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North American Palladium Announces Second Quarter 2014 Results and Provides Update on Exploration

TORONTO, ONTARIO -- (Marketwired) -- 07/30/14 --

All figures are in Canadian dollars except where noted.

North American Palladium Ltd. ("NAP" or the "Company") (TSX:PDL)(NYSE MKT:PAL) today announced the operating, development, exploration and financial results for the second quarter ended June 30, 2014 ("Q2").

Q2, 2014 Results Summary


--  Upgrades to the ore handling system were completed at the end of June
    and results to date in July demonstrate that more Offset Zone ore can be
    hoisted up the shaft as per plan. These upgrades are expected to improve
    the cost of operations. 
--  Sold 40,716 ounces of payable palladium at a cash cost per ounce(1) of
    US$510; excluding approximately 4,200 ounces of payable palladium in
    inventory. 
--  Realized palladium selling price of US$806 per ounce, giving a palladium
    operating margin of US$296 per ounce, or US$11.6 million. Palladium
    prices remain strong, with the July 29, 2014 price at US$884 per ounce. 
--  Revenue of $50.5 million which includes $14.1 million of by-product
    revenue; 
--  Adjusted EBITDA(1) of $10.4 million for the quarter and $20.2 million
    for the first six months of 2014. 
--  Underground ore mined at LDI was 263,904 tonnes at an average grade of
    4.9 g/t palladium. 
--  Processed 243,041 tonnes of low grade surface stockpile at LDI at an
    average grade of 1.0 g/t palladium; 
--  Underground production during the quarter averaged 2,900 tonnes per day
    and was impacted by equipment availability and big muck in stopes, but
    remains on track to achieve 5,000 tonnes per day by year end. 
--  LDI mill processed 521,478 tonnes of ore at an average palladium head
    grade of 3.1 g/t palladium and a recovery rate of 83.6%. Mill recoveries
    for the first six months of 2014 are 84.1% and remain ahead of guidance.
--  During the quarter the company announced an additional $6 million in
    funding for exploration at depth to support potential future mine
    expansion. 
--  Exploration drilling in the lower Offset Zone intersected a 74.0 meter
    interval with an average grade of 4.76 g/t palladium. 
--  Exploration drilling in the upper Offset Zone intersected 20.2 meters
    with an average grade of 7.18 g/t palladium (north Offset) and 37.0
    meters with an average grade of 3.72 g/t palladium. 
--  Subsequent to quarter end, the Company announced the reduction of its
    senior secured term loan interest rate and the extension of its credit
    facility to July 3, 2015. 

"Our turn-around efforts at LDI achieved a significant milestone during the second quarter with the completion of the underground ore handling system upgrades, and increased utilization of the shaft for both ore hoisting and transportation of workers into the mine. These are critical elements in our efforts to improve underground ore production and ultimately increase payable palladium production," said Phil du Toit, President and Chief Executive Officer. "Subsequent to the quarter end we announced a payment to Brookfield and a resumption of quarterly cash payments at the 15% interest level on our senior secured loan. The confidence we have in the ramp up and future cash flow generation capabilities of LDI allowed us to take this important step, which we expect will materially reduce our interest costs over the term of the loan."

"Overall, we remain pleased with the operational progress we are making at LDI and are also encouraged by the continued promising results of our exploration program. Establishing a track record of consistent operations and extending the mine life at LDI are two ongoing objectives that we remain keenly focused on," added Mr. du Toit. "The completion of the ore handling upgrades are now allowing us to hoist a majority of the Offset Zone ore, removing a production constraint," said Jim Gallagher, Chief Operating Officer. "We have also begun partial replacements and upgrading of both the surface and underground mobile equipment fleets and continue to modify the mine design to supply better quality broken ore in more draw points. All of these items are leading to more consistent and reliable production which puts us on track to achieve our target of 5,000 tonnes per day by the end of this year." During the quarter the Company experienced a main bearing failure at its surface crusher and appropriate repairs were made to the surface crusher to help ensure reliable production going forward.

Lac des Iles Operations

Q2 2014 Production

In the second quarter of 2014, the Company's LDI mine produced 39,223 ounces of payable palladium at a total cash cost of US$510 per ounce(1). The cash cost is below our full year guidance of US$550. More payable palladium ounces sold and a favorable movement of the Canadian dollar were partially offset by increased production costs.

