- Announces changes to Board of Directors - Campbell and Nuinsco
agree to terminate consulting agreement - $26.3 million write-down
charge taken for Copper Rand mine MONTREAL, Nov. 14
/PRNewswire-FirstCall/ -- Campbell Resources Inc. (the "Company")
("Campbell") (TSX: CCH, OTC Bulletin Board: CBLRF) today announced
financial results for the third quarter and first nine months of
fiscal 2008 ended September 30, 2008. RECENT EVENTS - On September
9, 2008, the Company announced that it will be discontinuing mining
operations at its Copper Rand mine by December 31, 2008. Campbell
has 100% ownership of the Copper Rand mine, an underground copper
and gold mine located near the town of Chibougamau, Quebec. - On
October 15, 2008, the Company announced that it suspended its bulk
sample exploration program at the Corner Bay property. Campbell
owns 100% of the project subject to a 50-50 sharing of future cash
flow with Nuinsco Resources Limited ("Nuinsco"). Corner Bay is
currently fully permitted for the extraction of a 42,000 ton bulk
sample. Despite the suspension of the bulk sample exploration
program, the Company is moving ahead with an application for an
environmental permit to allow for commercial mining of the deposit
once extraction of the bulk sample is ultimately completed. - Also
on October 15, Campbell announced that James McCartney and James
Raymond resigned from the Board of Directors. Andre Fortier was
named Chairman of the Board, replacing Mr. McCartney. "With the
Company's recent decisions to discontinue mining operations at
Copper Rand by year-end and to suspend the bulk sample exploration
program at Corner Bay because of extreme difficulties in securing
financing in the current marketplace and the decline in copper
prices, there is uncertainty about the Company's ability to
successfully execute its operating plans," said Andre Fortier,
Campbell's President and Chief Executive Officer. "We are still
looking at various scenarios for the Company, but because these
scenarios are largely dependent on items outside our control, there
is no assurance that the Company will be able to continue to
operate as a going concern." FINANCIAL RESULTS As of January 1,
2007, results from the Copper Rand mine have been included in the
consolidated operating results. Prior to this, Copper Rand mine was
considered to be in the preproduction development stage and, as
such, all costs, net of revenue from development ore, were deferred
as mine development costs. As of September 11, 2007, operations at
Joe Mann mine ceased and the mine was put on care and maintenance.
The Joe Mann mine was Campbell's principal gold-mining operation.
In October 2007, the Company commenced production at Merrill Pit.
In the third quarter of 2008, Campbell operations produced 64,572
tons of ore yielding 2,080 ounces of gold and 2,343,188 pounds of
copper. In the third quarter of 2007, 70,223 tons of ore were
milled, yielding 5,030 ounces of gold and 1,625,926 pounds of
copper. Production was slowed in August because of equipment and
liquidity issues. For the first nine months of fiscal 2008,
Campbell operations produced 227,765 tons of ore yielding 6,103
ounces of gold and 6,290,973 pounds of copper. In the first nine
months of fiscal 2007, 161,749 tons of ore were milled, yielding
13,853 ounces of gold and 3,631,764 pounds of copper. A total of
1,600 ounces of gold and 1,894,123 pounds of copper were sold in
the third quarter of 2008 compared to 8,341 ounces of gold and
2,463,726 pounds of copper for the same period of 2007. The average
market price for gold in the third quarter of 2008 was $872
(US$838) per ounce compared to $711 (US$680) per ounce for the same
period in 2007. The average market price for copper in the third
quarter of 2008 was $3.49 (US $3.35). In the third quarter of 2008,
the average sale price for gold was $930 per ounce compared to $682
in the same period of 2007. For copper, the average sale price was
4.10 per pound in the third quarter of 2008 compared to $3.41 in
the same period of 2007. Net metal sales for the third quarter of
2008 reached $6.0 million compared to $12.8 million for the same
period last year. For the first nine months of fiscal 2008, net
metal sales totalled $15.8 million, compared to $15.9 million in
the corresponding period in 2007. As per the contract for the sale
of concentrate between Campbell and Ocean Partners UK Limited
("OP"), revenues for concentrate inventory shipped cannot be
recognized until the transfer of ownership is completed when the
