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Congrats to Cl001 for winning and to Bobwins for making it a race. Good on both of you.
JFF7
CFX-UN.TO
any thought that there might be a one time special dividend here?
JFF7
SGR.TO Drill results - 12 ounces per ton over 3 meters
Production starting to increase qtr over qtr. May be time to accumulate soon.
I have taken a small position for a trade to see if this dog can still hunt. If any other gold company put out drill results like this the share price would be up at least 10%.
JFF7
http://www.stockhouse.com/pfolio.aspx?user=sh
mmt.v
I bought some more at .58. I hope that`s the last chance I get to buy at those prices.
JFF7
EE.TO $1.51 Cdn +.09 +6.34%
Moving on yesterday's news. Another Bobwins pick. He does it again. Admirable DD.
JFF7
OGC.to
that what I keep thinking all the way down.
even an up day in gold is not helping. I think I will wait until it starts it's way up before I take a larger position. You would think it shouldn't be too much longer.
JFF7
OGC.to
and if Dipidio was rolled into a seperate company where do you think they would have got financing for the mine?
I think people are just getting very restless with the price of OGC languishing for so long. Frustrations are building up.
Have a little more patience. I think the next rise in the price of gold will once again set OGC free to run up.
JFF7
with so many pay zones, I don't see how they can do all that testing and calculations in a short time.
I think your right, the strategy will change. These drill result were a game changer. From great to excellent potential.
JFF7
mmt.v
and also don't forget to double the time estimate.
I think 1.50 end of next year is doable realistically but would not be surprised if it made it there sooner.
JFF7
I'm there with you. Don't like the flow thru shares, the cancellation of the spin off, and no mention of the snow lake financing.
the flowthru at 24 cents is a decent price but should not have been necessary.
it sounds like the flowthru has nothing to do with the snow lake mine otherwise won't they have entioned that?
JFF7
amc.to
This is definitely why the price is drifting lower. Until the financing is complete the price will remain weak. This is a buying opportunity in my eyes. And a cheap one at that.
I see this unfolding like PTQ.TO but maybe not to the same heights.
JFF7
OK maybe next year. i go every year now. Never a problem finding someting to do in Vegas.
Have fun,
JFF7
MTO.v
I have been keeping an eye on them but they have sucha history of poor performance and dilution that I am wary. No longer a buy and hold for me.
It hard to ignore the low valuation though. At these prices it may be worth a bottom bounce trade. Any little positive news would send them up 10-15%. Big news 30-40%.
JFF7
Yeah here is my thinking, lol.
They want poeple to feel like they have money so that they will spend and that will get the economy going again. They think that haviing a high stock market will make people feel they have money to spend so they won't let the markets tank.
Very simplistric and unconventional thinking but it lets me sleep at night.
JFF7
Yup I will be there. Leaving on Sunday for the week.
if your interested in getting a beer to talk stocks, let me know.
JFF7
EE.to
Bobwins is hard to ignore. I'm in at 1.27 for 15500 shares.
Nice chart on this one already.
JFF7
I am in now also. Traded in and out from 15 cents but in for the hold now that more details are out. 50 million market cap for a gold producer with two mills and mulitiple mines just seems way too good to be left alone for long.
The public will find this one eventually. Patience is usually rewarded.
JFF7
FRC.tp CANYON REPORTS RECORD Q3 2010 RESULTS AND PROVIDES CAPITAL EXPENDITURE GUIDANCE
Looks like another big up day for this one.. Hats off to Bobwins for finding it. The master strikes again.
CALGARY, Nov. 8, 2010 (Canada NewsWire via COMTEX News Network) --
Canyon Services Group Inc. ("Canyon") today announced its third quarter 2010 results. The following should be read in conjunction with the Consolidated Financial Statements and Notes of Canyon Services Group Inc. ("Canyon" or the "Company") as at and for the three and nine months ending September 30, 2010 and September 30, 2009, and should also be read in conjunction with the Audited Consolidated Financial Statements for the years ended December 31, 2009 and 2008. Additional information relating to the Company, including the Company's Annual Information Form for the year ended December 31, 2009, is available on SEDAR at www.sedar.com.
