Mr. Ernest Mast reports
PRIMERO REPORTS FOURTH QUARTER AND FULL-YEAR 2015 RESULTS; RECORD REVENUES DRIVE INCREASED CASH FLOWS
Primero Mining Corp. has released its financial results for the fourth quarter and full year ended Dec. 31, 2015 (all amounts are in U.S. dollars). On Jan. 25, 2016, the company reported strong operating results, including the fifth consecutive year of increased production, that drove record revenue of $291.3-million, strong operating cash flow before changes in working capital
of $83.2-million (51 cents per share) and adjusted net income
of $6.6-million (four cents per share).
Highlights:
-
Record revenues drive increased cash flows: Primero generated record annual revenues of $291.3-million in 2015, 6 per cent higher than in 2014 and despite the drop in metals prices, due to increased production and sales from the San Dimas and Black Fox mines. This resulted in 2015 operating cash flow before changes in working capital increasing by 13 per cent over 2014 to $83.2-million (51 cents per share).
- Costs controlled: All-in sustaining costs
of $972 per ounce decreased by 20 per cent from 2014 and were well below the company's 2015 guidance range of $1,030 to $1,060 per ounce. All-in sustaining costs are expected to drop a further 10 per cent in 2016 to between $850 to $900 per gold ounce.
- Convertible debentures to be repaid in cash: Primero ended 2015 with $120.6-million of total liquidity, which included $45.6-million in cash and $75.0-million available in an undrawn line of credit, significantly increased from the Dec. 31, 2014, total liquidity position of $62.4-million. The company announced on Feb. 10, 2016,
its intention to repay in cash the outstanding $48.1-million of its 6.5-per-cent convertible debentures plus $1.6-million of associated interest on their maturity date of March 31, 2016.
- Earnings impacted by impairment: The company incurred a net loss of $106.9-million (66 cents per share) including $104.0-million in impairment charges in 2015, compared with a net loss of $224.4-million ($1.48 per share) including $209.0-million in impairment charges in 2014. Adjusted net income was $6.6-million (four cents per share) for 2015, compared with adjusted net income of $5.4-million (four cents per share) for 2014.
- Fifth consecutive year of record production: Fourth quarter production of 68,155 gold-equivalent ounces
resulted in annual 2015 production of 259,474 gold-equivalent ounces, 15 per cent higher than 2014 and within the company's 2015 production guidance range of 250,000 to 270,000 ounces. Gold-equivalent production in 2016 is expected to increase by up to 8 per cent over 2015 to between 260,000 and 280,000 ounces.
- Capital expenditures reduced but not restrictive in 2016: Primero has narrowed its 2016 focus to core capital expenditures related to advancing the existing underground mining operations at San Dimas and Black Fox, and as a result the company expects capital expenditures in 2016 of $82.3-million including capitalized exploration costs of $18.4-million.
- Legal claim From Mexican tax authority: Primero's San Dimas mine in Mexico continues to operate uninterrupted despite a legal claim by the Mexican tax authority seeking to nullify the advance pricing agreement (APA). The APA confirmed the company's basis for paying taxes on the price it realized from silver sales under its silver purchase agreement with Silver Wheaton for the fiscal years ending 2010 to 2014, inclusive. Primero intends to vigorously defend its position and believes that it has filed its tax returns for 2010 to 2014 on a basis compliant with applicable laws.
"Primero's strong focus on reducing costs, while continuing to invest in profitable operations is evident in our 2015 results," stated Ernest Mast, president and chief executive officer. "We achieved industry low all-in sustaining costs of $680 per ounce at our platform San Dimas mine while significantly reducing the all-in sustaining costs at the Black Fox mine by 19 per cent from 2014 to $1,163 per ounce. We were also successful at reducing our corporate general and administrative expense with the closure of two satellite offices. Though Primero has had a volatile start to 2016 in the equity markets, our mines in Mexico and Canada continue to operate uninterrupted with anticipated further efficiency gains anticipated in 2016. We are aggressively defending the claim initiated by the Mexican tax authority seeking to nullify the APA. We look forward to demonstrating strong returns for our shareholders in 2016 by delivering production increases and maintaining a low-cost structure with a focus on disciplined capital allocation and generating strong cash flow."
Low-cost gold production in Mexico and Canada
Primero produced 68,155 gold-equivalent ounces during the fourth quarter of 2015 at total cash costs
of $613 per gold-equivalent ounce and all-in sustaining costs of $1,009 per ounce. This resulted in record annual production of 259,474 gold-equivalent ounces at total cash costs of $637 per gold-equivalent ounce and AISC of $972 per ounce, representing a 15-per-cent increase in production and contributing to 20-per-cent-lower AISC versus 2014.
San Dimas produced 50,370 gold-equivalent ounces (41,371 ounces of gold and 2.32 million ounces of silver) during the fourth quarter at total cash costs of $535 per gold-equivalent ounce and AISC of $753 per ounce. This resulted in full year 2015 production of 189,769 gold-equivalent ounces (151,355 ounces of gold and 8.3 million ounces of silver) from San Dimas at cash costs of $559 per gold-equivalent ounce and AISC of $680 per ounce. Strong performance at San Dimas was due to a number of factors, including higher throughput related to the continuing expansion of the mill to 3,000 tonnes per day, increased gold and silver recoveries, increased long-hole mining production, and increased availability of the high-grade Jessica vein. Average throughput in 2015 increased by 10 per cent to a record 2,721 tpd (based on 365-day availability).
Black Fox produced 17,785 ounces of gold during the fourth quarter at total cash costs of $834 per ounce and AISC of $1,104 per ounce. This resulted in 2015 production of 69,705 ounces of gold at cash costs of $850 per ounce and AISC of $1,163 per ounce. The 19-per-cent reduction in AISC in 2015 versus 2014 was largely attributable to significantly less development capital spent and less equipment replacements required in 2015. The weaker Canadian dollar relative to the U.S. dollar also had a positive impact on costs at Black Fox during 2015. Average mill throughput increased by 4 per cent in 2015 averaging a record 2,400 tpd (based on 365-day availability).
Record revenues drive increased cash flows
Primero generated $71.4-million of revenue in Q4 2015, slightly higher than Q4 2014 as a result of a 10-per-cent increase in gold-equivalent ounces sold tempered by a 9-per-cent-lower realized gold price. In Q4 2015, the company sold 57,770 ounces of gold at an average realized price of $1,081 per ounce and 2.1 million ounces of silver at an average realized price of $4.24 per ounce. Revenue in Q4 2014 totalled $71.2-million from selling 54,406 ounces of gold at an average realized price of $1,188 per ounce and 1.56 million ounces of silver at an average realized price of $4.20 per ounce.
Gold produced at Black Fox is subject to a gold purchase agreement
and as a result 1,015 ounces were sold to Sandstorm Gold Ltd. at a fixed price of $518 per ounce in Q4 2015. Silver produced at San Dimas is subject to a silver purchase agreement
and as a result 2.1 million ounces of silver were sold to Silver Wheaton Ltd. at a fixed price of $4.24 per ounce during the quarter. As of Dec. 31, 2015, the company has delivered 2.85 million ounces of silver under the San Dimas silver purchase agreement's six million ounce annual contract year threshold (which runs from Aug. 6
to the following Aug. 5), after which the company will begin selling 50 per cent of the silver produced at San Dimas at spot market prices until Aug. 5, 2016, when the annual threshold is reset.
The company incurred a net loss of $98.3-million (60 cents per share) in Q4 2015 compared with a net loss of $121.8-million (76 cents per share) for the fourth quarter of 2014. These figures include impairment charges against the Black Fox complex and Cerro del Gallo project of $104.0-million in Q4 2015 and $110.0-million in Q4 2014.
Impairment charges in Q4 2015 of $104.0-million include $82.0-million at the Black Fox complex resulting from declining metal prices, the temporary decision to defer Grey Fox development and changes in the Black Fox mine plan to focus primarily on higher-grade underground ore. Impairment charges for Q4 2015 also include $22.0-million at Cerro del Gallo resulting from declining metal prices and the decision to further defer development. In Q4 2014, impairment charges included $75.0-million impairment to the Black Fox mining property due to the earlier-than-expected depletion of the open pit and a $35.0-million impairment to the Cerro del Gallo development property as a result of the decision to delay construction.
Adjusted loss for Q4 2015 was $38,000 (nil per share) compared with an adjusted loss of $5.1-million (three cents per share) in Q4 2014. Adjusted loss primarily excludes the impact of impairment charges on the Black Fox complex and the Cerro del Gallo project as described above, foreign exchange rate changes on deferred tax balances, and the mark-to-market gain on the 5.75-per-cent convertible debenture.
Operating cash flow before working capital changes in Q4 2015 was $20.7-million (13 cents per share), compared with $18.2-million (11 cents per share) in Q4 2014.
For the full year 2015, Primero generated record revenue of $291.3-million, 6 per cent higher than in 2014 despite lower realized metal prices. The company sold 18 per cent more gold ounces at a 9-per-cent-lower realized gold price and 37 per cent more silver ounces at a 28-per-cent-lower realized silver price. Sales volumes totalled 218,194 ounces of gold at an average realized price of $1,136 per ounce and 8.12 million ounces of silver at an average realized price of $5.34 per ounce. A total of 5,891 ounces of gold were sold to Sandstorm at a fixed price of $516 per ounce and 7.27 million ounces of silver were sold to Silver Wheaton at a fixed price of $4.22 per ounce. The company also sold 850,000 ounces of silver at an average spot price of $15.03 per ounce in 2015.
For 2015, the company incurred a net loss of $106.9-million (66 cents per share) including $104.0-million in impairment charges, compared with a net loss of $224.4-million ($1.48 per share) including $209.0-million in impairment charges in 2014. In addition to the impairments described above, 2014 impairment charges included $99.0-million related to goodwill at the Black Fox complex recorded in third quarter 2014.
Adjusted net income for 2015 was $6.6-million (four cents per share) compared with adjusted net income of $5.4-million (four cents per share) in 2014. Adjusted net income primarily excludes the impact of impairment charges on the Black Fox complex and the Cerro del Gallo project as described above, foreign exchange rate changes on deferred tax balances, and the mark-to-market gain on the convertible debenture.
Operating cash flow before working capital changes was $83.2-million (51 cents per share) in 2015, compared with $73.7-million (48 cents per share) in 2014. The increase was largely attributable to increased production and sales from the San Dimas and Black Fox mines.
Balance sheet remains strong after repaying convertible debentures
The company's liquidity position at Dec. 31, 2015, was $120.6-million, which comprised cash of $45.6-million and $75.0-million in an available undrawn line of credit. The company's cash position increased from the Sept. 30, 2015, balance of $43.1-million.
The company announced on Feb. 10, 2016, that it had drawn down $50.0-million on its line of credit in order to repay in cash the outstanding $48.1-million of its 6.5-per-cent convertible debentures plus $1.6-million of associated interest on their maturity date of March 31, 2016. Primero expects to have sufficient liquidity available to finance its planned 2016 capital and exploration expenditures totalling $82.3-million, through a combination of its current cash balance and operating cash flows.
Legal claim not an impact on operations or cash flow
Primero announced on Feb. 3, 2015, that its Mexican subsidiary, Primero Empresa Minera SA de CV (PEM), received a legal claim initiated by the Mexican tax authority, the Servicio de Administracion Tributaria's (SAT), pursuant to which the SAT is seeking to nullify the advance pricing agreement (APA) in relation to the company's silver sales under its silver purchase agreement. The APA confirmed that the company should pay tax on the basis of the current contract price of approximately $4.24 per ounce, which is the total actual revenue the company (including its related parties) receives for such sales. The APA protected the company from being assessed for its sales under the silver purchase agreement on a different basis for the years 2010 to 2014. While the SAT's claim is directly against the APA, the outcome may affect the company's interests. The claim does not specify any different basis for Primero to pay tax on its silver sales.
Primero's legal and financial advisers confirm that the SAT's legal claim is novel as the reversal of an APA through a judicial proceeding is unprecedented and inconsistent with the underlying purpose of an APA which is to provide a taxpayer with certainty so that it may invest and conduct its operations based on the certainty provided. The company is vigorously defending its interests and the validity of the APA. The first step in that defence will be to file a procedural challenge to the admission of the claim which is similar to a motion for dismissal on the basis of failure to comply with technical requirements. This action will be filed on or before Feb. 23, 2016.
In addition, the company and its Mexican legal and financial advisers continue to believe that the company has filed its tax returns and paid all applicable taxes, in compliance with Mexican tax laws including the Organization for Economic Co-Operation and Development (OECD) principles for transfer pricing.
Should the SAT be successful in nullifying the APA and in assessing taxes on silver sold under the silver purchase agreement at a higher rate, or should the SAT assess at higher rates for periods after the expiration of the APA, it would likely have a material adverse affect on the company's business, results of operations and financial condition.
In addition to vigorously defending the APA, the company intends to explore opportunities to establish stability for its tax filings in the future, but there is no assurance that the company will find or be able to implement a reasonable solution.
Primero's 2016 focus is on maintaining a low-cost structure and disciplined capital allocation
Primero expects an increase in 2016 production of up to 8 per cent relative to 2015, partly due to the completion of the San Dimas mill expansion to 3,000 tpd expected in third quarter 2016. Primero is guiding to between 260,000 and 280,000 gold-equivalent ounces in 2016, which includes gold production of 215,000 to 235,000 ounces and 8.5 million to 9.5 million ounces of silver. However, the company expects first quarter 2016 production to be lower than the quarterly average due to the implementation of improved ground control practices at San Dimas.
The implementation of enhanced safety measures is progressing well, and the San Dimas mine is now able to reach targeted production rates near 3,000 tpd. However, in the early stages, mine production was considerably lower and the underground mine only averaged 1,535 tpd of ore production in January. Primero sees this as an acceptable production shortfall necessary to affect the transformational shift in safety culture required at the site and expects to make up the shortfall from Q1 2016 before the end of second quarter 2016.
The company expects to lower its overall spending profile in 2016 by focusing on prudent sustaining capital allocation. AISCs are expected to decrease by an additional 10 per cent compared with 2015 to between $850 and $900 per gold ounce, and total cash costs are expected to be in the range of $570 to $620 per gold-equivalent ounce. The company has focused 2016 capital expenditures at the Black Fox mine on items related to advancing the existing underground mining operations and as a result expects to further reduce capital spending in 2016 versus 2015.
Primero's 2016 production guidance is summarized in the table.
2016 PRODUCTION GUIDANCE
Actual
San Dimas Black Fox Estimated 2016 2015
Attributable gold-equivalent
production (ounces) 190,000-200,000 70,000-80,000 260,000-280,000 259,474
Gold production
(ounces) 145,000-155,000 70,000-80,000 215,000-235,000 221,060
Silver production
(million ounces) 8.5-9.5 N/a 8.5-9.5 8.30
Total cash costs (per
gold-equivalent
ounce) $525-$575 $680-$730 $570-$620 $637
All-in sustaining
costs (per gold
ounce) $660-$710 $940-$990 $850-$900 $972
Capital expenditures
($ millions) $56.4 $23.6 $82.3 $93.3Material assumptions used to forecast total cash costs for 2016 include: an average gold price of $1,050 per ounce, an average silver price of $5.16 per ounce (calculated using the silver purchase agreement contract price
of $4.26 per ounce and assuming excess silver beyond contract requirements is sold at an average silver price of $14 per ounce), and foreign exchange rates of $1.35 (Canadian) and 16 Mexican pesos to the U.S. dollar.
Planned management succession implemented
As of Feb. 1, 2016, Primero has completed the previously announced planned succession of Ernest Mast to president and chief executive officer of the company. Mr. Mast has also joined Primero's board of directors. Former chief executive officer Joseph F. Conway has moved to the position of executive vice-chairman, and is tasked with expanding relationships between the board of directors and senior management, and working with the executive team in areas of strategic and corporate development. Mr. Conway will transition to non-executive vice-chairman in mid-2016 and will continue as a director.
In conjunction with the planned chief executive officer succession, Primero is pleased to announce that Guillermo Adrian has joined Primero's executive team in Toronto as vice-president, operations. Mr. Adrian has been with Primero since 2013 as the general manager of the San Dimas mine. During his time at San Dimas, Mr. Adrian was critical in improving production through mine optimization and mill expansion. Under Mr. Adrian's leadership the San Dimas mill throughput was increased from 2,100 tpd to nearly 3,000 tpd, and unit costs were lowered materially through the implementation of more efficient processes. Mr. Adrian is a materials engineer (metallurgy) with a degree from the Universidad Simon Bolivar in Venezuela. Some of his past experience includes roles as vice-president, operations, for Orinokia Mining Corp., vice-president, operations, for Rusoro Mining and general manager with Crystallex International Corp. in charge of the Las Cristinas project in Venezuela.
Creating a transformational shift in attitude toward safety
Primero is committed to the safety, health and well-being of its workers and their families. The company is working to create a transformational shift in attitude toward a safety culture committed to a workplace free of accidents.
Primero has implemented improved operational procedures at San Dimas to promote enhanced workplace safety. This includes implementing a self-imposed mandate that all work in operating stopes is done under supported ground, a practice that was never fully applied in the history of the San Dimas mine. The implementation process is progressing well and the mine is now able to reach targeted production rates close to 3,000 tpd. One of the results of this change is that a larger proportion of production will come from long-hole stopes as opposed to cut and fill. Mine production was lower in January and February; however, Primero believes the shortfall will not impact 2016 guidance. This procedural change was necessary to ensure best practices are used at San Dimas and will contribute to creating a transformational shift in attitude toward safety.
SUMMARIZED FINANCIAL AND OPERATING RESULTS
(In thousands of U.S. dollars, except per share and per ounce)
Three months ended Dec. 31, 12 months ended Dec. 31,
2015 2014 2015 2014 2013
Tonnes of ore milled 480,025 482,922 1,868,926 1,593,005 766,930
Produced
gold-equivalent
(ounces) 68,155 62,209 259,474 225,054 143,114
Gold (ounces) 59,156 56,140 221,060 189,943 111,983
Silver (million
ounces) 2.32 1.74 8.30 6.15 6.05
Sold
gold-equivalent
(ounces) 65,915 59,817 255,951 220,067 143,972
Gold (ounces) 57,770 54,406 218,194 185,286 112,846
Silver (million
ounces) 2.10 1.56 8.12 5.94 6.17
Average realized
prices
Gold ($/ounce) $1,081 $1,188 $1,136 $1,243 $1,394
Silver($/ounce) $4.24 $4.20 $5.34 $7.46 $6.97
Total cash costs (per
gold ounce)
gold-equivalent
basis $613 $701 $637 $687 $599
Byproduct basis $540 $657 $548 $579 $389
All-in sustaining
costs (per gold
ounce) $1,009 $1,196 $972 $1,222 $1,077
Revenues $71,404 $71,171 $291,304 $274,612 $200,326
Earnings from mine
operations 10,100 5,334 50,473 52,663 76,004
Net (loss) (98,347) (121,766) (106,910) (224,384) (4,250)
Adjusted net
income (38) (5,054) 6,556 5,365 38,668
Basic (loss) per share (0.60) (0.76) (0.66) (1.48) (0.04)
Diluted (loss) per
share (0.60) (0.76) (0.66) (1.48) (0.04)
Adjusted net income
per share (0.00) (0.03) 0.04 0.04 0.36
Operating cash flows
before working
capital changes 20,682 18,209 83,165 73,658 72,396
Operating cash flows
before working
capital changes per
share 0.13 0.11 0.51 0.48 0.67
SUMMARIZED OPERATING DATA
12 months Three months ended
ended Dec. 31, Dec. 31, Sept. 30, June 30, March 31, Dec. 31,
2015 2014 2015 2015 2015 2015 2014
San Dimas
Tonnes of ore
mined 988,168 897,445 228,539 232,014 263,868 263,747 253,531
Tonnes of ore
milled 993,093 898,915 250,796 228,392 256,235 257,670 261,859
Tonnes of ore
milled per
day 2,721 2,463 2,726 2,483 2,816 2,863 2,846
Average mill
head grade
(grams/tonne)
Gold 4.90 4.63 5.23 4.75 4.60 5.01 4.49
Silver 274 232 300 272 275 250 224
Average gold
recovery rate
(%)
Gold 97% 94% 98% 96% 96% 96% 95%
Silver 95% 92% 96% 95% 95% 93% 92%
Produced
gold-equivalent
(ounces) 189,769 161,170 50,370 49,566 44,128 46,569 41,875
Gold
(ounces) 151,355 126,059 41,371 33,623 36,500 39,861 35,806
Silver
(million
ounces) 8.30 6.15 2.32 1.90 2.15 1.93 1.74
Sold
gold-equivalent
(ounces) 185,463 157,063 48,466 53,475 38,747 45,256 39,178
Gold
(ounces) 147,706 122,282 40,320 34,471 34,273 38,642 33,767
Silver at
fixed price
(million
ounces) 7.27 4.70 2.10 2.01 1.26 1.90 1.56
Silver at
spot
(million
ounces) 0.85 1.24 - 0.85 - - -
Average
realized
price (per
ounce)
Gold $1,150 $1,265 $1,092 $1,115 $1,187 $1,207 $1,207
Silver $5.34 $7.46 $4.24 $7.42 $4.20 $4.20 $4.20
Total cash
costs (per
gold
ounce)
gold-equivalent
basis $559 $628 $535 $507 $608 $582 $654
Byproduct
basis $409 $448 $414 $219 $487 $479 $576
All-in
sustaining
costs (per
ounce) $680 $826 $753 $454 $822 $659 $897
Revenue
($000) $213,191 $198,864 $52,960 $59,660 $45,979 $54,640 $47,289
Earnings from
mine
operations
($000) $53,717 $49,195 $11,408 $18,179 $9,515 $14,615 $6,478
Black Fox
Open-pit
mining
Tonnes of
ore mined 849,668 764,234 - 201,484 372,319 275,865 228,798
Strip ratio 4.71 7.55 - 4.40 4.02 5.87 10.00
Average
gold grade
(grams/
tonne) 2.09 2.13 - 2.01 2.02 1.99 1.91
Underground
mining
Tonnes of
ore mined 140,836 122,434 57,041 36,005 36,265 11,525 51,719
Average
gold grade
(grams/
tonne) 4.81 4.15 5.80 3.99 4.00 4.84 5.92
Tonnes
increase
(decrease)
in stockpile 114,671 192,578 (172,188) 3,979 186,409 96,471 59,454
Tonnes
processed
Tonnes of
ore milled 875,833 694,090 229,229 233,510 222,175 190,919 221,063
Tonnes of
ore milled
per day 2,400 2,306 2,492 2,538 2,441 2,121 2,402
Average
mill head
grade
(grams/
tonne) 2.60 3.00 2.51 2.66 2.65 2.49 3.00
Average
gold
recovery
rate (%) 96% 95% 96% 96% 97% 95% 96%
Produced
gold
(ounces) 69,705 63,884 17,785 19,054 18,362 14,504 20,334
Sold
gold at
spot price
(ounces) 64,597 58,651 16,434 16,302 17,324 14,537 19,491
Gold at
fixed
price
(ounces) 5,891 4,353 1,015 1,640 1,378 1,858 1,148
Average
realized
gold price
(per
ounce) $1,108 $1,202 $1,059 $1,089 $1,143 $1,137 $1,157
Total cash
costs (per
gold
ounce) $850 $837 $834 $780 $762 $1,077 $799
All-in
sustaining
costs (per
ounce) $1,163 $1,428 $1,104 $1,000 $1,071 $1,552 $1,374
Revenue
($000) $78,112 $75,748 $18,444 $19,559 $21,392 $18,670 $23,882
Earnings
(loss) from
mine
operations
(000) ($3,011) $3,468 ($1,075) ($354) $1,563 ($3,145) $12,060
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(In thousands of U.S. dollars, except per share)
Three months ended Dec. 31, 12 months ended Dec. 31,
2015 2014 2015 2014
Revenue $71,404 $71,171 $291,304 $274,612
Operating (expenses) (42,555) (46,709) (163,593) (159,280)
Depreciation and
depletion (18,749) (19,128) (77,238) (62,669)
Total cost of sales (61,304) (65,837) (240,831) (221,949)
Earnings from mine
operations 10,100 5,334 50,473 52,663
Mining interest
impairment charge (104,000) (110,000) (104,000) (110,000)
Goodwill impairment
charge - - - (98,961)
Exploration (expenses) (599) (577) (1,690) (1,816)
General and
administrative
(expenses) (8,479) (7,107) (29,890) (36,806)
(Loss) from operations (102,978) (112,350) (85,107) (194,920)
Transaction costs
and other (expenses) (510) (319) (4,416) (9,203)
Finance (expense) (3,654) (2,352) (11,514) (6,970)
Mark-to-market gain
on convertible
debentures - - 13,500 -
Other income 3,283 2,569 1,024 4,436
Earnings (loss)
before income taxes (103,859) (112,452) (86,513) (206,657)
Income tax (expense)
recovery 5,512 (9,314) (20,397) (17,727)
Net (loss) for the
period ($98,347) ($121,766) ($106,910) ($224,384)
Other comprehensive
income (loss), net
of tax items that
may be subsequently
reclassified to
profit or loss
Exchange
differences on
translation of
foreign
operations, net
of tax of nil 860 (61) (5) (61)
Unrealized gain
(loss) on
investment in
Fortune Bay, net
of tax of nil - (456) 60 (456)
Reclassification
of unrealized
loss on
investment in
Fortune Bay to
impairment, net
of tax of nil - - 456 -
Total comprehensive
(loss) for the period ($97,487) ($122,283) ($106,399) ($224,901)
Basic (loss) per share ($0.60) ($0.80) ($0.66) ($1.48)
Diluted (loss) per
share ($0.60) ($0.80) ($0.66) ($1.48)
We seek Safe Harbor.
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