concentrate is delivered to the discharge port. As at September 30,
2008, $6.9 million of inventory valued at lowest of cost and net
realizable value was stored at Port of Quebec. On this amount of
inventory, provisional payments in the amount of $7.7 million were
received from OP. The contract was amended in March 2008 to allow
the Company to borrow money on concentrate to be shipped. As at
September 30, 2008, the credit facility was not used. The loss from
operations totalled $30.2 million in the third quarter of 2008,
compared to a loss of $4.0 million in the prior period. This loss
from operation includes a write-down of properties of $26.3 million
which relates to the discontinuation of operations at the Copper
Rand mine. For the first nine months of 2008, the loss from
operations totalled $36.7 million, compared to a $13.9 million loss
from operations in the corresponding period in 2007. For the third
quarter of 2008, Campbell recorded a net loss of $29.9 million or
$0.06 per share, compared to a net loss of $3.9 million or $0.01
per for the same period in 2007. For the first nine months,
Campbell recorded a net loss of $36.1 million or $0.08 per share,
compared to a net loss of $10.0 million or $0.03 per share for the
same period in 2007. BOARD CHANGES Campbell also announced today
that Graham Clow, Warren Holmes and Rene Galipeau have resigned
from the Board of Directors. The Board expressed its gratitude for
the many contributions Messrs. Clow, Holmes and Galipeau have made
to the Company, and wishes them well in their future endeavours.
TERMINATION OF CONSULTING AGREEMENT The Company also announced
today that Campbell and Nuinsco have jointly agreed to terminate
their Operating Consulting Agreement, which was originally signed
in 2006. About Campbell Resources Campbell Resources Inc.
concentrates on the development and exploitation of copper and gold
mining properties in the Chibougamau region of Quebec. The
Company's headquarters are located in Montreal, Quebec. Certain
information contained in this release may contain "Forward-Looking
Statements" within the meaning of the Private Securities Litigation
Reform Act of 1995 and is subject to certain risks, assumptions and
uncertainties, including those "Risk Factors" set forth in the
Campbell's current Annual Report on Form 20-F for the year ended
December 31, 2007, which may cause actual future results to differ
materially from those expressed or implied in any forward-looking
statement. Such factors include, but are not limited to:
differences between estimated and actual mineral reserves and
resources; changes to exploration, development and mining plans due
to prudent reaction of management to ongoing exploration results,
engineering and financial concerns; and fluctuations in the gold
and copper prices which affect the profitability and mineral
reserves and resources of Campbell. The key assumptions underlying
the forward-looking statements contained in this release are that
the gold and copper prices remain equal to or above the prices
disclosed herein. Readers are cautioned not to place undue reliance
on these forward-looking statements, which speak only as of the
date hereof. Forward-looking statements are expressly qualified in
their entirety by this cautionary statement. CONSOLIDATED BALANCE
SHEETS (UNAUDITED) (Expressed in thousands of Canadian dollars)
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September 30 December 31 2008 2007
---------------------------------------------- $ $ Assets Current
assets Cash 471 474 Restricted cash 2,028 1,113 Short-term
investments 28 33 Receivables 1,560 3,066 Settlements receivable
2,178 739 Concentrate and metal inventories 7,282 1,218 Supply
inventories 824 2,882 Prepaids 226 408
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14,597 9,933 Amount receivable from Copper Rand/Portage Restoration
Fiduciary Trust 3,160 3,028 Restricted cash 1,158 1,158 Future
income tax assets 1,338 1,317 Property, plant and equipment 30,381
45,017 Accrued benefit asset 5,132 4,897
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55,766 65,350
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Liabilities Current liabilities Short-term loan 7,193 1,996
Accounts payable 20,030 15,411 Accrued liabilities 9,832 5,954
Prepayments for concentrate 7,672 965 Current portion of long-term
debt 23,145 18,337
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67,872 42,663 Asset retirement obligations 7,716 7,396 Long-term