OVERVIEW OF THIRD QUARTER 2010
000's except per share and job Three months ended Nine months ended
amounts September 30 September 30
2010 2009 2010 2009
Consolidated revenues $66,461 $4,873 $130,738 $32,960
Operating income (loss)((1)) $34,078 $(775) $57,404 $3,633
Net income (loss) $17,373 $(4,738) $29,730 $(9,183)
Per share-basic $0.29 $(0.21) $0.54 $(0.41)
Per share-diluted $0.28 $(0.21) $0.52 $(0.41)
EBITDA before stock option $30,025 $(2,134) $49,426 $(1,120)
expense ((1))
Capital expenditures $15,931 $243 $55,503 $581
Long term debt $28 $16,308 $28 $16,308
Working capital $48,545 $1,675 $48,545 $1,675
Total jobs completed ((2)) 574 90 1,543 689
Consolidated average revenue per $116,130 $55,268 $84,951 $47,956
job ((2))
Note (1): See Non-GAAP Measures
Note (2): Includes all jobs from each service line, specifically hydraulic fracturing; coil tubing; nitrogen fracturing; acidizing and remedial cementing.
In 2010, activity levels in the pressure pumping industry across the Western Canadian Sedimentary Basin ("WCSB") have undergone a remarkable turnaround over the unprecedented collapse of activity that occurred in 2009. Canyon achieved record total revenues of $66.5 million, almost fourteen times the revenue of $4.9 million recorded in Q3 2009. Canyon achieved positive EBITDA (before stock option expense) in the quarter totaling $30.0 million, compared to negative $2.1 million in Q3 2009. Average consolidated revenue per job also increased significantly to $116,130 in Q3 2010 from $55,268 in Q3 2009 mainly due to Canyon completing larger, higher-priced jobs.
Underpinning the industry recovery, which began in late 2009, are technological improvements and strong oil prices leading to increased activity in emerging and established oil plays such as the Cardium and Bakken. In addition, natural gas resource plays in Northeast British Columbia and Northwest Alberta such as the Montney and Horn River continue to be very active. Well licenses issued in Q3 2010 were higher by 66% over the comparable quarter of 2009, while for the year-to-date, well licenses issued were 46% higher than in the first nine months of 2009. Drilling rig utilization in Q3 2010 averaged about 43%, more than twice the depressed levels in Q3 2009, and has continued to climb to over 50% in October 2010. The main factors leading to the industry recovery are further discussed as follows:
-- Technological improvements have led to a major shift towards
drilling wells with lengthy horizontal sections, which has led
to a dramatic increase in fracturing intensity as pressure
pumpers apply multi-staged fracture treatments to the
horizontal sections of the well bore. Therefore, E&P companies
now require significantly more Hydraulic Horsepower ("HHP")
capacity to complete the wells.
-- The ongoing strength in oil prices has resulted in a dramatic
expansion in oil and liquids-rich natural gas drilling
activity. Oil-directed activity levels alone now account for
approximately 50% of WCSB activity levels, up from about 40% in
2009, with this increasing trend expected to continue into Q4
2010 and 2011.
In October 2009, Canyon initiated a major capital expansion program to meet the then anticipated growing demand by E&P companies for pressure pumping services. This capital program was funded from the net proceeds of a $50 million equity issue in October 2009 and a $47 million equity issue in April 2010. As a result, Canyon's pressure pumping fleet has grown from 25,500 HHP to 90,500 HHP as we enter Q4, 2010, with a further 35,000 HHP to be added by January 2011, which will bring the total fleet capacity to 125,500 HHP. This rapid growth in Canyon's pumping capacity has allowed the Company to focus on the deeper more complex areas of the WCSB and commit to larger jobs and longer-term projects. Canyon has also benefitted from an improved pricing environment in 2010 compared to historically low prices experienced throughout 2009.
Operating and Financial Highlights
The operating and financial highlights for the three and nine months ended September 30, 2010 may be summarized as follows:
-- Canyon's 2010 capital build program is in its final stages,
pursuant to which the Company will have the newest hydraulic
pressure pumping fleet in the industry with a total capacity of
125,500 HHP. In Q3, Canyon's capacity averaged 75,500 HHP and
has risen to 90,500 HHP as we enter Q4 2010. A further 35,000
HHP is scheduled for delivery by January 2011.
-- In Q3 2010, despite wet weather that dampened drilling
activity, Canyon's equipment fleet was fully utilized resulting
in consolidated revenues increasing almost fourteen-fold to
$66.5 million from $4.9 million in Q3 2009. For the nine months
ended September 30, 2010, consolidated revenues increased to
$130.7 million almost four times the $33.0 million of revenues
earned in the comparable 2009 period.
-- EBITDA before stock based compensation expense (see Non-GAAP
Measures) improved dramatically to $30.0 million in Q3 2010
from a negative $2.1 million in Q3 2009, mainly due to a
drastic change in Canyon's pressure pumping capacity, higher
industry activity, a focus on completing larger jobs and
improved pricing. For the nine months ended September 30, 2010,
EBITDA before stock based compensation expense increased to
$49.4 million from negative $1.1 million in the comparable 2009
period.
