Corporate - Executed, along with subsidiaries GeoNova and MSV Resources Inc. ("MSV"), its obligations pursuant to the Plans of Arrangement with creditors and exited from protection under the Companies' Creditors Arrangement Act ("CCAA"). An extension of CCAA protection was granted by the Court for subsidiary Meston Resources. - Sold the Eastmain Mine property for $4.1 million pursuant to the Company's obligations under the Plan of Arrangement. - Sold the Chevrier property for $1.5 million. - Raised $16.1 million in convertible debt and equity, including: - $7.0 million in flow-through shares and $4.0 million in guaranteed convertible debentures to complete development of the high-grade Corner Bay copper deposit; - $3.0 million in flow-through shares for its exploration program; - $2.1 million in convertible demand debenture, pursuant to MSV's obligations under the Plan of Arrangement. Mining and Development - Awarded the contract for Corner Bay development to CMAC-Thyssen, who began mine development in May. - Began development and shipment of Corner Bay ore to the Copper Rand Mill in early March 2008. - Implemented the Alimak mining system to increase ore production and improve ground conditions at the Copper Rand Mine. - Increased throughput at the Copper Rand Mill by 69% over 2006 to 261,650 tons of ore. - Received the final permits from the Quebec Ministry of Environment to allow mining of the Merrill Pit in line with the Company's strategy of developing satellite deposits to provide additional feed for the Copper Rand Mill. - Began production at the Merrill Pit in October 2007. - Placed the Joe Mann Mine on care and maintenance in September 2007 and in discussions as to its potential sale. - Increased total metal production over 2006 as follows: copper by 34%, silver by 18%. - Commissioned the paste backfill plant and completed the back filling of mined-out areas to stabilize ground conditions at the Copper Rand Mine.
"Fiscal 2007 was a very important year for Campbell, during which we
implemented a number of changes in our operations and brought new assets on
stream, all of which created a solid base for future growth," said
Operating Performance Copper Rand Mine
Ore production at the Copper Rand Mine increased by 69% during 2007 to 129,161 tons grading 1.69% copper, 0.046 oz/t gold and 0.144 oz/t silver. This compares with 76,250 tons of ore produced in 2006, grading 2.19% copper, 0.058 oz/t gold and 0.168 oz/t silver. The increase in tonnage mined during 2007 resulted primarily from the implementation of the Alimak mining system during the year which allowed multiple mining faces to be in production simultaneously, the deployment of additional crews to develop and mine those additional faces, and improved access resulting from development of a new ramp.
As a result, copper, gold and silver production increased during 2007, rising to 4,218,709 pounds of copper, 4,796 ounces of gold and 11,364 ounces of silver, compared with 3,275,246 pounds of copper, 3,716 ounces of gold and 8,822 ounces of silver in 2006.
The
Merrill Pit
The Merrill Pit contributed a total of 65,197 tons of ore grading 0.39% copper, 0.010 oz/ton gold and 0.096 oz/ton silver during the fourth quarter of 2007. Recoveries for the year were 91.44% for copper, 69.34% for gold and 61.20% for silver.
Financial Results
The Copper Rand Mine began commercial production on
For 2007, Campbell recorded a net loss of
Gross metal sales totalled
- The 17% reduction in ore tonnage combined with a 13% reduction in gold grade from 0.207 oz/t in 2006 to 0.181 oz/t at Joe Mann in 2007. - A 23% reduction in average copper grade at Copper Rand from 2.19% in 2006 to 1.69% in 2007. - A decrease in the average selling price per pound of copper, from $3.72 ($3.29 US) in 2006 to $3.35 ($3.37 US) in 2007. - The strength of the Canadian dollar vis-a-vis the US dollar had a major impact on revenue.
In 2007, production costs increased by
Outlook Copper Rand Mine
The Company continues to make good progress at the Copper Rand Mine. The introduction of the Alimak mining method as well as other initiatives to diversify the sources of ore at the mine have resulted in a constant increase in production output in recent months. In the second half of 2007, output reached 82,462 tons, compared to 76,250 tons for all of 2006 and 46,699 tons in the first half of 2007. Total production for the first two months of 2008 has already reached 33,000 tons with the addition of two new production areas, which brings the total number of production areas to three. A fourth zone should be in production in the second quarter of 2008 with two new zones available for the end of 2008 and in the first half of 2009. The Company should be able to maintain increased production in the coming months.