Payable palladium production in the second quarter was in line with management's full year guidance for 2014 as the mine continued to balance production volumes between surface and underground ore sources during the transition period. During the second quarter, 506,945 tonnes of ore were mined at LDI, of which 263,904 tonnes came from underground sources (with an average palladium grade of 4.9 grams per tonne), and 243,041 tonnes came from surface stockpiles (with an average palladium grade of 1.0 grams per tonne). During the second quarter, the LDI mill processed 521,478 tonnes of ore at a combined average palladium mill head grade of 3.1 grams per tonne, at an 83.6% palladium recovery rate, and at a total cost of $56 per tonne milled.

The Company is encouraged by the operating results in the first six months of 2014, which have generally met or exceeded its expectations. During the first six months of 2014, upgrades to the ore handling system were completed, transportation of men and material via the shaft commenced and mill recoveries remained high; however; production has been impacted by repairs to the primary surface crusher, oversized muck and other equipment availability. The fatality at the mine site which was previously reported on July 11 2014 has impacted production for the first few weeks of July and is expected to result in lower production in the third quarter of 2014. Production is returning to normal and remediation steps are being implemented.

The following table includes quarterly results for the first two quarters of 2014 and the last two quarters of 2013 and demonstrates some of the key trends in the business.

QUARTERLY TRENDS


----------------------------------------------------------------------------
                                    For the three months ended              
                       -----------------------------------------------------
                         June 30      March 31    December 31  September 30 
                            2014          2014           2013          2013 
----------------------------------------------------------------------------
Palladium production -                                                      
 payable oz               39,223        42,641         30,979        30,097 
US$ cash cost per                       US$492                              
 palladium oz sold        US$510    (US$422(1))        US$620        US$581 
Underground mining -                                                        
 tonnes                  263,904       275,845        231,346       208,097 
Underground mining -                                                        
 tonnes per day            2,900         3,065          2,515         2,262 
Milling - palladium                                                         
 head grade (g/t)            3.1           3.3            2.9           2.5 
Milling - palladium                                                         
 recovery                   83.6%         84.5%          81.5%         80.7%
Adjusted EBITDA ($000s) $ 10,444  $      9,743   $      1,369  $      3,189 
----------------------------------------------------------------------------
(1) After adjusting for the impact of approximately $2.7 million of power   
 and propane costs associated with an unusually cold winter.                

Exploration

On May 1, 2014, the Company announced a $6 million expansion to its 2014 LDI exploration budget. The revised $10 million program is principally focused on conversion and extension drilling on the lower part of the Offset Zone below the 1,065 meter mine level - the current lower limit of known proven and probable resources. Specific objectives of the lower Offset Zone drilling program are:


--  Define additional, inferred resources in the hangingwall and footwall
    zones to a depth of 1,600 meters; 
--  Convert some of the existing inferred resources between depths of 1,100
    to 1,300 meters to indicated category; and, 
--  Determine the northern and southern limits and the strike, dip and
    plunge of the hangingwall and footwall zones below the 1,065 meter
    level. 

Other objectives of the 2014 exploration program include resource conversion drilling in the upper Offset Zone directly to the north of current active and planned mining stopes; and delineation of new resources at the shallowest known level of the deposit in an area known as the upper Offset southeast extension.

The 2014 Offset Zone exploration program includes a total of 40,000 meters of drilling utilizing both surface and underground diamond drill rigs. Currently there are three surface exploration drills operating at LDI. Two of the surface drills are testing the down-plunge extension of the thickest part of the Offset Zone deposit (central Offset target). The third rig is testing the upper Offset southeast extension target, following up on an intersection in hole 13-717 of 37 meters having an average grade of 5.23 g/t Pd (see the company's December 13, 2013 press release). Surface drilling is expected to continue until October 2014.

Year-to-date exploration drilling statistics are:


--  7,681 meters drilled in fourteen holes on all targets 
--  4,040 meters drilled in six holes on lower Offset Zone targets 
--  3,641 meters drilled in eight holes on upper Offset Zone targets 

As of June 30, 2014, four holes were in progress.