-- Net income was recorded at $17.4 million in Q3 2010, compared
to a net loss of ($4.7) million in Q3 2009, while for the nine
months ended September 30, 2010, net income improved to $29.7
million from a net loss of ($9.2) million in the 2009
comparable period.
-- Jobs completed in the quarter increased significantly to 574
from 90 jobs completed in Q3 2009, while for the nine months
ended September 30, 2010, jobs completed increased by 124% to
1,543 from 689 in the comparable 2009 period.
-- Average consolidated revenue per job increased by 57% to
$116,130 in Q3 2010, from $73,871 in the previous quarter and
by 110% from $55,268 in Q3 2009. This growth is due to Canyon's
continuing success in expanding its market share in the deeper
segments of the basin resulting in larger, higher priced jobs,
and improved pricing. For the nine months ended September 30,
2010, average consolidated revenues per job increased by 77% to
$84,951 from $47,956 in the comparable 2009 period.
-- Year-to-date 2010, approximately 80% of the consolidated total
revenue is generated from operations in the deeper, more
complex areas of the WCSB including Northwest Alberta and
Northeast BC.
-- Canyon's total capital expenditures for fiscal 2010 are
estimated at $81.2 million. $15.9 million was incurred in Q3
2010 bringing total capital outlays for the nine months ended
September 30, 2010 to $55.5 million. In addition to expanding
Canyon's equipment capacity to 125,500 HHP, the capital program
will also add an operating base in Southeast Saskatchewan. This
base is expected to be operating in late November. The
remaining $25.7 million will be funded from available cash of
$25.5 million as at September 30, 2010 and funds from
operations (see Non-GAAP Measures).
-- As at September 30, 2010, the Company's available cash and
credit facilities total $61.5 million.
QUARTERLY COMPARATIVE STATEMENTS OF OPERATIONS
September 30, September 30,
Quarter Ended 2010 2009
(unaudited) (unaudited)
Revenues $66,461,415 $4,872,938
Expenses
Operating 32,383,082 5,647,894
Selling, general and administrative 4,053,775 1,359,471
Stock-based compensation expense 1,585,572 127,657
Interest on long-term debt 21,501 151,062
Other interest 1,897 26,200
Depreciation and amortization 4,275,001 2,299,031
Income (loss) before income taxes 24,140,587 (4,738,377)
Income taxes - current 5,810,670 -
Income taxes-future (reduction) 956,635 -
6,767,305 -
Net income (loss) and comprehensive income
(loss) $17,373,282 $(4,738,377)
EBITDA before stock option expense( (1)) $30,024,558 $(2,134,427)
Income (loss) per share:
Basic $0.29 $(0.21)
Diluted $0.28 $(0.21)
Note (1): See Non-GAAP Measures.
Revenues Consolidated revenues for Q3 2010 increased significantly to a record $66.5 million compared to the $4.9 million earned in Q3 2009 due to the dramatic growth of Canyon's pressure pumping equipment fleet, combined with the industry activity. Jobs completed in the current quarter increased to 574 from 90 jobs completed in Q3 2009. Average consolidated revenues per job increased to $116,130 in Q3 2010 from $73,871 in the previous quarter and from $55,268 in Q3 2009 due to Canyon's continuing success in expanding its market share in the deeper segments of the market which has led to larger, higher priced jobs, and to improved pricing.
Operating Expenses Operating expenses in Q3 2010 were $32.4 million, or 49% of revenues, compared to $5.6 million, or 116% of revenues, for the comparable quarter of 2009. The increase in operating expenses is due to the seven-fold increase in jobs completed in Q3 2010 compared to Q3 2009. In Q3 2010, the fixed component of operating costs which comprise salaries and wages for field and support staff, insurance, equipment registrations and licenses, safety training programs, laboratory, communications, and operating base costs, etc. increased by 124% over Q3 2009 as increased business activity and the additions to Canyon's equipment fleet in 2010 has necessitated additional field and support staff. Also, Q3 2009 fixed operating costs were reduced with staff reduction and wage rollbacks in response to industry conditions.
Selling, General and Administrative Expenses Selling, general and administrative expenses increased to $4.1 million in Q3 2010 from $1.4 million in Q3 2009 primarily due to the increases in sales and marketing expenses and a generally more active business environment. In Q3 2010, additional compensation has also been accrued for management and employees in accordance with the Company's annual incentive compensation arrangements. In 2009, corporate results did not warrant any additional compensation.
Stock-Based Compensation Expense Stock-based compensation expense represents the value assigned to the granting of options and incentive-based units under the Company's Share Purchase Option Plan and Stock Based Compensation Plan respectively, using the Black-Scholes model. For Q3 2010, $0.4 million (2009 - $0.2 million) was charged to expenses and included in contributed surplus in respect of these two plans. In addition, obligations for payments under the Company's Deferred Share Unit Plan are accrued as stock-based compensation expense over the vesting period. The accrued liability increases or decreases with fluctuations in the price of the Company's common shares, with a corresponding increase or decrease in the stock-based compensation expense. This expense totaled $1.2 million for Q3 2010 (Q3 2009 negative $47 thousand) and is included in accounts payable and accrued liabilities.
