 | |
| |
All material press releases may be found on SEDAR
| | August 13, 2009
Silver Bear Announces Second Quarter Results; Increases 2009 Drilling Program
|
| |
Toronto, Canada, August 13, 2009 -- Silver Bear Resources Inc. ("Silver Bear" or the "Company") (TSX:SBR) today announces financial results for the second quarter ended June 30, 2009, prepared in accordance with Canadian generally accepted accounting principles ("GAAP") and provides an update on the 2009 drilling program. All dollar amounts are stated in Canadian dollars unless otherwise indicated. Highlights of the second quarter include:
- At June 30, 2009, Silver Bear had cash and cash equivalents of $17.1 million, sufficient to meet drilling and trenching requirements under the License Agreement through 2010;
- The 2009 exploration drilling program commenced in May 2009 and is expected to be completed on October 1, 2009. The Company has already exceeded its target of 10,000 metres at less than budgeted costs and now plans to extend its 2009 drilling program to 12,000 metres;
- As of August 9, 2009, 65 holes covering 10,463 metres have been drilled and 4,772 cubic metres of trenching have been completed; and
- A total of 697 samples have been submitted for assay, with the first results expected in the third quarter of 2009.
"Our 2009 exploration program is well under way, and we expect to update our existing resource estimate during the first quarter of 2010," said Randall Oliphant, President and Chief Executive Officer. "We are extremely pleased as our team has exceeded our planned drilling target at less than budgeted costs, thus allowing Silver Bear to increase our 2009 program."
Financial Results
Net Loss
The Company is in the exploration stage and therefore did not generate revenues from operations as at June 30, 2009. Silver Bear incurred a net loss for the six-month period ended June 30, 2009 of $7.8 million, or $0.21 per share. This compares to a loss of $5.3 million, or $0.15 per share, for the period ended June 30, 2008. The 2008 loss for the period included a
$2.5 million gain on the sale of the Company's Avlayakan property, partially offsetting the operational losses. Exploration costs were $5.3 million in the period ended June 30, 2009, compared with $4.6 million in the period ended June 30, 2008, as the Company paid mobilization costs for drilling supplies and equipment in the first quarter of 2009 that were not paid in 2008. Savings in fuel prices and an efficient winter road supply have helped the Company lower these costs in 2009. General and administrative expenses for the period ended June 30, 2009 were $1.4 million, compared with $2.6 million in the prior period. General and administrative costs are below prior year as the Company has favourably settled previous litigation matters in the Russian Federation as well as reduced travel in the first and second quarters of 2009 compared to the same period of 2008.
Silver Bear incurred a net loss for the three-month period ended June 30, 2009 of $3.8 million, or $0.10 per share. This compares to a loss of $2.4 million, or $0.07 per share, for the three-month period ended June 30, 2008. The 2008 loss included a $2.5 million gain on the sale of the Company's Avlayakan property. Exploration costs were $2.7 million in the three-month period ended June 30, 2009 compared with $3.1 million in the three-month period ended June 30, 2008, as savings on fuel and supplies purchased for the drill season are now being realized. General and administrative expenses for the three-month period ended June 30, 2009 were $0.7 million compared with $1.4 million in the three-month period ended June 30, 2008. General and administrative expenses for the three-month period decreased when compared to the 2008 period for the same reasons as noted in the six-month explanation above.
Liquidity and Capital Resources
At June 30, 2009, Silver Bear had cash and cash equivalents of $17.1 million, enough to meet drilling and trenching requirements under the License Agreement through 2010. At December 31, 2008, cash and cash equivalents were $24.2 million.
Update -- Mangazeisky Project
Silver Bear's objective for 2009 is to significantly increase the Company's mineral resource estimate. Silver Bear originally planned to complete 10,000 metres of exploration drilling and 10,000 cubic metres of surface trenching during the year, leaving the Company with sufficient cash to fund further exploration in 2010. As a result of increased drilling efficiencies, the Company has already completed over 10,000 metres of drilling at well below budgeted costs; as such Silver Bear is extending its planned drilling for 2009 to 12,000 metres. Total estimated cost for the 2009 program remains approximately $12.0 million, of which $5.3 million has been spent as at June 30, 2009. A mineral resource estimate dated March 6, 2009, based on intersections from 73 drill holes and 13 trenches, determined an inferred silver resource of 31.3 million ounces (1.9 tonnes at 508 grams per tonne silver).