debt 121 2,688 Future income and mining tax liabilities 6,661 6,472
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82,370 59,219
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Shareholders' (deficiency) equity Capital stock 98,810 96,639
Warrants, stock options and conversion rights 8,269 9,432
Contributed surplus 6,421 4,109 Deficit (140,090) (104,040)
Accumulated other comprehensive loss (14) (9)
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(140,104) (104,049)
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(26,604) 6,131
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55,766 65,350
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CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (Expressed in
thousands of Canadian dollars except per share amounts)
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Three months ended Nine months ended September 30 September 30 2008
2007 2008 2007 ---------------------------------------------- $ $ $
$ Gross metal sales 7,069 14,201 18,550 17,397 Treatment charges
1,028 1,420 2,786 1,490
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Net metal sales 6,041 12,781 15,764 15,907
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Expenses Cost of sales 7,900 15,025 19,240 24,988 Depreciation and
amortization 904 814 2,940 2,203 Write-down of properties 26,283 -
26,283 - General administration 610 539 2,103 1,901 Stock-based
compensation - 336 - 336 Warrants issued as fee for short-term
financial arrangement - - 427 - Reorganisation and CCAA costs 114
74 148 281 Care and maintenance 434 15 1,336 91
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36,245 16,803 52,477 29,800
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Loss before the following items (30,204) (4,022) (36,713) (13,893)
Interest expense on short-term loan (9) (24) (211) (185) Interest
and financial expenses on long-term debt (314) (712) (1,106)
(1,280) Interest income 1 9 20 37
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Loss from operations (30,526) (4,749) (38,010) (15,321) Other
income (expense) Other (expense) income 645 809 338 5,295
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Loss before taxes (29,881) (3,940) (37,672) (10,026) Income and
mining taxes - - 1,622 -
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Net loss (29,881) (3,940) (36,050) (10,026)
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Weighted average number of common shares ('000) 468,712 409,205
449,325 385,151
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Loss per share undiluted and diluted 0.06 0.01 0.08 0.03
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CONSOLIDATED STATEMENTS OF CONTRIBUTED SURPLUS AND DEFICIT
(UNAUDITED) (Expressed in thousands of Canadian dollars)
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Three months ended Nine months ended September 30 September 30 2008
2007 2008 2007 ---------------------------------------------- $ $ $
$ Contributed surplus Balance, beginning of period 6,421 3,991
4,109 1,996 Stock options expired and cancelled - 5 69 5 Warrants
expired - - 2,243 1,995
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Balance, end of period 6,421 3,996 6,421 3,996
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Deficit Balance, beginning of period 110,209 91,138 104,040 85,052
Net loss 29,881 3,940 36,050 10,026
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Balance, end of period 140,090 95,078 140,090 95,078
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Expressed in
thousands of Canadian dollars)
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Three months ended Nine months ended September 30 September 30 2008
2007 2008 2007 ---------------------------------------------- $ $ $
$ Net Loss 29,881 3,940 36,050 10,026 Other comprehensive income,
net of income tax: Unrealized losses (gain) on available-for-sale
investments arising during the period 3 36 5 115
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Comprehensive loss 29,884 3,976 36,055 10,141
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DATASOURCE: CAMPBELL RESOURCES INC. CONTACT: Campbell Resources
Inc.: Andre Fortier, President and Chief Executive Officer, (514)
875-9037, Fax: (514) 875-9764, ; Alain Blais, Vice-president and
General Manager of Operations, (418) 748-7691, Fax: (418) 748-7696,
; Renmark Financial Communications Inc.: Henri Perron: ; John
Boidman: , (514) 939-3989, Fax: (514) 939-3717,
http://www.renmarkfinancial.com/
Copyright