EBITDA (See Non-GAAP Measures) In Q3 2010, the increased utilization, the focus on completing larger, higher-priced jobs, improved pricing and the operating leverage available in a high fixed cost structure has resulted in EBITDA before stock based compensation expense of $30.0 million, significantly higher than the negative amount of $2.1 million recorded in Q3 2009. The Q3 2010 EBITDA before stock based compensation expense of $30.0 million consists of income before income taxes of $24.1 million, plus depreciation and amortization of $4.3 million, plus interest on long-term debt and other interest of $23 thousand, plus stock-based compensation expense of $1.6 million. The comparable Q3 2009 EBITDA before stock based compensation expense of negative $2.1 million consists of loss before income taxes of ($4.7) million, plus depreciation and amortization of $2.3 million, plus interest on long-term debt and other interest of $0.2 million, plus stock-based compensation expense of $0.1 million.
Interest Expense Interest on long-term debt and other interest was $23 thousand for Q3 2010, compared to $0.2 million for Q2 2009. The decrease is due to lower debt levels following repayment of $20 million in Q4 2009 from the net proceeds of the October 2009 equity financing
Depreciation Expense Depreciation expense was recorded at $4.3 million in Q3 2010, compared to the $2.3 million recorded in Q2 2009. The increase is mostly due to additional depreciation pertaining to 2010 equipment additions. Commencing with Q1 2010, Canyon reassessed the salvage value estimate for certain fracturing equipment resulting in additional depreciation expense of $0.1 million in the quarter.
Income Tax Expense At the expected combined income tax rate of 28.0%, the net income before income taxes for Q3 2010 of $24.1 million would have resulted in an expected income tax expense of $6.8 million, equaling the actual income tax. The expected income tax expense was not impacted by the effect of the future tax benefit of obligations for payments under the Company's Deferred Share Unit Plan or the effect of other non-deductible expenses and future tax rate differences.
Net Income (Loss) and Comprehensive Income (Loss) and Income (Loss) per Share Net comprehensive income totaled $17.4 million for Q3 2010, compared to net comprehensive loss of ($4.7) million in Q3 2009. The increase in net comprehensive income for Q3 2010 is due to the significant increase in Canyon's fracturing services as discussed above.
For the quarter ended September 30, 2010, basic and diluted income per share was $0.29 and $.28 respectively, compared to basic and diluted loss per share of ($0.21) recorded in Q3 2009.
2010 YEAR-TO-DATE COMPARATIVE STATEMENTS OF OPERATIONS
Year To Date September 30, 2010 September 30, 2009
(Unaudited) (Unaudited)
Revenues $130,737,828 $32,959,966
Expenses
Operating 73,333,472 29,326,472
Selling, general and 7,978,373 4,753,899
administrative
Stock-based compensation 2,928,215 721,793
expense 66,314 464,217
Interest on long-term debt
Other interest 37,742 57,138
Depreciation and amortization 9,856,895 6,888,935
Income (loss) before income 36,536,817 (9,252,488)
taxes
Income taxes - current 5,810,670 -
Income taxes-future (reduction) 996,202 (69,550)
6,806,872 (69,550)
Net income ( loss) $29,729,945 ($9,182,938)
EBITDA before stock option $49,425,983 $(1,120,405)
expense((1))
Income (Loss) per share:
Basic $0.54 ($0.41)
Diluted $0.52 ($0.41)
Note (1): See Non-GAAP Measures.
Revenues Consolidated revenues for the nine months ended September 30, 2010 increased four-fold to $130.7 million from $33.0 earned in the comparable 2009 period. Jobs completed in the nine months ended September 30, 2010 totaled 1,543, a 124% increase from the 689 jobs completed in the nine months ended September 30, 2009. Average consolidated revenues per job increased to $84,951 in the three quarters ending September 30, 2010 from $47,956 in the comparable period in 2009. The increase in revenues, jobs and average consolidated revenues per job is due to the dramatic growth of Canyon's pressure pumping equipment fleet and the much improved operating environment across the well stimulation industry, as discussed above.