Highlights

Highlights for the second quarter 2014 drilling program are provided in the table below. The best result was obtained from hole 14-901 that pierced the central Offset target at a vertical depth of approximately 1,150 meters below surface and intersected an 83 meter interval with an average grade of 4.34 g/t palladium. To view supplemental information including a figure illustrating the relative position of the drill hole pierce points and a complete listing of anomalous drilling results for all holes completed in the second quarter of 2014 please click on the following link: http://media3.marketwire.com/docs/pdl0730supplemental.pdf.

Selected drilling highlights for the second quarter of 2014 Offset Zone exploration program. The interval assays reported were selected using a 2.5 g/t Pd cut-off grade. Average grades reported are weighted by individual sample core lengths. Interval assays represent measured core lengths. True widths are estimated to represent between 60 to 70% of the reported core lengths for the upper north, lower central and lower north Offset Zone targets. The strike and dip of the upper southeast extension target are not well enough constrained to support an accurate estimate of true widths.


----------------------------------------------------------------------------
                                 FROM       TO  LENGTH      Pd     Pt     Au
TARGET                HOLE #      (m)      (m)     (m)   (g/t)  (g/t)  (g/t)
----------------------------------------------------------------------------
Upper Southeast       14-771   500.00   550.00   50.00    3.04   0.23   0.19
"                  including   500.00   537.00   37.00    3.72   0.28   0.23
"                     14-772   444.00   472.00   28.00    2.56   0.20   0.21
"                  including   459.00   472.00   13.00    3.58   0.28   0.28
                                                                            
----------------------------------------------------------------------------
Upper North           14-802   477.76   498.00   20.24    7.18   0.49   0.76
"                  including   479.00   493.95   14.95    9.32   0.62   1.02
"                     14-804   358.00   383.00   25.00    2.72   0.25   0.14
"                  including   375.90   383.00    7.10    5.58   0.46   0.23
"                     14-805   329.00   351.00   22.00    3.40   0.24   0.27
"                  including   331.00   345.00   14.00    4.76   0.31   0.20
                                                                            
----------------------------------------------------------------------------
Lower Central         14-901   610.00   693.00   83.00    4.34   0.32   0.50
"                  including   610.00   684.00   74.00    4.76   0.35   0.52
----------------------------------------------------------------------------
                                                                            
Lower North           14-973  1867.00  1877.00   10.00    2.72   0.24   0.14
"                        and  1885.00  1893.00    8.00    3.04   0.39   0.11
"                        and  1906.43  1919.30   12.87    2.22   0.38   0.07
----------------------------------------------------------------------------

Management Analysis of Q2 Drilling Results

Although early in the program, the Company is pleased with the results received to date for the four target areas tested. The central Offset target is now believed to represent an area of structural thickening and, possibly, a structural embayment in which disseminated sulfides were concentrated in both the hangingwall and footwall zones. Regardless of its provenance, this part of the deposit typically contains much thicker and continuous palladium, nickel and copper mineralization than is present along strike to the north or south. The embayment concept has been effectively used for exploration in several magmatic sulfide mining camps including the Sudbury mining district. Available information from the central Offset target suggests that this area of thickening has a north-south strike, dips steeply to the east, plunges to the south at approximately 60 degrees, has an average strike length of approximately 300 meters, and displays an average composite thickness (i.e., the combined footwall and hangingwall zone thickness having an average grade exceeding a 2.5 g/t Pd cut-off grade) varying between 20 and 80 meters. Limited drilling on the lower-central Offset target completed in the second quarter of 2014 confirms that the zone extends to at least 1,150 meters depth. One historical hole (08-001) suggests that the embayment feature extends to at least 1,400 meters depth. Despite its southerly plunge the available drilling information suggests the central Offset Zone will not impinge on the shaft pillar if a future deepening of the existing mine shaft occurs.

The drilling results reported are for the upper-north Offset Zone and the upper Offset southeast extension target and are still being assessed. In the case of the upper-north target, the Company remains optimistic that the new drilling results will support conversion of inferred and indicated resources to indicated and measured resources, ideally translating into new mining stopes being added to the mine plan. Initial analysis of the results from the upper Offset southeast extension target suggests that good potential exists to add palladium resources in this, the shallowest part of the Offset Zone deposit (approximately 400 meters depth).

