Pacific Rim Mining Corp. ("Pacific Rim" or "the Company") (TSX:
PMU)(NYSE Amex: PMU) reports its financial and operating results
for the three months and nine months ended January 31, 2010.
Details of the Company's financial results are provided in its
interim consolidated financial statements and Management's
Discussion and Analysis ("MD&A") that will be mailed to
shareholders shortly. All monetary amounts are expressed in United
States ("US") dollars unless otherwise stated.
Overview
Pacific Rim is an environmentally and socially responsible
exploration company focused exclusively on high grade,
environmentally clean gold deposits in the Americas. Pacific Rim's
primary asset is the high grade, vein-hosted El Dorado gold project
in El Salvador. The Company owns several similar grassroots gold
projects in El Salvador and is actively seeking additional assets
elsewhere in the Americas that fit its project focus. Pacific Rim's
shares trade under the symbol PMU on both the Toronto Stock
Exchange ("TSX") and the NYSE Amex.
All references to "Pacific Rim" or "the Company" encompass the
Canadian corporation, Pacific Rim Mining Corp, and its U.S. and
Salvadoran subsidiaries, Pac Rim Cayman LLC ("PacRim"), Pacific Rim
El Salvador, S.A. de C.V. ("PRES"), and Dorado Exploraciones, S.A.
de C.V. ("DOREX"), inclusive.
Financial Highlights
The following financial data is derived from the Company's third
quarterly unaudited consolidated financial statements for the three
month and nine month periods ended January 31, 2010 and 2009:
---------------------------------------------------------------------------
Three Months Three Months Nine Nine
Ended Ended Months Ended Months Ended
January 31, January 31, January 31, January 31,
2010 2009 2010 2009
---------------------------------------------------------------------------
Summarized Statement of
Loss(i)
---------------------------------------------------------------------------
Exploration
expenditures $ 524 $ 959 $ 1,379 $ 4,646
---------------------------------------------------------------------------
Loss from Continued
Operations $ (1,043) $ (1,629) $ (3,279) $ (7,982)
---------------------------------------------------------------------------
Discontinued
Operations - Net
income (loss) of
Denton- Rawhide
Joint Venture $ nil $ 1,246 $ 38 $ 3,118
---------------------------------------------------------------------------
Loss for the period $ (1,043) $ (383) $ (3,241) $ (4,864)
---------------------------------------------------------------------------
Loss per share after
Discontinued
Operations
(basic and diluted) $ (0.01) $ (0.00) $ (0.03) $ (0.04)
---------------------------------------------------------------------------
Weighted average
shares outstanding
(basic and diluted 120,315,373 116,915,460 118,803,156 116,915,460
---------------------------------------------------------------------------
Summarized Statement of
Cash Flows(i)
---------------------------------------------------------------------------
Cash Flow used for
operating activities $ (528) $ (1,738) $ (1,269) $ (8,319)
---------------------------------------------------------------------------
Cash Flow provided by
investing activities $ nil $ (1,334) $ (14) $ 5,988
---------------------------------------------------------------------------
Cash Flow provided by
financing activities $ 2,258 $ nil $ 2,260 $ nil
---------------------------------------------------------------------------
Cash Flow from
Continuing Operations $ 1,730 $ (3,072) $ 977 $ (2,331)
---------------------------------------------------------------------------
Cash Flow from
Discontinued
Operations $ nil $ 848 $ 38 $ 1,960
---------------------------------------------------------------------------
Net increase
(decrease) in cash $ 1,730 $ (2,224) $ 1,015 $ (371)
---------------------------------------------------------------------------
---------------------------------------------------------------------------
At January 31, 2010 At April 30, 2009
---------------------------------------------------------------------------
Summarized Balance
Sheet(i)
---------------------------------------------------------------------------
Cash and cash
equivalents $ 2,299 $ 1,284
---------------------------------------------------------------------------
Bullion $ nil $ 1,225
---------------------------------------------------------------------------
Receivables, Deposits
and Pre-paids $ 81 $ 106
---------------------------------------------------------------------------
Current assets $ 2,380 $ 2,615
---------------------------------------------------------------------------
Total assets $ 7,911 $ 8,187
---------------------------------------------------------------------------
Total liabilities $ 1,869 $ 1,679
---------------------------------------------------------------------------
Working Capital $ 1,557 $ 1,982
---------------------------------------------------------------------------
(i) all amounts in thousands of US dollars, except share and per share
amounts
Results of Operations
For the three month period ended January 31, 2010, Pacific Rim
recorded a loss for the period after discontinued operations of
$(1.0) million or $(0.01) per share, compared to a loss of $(0.4)
million or $(0.00) per share for the three month period ended
January 31, 2009. During Q3 2009, the Company realized $1.2 million
in net income from discontinued operations, which substantially
offset the loss from continuing operations during that period and
for which there was no comparable value during Q3 2010.