Operating Expenses Operating expenses for the first nine months ended September 30, 2010 increased by 150% to $73.3 million from $29.3 million in the comparable period of 2009 mainly due to the increased job count and a corresponding higher fixed operating cost component. The 150% increase in operating costs does not match the 297% increase in revenues due to the fixed component which includes salaries and wages for field and support staff, insurance, licenses and registrations for the equipment fleet, safety, laboratory, communications, and operating base costs, etc. Fixed operating costs increased by 55% in the nine months ended September 30, 2010 over the comparable 2009 period as Canyon added staff and equipment to match the increase in activity. The 2009 period was impacted by significant cost cutting measures implemented in response to the decreased level of activity in the industry, consisting mostly of staff reductions and wage and benefit rollbacks.
Selling, General and Administrative Expenses Selling, general and administrative expenses increased to $8.0 million in the nine months ended September 30, 2010 from $4.8 million in the comparable 2009 period mostly due to additional sales and engineering staff and the reversal of wage and benefit reductions implemented in March 2009. As discussed above in the Quarterly Comparative Results of Operations, additional compensation has also been accrued for management and employees in accordance with the Company's annual incentive compensation arrangements. In 2009, corporate results did not warrant any additional compensation. Management expects that SG&A will grow at a low rate as the Company's operating activities continue to expand, as much of the back-office infrastructure necessary to support expanded operational activities is already in place.
Stock-Based Compensation Expense Stock-based compensation expense represents the value assigned to the granting of options and incentive-based units under the Company's Share Purchase Option Plan and Stock Based Compensation Plan respectively, using the Black-Scholes method. For the nine months ended September 30, 2010, $0.8 million (2009 $0.5 million) was charged to expenses and included in contributed surplus in respect of these two plans In addition obligations for payments under the Company's Deferred Share Unit Plan are accrued as stock-based compensation expense over the vesting period. Fluctuations in the price of the Company's common shares change the accrued stock-based compensation and are recognized when they occur. This expense totaled $2.2 million for the nine months ended September 30, 2010 (2009 - $0.2 million) and included in accounts payable and accrued liabilities.
EBITDA (See NON-GAAP MEASURES) For the nine months ended September 30, 2010, EBITDA before stock-based compensation expense was $49.4 million, significantly higher than the negative $1.1 million of EBITDA before stock based compensation expense recorded in the comparable 2009 period. The leading factors for the increase are higher utilization, the focus on completing larger, higher-priced jobs, improved pricing and the operating leverage available in a high fixed cost structure.
For the nine months ended September 30, 2010, EBITDA before stock based compensation expense of $49.4 million consists of income before income taxes of $36.5 million, plus depreciation and amortization of $9.9 million, plus interest on long-term debt and other interest of $0.1 million, plus stock-based compensation expense of $2.9 million. The EBITDA before stock based compensation expense for the nine months ended September 30, 2009, of negative $1.1 million consists of loss before income taxes of $(9.3) million, plus depreciation and amortization of $6.9 million, plus interest on long-term debt and other interest of $0.5 million and stock based compensation expense of $0.7 million.
Interest Expense Interest on long-term debt and other interest decreased to $0.1 million for the nine months ended September 30, 2010 compared to $0.5 million for the comparable 2009 period. The decreased interest expense is due to lower debt levels following repayment of $20 million from the net proceeds of the October 2009 equity financing.
Depreciation Expense Depreciation expense was $9.9 million for the first three quarters of 2010, up from $6.9 million recorded in the first three quarters of 2009. The increase is mostly due to additional depreciation pertaining to 2010 equipment additions. Commencing with Q1 2010, Canyon reassessed the salvage value estimate for fracturing equipment resulting in additional depreciation expense of $0.3 million in the period to September 30, 2010.
Income Tax Expense At the expected combined income tax rate of 28%, income before income taxes for the first nine months of 2010 of $36.5 million would have resulted in income tax expense of approximately $10.2 million compared to actual income tax expense of $6.8 million. The income tax expense was increased by $0.2 million as a result of the effect of stock-based compensation expense and other non-deductible expenses, reduced by $0.4 million for future tax rate differences, and reduced by $3.2 million as a result of the effect of a decrease in a future income tax valuation allowance.
Net Income (Loss) and Comprehensive Income (Loss) and Income (Loss) per Share Net income and comprehensive income totaled $29.7 million for the nine months ended September 30, 2010 compared to a net loss and comprehensive loss of ($9.2) million for the comparable period of 2009. The significant improvement in net income and comprehensive income in 2010 is primarily due to increased activity levels and revenues resulting from a significant increase in demand by E&P companies for well stimulation services as discussed above.
Basic income per share for the nine months ended September 30, 2010 was $0.54 (diluted - $0.52) compared to the basic and diluted loss per share of ($0.41) and ($0.41) in the comparable period of 2009.