Exploration Plans for the Remainder of 2014

An additional 30,000 meters of underground and surface drilling are expected to be completed before the end of the year. In August, two underground drill rigs will be positioned in the south end of the 655 meter level exploration drift and will begin systematic conversion drilling on the central Offset target below the 1,065 meter level. Surface drilling will continue to target deeper levels on the projected extension of the south-plunging central Offset target. An update on exploration results will be included as part of the Company's third quarter results release.

Technical Information and Qualified Persons

The assay analyses performed during NAP's exploration drilling programs are subject to a rigorous, formal quality assurance and quality control (QA/QC) program, details of which can are provided in the most recent Technical Report (March 2014 - see link on NAP's website). Diamond drill core from exploration drilling is logged and sampled on site with samples transported by the Company to ALS Global's sample preparation facilities in Thunder Bay. The sample pulps prepared in Thunder Bay are shipped by ALS Global to their Vancouver analytical laboratories, which constitute an independent accredited commercial laboratory for PGE assay and base metal analysis.

The exploration results section of this new release was prepared by Dave Peck, P.Geo., the Company's Head of Exploration and a Qualified Person as defined by National Instrument 43-101. The Company's exploration team designed and executed the drilling program under the direction of Robert D. Stewart, P.Geo., Exploration Department Chief Geoscientist, an employee of NAP and a Qualified Person as defined by National Instrument 43-101, who has reviewed and approved the exploration sections of this news release.

Financial Results(2)

Revenue for the second quarter was $50.5 million compared to $33.2 million in the second quarter of 2013. The increase in revenue was primarily due to favourable exchange rate movements, higher realized prices for palladium and greater palladium ounces sold. During the second quarter, the Company realized a palladium selling price of US$806 per ounce.

Net loss for the quarter was $10.0 million or $0.03 per share compared to a net loss of $26.3 million or $0.15 per share in the same quarter last year. The decrease in the net loss is primarily due to the impact of higher revenues, increased foreign exchange gains partially offset by increased production costs and increased interest expense and other costs.

EBITDA(1) was $15.9 million for the second quarter, compared to negative $6.1 million in the same quarter last year. Adjusted EBITDA(1) (which excludes interest expenses and other costs, depreciation and amortization, exploration, foreign exchange gains and losses and mine restoration costs net of insurance recoveries) was $10.4 million in the second quarter of 2014, compared to $0.9 million in the second quarter of last year.

During the second quarter, the Company closed the second $35.0 million tranche related to its previously announced convertible unsecured subordinated debenture financing. As at June 30, 2014, the Company had cash and cash equivalents of $44.3 million compared to $9.8 million as at December 31, 2013. As at June 30, 2014, the Company's credit facility availability was limited by the borrowing base to US$42.8 million of which US$37.1 million was utilized.

On July 7, 2014, the Company announced that it had paid US$23.4 million to its senior secured term loan lender representing US$16.2 million of accrued interest and US$7.2 million of associated pre-payment fee. Effective June 30, 2014, the Company reverted to a 15% annual interest rate on the senior secured term loan and the Company's cash balance, after reflecting the payment, was approximately $19 million.

Q2 2014 Conference Call & Webcast Details


Date:       Wednesday, July 30, 2014                                        
Time:       8:30 a.m. ET                                                    
Webcast:    www.nap.com                                                     
Live Call:  1-866-229-4144 or 1-416-216-4169 (PIN: 8347411, followed by #   
             sign)                                                          
Replay:     1-888-843-7419 or 1-630-652-3042 (PIN: 8347411, followed by #   
             sign)                                                          

The conference call replay will be available for 90 days after the live event. An archived audio webcast of the call will also be posted to NAP's website.

About North American Palladium

NAP is an established precious metals producer that has been operating its Lac des Iles mine ("LDI") located in Ontario, Canada since 1993. LDI is one of only two primary producers of palladium in the world, offering investors exposure to palladium. The Company's shares trade on the NYSE MKT under the symbol PAL and on the TSX under the symbol PDL.

(1) Non-IFRS measure. Please refer to Non-IFRS Measures in the MD&A.

(2) NAP's unaudited condensed interim consolidated financial statements for the second quarter ended June 30, 2014 are available in the Appendix of this news release. These financial statements should be read in conjunction with the notes and management's discussion and analysis available at www.nap.com, www.sedar.com and www.sec.gov.