For the nine months ended January 31, 2010, Pacific Rim recorded
a loss for the period of $(3.2) million or $(0.03) per share,
compared to a loss of $(4.9) million or $(0.04) per share for the
nine months ended January 31, 2009. The loss from continuing
operations during the first nine months of fiscal 2010 was $(3.3)
million or $(0.03) per share, compared to $(8.0) million or $(0.07)
per share during the same period a year earlier. This decrease in
loss before discontinued operations period over period is primarily
attributable to significantly lower exploration expenditures and
general and administrative costs during the first nine months of
fiscal 2010 compared to the same period a year earlier,
notwithstanding significant CAFTA-related expenses during the nine
months ended January 31, 2010 for which there was no comparable
item for the same period a year earlier. For the nine months ended
January 31, 2009, the $(8.0) million loss from continuing
operations was offset in part by $3.1 million in income from
discontinued operations compared to $0.04 million during the nine
months ended January 31, 2010.
Expenses
Quarterly exploration expenditures were greatly reduced year
over year, from $1.0 million in Q3 2009 to $0.5 million in Q3 2010.
Although significant exploration work ceased at the Company's El
Salvador exploration projects in July 2008 (Q1 2009), residual
expenses related to environmental data collection and technical
responsibilities of maintaining the El Dorado, Santa Rita and
Zamora-Cerro Colorado exploration licences continue. During Q3
2010, exploration expenditures also included expenditures related
to the evaluation of potential project acquisitions.
General and administrative expenses were marginally lower during
Q3 2010 ($0.3 million) than Q3 2009 ($0.4 million) as a result of
the Company's reduction in activities and staff. An additional $0.3
million was spent on the CAFTA action during Q3 2010, for which
there was no comparable item during Q3 2009.
During Q3 2010 the Company realized a gain on the sale of
bullion of $0.2 million for which there was no comparable item in
Q3 2009. The gain represents the difference between the
consideration received for gold and silver when it was sold and its
book value, which is based on the gold price on the date the
bullion was received. The Company has sold all of its bullion
inventory as of January 31, 2010.
Unusual Items
During Q3 2009 the Company received income of $1.2 million from
the Denton-Rawhide operation (in which the Company was a
participant until December 31, 2008) related to the production of
gold and silver, for which there is no comparable item in Q3
2010.
Summary
Although the Company's loss for the period (after discontinued
operations) during Q3 2010 was higher than that during Q3 2009
($(1.0) million and $(0.4) million respectively), the Q3 2009
period benefited from $1.2 million in income received from
discontinued operations, for which there was no comparable item
during Q3 2010.