Corner Bay
In February, 2008, the Company announced that it had successfully mitigated groundwater inflow at Corner Bay, and that shipments to the Copper Rand Mill of development ore from the 55 and 75 metre levels had begun. Underground services had also been completed, including the escapeway and vent raise. Development to the 100 metre level continues to progress well, and mining of the initial 42,000 tonne bulk sample with an average grade of 3.7% copper is expected to begin in the second quarter.
At a 3% Cu cut-off, Corner Bay has measured and indicated resources of 446,000 tonnes averaging 5.58% Cu (181,000 @ 5.07% Cu measured and 265,000 @ 5.93% Cu indicated); inferred resources total 1,441,000 tonnes averaging 6.76% Cu.
Merrill Pit
Production at the Merrill Pit began in the fourth quarter of 2007. To date, 108,920 tons of ore, grading an average of 0.39% copper and 0.009 ounces of gold per ton, have been milled. A stockpile of 65,000 tons of ore has already been blasted and is available at the Pit. Production should continue throughout 2008 while targeting zones to increase milled grades to 0.50% copper.
In addition, the Company continues to evaluate opportunities to acquire and bring into production additional assets in the prolific Chibougamau mining camp to further its plan of maximizing throughput at the Copper Rand Mill.
About Campbell Resources Limited
Campbell Resources Limited is a mining company focusing mainly in the
Chibougamau region of
Certain information contained in this release contains "Forward-Looking
Statements" within the meaning of the Private Securities Litigation Reform Act
of 1995 and is subject to certain risks and uncertainties, including those
"Risk Factors" set forth in the Campbell's current Annual Report on Form 20F
for the year ended
Consolidated statements of operations years ended December 31 (expressed in thousands of Canadian dollars except per share amounts) ------------------------------------------------------------------------- ------------------------------------------------------------------------- 2007 2006 2005 ------------------------------------------------------------------------- $ $ $ Gross metal sales 26,792 11,925 19,915 Treatment charges 3,749 1,006 1,641 ------------------------------------------------------------------------- Net metal sales 23,043 10,919 18,274 ------------------------------------------------------------------------- Expenses Operating 38,260 13,897 16,346 Amortization of property, plant and equipment 3,042 2,743 4,675 Write-down of properties - 25,001 18,512 General administration 3,473 2,945 2,716 Stock-based compensation expense 336 496 - CCAA and reorganization costs 779 6,511 972 Exploration - (159) 854 Care and maintenance 175 146 345 ------------------------------------------------------------------------- 46,065 51,580 44,420 ------------------------------------------------------------------------- Loss before the following items 23,022 40,661 26,146 Interest on short-term loan 312 501 392 Interest and financial expenses on long-term debt 1,770 692 770 Interest income (151) (173) (900) Amortization of deferred charges related to the sale of the royalty - - 1,851 ------------------------------------------------------------------------- Loss from operations 24,953 41,681 28,259 ------------------------------------------------------------------------- Other (income) expense Foreign exchange (gain) loss (1,217) 31 (334) Other income (4,748) (552) (3,577) ------------------------------------------------------------------------- (5,965) (521) (3,911) ------------------------------------------------------------------------- Loss before taxes 18,988 41,160 24,348 Income and mining tax expense - 35 82 ------------------------------------------------------------------------- Net loss 18,988 41,195 24,430 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Weighted average number of common shares (000) 394,131 150,562 107,925 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Basic and fully diluted loss per share 0.05 0.27 0.23 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Consolidated statements of comprehensive loss, contributed surplus and deficit years ended December 31 (expressed in thousands of Canadian dollars) ------------------------------------------------------------------------- ------------------------------------------------------------------------- 2007 2006 2005 ------------------------------------------------------------------------- $ $ $ Comprehensive loss Net loss 18,988 41,195 24,430 Other comprehensive loss, net of tax: Unrealized losses on available-for-sale investments arising during the period 199 - - Reclassification adjustment for gains and losses included in net income (190) - - ------------------------------------------------------------------------- Other comprehensive loss 9 - - ------------------------------------------------------------------------- Comprehensive loss 18,997 41,195 24,430 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Contributed surplus Balance, beginning of year 1,996 1,404 1,101 Warrants and options expired and cancelled during the year 2,113 132 303 Conversion rights expired - 460 - ------------------------------------------------------------------------- Balance, end of year 4,109 1,996 1,404 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Deficit Balance, beginning of year, as previously reported 84,825 43,630 19,200 Financial instruments - Recognition and measurement 227 - - ------------------------------------------------------------------------- Restated