Business
Gabriel Resources Year End 2005 Report
Gabriel Resources Year End 2005 Report.
About this update from Gabriel Resources Ltd.
[{"type":"text","content":"\n\n\n\n\nTORONTO, March 7 /CNW/ -\n\nHighlights\n----------\n\n - 2005 net loss was $8.5 million, or 5 cents per share, compared to\n a net loss of $8.6 million, or 6 cents per share in 2004\n\n - Monthly expenditures averaged $1.8 million, or $5.4 million in\n total spending per quarter, with a total of $16.9 million invested\n in our two development projects during 2005\n\n - Working capital at December 31, 2005 totaled $52.9 million -\n including $30 million from the exercise of warrants during the\n fourth quarter\n\n - Forecast spending through third quarter 2006 to average $2.5\n million per month\n\n - Updated feasibility study for Rosia Montana:\n\n - Estimated capital cost to construct project of US$638\n million\n - Annual production of approximately 635,000 ounces of gold at\n total cash costs of US$181 per ounce over the first five\n years of production\n - Annual production of approximately 500,000 ounces of gold at\n total cash costs of US$237 per ounce for life of mine\n - At US$500 per ounce gold - 3.8 year payback and 18% internal\n rate of return\n\n - EIA on track for completion at end of First Quarter 2006\n\n - On track to receive construction permit in second half 2006, with\n first gold pour expected in spring 2009\n\nLoss for the period\n\nFor the year ended December 31, 2005, we incurred a loss of $8.5 million,\nor 5 cents per share, compared to a loss of $8.6 million, or 6 cents per share\nin 2004. The marginally lower loss in 2005 reflects an increase in interest\nincome due to higher cash balances during 2005, while lower project financing\ncosts were more than offset by reorganization severance costs, settlement of a\nlawsuit and an increase in non-cash charges related to stock option\ncompensation.\n\"We are on track,\" said Alan R. Hill, President and Chief Executive\nOfficer. \"We've made significant strides to improve our communications program\n- meeting with key stakeholders in the village of Rosia Montana and the\nsurrounding area, as well as Bucharest, combined with a nationwide media\ncampaign. In just a few weeks, we will complete our EIA, giving all\nstakeholders a comprehensive view of how we will develop Rosia Montana and the\nspecific benefits - economic, environmental, cultural and social - that the\nProject will bring Romania.\"\n\nDevelopment activities\n\nWe invested $16.9 million ...