MONTREAL, Nov. 14 /CNW Telbec/ - Canadian Royalties Inc. (TSX:CZZ) ("Canadian Royalties" or the "Corporation") announces that it filed its financial results on November 14, 2008, for the third quarter ended September 30, 2008.
Financial Results Quarter Ended September 30, 2008
For the nine month period ended September 30, 2008, the Corporation is reporting net loss of $12.8 million or $0.13 per share compared to a loss of $0.9 million or $0.01 per share for the same period last year.
The Corporation has made satisfactory progress on the implementation of the Asset Conservation Plan ("ACP") announced by way of press release on August 5, 2008. Critical construction activities have been completed and beginning of October all construction personnel were demobilized from the Nunavik Nickel Project site. All engineering designs and detailed technical plans have been inventoried and archived to enable an orderly project re-start when more favourable market conditions return. Non essential equipment has been backhauled from the Project site and special care and maintenance measures taken to protect equipment and material left on site. Permanent presence will be maintained on site. The implementation of the ACP and temporary suspension of the Project development has led to the departure of many of the Corporation's senior executives, employees and consultants.
The Corporation's 2008 field exploration campaign was completed and the analysis of the results are progressing. Results of the assays will be released gradually as they are received from the laboratory.
Readers are directed to the management's discussion and analysis of the financial condition and results of operations for the nine-month period ended September 30, 2008 for additional information.
The following tables provide key financial highlights for the period.
-------------------------------------------------------------------------
Income Statement Highlights
(in thousands of Cdn dollars, except per share amounts)
Three Months Nine Months
2008 2007 2008 2007
-------- -------- -------- --------
Net earnings (loss) (8,831) 874 (12,778) (901)
Net loss per share (0.09) 0.01 (0.13) (0.01)
-------------------------------------------------------------------------
The Net loss for the nine months reflects the write off of future tax
asset and increased professional fees.
-------------------------------------------------------------------------
Balance Sheet Highlights
(in thousands of Cdn dollars)
September 30 December 31
2008 2007
-------------- -------------
Cash and cash equivalents 41,334 37,008
Working Capital 44,807 43,138
Total Assets 300,230 163,301
Long-term debt 93,776 7,776
Shareholders' Equity 182,880 141,290
-------------------------------------------------------------------------
Forward-looking Statement
This news release contains certain forward-looking statements or forward looking-information. These forward looking statements are subject to a variety of risks and uncertainties beyond the Corporation's ability to control or predict which could cause actual events or results to differ materially from those anticipated in such forward looking statements. Such risks and uncertainties are disclosed under the heading "Risk Factors" in the Corporation's Annual Information Form for the year ended December 31, 2007 and dated March 31, 2008. Further, forward-looking information is in addition based on various assumptions, including, without limitation, the expectation and beliefs of management, the assumed long term price of nickel, that the Nunavik Nickel Project is a technical viable and economic operation, that it can be successfully completed by the Corporation, that the Corporation will receive the required permits and access to surface rights, and that the Corporation can access financing, appropriate equipment, and sufficient labour. Should one or more of these risks and uncertainties materialize, or should the underlying assumption prove incorrect or different, actual results may vary materially from those described in the forward-looking statements. All forward looking statements speak only as of the date of this news release and the Corporation does not undertake any obligation to update or publicly disclose any revisions to such forward-looking statements to reflect events, circumstances or changes in expectations after the date hereof, except as required by law. Accordingly, readers should not place undue reliance on forward-looking statements.
For additional information please visit our website at www.canadianroyalties.com.
%SEDAR: 00011318E