CAMPBELL RESOURCES INC. 
By YEAR-TO-DATE LOSS FROM OPERATIONS REDUCED BY APPROXIMATELY 29%
YEAR-TO-DATE COPPER PRODUCTION INCREASED BY APPROXIMATELY 97%
- Increased year-to-date ore production by approximately 78%
- Increased year-to-date copper production by approximately 97%
- Reduced year-to-date loss from operations by approximately 29%
- Reached 105-metre level at Corner Bay
- Identified vertical continuity of high-grade mineralized zone at Copper
Rand
- Completed $3.54 million financing
- Increased credit facility with Nuinsco Resources Limited to a maximum
aggregate amount of $5.0 million
"The results for the second quarter show ongoing improvement," said Andre Fortier, Campbell's President and Chief Executive Officer. "Production continues to increase year-over-year and we are making steady progress in reducing our losses from operations. At Corner Bay, the 105-metre level was reached during the second quarter and some 10,000 tons of mineralized material were extracted. However, progress has been slower than expected because of operational and financial challenges. Copper production levels were down at Copper Rand during the second quarter, largely due to lower copper grade in the ore and to breakdowns to transportation equipment. From a financial perspective, working capital deficiencies have also made it more difficult for the Company to operate as effectively as possible. The reality is that these challenges will persist until positive cash flow is generated, which should occur in the fourth quarter of this year."
FINANCIAL RESULTS
As of
As of
In
In the second quarter of 2008, Campbell operations produced 71,673 tons of ore yielding 1,434 ounces of gold and 1,780,718 pounds of copper. In the second quarter of 2007, 52,739 tons of ore were milled, yielding 4,921 ounces of gold and 1,044,197 pounds of copper.
For the first six months of fiscal 2008, Campbell operations produced 163,193 tons of ore yielding 4,024 ounces of gold and 3,947,785 pounds of copper. In the first six months of fiscal 2007, 91,526 tons of ore were milled, yielding 8,823 ounces of gold and 2,005,838 pounds of copper.
A total of 2,439 ounces of gold and 2,328,460 pounds of copper were sold in the second quarter of 2008 compared to 1,719 ounces of gold and Nil pounds of copper for the same period of 2007. The average market price for gold in the second quarter of 2008 was
Net metal sales for the second quarter of 2008 reached
As per the contract for the sale of concentrate between Campbell and Ocean Partners UK Limited ("OP"), revenues for concentrate inventory shipped cannot be recognized until the transfer of ownership is completed when the concentrate is delivered to the discharge port. As at
The loss from operations totalled
For the second quarter of 2008, Campbell recorded a net loss of
OPERATING PERFORMANCE
Copper Rand Mine
The Copper Rand mine started commercial production on
For the first six months of fiscal 2008, Copper Rand produced 84,028 tons of ore yielding 2,830,133 pounds of copper, 3,488 ounces of gold and 9,039 ounces of silver, compared 46,699 tons of ore yielding 1,817,338 pounds of copper, 1,852 ounces of gold and 4,559 ounces of silver in the first six months of fiscal 2007.
There are currently three production areas at Copper Rand, identified as "44-4," "4850 depth extension" and "Lower H-2." Campbell has also identified the vertical continuity of higher-grade mineralized ore at the "Upper H-2" area which should be available by the end of 2008. Two additional areas are currently under evaluation ("52-5" at Shaft #6 and "level 1950" at Shaft #4). Those two additional sectors could provide ore feed to the Copper Rand mill in the second half of 2009. Campbell expects to be able to maintain current production levels at Copper Rand in the coming months.
Merrill Pit
The first tons of ore from Merrill pit were milled in
Corner Bay Development
In the second quarter of 2008, 9,995 tons of mineralized material were extracted from Corner Bay and subsequently milled at the Copper Rand mill. The material graded 3.07% copper (556,768 pounds), 0.012 oz/t gold (91 oz) and 0.240 oz/t silver (1,640 oz). The recovery rate was 90.83% for copper, 79.05% for gold and 68.38% for silver.
During the second quarter of 2008,
At a 3% Cu cut-off, Corner Bay has measured and indicated resources of 446,000 tonnes (Ref : Technical Report prepared by Geostat in
Production at the Joe Mann mine ceased on
On
OUTLOOK
"The Company continues development for extraction of a bulk sample at Corner Bay. Further, we are working to improve the efficiency of the Copper Rand mine and to achieve positive cash flow by year end. Revenues for fiscal 2008 should be substantially higher than those realized in 2007 and we expect to be able to meet the commitments related to the Plan of Arrangement for Meston Resources Inc. in the coming months," Mr. Fortier said.
CONFERENCE CALL
Campbell Resources will hold a conference call on
Interested parties can join the call by dialling 1-800-587-1892.