Drilling activities commenced in May 2009, and as of August 9, 2009, 10,463 metres were drilled in 65 holes. Trenching activities resulted in 4,772 cubic metres being completed. Work has primarily concentrated on expanding the 2008 resource estimate by down-dip and along-strike drilling within the Central and Northwest zones. A minor portion of the drilling has been committed to undercutting trench data to improve the quality of the resource, and for infill drilling for a Russian C1 reserve estimate.
Vivian Park, Director of Exploration, a "qualified person" employed by the Company under NI 43-101, has reviewed the technical information contained in this news release.
Silver Bear Resources Inc.
The primary business of the Company is the evaluation, acquisition, exploration and development of silver properties in the Russian Federation. The Company's principal asset is its 100% owned Mangazeisky Project, located approximately 400 kilometres north of Yakutsk in the Republic of Sakha, Yakutia in the Russian Federation.
Silver Bear is focused on further delineating the high-grade silver mineralization discovered in the Vertikalny vein of the Mangazeisky Project and the exploration of the other known silver mineralized zones on the property. Based on the encouraging results from the drilling program concluded to date, Silver Bear believes the Mangazeisky Project has the potential to become a world-class silver deposit.
Silver Bear Resources Inc. is listed on the Toronto Stock Exchange and its common shares trade under the symbol "SBR". Silver Bear has 37,935,569 issued and outstanding common shares. Other information relating to Silver Bear is available on SEDAR at www.sedar.com as well as on the Company's web site at www.silverbearresources.com.
Silver Bear Resources Inc.
(an exploration stage enterprise)
Consolidated Balance Sheet
(Canadian dollars)
(unaudited)
June 30, December 31,
2009 2008
------------- -------------
Assets
Current assets
Cash and cash equivalents $ 17,076,808 $ 24,170,023
Related party receivable 4,137 23,063
Inventories 1,815,312 1,142,408
Prepaid expenses 549,650 666,396
Miscellaneous receivables 13,264 52,475
------------- -------------
19,459,171 26,054,365
Capital assets
Mineral properties 1,265,117 1,265,117
Property, plant and equipment 2,364,606 2,520,265
Asset held for sale 944,150 944,150
------------- -------------
$ 24,033,044 $ 30,783,897
------------- -------------
------------- -------------
Liabilities
Current liabilities
Accounts payable and accrued liabilities $ 1,691,012 $ 1,013,888
Long-term liabilities
Asset retirement obligation 589,717 570,711
Shareholders' equity
Capital Stock 73,771,289 73,771,289
Contributed surplus 8,967,290 8,621,876
Deficit (60,986,264) (53,193,867)
------------- -------------
21,752,315 29,199,297
------------- -------------
------------- -------------
$ 24,033,044 $ 30,783,897
------------- -------------
Silver Bear Resources Inc.
(an exploration stage enterprise)
Consolidated Statements of Operations
and Comprehensive Loss and Deficit
(Canadian dollars)
(unaudited)
Three months Ended Six months Ended
June 30, June 30,
2009 2008 2009 2008
Income
Interest
income $ 17,389 $ 179,766 $ 73,834 $ 465,393
------------- ------------- ------------- -------------
Expenses
Exploration
costs 2,686,238 3,059,013 5,268,054 4,644,360
General and
administrative 687,342 1,406,358 1,418,341 2,627,557
Stock option
compensation 153,673 304,353 345,415 729,456
Amortization 194,267 245,649 374,586 537,391
Accretion
expense 9,505 3,982 19,006 7,582
Loss on
disposal of
property,
plant and
equipment 11,631 - 11,631 -
Foreign
exchange
loss (gain) 81,261 102,098 429,197 (197,653)
------------- ------------- ------------- -------------
Expenses from
continuing
operations 3,823,917 5,121,453 7,866,230 8,348,693
------------- ------------- ------------- -------------
Non-controlling
interest - (5,345) - (33,178)
Loss and
Comprehensive
Loss for the
period from
continuing
operations (3,806,528) (4,936,342) (7,792,396) (7,850,122)
Discontinued
Operations - 2,502,027 - 2,502,027
------------- ------------- ------------- -------------
Net Loss (3,806,528) (2,434,315) (7,792,396) (5,348,095)
------------- ------------- ------------- -------------
Deficit -
Beginning of
the period (57,179,736) (38,406,009) (53,193,868) (35,492,229)
------------- ------------- ------------- -------------
Deficit -
End of the
period $(60,986,264) $(40,840,324) $(60,986,264) $(40,840,324)
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
Weighted average
number of
common shares
outstanding 37,935,569 36,435,569 37,935,569 36,370,184
Income (loss)
per share from
continuing
operations $ (0.10) $ (0.14) $ (0.21) $ (0.22)
Income (loss)
per share from
discontinued
operations - 0.07 - 0.07
------------- ------------- ------------- -------------
Income (loss)
per share $ (0.10) $ (0.07) $ (0.21) $ (0.15)
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
Silver Bear Resources Inc.