2011 CAPITAL EXPENDITURE GUIDANCE
Canyon is pleased to announce a capital expenditure program of approximately $55 million for 2011 as the Company continues its strategy of expanding its operations across the Western Canadian Sedimentary Basin. The capital will be allocated among approximately 25,000 HHP, blenders, associated sand handling and storage equipment, two deep coil tubing units and miscellaneous other support equipment and facilities. Following completion of this program in the second half of 2011, the pumping capacity of the Company's fracturing equipment fleet will grow to in excess of 150,000 HHP.
FORWARD-LOOKING STATEMENTS
This document contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "guidance", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends", "budget", "strategy" and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the foregoing, this document contains forward-looking information and statements pertaining to the following: future oil and natural gas prices; future results from operations; future liquidity and financial capacity and financial resources; future costs, expenses and royalty rates; future interest costs; future capital expenditures; future capital structure and expansion; the making and timing of future regulatory filings; and the Company's ongoing relationship with major customers.
The forward-looking information and statements contained in this document reflect several material factors and expectations and assumptions of the Company including, without limitation: that the Company will continue to conduct its operations in a manner consistent with past operations; the general continuance of current or, where applicable, assumed industry conditions; the continuance of existing (and in certain circumstances, the implementation of proposed) tax, royalty and regulatory regimes; certain commodity price and other cost assumptions; the continued availability of adequate debt and/or equity financing and cash flow to funds its capital and operating requirements as needed; and the extent of its liabilities. The Company believes the material factors, expectations and assumptions reflected in the forward-looking information and statements are reasonable but no assurance can be given that these factors, expectations and assumptions will prove to be correct.
The forward-looking information and statements included in this document are not guarantees of future performance and should not be unduly relied upon. Such information and statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information or statements including, without limitation: changes in commodity prices; changes in the demand for or supply of the Company's services; unanticipated operating results; changes in tax or environmental laws, royalty rates or other regulatory matters; changes in the development plans of third parties; increased debt levels or debt service requirements; limited, unfavourable or a lack of access to capital markets; increased costs; a lack of adequate insurance coverage; the impact of competitors; reliance on industry partners; and certain other risks detailed from time to time in the Company's public disclosure documents (including, without limitation, those risks identified in this document and the Company's Annual Information Form).
The forward-looking information and statements contained in this document speak only as of the date of the document, and none of the Company or its subsidiaries assumes any obligation to publicly update or revise them to reflect new events or circumstances, except as may be required pursuant to applicable laws.
SOURCE: Canyon Services Group Inc.
<table border="0" valign="top"><tr><td>Brad
Fedora, President & CEO </td> <td>Or </td>
<td>Barry O'Brien, Vice President, Finance & CFO</td></tr>
<tr><td>Canyon Services Group Inc. </td>
<td> </td> <td>Canyon Services Group
Inc.</td></tr> <tr><td>Suite 1600, 510-5th Street
S.W. </td> <td> </td> <td>Suite 1600, 510-5th
Street S.W.</td></tr> <tr><td>Calgary, Alberta, T2P
3S2 </td> <td> </td> <td>Calgary,
Alberta, T2P 3S2</td></tr> <tr><td>Phone:
403-290-2491 </td> <td> </td>
<td>Phone: 403-290-2478</td></tr> <tr><td>Fax:
403-355-2211 </td> <td> </td> <td>Fax:
403-355-2211</td></tr></table>
Copyright (C) 2010 CNW Group. All rights reserved.
OGC.TO OCEANAGOLD CONVERTIBLE NOTE UPDATE
another financial milestone out of the way.
http://www.stockmarketsreview.com/news/56371/
OCEANAGOLD CONVERTIBLE NOTE UPDATE
MELBOURNE, Australia, Nov. 8, 2010 (Canada NewsWire via COMTEX News Network) --
/NOT FOR DISSEMINATION OR DISTRIBUTION IN THE UNITED STATES AND NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES/
OceanaGoldCorporation (ASX: OGC, TSX: OGC, NZX: OGC) (the "Company") announces anupdate on the Company's A$55 million "Barclays" convertible note.
Thenote contains a "one-off" option exercisable in December 2010, allowingindividual holders to put their notes back to the Company for paymentat accreted face value.
The deadline for holders to confirm their exercise has now expired.
In this regard, circa A$2 million of notes were put back to the Company for payment in December 2010.
The remaining A$53 million will now mature in December 2012, with no early redemption applying to this amount.
About OceanaGold
OceanaGoldCorporation is a significant Pacific Rim gold producer with projectslocated on the South Island of New Zealand and in the Philippines. TheCompany's assets encompass New Zealand's largest gold mining operationat the Macraes goldfield in Otago which is made up of the Macraes openpit and the Frasers Underground mines. Additionally on the west coast ofthe South Island, the Company operates the Reefton open-pit mine.OceanaGold produces between 270,000 - 300,000 ounces of gold per annumfrom the New Zealand operations. The Company also owns the DidipioProject in northern Luzon, Philippines where construction is scheduledto re-commence in H1 2011.
