Pacific Rim Mining Corp. (TSX: PMU)(NYSE Amex: PMU) ("Pacific Rim"
or "the Company") reports its financial and operating results for
the twelve months ended April 30, 2010. Details of the Company's
financial results are provided in its annual 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 also owns several similar grassroots
gold projects in El Salvador and is actively seeking additional
assets elsewhere in the Americas that fit its 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
annual consolidated financial statements for the twelve month
periods ended April 30, 2010, 2009 and 2008:
Selected Annual Information (all amounts in thousands of US dollars except
per share amounts)
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Year ended Year ended Year ended
April 30, April 30, April 30,
2010 2009 2008
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Summarized Statement of Loss
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Sales $ nil $ nil $ nil
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Exploration expenditures $ 1,805 $ 5,538 $ 11,770
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Loss from Continuing Operations $ (5,005) $ (9,443) $(15,657)
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Discontinued Operations - Net income
(loss) of Denton-Rawhide Joint Venture $ 38 $ 3,167 $ 1,523
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Discontinued Operations - Recovery of
Investment in Andacollo Mine $ nil $ nil $ 1,400
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Loss for the year $ (4,967) $ (6,276) $(12,734)
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Loss per share after Discontinued
Operations (basic and diluted) $ (0.04) $ (0.05) $ (0.11)
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Weighted average shares outstanding
(basic and diluted) 121,608,522 117,151,350 111,122,976
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Summarized Statement of Cash Flows
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Cash Flow used for operating activities $ (2,162) $ (9,168) $(12,936)
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Cash Flow provided by investing
activities $ (14) $ 6,046 $ 3,999
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Cash Flow provided by financing
activities $ 2,187 $ nil $ 6,916
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Cash Flow from Continuing Operations $ 11 $ (3,122) $ (2,021)
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Cash Flow from Discontinued Operations $ 38 $ 2,484 $ 1,459
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Net increase (decrease) in cash $ 49 $ (638) $ (562)
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April 30, April 30, April 30,
Summarized Balance Sheet 2010 2009 2008
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Cash and cash equivalents $ 1,333 $ 1,284 $ 1,922
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Bullion $ nil $ 1,225 $ nil
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Short-term investments $ nil $ nil $ 4,232
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Current portion of discontinued
operations $ nil $ nil $ 1,290
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Receivables, deposits and pre-paids $ 81 $ 106 $ 222
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Current assets $ 1,414 $ 2,615 $ 7,666
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Total assets $ 6,927 $ 8,187 $ 18,270
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Total liabilities $ 2,626 $ 1,679 $ 6,109
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Working Capital $ (166) $ 1,982 $ 4,723
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Dividends declared $ nil $ nil $ nil
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All amounts in thousands of US dollars, except share and per share amounts.
Results of Operations
For the fiscal year ended April 30, 2010, Pacific Rim recorded a
loss for the period of $(5.0) million or $(0.04) per share,
compared to a loss of $(6.3) million or $(0.05) per share for the
fiscal year ended April 30, 2009 and $(12.7) million or $(0.11) per
share for the fiscal year ended April 30, 2008. The decrease in net
loss for fiscal 2010 compared to fiscal 2009 is primarily related
to significantly decreased exploration expenses, offset in part by
significantly lower net income from the Denton-Rawhide joint
venture as a result of the sale by the Company of its interest in
the joint venture during fiscal 2009. The decrease in net loss for
fiscal 2009 compared to fiscal 2008 (a difference in net loss of
$6.4 million) was a result of a substantial decrease in exploration
costs combined with an increase in income from discontinued
operations (the Denton-Rawhide Joint Venture) year over year.
Expenses
Due to the cessation of the El Dorado drilling program in July
2008 and the reduction of other exploration expenses at all of the
Company's projects, exploration expenditures decreased
significantly over the past three fiscal periods, from $11.8
million in fiscal 2008 and $5.5 million in fiscal 2009 to $1.8
million in fiscal 2010.
General and administrative expenses, which have trended higher
over the past several years because of higher regulatory and legal
costs of complying with United States and Canadian reporting and
regulatory requirements, increased legal expenses, and one-time
severance payments made in fiscal 2008 to key personnel, were
reduced in fiscal 2010 due to reduced staffing costs as well as the
generally lower level of business activity undertaken by the
Company. General and administrative costs were $1.4 million in
fiscal 2010 compared to $3.7 million in fiscal 2009 and $3.5
million in fiscal 2008.
During fiscal 2010 the Company realized a $0.6 million gain on
the sale of bullion, and a $0.2 million financing expense
associated with the extension of warrants issued during the 2008
financing (see Section 6.3), for which there were no comparable
items during either of fiscal 2009 or 2008.