Cautionary Statement on Forward-Looking Information

Certain information contained in this news release constitutes 'forward-looking statements' within the meaning of the 'safe harbor' provisions of the United States Private Securities Litigation Reform Act of 1995 and Canadian securities laws. All statements other than statements of historical fact are forward-looking statements. The words 'will', 'expect', 'would', 'could', 'estimate' and similar expressions identify forward-looking statements. Forward-looking statements in this news release include, without limitation: information pertaining to the Company's strategy, plans or future financial or operating performance, such as the ramp-up at the Company's LDI mine, timelines, production plans, projected expenditures, operating cost estimates, proposed mining methods, expected mining rates and other statements that express management's expectations or estimates of future performance. The Company cautions the reader that such forward-looking statements involve known and unknown risk factors that may cause the actual results to be materially different from those expressed or implied by the forward-looking statements. Such risk factors include, but are not limited to: the risk that the Company may not be able to obtain sufficient financing to fund its current needs including for operating expenditures and for capital expenditures required to continue the LDI mine expansion at depth, the risk that the Company will not be able to meet its financial obligations as they become due, the possibility that metal prices and foreign exchange rates may fluctuate, inherent risks associated with development, exploration, mining and processing including risks to tailings capacity, ground conditions, environmental hazards, uncertainty of mineral reserves and resources, the possibility that the LDI mine may not perform as planned, changes in legislation, regulations or political and economic developments in Canada and abroad, risks related to employee relations and the availability of skilled labour, litigation, and the risks associated with obtaining necessary licenses and permits. For more details on these and other risk factors see the Company's most recent Form 40-F/Annual Information Form on file with the SEC and Canadian provincial securities regulatory authorities.

Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The factors and assumptions contained in this news release, which may prove to be incorrect, include, but are not limited to: that the Company will continue in operation for the foreseeable future and will be able to realize its assets and discharge its liabilities in the normal course of business, that metal prices and exchange rates between the Canadian and United States dollar will be consistent with the Company's expectations, that there will be no material delays affecting operations or the timing of ongoing development projects, including the LDI mine ramp-up, that prices for key mining and construction supplies, including labour costs, will remain consistent with the Company's expectations and that the Company's current estimates of mineral reserves and resources are accurate. The forward-looking statements are not guarantees of future performance. The Company disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise, except as expressly required by law. Readers are cautioned not to put undue reliance on these forward-looking statements.


                Condensed Interim Consolidated Balance Sheets               
                (expressed in thousands of Canadian dollars)                
                                 (unaudited)                                
                                                      June 30   December 31 
                                                         2014          2013 
----------------------------------------------------------------------------
ASSETS                                                                      
Current Assets                                                              
Cash and cash equivalents                        $     44,305  $      9,793 
Accounts receivable                                    55,477        38,556 
Inventories                                            15,930        14,239 
Other assets                                            1,727         6,968 
----------------------------------------------------------------------------
Total Current Assets                                  117,439        69,556 
----------------------------------------------------------------------------
Non-current Assets                                                          
Mining interests                                      445,594       456,239 
----------------------------------------------------------------------------
Total Non-current Assets                              445,594       456,239 
----------------------------------------------------------------------------
Total Assets                                     $    563,033  $    525,795 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY                                        
Current Liabilities                                                         
Accounts payable and accrued liabilities         $     20,087  $     48,797 
Credit facility                                        24,296        17,834 
Current portion of obligations under finance                                
 leases                                                 2,924         2,988 
Current portion of long-term debt                      32,687       173,656 
Current derivative liability                            1,012           492 
----------------------------------------------------------------------------
Total Current Liabilities                              81,006       243,767 
----------------------------------------------------------------------------
Non-current Liabilities                                                     
Income taxes payable                                      125         1,286 
Asset retirement obligations                           15,195        13,638 
Obligations under finance leases                        7,386         8,744 
Long-term debt                                        206,096        35,864 
----------------------------------------------------------------------------
Total Non-current Liabilities                         228,802        59,532 
----------------------------------------------------------------------------
Shareholders' Equity                                                        
Common share capital and purchase warrants            865,483       798,411 
Stock options and related surplus                       9,408         9,128 
Equity component of convertible debentures, net                             
 of issue costs                                         6,931         6,931 
Contributed surplus                                     8,873         8,873 
Deficit                                              (637,470)     (600,847)
----------------------------------------------------------------------------
Total Shareholders' Equity                            253,225       222,496 
----------------------------------------------------------------------------
Total Liabilities and Shareholders' Equity       $    563,033  $    525,795 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
  Condensed Interim Consolidated Statements of Operations and Comprehensive 
                                    Loss                                    
   (expressed in thousands of Canadian dollars, except share and per share  
                                  amounts)                                  
                                 (unaudited)                                
                     Three months ended June 30    Six months ended June 30 
                             2014          2013          2014          2013 
----------------------------------------------------------------------------
Revenue              $     50,497  $     33,213  $     99,233  $     80,303 
----------------------------------------------------------------------------
                                                                            