(an exploration stage enterprise)
Consolidated Statements of Cash Flows
(Canadian dollars)
(unaudited)
Three months Ended Six months Ended
June 30, June 30,
2009 2008 2009 2008
Cash provided by
(used in)
Operating
activities
Loss from
Continuing
operations $ (3,806,528) $ (4,936,342) $ (7,792,396) $ (7,850,122)
Items not
affecting
cash:
Amortization 194,267 245,649 374,586 537,391
Accretion
expense 9,505 3,982 19,006 7,582
Stock option
compensation 153,673 304,353 345,415 729,456
Loss on disposal
of property,
plant and
equipment 11,631 11,631
Net change in
non-cash
working
capital 1,184,205 2,508,713 179,103 1,082,859
------------- ------------- ------------- -------------
Net cash from
continuing
operations (2,253,247) (1,873,645) (6,862,655) (5,492,834)
------------- ------------- ------------- -------------
Financing
activities
Issuance of
common shares - (366,958) - 1,560,013
Deferred stock
issuance costs - (214,456) - (214,456)
Non-controlling
interest - (127) - (127)
------------- ------------- ------------- -------------
- (581,541) - 1,345,430
------------- ------------- ------------- -------------
Investing
activities
Acquisition of
property, plant
and equipment (17,093) (1,686,319) (230,560) (2,248,113)
------------- ------------- ------------- -------------
(17,093) (1,686,319) (230,560) (2,248,113)
------------- ------------- ------------- -------------
Decrease in cash
and cash
equivalents
during the
period (2,270,340) (4,141,505) (7,093,215) (6,395,517)
Decrease in cash
and cash
equivalents
during the
period from
discontinued
operations - 8,368,058 - 8,186,979
Cash and cash
equivalents -
beginning of
the period 19,347,148 27,860,490 24,170,023 30,295,581
------------- ------------- ------------- -------------
Cash and cash
equivalents -
end of the
period $ 17,076,808 $ 32,087,043 $ 17,076,808 $ 32,087,043
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
Forward-Looking Information
This release and subsequent oral statements made by and on behalf of the Company may contain forward-looking statements, which reflect management's expectations with respect to the proposed transaction. Wherever possible, words such as "intends", "expects", "scheduled", "estimates", "anticipates", "believes" and similar expressions or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, have been used to identify these forward-looking statements. Although the forward-looking statements contained in this release reflect management's current beliefs based upon information currently available to management and based upon what management believes to be reasonable assumptions, Silver Bear cannot be certain that actual results will be consistent with these forward-looking statements. A number of factors could cause events and achievements to differ materially from the results expressed or implied in the forward-looking statements. Such risks factors include but are not limited to risks factors identified by Silver Bear in its continuous disclosure filings filed from time to time on SEDAR. These factors should be considered carefully and prospective investors should not place undue reliance on the forward-looking statements. Forward-looking statements necessarily involve significant known and unknown risks, assumptions and uncertainties that may cause Silver Bear's actual results, events, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statements. Although Silver Bear has attempted to identify important risks and factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors and risks 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, prospective investors should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date of this release, and Silver Bear assumes no obligation to update or revise them to reflect new events or circumstances, unless otherwise required by law.
For further details, please visit www.silverbearresources.com, or contact:
Brian Penny
Chief Financial Officer
(416)-324-6002
bpenny@silverbearresources.com
Hannes Portmann
Director, Corporate Development and Investor Relations
(416)-324-6014
hportmann@silverbearresources.com
View News Release in PDF Format: |
| |
| |
| | You can view the Next News Releases item: Mon Nov 9, 2009, Silver Bear Announces Upgrade of 18 Million Ounces of Silver to Indicated Category Plus Additional 29 Million Ounces of Inferred Resource
You can view the Previous News Releases item: Mon May 11, 2009, Silver Bear Announces First Quarter Results - 2009 Drilling Program to Commence in May
You can return to the main News Releases page, or press the Back button on your browser.
|
|
| |
