TORONTO, ONTARIO (AMEX: KRY) today reported its financial
results for the quarter ended March 31, 2008. The Company prepares
its consolidated financial statements in U.S. dollars and in
accordance with Canadian Generally Accepted Accounting Principles.
The consolidated financial statements along with management s
discussion and analysis will be available for viewing on the
Crystallex International Corporation website at www.crystallex.com.
The Documents have been filed with SEDAR (www.sedar.com) and should
be available on SEDAR.
Crystallex President and CEO, Gordon Thompson commented, "On
April 30, 2008 we were advised that the Las Cristinas concession
holder, Corporacion Venezolana de Guayana ("CVG") had received a
letter from a Director General at the Ministry of Environment
denying its request for the Environmental Permit allowing the
construction of the Las Cristinas Project. On May 12, 2008,
Crystallex filed the legal rebuttal to the position taken by the
Director General in his letter."
Mr. Thompson noted, "The Communication from this Director
General of the Ministry of Environment and Natural Resources is in
conflict with the Las Cristinas Environmental Impact Study
approval. Since the contents of the Director General s letter
became public, local and indigenous communities, and Venezuelan
Officials have voiced continued support for the development of the
Las Cristinas project and other mining projects in the region. We
are continuing efforts with the support of Venezuelan governmental
agencies to advance the Project. Las Cristinas has been designed to
the highest environmental standards and we are confident the
benefits of the Project to the Venezuelan people and especially the
employment opportunities for Bolivar State and surrounding
communities will be recognized."
Overview
The Company is engaged in the production of gold and related
activities including exploration, development, mining and
processing in Venezuela. The Corporation s principal asset is its
interest in the Las Cristinas gold project located in Sifontes,
Bolivar State, Venezuela. The Corporation s other assets include
the Tomi operations, the Lo Increible properties (which include the
La Victoria deposit), and the Revemin mill, all of which are
located in Bolivar State, Venezuela (the "El Callao
operations").
Las Cristinas - Permitting Status
- On April 30, 2008, the Company reported that it became aware
that the Director General of the Administrative Office of Permits
at the Ministry of Environment and Natural Resources, ("MinAmb")
had issued a letter to the Corporacion Venezolana de Guayana
("CVG") denying its request for the Authorization to Affect Natural
Resources (the "Permit") for the Las Cristinas project.
- The Company believes that this communication contradicts the
Environmental Impact Study approval process, conflicts with various
Government Decrees and Resolutions, appears to be in opposition to
all mineral mining in the Imataca Forest Region (which includes Las
Cristinas) and stands contrary to current and historic mining
projects in Venezuela. Accordingly, on May 12, 2008, the Company
filed a legal rebuttal to the position taken by the Director
General of Permits at MinAmb.
Liquidity and Capital Resources
- On February 11, 2008, the Company closed a public equity
financing of 32.9 million units for net proceeds of $64.3
million.
- Cash and cash equivalents at March 31, 2008 were $67.2
million.
- The Company forecasts that it will have cash to fund its
operations until approximately June 2009 assuming expenditures
continue at the same pre-Permit level as before the communication
from the Director General of Permits at MinAmb denying CVG s
request for the Permit. In the event of a negative outcome in its
appeal of the MinAmb directive relating to the Permit, or a
prolonged appeal process, the Company will re-assess its planned
expenditures.
Financial Performance
- First quarter net loss of $11.2 million, or $0.04 per share
including $6.1 million unrealized loss on translation of future
income taxes.
- Loss of $0.6 million from operations at El Callao (the loss is
inclusive of exploration expenditures of approximately $0.8
million).
- Expenditures of $5.5 million on Las Cristinas.
Las Cristinas - Permitting
During 2007, the CVG was formally notified by MinAmb that all
the requirements for the issuance of the Permit had been fulfilled.
MinAmb approved the EIS for the Las Cristinas gold project, and
requested the CVG post a construction compliance guarantee bond and
pay certain environmental taxes. Crystallex posted the requested
bond and paid the requested taxes. No impediments were raised in
discussions at that time with Government officials, who
subsequently confirmed that the Company was in good standing for
the issuance of the Permit.