The Company booked a negligible foreign exchange loss of $0.02
million during fiscal 2010 compared to a loss of $0.2 million
during fiscal 2009 and a gain of $0.4 million during fiscal 2008,
primarily reflecting the impact of the US-Canadian dollar exchange
rate on the Company's Canadian dollar-denominated investments on
hand.
Unusual Items
During fiscal 2010 the Company received income of $0.04 million
from the Denton-Rawhide operation compared to $3.2 million and $1.5
million during fiscal 2009 and fiscal 2008 respectively. Income
from the Denton-Rawhide operation, in which the Company was a
participant until December 31, 2008 is primarily related to the
production of gold and silver.
During fiscal 2008 the Company recovered $1.4 million on its
investment in the Andacollo Mine. As this item represented the
final of three staged payments on the sale of the mine, there were
no comparable recoveries booked during fiscal 2009 or fiscal
2010.
Summary
As a result of significantly reduced exploration expenditures
and decreased staffing levels associated with its reduction in
exploration activity, partially offset by greatly reduced income
from the Denton-Rawhide Joint Venture, the Company's loss for
fiscal 2010 was reduced to $(5.0) million or $(0.04) per share from
previous fiscal periods ($(6.3) million or $(0.05) per share for
fiscal 2009 and $(12.7) million or $(0.11) per share for fiscal
2008.
Liquidity and Capital Resources
Cash
During fiscal 2010 the Company's cash and cash equivalents
increased by $0.05 million from $1.28 million at April 30, 2009 to
$1.33 million at April 30, 2010. The Company held no bullion at
April 30, 2010 compared to bullion (held by the Company and not yet
sold) valued at $1.2 million at April 30, 2009. Current assets were
$ 1.4 million at April 30, 2010 compared to $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 fiscal
2010.
The Company will require additional funding to maintain its
ongoing exploration programs and property commitments, for
administrative purposes and CAFTA arbitration. The legal costs for
CAFTA are significant. The Company believes it will be able to
obtain the necessary financing to meet the Company's requirements
on an ongoing basis; however, there can be no assurance that the
necessary financing will be obtained.
Working Capital
At April 30, 2010, the book value of the Company's current
assets stood at $1.4 million, compared to $2.6 million at April 30,
2009, a reduction of $1.2 million. The decrease in current assets
is primarily a result of the sale of bullion (for cash) and
subsequent cash expenditures as outlined in Section 6 above, offset
by the addition of cash from the sale of securities under a private
placement financing as outlined in Section 6.3 above. Property,
plant and equipment balances at April 30, 2010 were marginally
lower than the April 30, 2009 balance ($5.5 million and $5.6
million respectively). As a result, the Company's total assets at
the end of fiscal 2010 were $6.9 million compared to $8.2 million
at the end of fiscal 2009.
At April 30, 2010 the Company had current liabilities of $1.6
million compared to $0.6 million at April 30, 2009. The $1.0
million year over year increase in current liabilities is due to a
$1.0 million increase in accounts payable and accrued liabilities
($1.6 million at April 30, 2010, of which $1.1 million is due to
one vendor associated with the CAFTA action). Future income tax
liability, related to PacRim's investment in El Salvador, did not
change between the fiscal 2009 and fiscal 2010 year ends and at
April 30, 2010 was valued at $1.0 million. Currently, Pacific Rim
has no long-term debt.
The $1.2 million decrease in current assets combined with the
$1.0 million increase in current liabilities, resulted in a $2.2
million reduction in working capital from $2.0 million at the end
of fiscal 2009 to $(0.2) million at the end of fiscal 2010.
The Company's ability to continue operations and exploration
activities as a going concern is dependent upon its ability to
obtain additional funding. The Company will need to raise
sufficient funds to fund ongoing exploration and administration
expenses as well as its costs under CAFTA arbitration. 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. The Company has no
assurance that such financing will be available or be available on
favourable terms. Factors that could affect the availability of
financing include the 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 plans to 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
fiscal 2011 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 its project generation
initiatives with the aim of acquiring a new exploration project,
outside of El Salvador, during fiscal 2011. The Company plans on
conducting 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 Company anticipates that its fiscal 2011 exploration plans
as outlined above will cost approximately $1.0 million. The Company
anticipates requiring financing during fiscal 2011 in order to fund
its exploration programs.
(The foregoing two paragraphs contain forward-looking statements
regarding the scope and anticipated costs of exploration and
generative work programs management intends to undertake in the
coming fiscal year. See Forward-Looking Information.)