Liquidity and Capital Resources
Cash
At January 31, 2010 the Company's cash and cash equivalents
totalled $2.3 million, a $1.7 million increase from the $0.6
million balance as of October 31, 2009 (the end of the Company's
second quarter of fiscal 2010) and an increase of $1.0 million from
the April 30, 2009 balance of $1.3 million, (the end of the
Company's previous fiscal year). The Company held no bullion at
January 31, 2010, compared to bullion (held by the Company and not
yet sold) valued at $0.2 million at October 31, 2009 and $1.2
million at April 30, 2009. Current assets were $2.4 million at
January 31, 2010 compared to $0.9 million at October 31, 2009 and
$2.6 million at April 30, 2009, a decrease of $0.2 million since
the end of the Company's previous fiscal year. This decrease
reflects bullion sales to fund the expenditures of cash on
exploration expenses and project generation efforts, general and
administrative costs associated with maintaining a public company,
and expenditures related to advancing the CAFTA action, offset by
the proceeds of a private placement equity financing undertaken by
the Company during Q3 2010.
During Q3 2010 the Company received $2.3 million from the sale
of securities in a private placement financing, $0.3 million from
the sale of bullion and added $0.2 million to accounts payable and
accrued liabilities. Outlays of cash during the quarter included:
$0.5 million in direct exploration expenditures, $0.3 million in
direct general and administrative expenses and foreign exchange
losses, and $0.3 million in CAFTA-related expenses. The net result
was a $1.7 million increase in cash between October 31, 2009 and
January 31, 2010.
Working Capital
At January 31, 2010, the book value of the Company's current
assets was $2.4 million, compared to $2.6 million at April 30,
2009, a reduction of $0.2 million. The minor decrease in current
assets is primarily a result the sale of bullion (for cash) and
subsequent cash expenditures, offset by the addition of cash from
the sale of securities under a private placement financing.
Property, plant and equipment balances at January 31, 2010 were
marginally reduced to $5.5 million from the April 30, 2009 balance
of $5.6 million. As a result, the Company's total assets at the end
Q3 2010 were $7.9 million compared to $8.2 million at the end of
fiscal 2009.
At January 31, 2010 the Company had current liabilities of $0.8
million compared to $0.6 million at April 30, 2009. Future income
tax liability, relating to Pac Rim's investment in El Salvador, did
not change between the end of fiscal 2009 and the end of Q3 2010,
and at January 31, 2010 was valued at $1.0 million. Currently,
Pacific Rim has no short- or long-term debt.
The $0.2 million decrease in current assets combined with the
$0.2 million increase in current liabilities, resulted in a $0.4
million reduction in working capital from $2.0 million at April 30,
2009 to $1.6 million at January 31, 2010.
The Company's ability to continue operations and exploration
activities as a going concern is dependent upon its ability to
obtain additional funding. Proceeds from the Company's Q3 2010
private placement financing are sufficient to meet its near-term
exploration and administration responsibilities as well as
immediate CAFTA arbitration costs. Additional financing will be
required in fiscal 2011 to fully fund the anticipated CAFTA
arbitration expenses and to fund any new exploration undertakings
that may arise through its project generation initiatives. While
the Company has been successful in obtaining its required funding
in the past, there is no assurance that sufficient funds will be
available to the Company in the future or if available, will be so
on favourable terms. Factors that could affect the availability of
financing include but are not limited to: the acquisition of a new
exploration project outside of El Salvador; progress and results of
the El Dorado project and its permitting application; the
resolution of international arbitration proceedings over the
non-issuance of permits in El Salvador; the state of international
debt and equity markets; investor perceptions and expectations;
and, the global financial and metals markets. The Company may
obtain additional financing through, but not limited to, the
issuance of additional equity.
(The foregoing paragraph contains forward-looking statements
regarding the requirement for future financing and the use of funds
that may be raised. See Forward-Looking Information.)
The Company does not intend to resume significant exploration
programs in El Salvador until such time as the El Dorado
environmental permit and exploitation concession are received. The
Company can not judge if or when the required permits will be
received and is not currently planning any exploration programs for
its El Dorado, Santa Rita and Zamora-Cerro Colorado properties for
the remainder of fiscal 2010 beyond what is necessary to keep all
of its exploration licences in good standing. Should the required
permits be granted, the Company will evaluate its options for
resuming full scale exploration work designed to advance its El
Salvador projects.