OceanaGold is listed on the Toronto, Australian and New Zealand stock exchanges under the symbol OGC.
SOURCE: OceanaGold Corporation
Mr Darren Klinck, Vice President, Corporate and Investor Relations, OceanaGold Corporation, Tel: 61 3 9656 5300
Copyright (C) 2010 CNW Group. All rights reserved.
PTQ.to
It loooks like the CFO Julie Van Baarsen had 200,000 options at the begining of the year, exercised some in Febuary and sold them at $0.60 cents and $0.73. She exercised some more this last week and did much better this time selling them at 1.17 and 1.20. She has 50,000 options left. Not a big player nor a great market timer with her first sale. Hopefully she will be smart enough to hold on to her last 50,000 options.
As for IKN allegations. These are the same guys that for years accused the CEO, Fifer as being a convicted drug trafficker. They only recanted once someone provided them documentation to the contrary. I am not saying Fifer is an angel but IKN really likes to sling the mud.
JFF7
PTQ.to
There was a 5 million cross at Salmon Bros in that volume.
These crosses often coincide with price pullbacks.
The pullback had to happen at sometime. No stocks goes straight up. It's heathly for the chart and next week gives it a chance to move out of overbought status.
Didn't sell any and didn't buy any on the pullback.
we waited forever (ok it seemed that way ) for it to breakout beyond 50 cents. I think our wait will be much shorter this time around.
JFF7
Brent Cook comments
- he also says he likes explorers in general and does not like new producers. For example, he dumped his SGR 2-3 months ago because it was not producing good results. Can't seem to get the gold out of the ground in a profitable manner.
- CRK.to - he did say that their new deposit, Cosmos (although he didn't mention it by name) was probably different.
JFF7
OGC.to
I hope your right. I just loadesd up with OGC today. Saw how far CGA ran (15%?) and thought OGC could do better.
Bought come CRK as well.
Loaded with gold stocks. Hope it doesn't get taken down by NY in the morning as it usually does.
JFF7
TGB - other options available
I agree that there are other options available (other mines ormaybe ways to meet the Fed's concerns). 30% discount is probably justified until the company can better understand and respond to the gov'ts concerns.
With copper and gold prices where they are and will be in the future, the price will not stay down for long though.
JFF7
Monty CDE
First, earnings come out Thursday before the open (not tomorrow before the open).
http://www.stockhouse.com/tools/?page=%2FFinancialTools%2Fsn_newsreleases.asp%3Fsymbol%3DT.CDM%26newsid%3D7907949
I have some trading profits as well but I will be holding thru earnings because I expect very good results on a cashflow basis. I expect a muted response because the market still measures it on earnings per share basis and the shorts still embrace CDE and Hecla as their darlings. But that will change.
JFF7
Coinmaker,
you sure have changed your investment approach in terms of quantities of stocks. Before you had all your eggs in one or two baskets. Now it seems your finding a new stock to invest in each day. What changed?
JFF7
yes there are a lot of people that feel like you right now about OGC. OGC is performing like a dog since the qtr end report and a few weeks before but is it a dog? Don't mistake the difference.
Remember the pullback from 3.50 to 2.60-2.70? what did it do after that?
Now we have a pullback from 4.05 to the 3.30-3.40s. There was one or more large motivated sellers lately. Did they want out by the end of the month for book keeping reasons? Did they want out because of concerns over QE2 (either already baked in or more conservative use of it going forward)? Are they thinking the POG is pulling back?
I don't have the answers to the why questions but POG seems to be showing some strength (bounces back quickly after moving down, trending a bit up now over the last while). The gold majors are going to see some P?E mulitple expansion in the near term (people lke Sprott are saying so). Growing midtier producers like OGC will see an even greater P/E expansion.
I have bought G, HGU and bought back some OGC over the last couple of days. Up 7% on the G and HGU. Sold some of the HGU to buy some OGC (I may be early on this but on the chance that it was a month end seller and that gold is grownig stronger, I thought I would take a chance). I hope all three continue up.
JFF7
ogc.to
the price is too low to ignore. I bought back some of what i sold. Can't resist a bargain I guess.
JFF7
OGC.to
I sold mine a couple of days ago because I thought there would not be much movement for a little while and I thought the gold majors would move first. UP 7% on the majors but OGC at these levels looks attractive to me. Can't see it staying this level very long. I think it just may be profit taking and the lack of expected news (altough they should have some drill results at anytime since they are trying to prove up resources).
JFF7
just wanted to make sure there was no fresh news that was bad. Big hunk of shares sold to take it down but no folloow thru so I bought 40,000 shares ...
