Novicourt Reports Fourth Quarter 2005 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 -- Novicourt Inc. ("Novicourt" or the "Company")(TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :NOV judgment notwithstanding the verdict (N.O.V.) n. reversal of a jury's verdict by the trial judge when the judge believes there was no factual basis for the verdict or it was contrary to law. The judge will then enter a different verdict as "a matter of law. ) announces that for the fourth quarter 2005, the Company reported a net loss of $1.6 million or $0.08 per share, compared to net earnings of $4.0 million or $0.20 per share in the same period of 2004. There were no sales of mine product in the fourth quarter of 2005. The only mine revenues reported in the quarter related to finalizations of previously sold material. Fourth quarter exploration expenses, net of tax credits, totaled $1.0 million compared to $0.7 million in the fourth quarter of 2004. As of December December: see month. 31, 2005, Novicourt has $37.8 million of cash and cash equivalents, a $1.1 million increase in the quarter. The fourth quarter increase reflects the conversion of net operating working capital into cash less a $4.0 million or $0.20 per share dividend payment. Full-Year 2005 Net earnings of $12.3 million or $0.61 per share were reported for the twelve month period ending December 31, 2005, compared to $17.7 million or $0.88 per share in the corresponding period 2004. Results in 2005 reflect the closure of the Louvicourt mine, higher exploration spending, a stronger Canadian dollar 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 and higher metal prices. Comparison of certain 2005 operating and financial information to prior periods must take into consideration the closure of the Louvicourt mine, the only producing property of Novicourt, on July July: see month. 12, 2005. Exploration expenses, net of tax credits, for the twelve month period ended December 31, 2005 totaled $2.9 million compared to $2.0 million for the year ended December 31, 2004. The $37.8 million of cash and cash equivalents as of December 31, 2005 represents a $38.9 million decrease, compared to $76.7 million at December 31, 2004. The decrease is mainly attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the closure of the Louvicourt mine, the evolution of the Company from primarily a production company to an exploration-focused company, and the payment of $8.0 million to shareholders as dividends and $52.3 million as a distribution by way of a Plan of Arrangement in May 2005. Novicourt Novicourt is a 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. exploration and development company focused on the discovery of base and 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. deposits in the Americas A·mer·i·cas , the See America. . The Company's exploration programs are supported by the broad technical resources and capabilities of its major shareholder, Falconbridge Falconbridge can mean:
The Company currently conducts mineral exploration programs with well-established joint venture partners within the Carajas region of Brazil Brazil (brəzĭl`), Port. Brasil, officially Federative Republic of Brazil, republic (2005 est. pop. 186,113,000), 3,286,470 sq mi (8,511,965 sq km), E South America. and the Abitibi Abitibi may mean:
Quebec, Fr. Québec, city (1991 pop. 167,517), provincial capital, S Que., Canada, at the confluence of the St. Lawrence and St. Charles rivers. . The Company's shares (NOV) are listed on the Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. . Business Overview During the year, exploration activities on the Canaa dos Carajas Joint Venture with Falconbridge in Brazil were initiated and a significant helicopter helicopter, type of aircraft in which lift is obtained by means of one or more power-driven horizontal propellers called rotors. When the rotor of a helicopter turns it produces reaction torque which tends to make the craft spin also. VTEM geophysical survey Geophysical survey refers to the systematic collection of geophysical data for spatial studies. Geophysical surveys may use a great variety of sensing instruments, and data may be collected from above or below the Earth's surface or from aerial or marine platforms. totaling 4,213 line kilometres was completed. In combination with magnetic surveys, soil geochemistry geochemistry, study of the chemical changes on the earth. More specifically, it is the study of the absolute and relative abundances of chemical elements in the minerals, soils, ores, rocks, water, and atmosphere of the earth and the distribution and movement of and geological ge·ol·o·gy n. pl. ge·ol·o·gies 1. The scientific study of the origin, history, and structure of the earth. 2. The structure of a specific region of the earth's crust. 3. A book on geology. mapping, high quality drilling targets were selected on the priority Esperanca property located on the northwest For names and places containing the slightly longer word 'northwestern' (or variants), see . Northwest or north west is the ordinal direction halfway between north and west on a compass. It is the opposite of southeast. side of the joint-venture area. Three VTEM anomalies coincident co·in·ci·dent adj. 1. Occupying the same area in space or happening at the same time: a series of coincident events. See Synonyms at contemporary. 2. with favourable magnetic anomalies Magnetic Anomaly may refer to:
