LONDON, UNITED KINGDOM--(Marketwire - May 13, 2008) - Crew Gold Corporation ("Crew" or "the Company") (TSX:
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News; OSLO:
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News; FRANKFURT:
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News) today announces:
Financial Results for Quarter Ended March 31, 2008
HIGHLIGHTS
- Overview
-- Quarterly production increased by 36% to 61,189 ounces ("oz") from 44,914 oz in Q4 2007
-- Sold remaining 10.4 million Intex Resources ASA ("Intex") shares for aggregate net proceeds of $13.3 million
- Results
-- EBITDA of $0.5 million (quarter ended March 31, 2007 - negative $5.0 million)
-- Net loss of $27.6 million (quarter ended March 31, 2007 - net loss of $19.1 million) primarily due to non cash foreign exchange losses on translation of NOK denominated debt of $18.3 million and depletion and depreciation of $2.4 million and LEFA and Maco not being in commercial production
- LEFA
-- 43,811 oz produced in the quarter, representing a 59% increase over Q4 2007 of 27,579 oz
-- Upgrade and rectification program nearing completion
-- Average plant recoveries increase from 88% to 94% in the quarter
-- Encouraging results from exploration drilling in Q1 2008 at Firifirini and Camp de Base
- Maco
-- Quarterly production from pilot plant of 4,704 oz (up 140% from Q4 2007 production of 1,957 oz)
-- Infrastructure development and ore development progressing, including construction of new tailings facility
-- Technical review of the mill expansion and mine plan nearing completion
- Nalunaq Gold Mine and Nugget Pond Processing Facility
-- Quarterly production of 12,674 oz (down 18% from 15,378 oz in Q4 2007)
-- Nugget Pond facility continued to operate satisfactorily
- Outlook
-- Continued production growth following commissioning
-- LEFA reserve and resource expansion to continue with reserve and resource updates expected to be released during Q2 2008.
-- Continued focus on securing new strategic land claims
OVERVIEW
Crew is an international mining company focused on identifying, acquiring and developing gold resource projects worldwide.
Our objective is to become a significant mid-tier gold producer. We believe we have the assets in place and under development to achieve our strategic objective of an annual production rate in excess of 500,000 oz per year in the near term.
Results
Operating revenues and costs at both the LEFA and Maco operations during the quarter were capitalized as these two operations have not attained commercial production status.
For the quarter ended March 31, 2008, Crew reported EBITDA of $0.5 million (quarter ended March 31, 2007 - negative $5.0 million). EBITDA from operations of $2.5 million and gains from the sale of Intex shares of $2.6 million were offset by corporate expenditures of $4.3 million.
Net loss for the quarter ended March 31, 2008 was $27.6 million (quarter ended March 31, 2007 - net loss of $19.1 million). The losses in the period were mainly due to non cash foreign exchange losses of $18.3 million (following a 5.7% appreciation of the Norwegian Kroner against the US dollar), interest and finance costs on the bonds and long term debt of $5.7 million, depletion and depreciation of $2.4 million and corporate expenditures of $4.3 million, partially offset by gains on the sale of Intex shares of $2.6 million.
Crew produced 61,189 oz of gold during the quarter ended March 31, 2008 (quarter ended March 31, 2007 - 12,912 oz). Gold sold during the quarter ended March 31, 2008 was 60,660 oz (quarter ended March 31, 2007 - 8,836 oz).
For Full Results, please see attached file.
Jan A Vestrum, President and CEO