The Company intends to continue to seek new project acquisitions
and during the remainder of fiscal 2010 intends to continue to
conduct low cost field work, technical and legal due diligence on
projects it is currently evaluating, and to seek new prospects for
staking or property acquisitions that fit its exploration
focus.
(The foregoing two paragraphs contain forward-looking statements
regarding the scope of exploration and generative work programs
management intends to undertake in the coming fiscal year. See
Forward-Looking Information.)
The Company anticipates that its exploration plans as outlined
above will cost approximately $0.3 million for the remainder of
fiscal 2010. If regulatory and political conditions warrant, and
adequate financing is available, the Company will resume aggressive
exploration of its El Dorado, Santa Rita and Zamora-Cerro Colorado
projects in El Salvador, which will result in increased exploration
and general and administrative expenditures over those currently
anticipated for the remainder of fiscal 2010.
(The foregoing paragraph contains forward-looking statements
regarding the Company's exploration plans and anticipated costs
during fiscal 2010. See Forward-Looking Information.)
The Company's general and administrative costs during the
remainder of fiscal 2010 are anticipated to increase due to legal
costs associated with the CAFTA action undertaken by PacRim.
Although management believes the Company has sufficient funds to
meet its regulatory, exploration and legal responsibilities through
the remainder of fiscal 2010, the Company may require additional
financing during the coming fiscal year for general working capital
expenses and/or expenses related to the CAFTA action.
(The foregoing paragraph contains forward-looking statements
regarding anticipated increases in general and administrative
expenses as a result of increased legal costs during fiscal 2010,
and the requirement for additional financing to fund these legal
costs and/or future general working capital expenses. See
Forward-Looking Information.)
On November 12 the Company announced it received notice from the
NYSE Amex LLC ("NYSE Amex" or the "Exchange") that, based on their
review of the Company's fiscal 2010 first quarter results, the
Company is not in compliance with Section 1003(a)(iii) of the
Company Guide, having at July 31, 2009 stockholders' equity of less
than $6,000,000 while sustaining losses from continuing operations
and net losses in its five most recent fiscal years. In order to
maintain listing of the Company's common shares on the NYSE Amex,
the Company was required to submit a Compliance Plan (the "Plan")
to the Exchange addressing how it intends to regain compliance with
Section 1003(a)(iii) by May 11, 2011, which plan was submitted on
December 11, 2009.
On February 11, 2010 (subsequent to the end of Q3 2010), the
Company announced that it had received notice of acceptance of the
Plan by the Exchange. With the Exchange's acceptance of the Plan,
the Company's NYSE Amex listing is expected to continue during the
Plan period, up to May 11, 2011, subject to periodic review to
determine whether the Company is making progress consistent with
the Plan and conditions of NYSE Amex. If the Company is not in
compliance with the continued listing standards at the end of the
Plan period, or if the Company does not make progress consistent
with the Plan during the period, then the Exchange may initiate
delisting proceedings.
The Company's common shares continue to trade on the NYSE Amex
under the symbol "PMU" with the trading symbol extension "BC" to
denote non-compliance with the Exchange's continued listing
standards while the Plan period is in effect. The Company's common
shares also continue to be listed on the Toronto Stock Exchange
("TSX") in Canada under the symbol "PMU".
Outlook
The Company will continue to curtail its exploration programs
and expenditures in El Salvador until such time as PRES receives
the El Dorado environmental permit and exploitation concession. The
Company anticipates expending approximately $0.3 million on
exploration-related expenses during the remainder of fiscal 2010,
primarily on low-cost exploration work required to keep all of its
El Salvador projects in good standing and due diligence evaluation
of new projects outside of El Salvador. This work will be revised
should circumstances change and depending on the Company's working
capital balances and/or financing opportunities. The Company will
require additional financing to fund an expanded exploration
program within El Salvador should the Company receive the required
permits to do so, and any new exploration programs should the
Company acquire additional exploration projects outside of El
Salvador.
