Shore Gold Inc. announces year end results
Stock Symbol: SGF: TSX
SASKATOON, SK, March 1 /CNW/ - Shore Gold Inc. ("Shore"), reports the audited results of Shore's operations for the year ended December 31, 2004 have been filed and may be viewed at www.sedar.com. A summary of key financial and operating results follows:
Highlights
- Bulk sample targeted extraction of 25,000 tonnes exceeded
- 22,500 tonnes of kimberlite processed through to concentrate
- Diamond count of 2,738 carats reported from 19,738 tonnes processed
- Gold properties rolled into Wescan and taken public
- Working capital of $27.6M
Exploration
By year-end, Shore had successfully extracted in excess of the targeted 25,000 tonnes from the Star kimberlite bulk sample program. Although diamond counts for all extracted tonnes were not available by year-end, 22,500 tonnes of kimberlite had been processed on site and concentrates sent for final diamond recovery. As at December 31, 2004, diamond counts from a total of 19,738 tonnes of kimberlite were available resulting in the recovery of 2,738 carats.
Spinout of gold properties
Shore completed the spinout of its existing gold property assets to its wholly owned subsidiary Wescan Goldfields Inc. Subsequent to the spinout, Wescan received listing approval from the TSX Venture Exchange and commenced trading on October 15, 2004.
Financing
The Company successfully marketed two private placements during the year resulting in gross proceeds exceeding $38.5M. Proceeds from these private placements will be used for further work on the Star Kimberlite and for general working capital purposes. The Company also received in excess of $8.5M from the exercise of warrants and options during the year for total gross
proceeds from equity placements exceeding $44.2M. As at December 31, 2004, the
Company had working capital of more than $27.6M and total assets exceeding $63M.
Year End Results
As at December 31, 2004, Shore's cash balance was $28.7M. Shore recorded a loss of $1.5M ($0.03 per share), which compares with a loss of $1.2M ($0.03 per share) for the year ended December 31, 2003. Operating expenses increased to $2.0 compared to $1.3 for the year ended December 31, 2003.
Selected financial highlights include (as at December 31):
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2004 2003
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Current Assets $29.6M $5.4M
Capital and Other Assets $33.9M $15.1M
Current Liabilities $2.0M $1.8M
Share Capital - Common Shares $69.3M $24.8M
Common Share Purchase Warrants $23.7M $6.7M
Contributed Surplus $0.8M $0.0M
Deficit $8.7M $6.1M
2004 2003
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Operating Expenses $2.0M $1.3M
Other Items $0.3M $0.0M
Loss for the Period Before Income Taxes $1.5M $1.2M
Net Loss for the Period $1.5M $1.2M
Loss Per Share $0.03 $0.03
2004 2003
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Cash Flows From Operating Activities $(1.7M) $(1.2M)
Cash Flows From Investing Activities $(18.0M) $(9.6M)
Cash Flows From Financing Activities $44.0M $9.6M
Net Increase (Decrease) in Cash $24.3M $(1.2M)
Cash - Beginning of Period $4.4M $5.6M
Cash - End of Period $28.7M $4.4M
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For further information: Kenneth E. MacNeill, President & C.E.O. or
Harvey Bay, Chief Financial Officer at (306) 664-2202
