Business
Gabriel Resources Ltd. - Year End 2006 Report
Gabriel Resources Ltd. - Year End 2006 Report.
About this update from Gabriel Resources Ltd.
[{"type":"text","content":"\n\n\n\nTSX Trading Symbol: GBU\n\n\nTORONTO, March 6 /CNW/ -\n\n\nHighlights\n\nFinancial performance\n\n- Fourth quarter net loss was $5.1 million, or $0.03 per share. Full\n year loss was $12.6 million, or $0.07 per share.\n- Fourth quarter expenditures totaled $38.5 million on our two\n development projects and $60.0 million for the full year.\n\nLiquidity and capital resources\n\n- Working capital at December 31, 2006 totaled $79.9 million.\n- An additional $20.6 million of cash is expected to be added to\n working capital with the expiry of 7.5 million warrants, which are\n currently in the money, at the end of first quarter 2007.\n- The Company expects to spend US$190 million of the US$638 million\n definitive feasibility study budget estimate in 2007 - based on fall\n 2007 construction permit receipt.\n- Project financing discussions are well underway, with a goal of\n completing final term sheets for both senior and subordinated debt in\n parallel with our EIA approval expected in summer 2007.\n\nExpected Financing Plan\n\n- The estimated capital cost to complete the development of Rosia\n Montana project - including interest, financing and corporate costs\n is approximately US$750 million.\n- The Company anticipates financing these costs with approximately\n 20 percent equity - US$150 million, of which US$80 million was raised\n in the third quarter of 2006 - and 80 percent debt, which could\n include senior and mezzanine or high yield debt.\n- The estimated capital cost to complete does not include a provision\n for (i) a cost overrun facility, (ii) a financial guarantee\n (reclamation deposit), or (iii) hedging program if required. These\n additional items could add $100 million to the financing plan.\n\nRosia Montana Project Development\n\nEnvironmental Impact Assessment\n\n- On January 31, 2007, the Company received the official list of\n questions gathered during the public consultation process and judged\n by the Romanian Government to require a response.\n- In total, approximately 5,600 questions and 95 statements were\n included in the official list of questions.\n- In preparation, the Company, the project design team and the EIA team\n have drafted answers for the anticipated questions from the 16 public\n meetings, the questions provided by the Hungarian Ministry of\n Environment, as well as other third party...