The Company's general and administrative costs are expected to
remain stable during fiscal 2011, reflecting lower staffing costs
as a result of personnel reductions undertaken in fiscal 2009 and
fiscal 2010. Expenditures related to PacRim's CAFTA action are
expected to continue at present or modestly higher levels during
fiscal 2011, and are dependant on the level of arbitration
activity. The Company has currently accumulated a liability of
approximately $1.1 related to the CAFTA action, which is partly
responsible for the Company's current working capital deficit. The
Company is currently discussing vendor-specific alternative
financing opportunities that will reduce this accounts payable
position. The Company may also seek financing during fiscal 2011 to
remediate its working capital deficit, for general working capital
expenses and to finance acquisition of and/or exploration programs
on a new project.
(The foregoing paragraph contains forward-looking statements
regarding anticipated general and administrative expenses for
fiscal 2011 and the requirement for additional financing to fund
legal costs and/or future general working capital expenses. See
Forward-Looking Information.)
The business of mining and exploration involves a high degree of
risk and there can be no assurance that current exploration
programs will result in profitable mining operations. The Company
has no source of revenue, and will require additional cash to
continue fund legal, exploration and administration expenses. As at
April 30, 2010, the Company had a current working capital deficit
of $0.2 million, had incurred losses since inception and has an
accumulated deficit of $86.1 million. The Company's ability to
continue operations and exploration activities as a going concern
is dependent upon its ability to obtain additional funding. The
Company will need to raise sufficient funds to support ongoing
exploration and administration expenses as well as its costs under
PacRim's CAFTA arbitration. 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. The Company has no assurance that such financing will
be available or be available on favourable terms. Factors that
could affect the availability of financing include the 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.
On November 12, 2009 the Company announced it received notice
from the NYSE Amex that, based on its review of the Company's
fiscal 2010 first quarter results, the Company was not in
compliance with Section 1003(a)(iii) of the NYSE Amex 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 its common shares on the NYSE Amex, the Company
was required to submit a Compliance Plan (the "Plan") to NYSE Amex
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 NYSE Amex. With NYSE Amex'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 the 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 NYSE Amex may initiate delisting
proceedings. (See Section 14.2 for a discussion of listing
maintenance risk).
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 NYSE Amex's continued listing standards
while the Plan period is in effect. The Company's common shares are
listed on the 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 remains confident that it will either receive the El Dorado
permit and mining concession or that it will be appropriately
compensated. The Company believes the principal risk is its ability
to fund the ongoing CAFTA action to a just conclusion. The Company
anticipates expending approximately $1.0 million on
exploration-related expenses during fiscal 2011, primarily on
low-cost exploration work required to keep all of its El Salvador
projects in good standing, limited community relations initiatives,
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 success in acquiring a new exploration
project, in which case exploration expenditures will likely
increase, and/or financing opportunities. The Company anticipates
requiring financing during fiscal 2011 in order to fund its
exploration programs.
(The foregoing paragraph contains forward-looking statements
regarding the Company's exploration plans and anticipated costs
during fiscal 2011, its expectation of settling the El Dorado
permit impasse, and its anticipated requirements for additional
funding. See Forward-Looking Information.)
The Company's general and administrative costs are expected to
remain stable during fiscal 2011, reflecting lower staffing costs
as a result of personnel reductions undertaken in fiscal 2009 and
fiscal 2010. Expenditures related to PacRim's CAFTA action are
expected to continue at present or modestly higher levels as during
fiscal 2010, and are dependant on the level of arbitration
activity. The Company is currently discussing vendor-specific
alternative financing opportunities that will reduce its accounts
payable and accrued liabilities, the majority of which are payable
to a single vendor involved in the CAFTA action and/or for general
working capital expenses and/or future expenses related to the
CAFTA action.
(The foregoing paragraph contains forward-looking statements
regarding anticipated general and administrative expenses during
fiscal 2011, 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 will continue to seek opportunities for dialogue
with the GOES aimed at resolving the El Dorado permitting
situation. 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 action is expected to proceed during fiscal 2011.
The Company is currently awaiting the outcome of the Preliminary
Objection hearing held on May 31 and June 1, 2010, which will
determine the course of this arbitration going forward. The Company
may seek traditional or alternative financing arrangements during
fiscal 2011 specifically ear-marked for legal expenses.
(The foregoing section contains forward-looking statements
regarding 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 scope of exploration and generative work programs management intends
to undertake during fiscal 2011. 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 fiscal 2011 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 for fiscal 2011 may not occur as planned.
-- the Company's exploration plans and anticipated costs fiscal 2011. 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 general and administrative, and legal expenses 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
2011 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. Barbara Henderson (604)
689-1978 or Toll Free: 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