The Company received additional support for the issuance of the
Permit in the fall of 2007, when the Venezuelan National Assembly's
Commission of Economic Development reviewed the protracted timeline
for the issuance of the Permit. Following its October 4th, 2007
hearings, the Commission issued a report noting that
representatives from MinAmb, the Ministry of Basic Industry and
Mines ("MIBAM"), the CVG and Crystallex had testified at their
hearings. The Commission's report concluded that the CVG and
Crystallex had complied with the feasibility study and other legal
and technical requirements, thus allowing for the Permit to be
granted by MinAmb. The Chairman of the Commission recommended
MinAmb grant the Permit.
In early 2008, Mr. Rodolfo Sanz was appointed the Minister of
MIBAM and President of the CVG, having direct involvement with the
Las Cristinas project in both capacities. Crystallex officials have
met with Minister Sanz and further meetings are anticipated.
On April 30, 2008, the Company reported that a Director General
in the Administrative Office of Permits at MinAmb had issued a
communication to the CVG, the concession holder of the Las
Cristinas concessions, that the Office of Permits in the Ministry
had denied the request of the CVG for the Permit. Since being
advised of the letter, Crystallex has had the opportunity to meet
with Officials of both the Government of Venezuela and the CVG and
has begun the process of seeking the reversal of the Director
General s communication in order to bring the Las Cristinas gold
deposit into production.
On May 12, 2008, Crystallex filed the legal rebuttal to the
position taken by the Director General of Permits in the MinAmb.
The Director General at MinAmb who issued the letter has, under the
administrative law of Venezuela, 15 business days to reply
formally. If there is no reply, under law the answer is deemed to
be negative. At that time, the Company has the legal right to
appeal directly to the Minister of MinAmb who also has a set time
(90 business days) to issue a finding. If at that time the answer
is negative, Crystallex has a number of legal avenues to pursue
both in and out of Venezuela in order to protect its shareholders
rights.
The communication from this Director General at MinAmb is in
conflict with the Las Cristinas Environmental Impact Study
approval, the Construction Compliance Guarantee Bond (the "Bond")
request and Environmental Tax (the "Tax") request issued by MinAmb.
Both the posting of the Bond and payment of the requested Tax were
satisfied in 2007 and Crystallex obtained receipt of acceptance.
This communication appears to be in opposition to all mineral
mining in the Imataca Forest Region. In the opinion of Crystallex s
management, the communication in question also leaves a number of
current and historic projects standing contrary to the
communication. In addition, Crystallex believes that the content of
the letter contradicts Presidential Decrees, National Assembly
Resolutions, MinAmb Resolutions, and MIBAM Resolutions.
Since the contents of the Director General s letter became
public, local and indigenous communities, and Venezuelan Officials
have voiced continued support for the development of the Las
Cristinas project and other mining projects in the region.
Crystallex has also become aware that the Venezuelan National
Assembly intends to hold hearings regarding the Director General s
letter and the status of the Las Cristinas project.
The Company is currently continuing its efforts with the support
of Venezuelan governmental agencies to advance the Las Cristinas
project which will create significant employment, healthcare
facilities and sustainable development for the surrounding
communities. In particular, as part of its corporate and social
responsibility commitments under the Las Cristinas Mining Operation
Contract, the Company commenced construction of a new medical
centre and sewage treatment plant to serve local communities in the
vicinity of the Las Cristinas project. Both projects are well
advanced and are scheduled for completion in 2008. The Company has
remaining expenditures of approximately $3.5 million on these
projects (including associated paving projects).
