) 361-5741 Facsimile: (416) 981-9800
General enquires: Shareholder Enquiries: (800) 564-6253
(800) 813-1412 Email: caregistryinfo@computershare.com
(Canada and United States)
Stock Symbol: TSX Venture Exchange NEX Board ("LEX.H")
LEXAM EXPLORATIONS INC.
CONSOLIDATED FINANCIAL STATEMENTS
Consolidated Balance Sheets
(in Canadian dollars)
As at As at
June, 30 December 31,
2005 2004
----------- --------------
(unaudited)
Assets
Current assets
Cash $ 6,966 $ 11,932
Accounts receivable 686 1,198
Prepaid expenses 1,022 2,554
----------- --------------
8,674 15,684
----------- --------------
----------- --------------
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable and
accrued liabilities $ 516,589 $ 459,286
----------- --------------
Shareholders' equity
Capital stock (note 2) 16,402,075 16,402,075
Deficit (16,909,990) (16,845,677)
----------- --------------
(507,915) (443,602)
----------- --------------
$ 8,674 $ 15,684
----------- --------------
----------- --------------
Contingencies (note 1)
Subsequent Event (note 3)
The accompanying notes are an integral part of these consolidated
financial statements.
Consolidated Statements of Operations and Deficit (unaudited)
(in Canadian dollars)
Three months ended Six months ended
June 30, June 30,
2005 2004 2005 2004
------------ ----------- ------------ -----------
Revenues
Interest
and other
income $ 18 $ 304 $ 60 $ 967
Expenses
Administrative 43,638 48,045 63,361 71,979
Exploration - 581 1,012 581
------------ ----------- ------------ -----------
43,638 48,626 64,373 72,560
------------ ----------- ------------ -----------
Loss for
the
period (43,620) (48,322) (64,313) (71,593)
------------ ----------- ------------ -----------
Deficit
at
beginning
of period (16,866,370) (14,250,615) (16,845,677) (14,227,344)
------------ ----------- ------------ -----------
Deficit
at end of
period $ (16,909,990) $(14,298,937) $ (16,909,990)$(14,298,937)
------------ ----------- ------------ -----------
------------ ----------- ------------ -----------
Loss per
share
(basic
and
diluted) $ - $ - $ - $ -
------------ ----------- ------------ -----------
------------ ----------- ------------ -----------
Weighted
average
number of
shares
outstanding
(000's) 38,107 38,107 38,107 38,107
------------ ----------- ------------ -----------
------------ ----------- ------------ -----------
The accompanying notes are an integral part of these consolidated
financial statements.
Consolidated Statements of Cash Flows (unaudited)
(in Canadian dollars)
Three months ended Six months ended
June 30, June 30,
2005 2004 2005 2004
------------ ----------- ------------ -----------
Cash provided
by (used in)
Operating
activities
Loss for the
Period $ (43,620) $ (48,322) $ (64,313) $ (71,593)
Items not
affecting
cash
Change in
non-cash
operating
working
capital 38,693 (10,579) 59,347 (3,212)
------------ ----------- ------------ -----------
(4,927) (58,901) (4,966) (74,805)
------------ ----------- ------------ -----------
Decrease in cash (4,927) (58,901) (4,966) (74,805)
Cash at beginning
of period 11,893 108,156 11,932 124,060
------------ ----------- ------------ -----------
Cash at end of
period $ 6,966 $ 49,255 $ 6,966 $ 49,255
------------ ----------- ------------ -----------
------------ ----------- ------------ -----------
The accompanying notes are an integral part of these consolidated
financial statements.
Lexam Explorations Inc. Notes to Consolidated Financial Statements (unaudited) 1. Basis of Presentation and Going Concern The consolidated financial statements are prepared 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 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. generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting and on the assumption that Lexam Explorations Inc. (the "Company" or "Lexam") will be able to realize the carrying value of its assets and discharge its liabilities in the normal course of business. The accompanying unaudited consolidated financial statements should be read in conjunction with the notes to the Company's audited consolidated financial statements for the year ended December 31, 2004. These interim financial statements have not been subject to auditor review. These unaudited interim consolidated financial statements reflect all normal and recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. adjustments, which are, in the opinion of management, necessary for a fair presentation of the respective interim periods presented. The Company has a significant working capital deficiency and is not currently able to continue its exploration programs and discharge its liabilities in the normal course of business, and may not be able to ultimately realize the carrying value of its assets, subject to, among other things, being able to raise sufficient additional financing to fund its exploration programs. There can be no assurance that the Company will be able to raise sufficient additional financing to continue its exploration programs. The Company is evaluating alternatives to address these issues, including joint venturing certain properties and seeking additional sources of debt or equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. . The financial statements do not reflect adjustments that would be necessary if the going concern assumption were not appropriate. If the going concern basis was not appropriate for these financial statements, adjustments may be necessary to the carrying value of assets, such as accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying and prepaid expenses Prepaid Expense An asset that arises on a balance sheet because of the payment of something in advance (prepayment). Services for the payment will be received in the near future. , the accounts payable and accrued liabilities Accrued liabilities are liabilities which have occurred, but have not been paid or logged under accounts payable during an accounting period; in other words, obligations for goods and services provided to a company for which invoices have not yet been received. balance, and the reported expenses. 2. Capital Stock At June 30, 2005, the Company had 38,107,436 common shares outstanding. A total of 39,757,436 shares would have been outstanding had all options been exercised 3. Subsequent Event On August 26, 2005, it was announced that Goldcorp Inc. will be selling its 49.8% interest (18,990,641 shares) in Lexam to a company wholly-owned by Robert R. McEwen, the Chairman and CEO of the Company and the Chairman of Goldcorp for aggregate total consideration of $400,000. As part of the sale, Lexam's debt owed to Goldcorp of $402,720 will be extinguished. The transaction is expected to be completed on September 1, 2005. Lexam Explorations Inc. (NEX BOARD:LEX.H) |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion