This item is part of Stockwatch's value added news feed and is only available to Stockwatch subscribers.Here is a sample of this item:Gold Wheaton loses $3.1-million (U.S.) in Q3 2009 2009-11-10 23:19 ET - News Release Mr. David Cohen reports GOLD WHEATON REPORTS FINANCIAL RESULTS FOR THIRD QUARTER 2009
Gold Wheaton Gold Corp. has released its financial results of operations for the three and nine months ended Sept. 30, 2009 (unless otherwise indicated, all dollar amounts are expressed in United States dollars).
2009 third quarter highlights:
-
Revenue from the sale of precious metals for the three months ended
Sept. 30, 2009, was $6.8-million, $2.2-million lower as
compared with the three months ended Sept. 30, 2008,
primarily as a result of lower deliveries from FNX Mining Company Ltd.
due to the Vale Inco strike impact.
- Operating cash flow was $5.8-million, $6.5-million higher than third quarter 2008,
as a result of the timing of payments associated with deliveries in third quarter
2008 and the additional First Uranium Corporation production.
- Ounces sold to the company totalled 6,535 gold equivalent ounces in third quarter 2009. FNX
sold approximately 937 gold equivalent ounces to Gold Wheaton after the
settlement of prior period sales compared with 10,804 gold equivalent
ounces in third quarter 2008. First Uranium sold approximately 5,598 ounces to Gold
Wheaton. There were no sales from First Uranium in third quarter 2008 as the
contract was entered into in December, 2008.
- Net loss for third quarter 2009 was $3.1-million (loss of nil per share) compared with a net loss of $2.3-million (loss of nil per share) for third quarter 2008. The
higher loss in third quarter 2009 compared with third quarter 2008 was mainly due to delayed and
lower deliveries from FNX as a result of Vale Inco's strike; higher
foreign exchange losses due to a strengthening of the Canadian dollar
and partially offset by sale of gold deliveries from First Uranium in third quarter
2009; and higher gold, platinum and palladium prices compared with third quarter 2008.
- At Sept. 30, 2009, the company had cash and short-term investments
of $86.6-million and working capital of $45.1-million compared with $7.4
-million and $14.5-million, respectively, on Dec. 31, 2008. Working
capital at Sept. 30, 2009, includes accounts receivable of $9.3
-million from the sale of precious metals arising from timing of
settlements from offtake agreements. Accounts payable includes $3.5-million related to the cash-per-ounce cost of the precious metals
purchased.
- Subsequent to Sept. 30, 2009, the company signed a definitive
agreement with Ezulwini Mining Company (Pty.) Limited, a
subsidiary of First Uranium. Gold Wheaton will purchase 7 per cent of the life-of-mine gold production from First Uranium's Ezulwini mine in South
Africa, with minimum gold purchases of 16,500 and 19,500 ounces for 2010
and 2011, respectively. Total upfront payment will be $50-million. In
addition, Gold Wheaton will pay the lesser of $400 per ounce of payable
gold delivered and sold to Gold Wheaton, subject to adjustment, and the
then prevailing market price. Closing of the transaction is expected to
be late November, 2009, subject to receipt of all required governmental,
regulatory and stock exchange approvals and third party consents.
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