About Campbell Resources
Campbell Resources Inc. concentrates on the development and exploitation of copper and gold mining properties in the
Certain information contained in this release may contain "Forward-Looking Statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and is subject to certain risks, assumptions and uncertainties, including those "Risk Factors" set forth in the Campbell's current Annual Report on Form 20-F for the year ended
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Expressed in thousands of Canadian dollars)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
June 30 December 31
2008 2007
-------------------------------------------------------------------------
$ $
Assets
Current assets
Cash 2 474
Restricted cash 1,113 1,113
Short-term investments 31 33
Receivables 1,683 3,066
Settlements receivable 1,232 739
Concentrate and metal inventories 7,428 1,218
Supply inventories 2,569 2,882
Prepaids 706 408
-------------------------------------------------------------------------
14,764 9,933
Amount receivable from Copper Rand/Portage
Restoration Fiduciary Trust 3,116 3,028
Restricted cash 1,158 1,158
Future income tax assets 1,338 1,317
Property, plant and equipment 52,560 45,017
Accrued benefit asset 5,054 4,897
-------------------------------------------------------------------------
77,990 65,350
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Liabilities
Current liabilities
Short-term loan 4,343 1,996
Accounts payable 19,225 15,411
Accrued liabilities 9,329 5,954
Prepayments for concentrate 6,628 965
Current portion of long-term debt 18,453 18,337
-------------------------------------------------------------------------
57,978 42,663
Asset retirement obligations 7,610 7,396
Long-term debt 3,187 2,688
Future income and mining tax liabilities 6,661 6,472
-------------------------------------------------------------------------
75,436 59,219
-------------------------------------------------------------------------
Shareholders' equity
Capital stock 98,812 96,639
Warrants, stock options and conversion rights 7,541 9,432
Contributed surplus 6,421 4,109
Deficit (110,209) (104,040)
Accumulated other comprehensive loss (11) (9)
-------------------------------------------------------------------------
(110,220) (104,049)
-------------------------------------------------------------------------
2,554 6,131
-------------------------------------------------------------------------
-------------------------------------------------------------------------
77,990 65,350
-------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Expressed in thousands of Canadian dollars except per share amounts)
-------------------------------------------------------------------------
Three months ended Six months ended
June 30 June 30
2008 2007 2008 2007
-------------------------------------------------------------------------
$ $
Gross metal sales 10,755 1,482 11,481 3,196
Treatment charges 1,754 52 1,758 70
-------------------------------------------------------------------------
Net metal sales 9,001 1,430 9,723 3,126
-------------------------------------------------------------------------
Expenses
Cost of sales 10,648 4,772 11,340 9,963
Depreciation and
amortization 911 577 2,036 1,389
General administration 825 628 1,493 1,362
Warrants issued as fee
for short-term financial
arrangement - - 427 -
Reorganisation and CCAA
costs 34 102 34 207
Care and maintenance 318 34 902 76
-------------------------------------------------------------------------
12,736 6,113 16,232 12,997
-------------------------------------------------------------------------
Loss before the following
items (3,735) (4,683) (6,509) (9,871)
Interest expense on
short-term loan (78) (86) (202) (161)
Interest and financial
expenses on long-term debt (317) (288) (792) (568)
Interest income 5 20 19 28
-------------------------------------------------------------------------
Loss from operations (4,125) (5,037) (7,484) (10,572)
Other income (expense)
Other (expense) income 1 696 (307) 4,486
-------------------------------------------------------------------------
Loss before taxes (4,124) (4,341) (7,791) (6,086)
Income and mining taxes - - 1,622 -
-------------------------------------------------------------------------
Net loss (4,124) (4,341) (6,169) (6,086)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Weighted average number
of common shares ('000) 446,445 396,829 439,525 372,925
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Loss per share undiluted
and diluted (0.01) (0.01) (0.01) (0.02)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF CONTRIBUTED SURPLUS AND DEFICIT (UNAUDITED)
(Expressed in thousands of Canadian dollars)
-------------------------------------------------------------------------
Three months ended Six months ended
June 30 June 30
2008 2007 2008 2007
-------------------------------------------------------------------------
$ $
Contributed surplus
Balance, beginning of period 4,191 3,991 4,109 1,996
Stock options expired and
cancelled 44 - 69 -
Warrants expired 2,186 - 2,243 1,995
-------------------------------------------------------------------------
Balance, end of period 6,421 3,991 6,421 3,991
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Deficit
Balance, beginning of
period 106,085 86,797 104,040 84,825
Net loss 4,124 4,341 6,169 6,086
-------------------------------------------------------------------------
Balance, end of period 110,209 91,138 110,209 91,138
-------------------------------------------------------------------------
-------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(Expressed in thousands of Canadian dollars)
-------------------------------------------------------------------------
Three months ended Three months ended
June 30 June 30
2008 2007 2008 2007
-------------------------------------------------------------------------
$ $
Net Loss 4,124 4,341 6,169 6,086
Other comprehensive income,
net of income tax:
Unrealized losses (gain)
on available-for-sale
investments arising
during the period (1) 50 2 79
-------------------------------------------------------------------------
Comprehensive loss 4,123 4,391 6,171 6,165
-------------------------------------------------------------------------
-------------------------------------------------------------------------
SOURCE CAMPBELL RESOURCES INC.