Mining operating                                                            
 expenses                                                                   
Production costs           30,355        25,701        60,090        54,642 
Smelting, refining                                                          
 and freight costs          4,130         3,406         8,313         7,208 
Royalty expense             2,184           892         4,258         3,401 
Depreciation and                                                            
 amortization               8,174         7,004        18,542        13,089 
Loss on disposal of                                                         
 equipment                    773           425         1,220         1,054 
----------------------------------------------------------------------------
Total mining                                                                
 operating expenses        45,616        37,428        92,423        79,394 
----------------------------------------------------------------------------
Income (loss) from                                                          
 mining operations          4,881        (4,215)        6,810           909 
----------------------------------------------------------------------------
                                                                            
Other expenses                                                              
Exploration                 1,891         2,192         2,659         7,032 
General and                                                                 
 administration             2,611         2,186         5,165         5,099 
Interest and other                                                          
 income                    (2,687)       (2,179)       (2,400)       (1,532)
Interest expense and                                                        
 other costs               16,010         2,006        28,984         3,184 
Financing costs             4,348         2,318         8,384         2,399 
Loss on                                                                     
 extinguishment of                                                          
 long-term debt                 -        11,035             -        11,035 
Foreign exchange                                                            
 loss (gain)               (7,335)        4,495           641         5,317 
----------------------------------------------------------------------------
Total other expenses       14,838        22,053        43,433        32,534 
----------------------------------------------------------------------------
Loss from continuing                                                        
 operations before                                                          
 taxes                     (9,957)      (26,268)      (36,623)      (31,625)
Income and mining                                                           
 tax recovery                                 -             -             - 
----------------------------------------------------------------------------
Loss and                                                                    
 comprehensive loss                                                         
 from continuing                                                            
 operations for the                                                         
 period              $     (9,957) $    (26,268) $    (36,623) $    (31,625)
Income and                                                                  
 comprehensive                                                              
 income from                                                                
 discontinued                                                               
 operations for the                                                         
 period                         -             -             -         2,509 
----------------------------------------------------------------------------
Loss and                                                                    
 comprehensive loss                                                         
 for the period      $     (9,957) $    (26,268) $    (36,623) $    (29,116)
----------------------------------------------------------------------------
Loss per share                                                              
Basic                $      (0.03) $      (0.15) $      (0.13) $      (0.16)
Diluted              $      (0.03) $      (0.16) $      (0.13) $      (0.17)
----------------------------------------------------------------------------
Loss from continuing                                                        
 operations per                                                             
 share                                                                      
Basic                $      (0.03) $      (0.15) $      (0.13) $      (0.17)
Diluted              $      (0.03) $      (0.16) $      (0.13) $      (0.18)
----------------------------------------------------------------------------
Income from                                                                 
 discontinued                                                               
 operations per                                                             
 share                                                                      
Basic                $          -  $          -  $          -  $       0.01 
Diluted              $          -  $          -  $          -  $       0.01 
----------------------------------------------------------------------------
Weighted average                                                            
 number of shares                                                           
 outstanding                                                                
Basic                 349,555,798   179,520,041   291,537,189   178,491,155 
Diluted               349,555,798   179,633,511   291,537,189   178,601,618 
----------------------------------------------------------------------------
                                                                            