balance, beginning of year 85,052 43,630 19,200 Net loss 18,988 41,195 24,430 ------------------------------------------------------------------------- Balance, end of year 104,040 84,825 43,630 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Consolidated balance sheets as at December 31 (expressed in thousands of Canadian dollars) ------------------------------------------------------------------------- ------------------------------------------------------------------------- 2007 2006 ------------------------------------------------------------------------- $ $ Assets Current assets Cash 474 1,964 Restricted cash 1,113 2,784 Short-term investments 33 792 Restricted deposits and exchange agreements - 50,000 Receivables 3,066 1,591 Settlements receivable 739 5,413 Production inventories 1,218 401 Supply inventories 2,882 3,844 Prepaids 408 1,194 ------------------------------------------------------------------------- 9,933 67,983 Amount receivable from Copper Rand/Portage Restoration Fiduciary Trust 3,028 2,826 Restricted cash 1,158 1,158 Future income tax assets 1,317 1,484 Property, plant and equipment 45,017 37,135 Accrued benefit asset 4,897 4,427 Deferred charges and other assets - 129 ------------------------------------------------------------------------- 65,350 115,142 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Liabilities Current liabilities Short-term loans 1,996 3,891 Accounts payable 15,411 13,973 Accrued liabilities 5,954 5,475 Prepayments for concentrate inventory shipped 965 - Current portion of long-term debt 18,337 65,287 ------------------------------------------------------------------------- 42,663 88,626 Asset retirement obligations 7,396 7,804 Long-term debt 2,688 70 Future income and mining tax liabilities 6,472 6,636 ------------------------------------------------------------------------- 59,219 103,136 ------------------------------------------------------------------------- Shareholders' equity Capital stock 96,639 85,572 Warrants, stock options and conversion rights 9,432 9,263 Contributed surplus 4,109 1,996 Deficit (104,040) (84,825) Accumulated other comprehensive loss (9) - ------------------------------------------------------------------------- (104,049) (84,825) ------------------------------------------------------------------------- 6,131 12,006 ------------------------------------------------------------------------- 65,350 115,142 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Consolidated statements of cash flows years ended December 31 (expressed in thousands of Canadian dollars) ------------------------------------------------------------------------- ------------------------------------------------------------------------- 2007 2006 2005 ------------------------------------------------------------------------- $ $ $ Operating activities Net loss (18,988) (41,195) (24,430) Adjustments to reconcile net loss to net cash used for operating activities Amortization 3,042 2,743 4,675 Write-down of properties - 25,001 18,512 Deferred royalty amortization - - (2,860) Gain on sale of property, plant and equipment (4,714) (1) (4) Gain on repurchase of royalty - - (1,571) Loss (gain) on sale of short-term investments 384 (262) - Asset retirement accretion expense, net of the share assumed by the Restoration Fiduciary Trust 489 252 258 Amortization of deferred charges and other assets 129 442 2,248 Amortization of conversion right on long-term debt - 191 202 Accretion of long-term debt 491 - - Stock-based compensation expense 336 496 - Deferred interest accrued on long-term debt 1,089 53 51 Excess of amount paid over pension plan costs (49) (42) (354) Share purchase plan - - 12 Shares and warrants issued for payment of services 295 4,476 - Other (102) (196) (23) Changes in non-cash operating working capital items 12,593 2,263 2,536 ------------------------------------------------------------------------- Cash used for operating activities (5,005) (5,779) (748) ------------------------------------------------------------------------- Financing activities (Decrease) increase in short-term loan (1,896) (2,715) 3,920 Increase (decrease) in long-term debt 6,582 (3 944) (8) Issuance of capital stock 11,279 16,435 25 Future mining taxes 3 1,748 51 Share issue costs (752) (1,478) (3) Warrants issued as part of placements - 2,262 - ------------------------------------------------------------------------- Cash provided by financing activities 15,216 12,308 3,985 ------------------------------------------------------------------------- Investing activities Restricted cash (4,810) (2,784) - Acquisition of short-term investments (20) (12) - Investment in shares - 515 - Increase in property, plant and equipment (13,226) (4,674) (2,696) Proceeds on sale of short-term investments 1,985 363 - Proceeds on sale of property, plant and equipment 4,370 515 40 Amount paid in excess of the pension plan costs capitalized to property, plant and equipment - (260) - ------------------------------------------------------------------------- Cash used in investing activities (11,701) (6,337) (2,656) ------------------------------------------------------------------------- (Decrease) increase in cash (1,490) 192 581 Cash, beginning of year 1,964 1,772 1,191 ------------------------------------------------------------------------- Cash, end of year 474 1,964 1,772 ------------------------------------------------------------------------- -------------------------------------------------------------------------
SOURCE CAMPBELL RESOURCES INC.