(The foregoing paragraph contains forward-looking statements
regarding the Company's exploration plans and anticipated costs
during fiscal 2010. See Forward-Looking Information.)
The Company's general and administrative costs during the
remainder of fiscal 2010 and beyond are anticipated to increase due
to legal costs associated with the CAFTA action undertaken by
PacRim. The Company will require additional financing during,
likely during the coming fiscal year to fund CAFTA-related expenses
through to completion of the action.
(The previous paragraph contains forward-looking statements
regarding anticipated increases in general and administrative
expenses as a result of anticipated increased legal costs during
fiscal 2010, and the potential requirement for additional financing
for general working capital purposes and/or legal fees related to
the CAFTA action. See Forward-Looking Information.)
The Company intends to continue, though at a reduced level, its
outreach efforts to the newly elected federal government and
administration, municipal government officials, church leaders,
business leaders, and Salvadoran citizens. The Company and its
subsidiaries have a well documented history of supporting local
inhabitants and building relationships with all stakeholders. This
is a key component of the Company's approach to exploration and
development, and will continue in all jurisdictions in which it and
its subsidiaries operate.
Notwithstanding these diplomatic efforts, until resolved,
PacRim's CAFTA claim will continue during the remainder of fiscal
2010 and beyond. The GOES recently filed preliminary objections to
PacRim's CAFTA action, which the Arbitral Tribunal will consider in
the coming months and rule on by September 2010. The Company and
its legal counsel believe these objections are without merit and
that they will be dismissed, and the CAFTA action will proceed.
(The foregoing section contains forward-looking statements
regarding the scope of the Company's fiscal 2010 planned work
programs, anticipated expenditures and the expectation of ongoing
legal undertakings. See Forward-Looking Information)
On behalf of the board of directors,
Thomas C. Shrake, President and CEO
Forward-Looking Information
The information contained herein contains "forward-looking
statements" within the meaning of Section 21E of the United States
Securities Exchange Act of 1934 (as amended) and applicable
Canadian securities legislation. Forward-looking statements relate
to analyses and other information that are based on forecasts of
future results, estimates of amounts not yet determinable and
assumptions of management. Any statements that express predictions,
expectations, beliefs, plans, projections, objectives, assumptions
or future events or performance are not statements of historical
fact and may be "forward-looking statements." Statements concerning
reserves and mineral resource estimates may also be deemed to
constitute forward-looking statements to the extent that they
involve estimates of the mineralization that will be encountered if
the property is developed, and in the case of mineral reserves,
such statements reflect the conclusion based on certain assumptions
that the mineral deposit can be economically exploited.
This report contains forward-looking statements regarding:
-- the Company's requirement for financing and the use of funds that may be
raised. These assumptions are based on management's estimate of working
capital requirements and past expenditures. There are no guarantees that
future financing will be available to the Company under acceptable terms
and conditions. Readers are cautioned that without additional financing
the Company's plans for the remainder of fiscal 2010 and/or the coming
fiscal year may not be carried out as planned and its ability to
continue its business may be at risk.
-- the scope of exploration and generative work programs management intends
to undertake through the remainder of the current fiscal year and
beyond. These expectations are based on various assumptions including
but not limited to: the Company and/or its subsidiaries' continued title
and access to the El Dorado, Santa Rita and Zamora-Cerro Colorado
properties; the availability and accessibility of projects the Company
may be interested in acquiring; the availability of sufficient working
capital and, if necessary, access to financing; the ability to procure
adequate experienced staff; the availability of contractors; and other
risks and uncertainties. Should any of these assumptions prove incorrect
or requirements not be met, the Company's project generation and
exploration plans and for the remainder of fiscal 2010 and beyond may
not occur as planned.