           Condensed Interim Consolidated Statements of Cash Flows          
                (expressed in thousands of Canadian dollars)                
                                 (unaudited)                                
                                   Three months ended      Six months ended 
                                              June 30               June 30 
                                      2014       2013       2014       2013 
----------------------------------------------------------------------------
Cash provided by (used in)                                                  
Operations                                                                  
Loss from continuing operations                                             
 for the period                  $  (9,957) $ (26,268) $ (36,623) $ (31,625)
Operating items not involving                                               
 cash                                                                       
  Depreciation and amortization      8,174      7,004     18,542     13,089 
  Accretion expense (recovery)        (229)       945       (439)     1,899 
  Loss on extinguishment of debt         -     11,035          -     11,035 
  Share-based compensation and                                              
   employee benefits                   547         62      1,023        475 
  Unrealized foreign exchange                                               
   loss (gain)                      (6,952)     3,903        586      3,903 
  Loss on disposal of equipment        773          -      1,220          - 
  Interest expense and other        12,550          -     26,022          - 
  Financing costs                    4,293          -      8,329          - 
  Other                                  -         86          -      1,022 
----------------------------------------------------------------------------
                                     9,199     (3,233)    18,660       (202)
Changes in non-cash working                                                 
 capital                           (13,006)       384    (39,216)       518 
----------------------------------------------------------------------------
                                    (3,807)    (2,849)   (20,556)       316 
----------------------------------------------------------------------------
Financing Activities                                                        
Issuance of common shares and                                               
 warrants, net of issue costs            -      9,613        (38)     9,613 
Issuance of convertible                                                     
 debentures, net of issue costs     32,979          -     61,443          - 
Credit facility                         22     (8,808)     6,107     14,192 
Repayment of senior secured                                                 
 notes                                   -    (79,200)         -    (79,200)
Net proceeds of senior secured                                              
 term loan                               -    131,941          -    131,941 
Repayment of obligations under                                              
 finance leases                       (890)      (258)    (1,686)    (1,573)
Interest paid                         (114)    (1,318)    (1,565)    (5,907)
Other financing costs                 (396)         -       (895)         - 
----------------------------------------------------------------------------
                                    31,601     51,970     63,366     69,066 
----------------------------------------------------------------------------
Investing Activities                                                        
Additions to mining interests,                                              
 net                                (5,569)   (27,805)    (8,457)   (65,873)
Proceeds on disposal of mining                                              
 interests, net                        159          -        159        990 
----------------------------------------------------------------------------
                                    (5,410)   (27,805)    (8,298)   (64,883)
----------------------------------------------------------------------------
Increase in cash from continuing                                            
 operations                         22,384     21,316     34,512      4,499 
Net cash provided by                                                        
 discontinued operations                 -          -          -     20,142 
----------------------------------------------------------------------------
Increase in cash                    22,384     21,316     34,512     24,641 
Cash and cash equivalents,                                                  
 beginning of period                21,921     23,493      9,793     20,168 
----------------------------------------------------------------------------
Cash and cash equivalents, end                                              
 of period                       $  44,305  $  44,809  $  44,305  $  44,809 
----------------------------------------------------------------------------
Cash and cash equivalents                                                   
 consisting of:                                                             
Cash                             $  44,305  $  44,809  $  44,305  $  44,809 
Short-term investments                   -          -          -          - 
----------------------------------------------------------------------------
                                 $  44,305  $  44,809  $  44,305  $  44,809 
----------------------------------------------------------------------------
Foreign exchange included in                                                
 cash balance                    $   1,704  $   1,075  $   1,704  $   1,075 
----------------------------------------------------------------------------