JFF7
why down today?
JFF7
OGC.to
I agree with your comments about the earnings report. I sold my OGC yesterday because I was disappointed in how the price of OGC was moving going into earnings.
Redployed to large caps gold producers because they are so undervalued compared to traditional P/E ratios and the money they are making hand over fist now. But even they are not reacting all that well given that earnings results exceeded expectations and POG was up 20 dollars and the bill about investiigations into gold companies did not pass. Should have seen a bigger pop.
Gold majors remain undervalued in relation to POG and the earnings they are posting. People in a wait and see mode till Nov elections I think.
JFF7
OGC.TO - OCEANAGOLD POSTS STRONG THIRD QUARTER RESULT
http://www.digitaljournal.com/pr/147168
Canada NewsWire
MELBOURNE, Australia, Oct. 28
/NOT FOR DISSEMINATION OR DISTRIBUTION IN THE UNITED STATES OR TO US PERSONS AND NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICE/
MELBOURNE, Australia, Oct. 28 /CNW/ - OceanaGold Corporation (ASX: OGC, TSX: OGC, NZX: OGC) (the "Company") has recorded strong quarter on quarter growth with a 72% increase in net earnings of $13.7 million and at $42.6 million, a 9% improvement in EBITDA over the previous quarter.
Gold production for the quarter totalled 68,763 ounces, realising a YTD total of 201,595 ounces. OceanaGold is Australia's third largest ASX listed gold producer.
The quarter also saw the Company successfully close a C$115.5 million equity raising to complete development of its highly prospective Didipio Project in the Philippines. Key personnel appointments related to Didipio's development were made during the period, including a Project Director - Philippines who will oversee all aspects of construction and project management.
Executive Chairman, Jim Askew, said "OceanaGold's third quarter results demonstrated higher cash operating margins and solid cash flows from our NZ operations. With the commencement of the development of the Didipio Project the company will be well positioned for ongoing earnings growth and expansion".
"Didipio represents a long life mine with robust economics that, after allowing for copper by-product credits, will create a cash cost profile that aims to put the Company within the lowest quartile amongst its peer group," he said.
"Integrating Didipio into the stable of well managed mines that already exist in New Zealand will be OceanaGold's priority in the months ahead and is expected to result in significant profitability gains for the Company."
Other highlights from the 2010 Third Quarter Report include:
* Improved mining and milling rates at the Macraes open cut and Frasers underground operations resulting in a 20% increase in production when compared to the previous quarter.
* A New Zealand exploration program added 3,600 metres of underground drilling completed at Frasers Underground (Macraes) and 7,600 metres of drilling at Globe Deeps (Reefton).
PTQ.TO up another 8.70 % today.
If it wasn't for stocks like these down days would be hard to take. Long live undervalued small caps !
JFF7
CFX-UN.to/CFPUF.pk/Canfor
with the nice run up it has had lately, is a sell on news really that much a surprise.
if it only dropped 2% on the news, that's probably a good sign that the run will continue when the sell on news guys are finished.
JFF7
CDE - Rochester expansion
I believe this additional 2.3 million of silver and 32,000 ounces of gold is being financed out of current operations. No additional debt needed.
CDE is a cash flow machine now.
JFF7
CDE - Opportunity?
The debt is very well probably the reason why the price of CDE is where it is at. That is what has provided this opportunity to buy this low.
The mines are up and operating now. They are past the big expenses and the mine start up dangers. They will generate the cash to pay down the debt. To me they are past the most dangerous part. If you believe in continued high prices for gold, the share price should increase substantially as the debt is reduced.
Wheeler is retiring at the end of next year. Lots of peple will be happy to see him go. Management replacement program is well underway with hires already in place. (Denver Gold show mentioned this).
One man's danger is another man's opportunity.
JFF7
try Sedi but you have to learn how to run the reports to get the info you want. Information is complete. To use it is not rocket science but not obvious either.
www.sedi.ca
JFF7
CDE - Gold resources
They are currently drilling out some of the area around the Kensington mine and it has been speculated in the local papers there that they will be adding another 2 billion dollars of value to the documented gold in the ground (another 2 million ounces?). I know this is just speculation but management expects to find a lot more gold there and the property would definetely be of interestbby itself to any larger gold company looking to buy out CDE.
JFF7
CDE
someday it will run based on it's valuation and cashflow. 3 times cashflow for a precious metals company is unheard of. Three new long life mines. Expanding resources and production. People will eventually discover it. The start will be this Nov 4 th earnings call. I expect analysts will issue revised targets afterwards. Heck even UBS and Jeffries has recently raised the targets for the company just before earnings. How often do you see that.
JFF7