-- the Company's intent to forego significant exploration work at the El
Salvador projects until certain permits are granted, the implication
being that if and when these permits are granted increased investments
in exploration will be made in El Salvador. Readers are cautioned that
this statement conveys management's intent but that resumption of a
large-scale exploration program at the El Salvador projects is dependent
on not only the PRES's receipt of the El Dorado permit but also the
availability of adequate financing, the ability to procure adequate
experienced staff, the availability of contractors, and other risks and
uncertainties. Should any of these assumptions prove incorrect or
requirements not be met, the Company's project generation and
exploration plans and for the remainder of fiscal 2010 and beyond may
not occur as planned.
-- the Company's exploration plans and anticipated costs during the
remainder of fiscal 2010. The anticipated exploration expenditures
reflect estimations made by management based on current levels of
expenditure and anticipated work programs as described previously.
Should unexpected costs arise, exploration expenditures may differ from
those currently anticipated.
-- anticipated increases in general and administrative expenses as a result
of anticipated increased legal costs during the remainder of fiscal 2010
and beyond, and the requirement for additional financing to fund these
legal costs and/or general working capital expenses. These statements
are based on management's assumption the CAFTA action will continue
through fiscal 2010 and the expected costs of pursuing this action, plus
the Company's anticipated burn rate for general and administrative
costs. Should PRES receive the El Dorado permits at any time, the
necessity to continue the CAFTA action may be averted and the
anticipated impact on general and administrative costs may not
materialize.
Forward-looking statements are subject to a variety of risks and
uncertainties, which could cause actual events or results to differ
from those reflected in the forward-looking statements, including
the risks and uncertainties outlined above and other risks and
uncertainties related to the Company's prospects, properties and
business detailed in its fiscal 2009 MD&A, in the Company's
Annual Information Form for the year ended April 30, 2009 and in
the Company's Form 20F filed with the US Securities and Exchange
Commission. Should one or more of these risks and uncertainties
materialize, or should underlying assumptions prove incorrect,
actual results may vary materially from those described in
forward-looking statements. Investors are cautioned against
attributing undue certainty to forward-looking statements. The
Company does not undertake to update any forward-looking statements
that are incorporated by reference herein, except in accordance
with applicable securities laws.
National Instrument 43-101 Disclosure
Mr. William Gehlen, Vice President Exploration, supervises
Pacific Rim's exploration work on the El Dorado project. Mr. Gehlen
is a Certified Professional Geologist with the AIPG (No. 10626), an
employee of the Company and a Qualified Person as defined in NI
43-101.
Mr. David Ernst, Chief Geologist, supervises the Company's
project generation initiatives. Mr. Ernst is geologist licensed by
the State of Washington, an employee of Pacific Rim Mining Corp.
and a Qualified Person as defined in National Instrument
43-101.
Pacific Rim's sampling procedures follow the Exploration Best
Practices Guidelines outlined by the Mining Standards Task Force
and adopted by The Toronto Stock Exchange. Samples are assayed
using fire assay with a gravimetric finish on a 30-gram split.
Quality control measures, including check- and sample
standard-assaying, are being implemented. Samples are assayed by
Inspectorate America Corporation in Reno, Nevada USA, an ISO 9002
certified laboratory, independent of Pacific Rim Mining Corp.
The TSX and the NYSE Amex have neither reviewed nor accept
responsibility for the adequacy or accuracy of this release.
Contacts: Pacific Rim Mining Corp. Thomas C. Shrake President
and CEO 604-689-1976 or 1-888-775-7097 604-689-1978 (FAX)
general@pacrim-mining.com www.pacrim-mining.com
Pacific Rim Mining (AMEX:PMU)
過去 株価チャート
から 5 2024 まで 6 2024
Pacific Rim Mining (AMEX:PMU)
過去 株価チャート
から 6 2023 まで 6 2024