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SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
WSM International is launching a DevOps services division that offers assessment, consulting and implementation to large enterprises and organizations with complex infrastructures. This is the first independent services company to create a dedicated practice to help organizations looking to transition to the DevOps model. The concept of DevOps is to blend information technology (IT) software development with operations to optimize the computing infrastructure according to the specific needs of ...
SYS-CON Events announced today that Cisco, the worldwide leader in IT that transforms how people connect, communicate and collaborate, has been named “Gold Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Cisco makes amazing things happen by connecting the unconnected. Cisco has shaped the future of the Internet by becoming the worldwide leader in transforming how people connect, communicate and collaborat...
SYS-CON Events announced today that the DevOps Institute has been named “Association Sponsor” of SYS-CON's DevOps Summit, which will take place on June 9–11, 2015, at the Javits Center in New York City, NY. The DevOps Institute provides enterprise level training and certification. Working with thought leaders from the DevOps community, the IT Service Management field and the IT training market, the DevOps Institute is setting the standard in quality for DevOps education and training.
Temasys has announced senior management additions to its team. Joining are David Holloway as Vice President of Commercial and Nadine Yap as Vice President of Product. Over the past 12 months Temasys has doubled in size as it adds new customers and expands the development of its Skylink platform. Skylink leads the charge to move WebRTC, traditionally seen as a desktop, browser based technology, to become a ubiquitous web communications technology on web and mobile, as well as Internet of Things...
Wearable technology was dominant at this year’s International Consumer Electronics Show (CES) , and MWC was no exception to this trend. New versions of favorites, such as the Samsung Gear (three new products were released: the Gear 2, the Gear 2 Neo and the Gear Fit), shared the limelight with new wearables like Pebble Time Steel (the new premium version of the company’s previously released smartwatch) and the LG Watch Urbane. The most dramatic difference at MWC was an emphasis on presenting we...
SYS-CON Events announced today that robomq.io will exhibit at SYS-CON's @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. robomq.io is an interoperable and composable platform that connects any device to any application. It helps systems integrators and the solution providers build new and innovative products and service for industries requiring monitoring or intelligence from devices and sensors.
Hosted PaaS providers have given independent developers and startups huge advantages in efficiency and reduced time-to-market over their more process-bound counterparts in enterprises. Software frameworks are now available that allow enterprise IT departments to provide these same advantages for developers in their own organization. In his workshop session at DevOps Summit, Troy Topnik, ActiveState’s Technical Product Manager, will show how on-prem or cloud-hosted Private PaaS can enable organ...
Today, IT is not just a cost center. IT is an enabler and driver of business. With the emergence of the hybrid cloud paradigm, IT now has increasingly more capabilities to create new strategic opportunities for a business. Hybrid cloud allows an organization to utilize multi-tenant public clouds, dedicated private clouds, bare metal hosting, and the associated support and services for the right use cases through an on-demand, XaaS model. This model of IT creates tremendous opportunities for busi...
Docker is an excellent platform for organizations interested in running microservices. It offers portability and consistency between development and production environments, quick provisioning times, and a simple way to isolate services. In his session at DevOps Summit at 16th Cloud Expo, Shannon Williams, co-founder of Rancher Labs, will walk through these and other benefits of using Docker to run microservices, and provide an overview of RancherOS, a minimalist distribution of Linux designed...
Business as usual for IT is evolving into a “Make or Buy” decision on a service-by-service conversation with input from the LOBs. How does your organization move forward with cloud? In his general session at 16th Cloud Expo, Paul Maravei, Regional Sales Manager, Hybrid Cloud and Managed Services at Cisco, discusses how Cisco and its partners offer a market-leading portfolio and ecosystem of cloud infrastructure and application services that allow you to uniquely and securely combine cloud busi...
SYS-CON Events announced today that Akana, formerly SOA Software, has been named “Bronze Sponsor” of SYS-CON's 16th International Cloud Expo® New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. Akana’s comprehensive suite of API Management, API Security, Integrated SOA Governance, and Cloud Integration solutions helps businesses accelerate digital transformation by securely extending their reach across multiple channels – mobile, cloud and Internet of Thi...
Businesses are looking to empower employees and departments to do more, go faster, and streamline their processes. For all workers – but mobile workers especially – utilizing the cloud to reconnect documents and improve processes without destructing existing workflows can have a dramatic impact on productivity. In his session at 16th Cloud Expo, Mark Grilli, vice president of Acrobat Solutions marketing at Adobe Systems Incorporated, will outline new ways that the cloud is changing the way peo...
SYS-CON Events announced today that Vitria Technology, Inc. will exhibit at SYS-CON’s @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Vitria will showcase the company’s new IoT Analytics Platform through live demonstrations at booth #330. Vitria’s IoT Analytics Platform, fully integrated and powered by an operational intelligence engine, enables customers to rapidly build and operationalize advanced analytics to deliver timely business outcomes ...
Are your applications getting in the way of your business strategy? It’s time to rethink your IT approach. In his session at 16th Cloud Expo, Madhukar Kumar, Vice President, Product Management at Liaison Technologies, will discuss a new data-centric approach to IT that allows your data, not applications, to inform business strategy. By moving away from an application-centric IT model where data integration and analysis are subservient to the constraints of applications, your organization will b...