In poetry, the rhythmic pattern of a poetic line. Various principles have been devised to organize poetic lines into rhythmic units. Quantitative verse, the metre of Classical Greek and Latin poetry, measures the length of time required to pronounce syllables, drilling campaign commenced in November November: see month. . The results of that campaign were encouraging with Hole FSJ-05-03 on the Sao Jorge Jorge (IPA pronunciation: /'xoɾxe/ ) is a Spanish-language given name, equivalent to English George. It is of Greek origin, and its meaning is "farmer". target intercepting 17.46 metres grading 1.21% copper (see the press release dated March 10, 2006 available through SEDAR SEDAR System for Electronic Document Analysis and Retrieval SEDAR Southeast Data, Assessment, and Review at www.sedar.com for complete program results and drilling details). Phase II drilling is being considered to test the extent of the 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. during 2006 and to systematically drill test new targets as they are identified. The VTEM survey areas will be extended to cover more concessions controlled within the Canaa dos Carajas Joint Venture area. The application of this new technology, with traditional exploration techniques, will continue into 2007 at this developing greenfields exploration project. At the Louvex property in Quebec, within the Louvaur Joint Venture area, Novicourt and its 55% partner Alexis Alexis, czar of Russia Alexis (əlĕk`sĭs) (Aleksey Mikhailovich) (əlyĭksyā` mēkhī`ləvĭch), 1629–76, czar of Russia (1645–76), son and successor of Michael. Minerals agreed to further drilling of the P6 target based on results of the three deep holes completed during 2005. A new target located approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. one kilometre west of the Louvicourt mine and about 250-300 metres deeper than prior drilling was developed. The untested area measures approximately 500 metres by 500 metres. Hole 10314-13A, a historical drill hole that terminated ter·mi·nate v. ter·mi·nat·ed, ter·mi·nat·ing, ter·mi·nates v.tr. 1. To bring to an end or halt: at 1,200 metres is currently being deepened to test the new target. The hole is expected to be completed during the first quarter of 2006. It is anticipated that this hole, in conjunction with down hole geophysics geophysics, study of the structure, composition, and dynamic changes of the earth, its atmosphere, hydrosphere and magnetosphere, based on the principles of physics. will represent a definitive test of the potential for a significant base metal accumulation Accumulation 1) In the context of individual investing, it is the process of contributing cash to invest in securities over a period of time in order to build a portfolio of desired value. Dividends and capital gains are also reinvested during this process. in the P6 target area. In the Abitibi region of Quebec, surveys and drilling continued for massive sulphides at each of the Hunter, Grevet, Val d'Or Val d'Or (väl dôr), town (1991 pop. 23,842), SW Que., Canada, SE of Rouyn-Noranda. It is a mining center. Gold was discovered in the region in 1909; copper, zinc, lead, and molybdenum are also mined. and other MEGATEM joint ventures. No economic mineralization was encountered although anomalous a·nom·a·lous adj. 1. Deviating from the normal or common order, form, or rule. 2. Equivocal, as in classification or nature. intersections over narrow widths and sub-economic grades continued to be encountered. Owing to owing to prep. Because of; on account of: I couldn't attend, owing to illness. owing to prep → debido a, por causa de the lack of an economic discovery following the systematic follow-up follow-up, n the process of monitoring the progress of a patient after a period of active treatment. follow-up subsequent. follow-up plan of MEGATEM targets over several years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time joint-venture programs with Falconbridge and Virginia Virginia, state, United States Virginia, state of the south-central United States. It is bordered by the Atlantic Ocean (E), North Carolina and Tennessee (S), Kentucky and West Virginia (W), and Maryland and the District of Columbia (N and NE). Gold are being substantially reduced. A few targets are being considered for additional work in 2006. The Company continued its review of submissions and meetings with other potential joint-venture partners in its efforts to expand its portfolio of highly prospective properties. The Company believes that strong metals markets have inflated values for exploration projects and that it accordingly must be vigilant in its property assessments during this period of strong competition and high prices for top quality exploration projects. Dividend and Future Dividend Policy With the closure of the Louvicourt Mine and the Company's new strategy being exploration focused, the Board of Directors will be reviewing closely its dividend policy for the future. Forward-Looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. Information Certain statements contained in this news release are 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. (as defined in applicable securities legislation). Examples of such statements include, but are not limited to, statements concerning our future financial requirements and funding of those requirements, and our expectations with respect to our exploration projects. Inherent in forward-looking statements are risks and uncertainties well beyond our ability to predict or control. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by the forward-looking statements contained in this news release. Such statements are based on a number of assumptions which may prove to be incorrect, including, but not limited to, business and economic conditions generally; exchange rates; the supply and demand for, deliveries of, and the level and volatility Volatility 1. A statistical measure of the tendency of a market or security to rise or fall sharply within a period of time. 2. A variable in option pricing formulas that denotes the extent to which the return of the underlying asset will fluctuate between now and the of prices of the metals that the Company is exploring for; the availability of financing on appropriate terms for exploration projects; market competition; assumptions concerning political and economic stability in countries or locations in which Novicourt operates or otherwise. Inherent in those statements are known and unknown risks, uncertainties and other factors well beyond the Company's ability to control or predict. Some of these known risks and uncertainties are outlined in filings by Novicourt with applicable securities regulatory authorities Noun 1. regulatory authority - a governmental agency that regulates businesses in the public interest regulatory agency administrative body, administrative unit - a unit with administrative responsibilities , including in Novicourt's annual information form. Readers are encouraged to consult such filings. While Novicourt anticipates that subsequent events and developments may cause Novicourt's view to change, the Company specifically disclaims any obligation to update these forward-looking statements. These forward-looking statements should not be relied upon as representing the Company's views as of any date subsequent to the date of this news release. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. These factors are not intended to represent a complete list of the factors that could affect Novicourt.
Novicourt Inc.
PRODUCTION STATISTICS - UNAUDITED
As at December 31, 2005
---------------------------------------------------------------------
Fourth Quarter Twelve Months
2005 2004 2005 2004
-------- ---------- --------- -----------
Tonnes milled (100%) - 316,640 819,920 1,227,575
Head grades - % Cu - 2.9 2.2 2.8
- % Zn - 1.8 1.9 2.0
- oz/t Au - 0.03 0.03 0.03
- oz/t Ag - 0.77 0.95 0.85
Mill recoveries - % Cu - 96.0 95.0 96.2
- % Zn - 84.4 85.6 84.2
- % Au - 73.6 69.6 69.3
- % Ag - 63.4 59.0 60.4
Tonnes of copper
concentrate (100%) 22 31,621 60,880 116,312
Tonnes of zinc
concentrate (100%) - 8,787 23,344 37,155
Novicourt's 45% share
of net production:
Accountable tonnes
of copper (33) 3,852 7,452 14,387
Accountable tonnes
of zinc (161) 1,879 4,953 7,886
Accountable ounces
of gold 26 2,901 6,203 9,638
Accountable ounces
of silver (000s) - 55 179 232
Market prices and exchange:
Copper- $ U.S. per pound 1.95 1.40 1.66 1.30
Zinc - $ U.S. per pound 0.74 0.50 0.63 0.48
Gold - $ U.S. per ounce 486 434 445 409
Silver- $ U.S. per ounce 8.06 7.23 7.31 6.65
Exchange- $ Cdn. per $ U.S. 1.17 1.22 1.21 1.30
Novicourt Inc.
CONSOLIDATED BALANCE SHEETS UNAUDITED
As at December 31, 2005
---------------------------------------------------------------------
$000s
December 31 December 31
2005 2004
------------ -------------
ASSETS
Current:
Cash and cash equivalents 37,770 46,686
Short-term investments - 30,000
Accounts and settlements receivable
Due from Falconbridge - 20,669
Other 731 182
Taxes receivable 4,431 338
Inventories of mineral products - 199
Materials, supplies and prepaid expenses 517 920
----------- -------------
43,449 98,994
----------- -------------
Future tax asset 1,802 3,245
Capital assets:
Property, plant and equipment, net - 2,359
Other assets, net - 2,506
----------- -------------
- 4,865
----------- -------------
45,251 107,104
----------- -------------
----------- -------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued liabilities 984 3,382
Accounts payable to Falconbridge 532 724
Taxes payable 18 8,653
Current portion of site closure and
reclamation 1,252 3,509
----------- -------------
2,786 16,268
Provision for site closure and
reclamation 4,477 4,023
Future tax liability - 488
Shareholders' equity 37,988 86,325
----------- -------------
45,251 107,104
----------- -------------
----------- -------------
NOVICOURT INC.