Summary of Quarterly Results (Unaudited)
--------------------------------------------------------------------------
--------------------------------------------------------------------------
$,000 except per share 2008 2007
--------------------------------------------------------------------------
Q3 Q2
Q1 Q4 (Amended) (Amended)
--------------------------------------------------------------------------
Revenue $ 5,901 $ 4,809 $ 2,188 $ 2,848
--------------------------------------------------------------------------
Net loss previously reported - - ($9,256) ($13,703)
--------------------------------------------------------------------------
Adjustment to unrealized gain - 2,534 1,580
--------------------------------------------------------------------------
Net loss as amended $(11,202) $ (8,787) $ (6,722) $(12,123)
--------------------------------------------------------------------------
Per share - Basic and diluted $ (0.04) $ (0.03) $ (0.03) $ (0.05)
--------------------------------------------------------------------------
--------------------------------------------------------------------------
--------------------------------------------------------------------------
--------------------------------------------------------------------------
$,000 except per share 2007 2006
--------------------------------------------------------------------------
Q1
(Amended) Q4 Q3 Q2
--------------------------------------------------------------------------
Revenue $ 3,720 $ 5,720 $ 9,769 $ 5,520
--------------------------------------------------------------------------
Net loss previously reported ($12,071) ($11,617) ($8,815) ($8,296)
--------------------------------------------------------------------------
Adjustment to unrealized gain 9,252 - - -
--------------------------------------------------------------------------
Net loss as amended $ (2,819) ($11,617) ($8,815) ($8,296)
--------------------------------------------------------------------------
Per share - Basic and diluted $ (0.01) $ (0.04) $ (0.04) $ (0.04)
--------------------------------------------------------------------------
--------------------------------------------------------------------------
The Q1 to Q3 2007 net loss have been amended to reflect the 2007 year end
adjustments to unrealized gains as discussed in the 2007 Annual MD&A and in
Note 10 to the Consolidated Financial Statements for the year ended
December 31, 2007.
About Crystallex
Crystallex International Corporation is a Canadian based gold
producer with significant operations and exploration properties in
Venezuela. The Company s principal asset is the Las Cristinas
property in Bolivar State that is currently under development at
the initial planned production rate of 20,000 tonnes of ore per
day. Other key assets include the Tomi Mine, certain Lo Increible
properties and the Revemin Mill. Crystallex shares trade on the TSX
(symbol: KRY) and AMEX (symbol: KRY) Exchanges.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS: Certain
statements included or incorporated by reference in this news
release, including information as to the future financial or
operating performance of the Company, its subsidiaries and its
projects, constitute forward-looking statements. The words
"believe," "expect," "anticipate," "contemplate," "target," "plan,"
"intends," "continue," "budget," "estimate," "may," "schedule" and
similar expressions identify forward-looking statements.
Forward-looking statements include, among other things, statements
regarding targets, estimates and assumptions in respect of gold
production and prices, operating costs, results and capital
expenditures, mineral reserves and mineral resources and
anticipated grades and recovery rates. Forward-looking statements
are necessarily based upon a number of estimates and assumptions
that, while considered reasonable by the Company, are inherently
subject to significant business, economic, competitive, political
and social uncertainties and contingencies. Many factors could
cause the Company s actual results to differ materially from those
expressed or implied in any forward-looking statements made by, or
on behalf of, the Company. Such factors include, among others,
risks relating to additional funding requirements, reserve and
resource estimates, gold prices, exploration, development and
operating risks, illegal miners, political and foreign risk,
uninsurable risks, competition, limited mining operations,
production risks, environmental regulation and liability,
government regulation, currency fluctuations, recent losses and
write-downs and dependence on key employees. See "Risk Factors"
below or in the Company s 2007 40-F/Annual Information Form. Due to
risks and uncertainties, including the risks and uncertainties
identified above, actual events may differ materially from current
expectations. Investors are cautioned that forward-looking
statements are not guarantees of future performance and,
accordingly, investors are cautioned not to put undue reliance on
forward-looking statements due to the inherent uncertainty therein.
Forward-looking statements are made as of the date of this
Management Discussion and Analysis and the Company disclaims any
intent or obligation to update publicly such forward-looking
statements, whether as a result of new information, future events
or results or otherwise.
Contacts: Investor Relations Contact: Crystallex International
Corporation A. Richard Marshall, VP 1-800-738-1577 Email:
info@crystallex.com Website: www.crystallex.com
Crystallex (AMEX:KRY)
過去 株価チャート
から 6 2024 まで 7 2024
Crystallex (AMEX:KRY)
過去 株価チャート
から 7 2023 まで 7 2024