FINANCIAL STATEMENTS
UNAUDITED
$000s Fourth Quarter Twelve Months
------------------ ---------------------
2005 2004 2005 2004
-----------------------------------------
CONSOLIDATED STATEMENTS
OF EARNINGS
Sale of concentrates $ 176 $ 19,183 $ 45,090 $ 71,998
Less: Treatment
charges and
transportation (25) (2,862) (8,540) (12,131)
-------- -------- -------- --------
151 16,321 36,550 59,867
Expenses
Production 27 4,967 10,162 20,285
Amortization 151 2,288 2,845 8,523
Exploration, net of
tax credits 971 731 2,898 2,000
Administration 150 372 789 749
Provision for site
closure and
reclamation 33 264 1,045 560
-------- -------- -------- --------
Total Expenses 1,332 8,622 17,739 32,117
-------- -------- -------- --------
Operating income (1,181) 7,699 18,811 27,750
Interest income, net 296 563 1,513 2,178
Other Income (202) - 775 -
-------- -------- -------- --------
Earnings before taxes (1,087) 8,262 21,099 29,928
Income and production
taxes expense 525 4,219 8,784 12,200
-------- -------- -------- --------
Net earnings $ (1,612) $ 4,043 $ 12,315 $ 17,728
---------------------------------------------------------------------
---------------------------------------------------------------------
Basic and diluted
earnings per share $ (0.08) $ 0.20 $ 0.61 $ 0.88
---------------------------------------------------------------------
---------------------------------------------------------------------
Basic and diluted
average number of
shares 20,123,129 20,123,129 20,123,129 20,123,129
CONSOLIDATED
STATEMENTS OF
RETAINED EARNINGS
(DEFICIT)
$000s Fourth Quarter Twelve Months
---------------------- ----------------------
2005 2004 2005 2004
---------------------- ----------------------
Retained earnings
(deficit) - beginning
of period $ (21,271) $ 21,411 $ 21,430 $ 11,751
Net earnings (1,612) 4,043 12,315 17,728
Dividends on common
shares (4,024) (4,024) (8,049) (8,049)
Distribution by Plan
of Arrangement - - (52,320) -
Adjustments - - (283) -
---------------------- ----------------------
Retained earnings
(deficit), end of
period $ (26,907) $ 21,430 $ (26,907) $ 21,430
---------------------- ----------------------
---------------------- ----------------------
NOVICOURT INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
UNAUDITED
$000s Fourth Quarter Twelve Months
---------------------- ----------------------
2005 2004 2005 2004
---------------------- ----------------------
Cash from
operations:
Net earnings $ (1,612) $ 4,043 $ 12,315 $ 17,728
Add (deduct)
non-cash items
Amortization 151 2,288 2,845 8,523
Future taxes 1,596 60 1,115 (2,052)
Provision for site
closure and
reclamation 33 264 1,045 560
(Gain) Loss on
disposal of capital
assets 202 (60) (690) (137)
Reclamation
expenditures (813) (7) (2,649) (75)
----------- ---------- ------------ ---------
Cash from operations
before changes in
operating working capital (443) 6,588 13,981 24,547
Change in operating
working capital 5,455 (725) 5,419 3,600
----------- ---------- ------------ ---------
Cash flow before
investing and
financing activities 5,012 5,863 19,400 28,147
Cash provided by
(used for) investing
activities:
Short-term
investments - - 30,000 18,000
Exploration joint
venture Brazil - - (247) -
Proceeds from
capital assets 87 90 2,511 182
----------- ---------- ------------ ---------
87 90 32,264 18,182
----------- ---------- ------------ ---------
Cash flow before
financing activities 5,099 5,953 51,664 46,329
Cash used for
financing
activities:
Plan of Arrangement - - (211) -
Dividends on common
shares (4,024) (4,024) (8,049) (8,049)
Distribution by Plan
of Arrangement - - (52,320) -
----------- ---------- ------------ ---------
(4,024) (4,024) (60,580) (8,049)
----------- ---------- ------------ ---------
Increase (decrease)
in cash 1,075 1,929 (8,916) 38,280
----------- ---------- ------------ ---------
Cash and cash
equivalents at
beginning of the
period 36,695 44,757 46,686 8,406
Cash and cash
equivalents at end
of the period $ 37,770 $ 46,686 $ 37,770 $ 46,686
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Supplemental cash
flow information
Cash taxes paid $ 328 $ 1,483 $ 18,398 $ 4,557
----------- ---------- ------------ ---------
Cash consists of cash and cash equivalents.
Novicourt Inc. (TSX:NOV) |
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