CAMPBELL RESOURCES INC. 
By - Announces changes to Board of Directors
- Campbell and Nuinsco agree to terminate consulting agreement
-
RECENT EVENTS
- On September 9, 2008, the Company announced that it will be
discontinuing mining operations at its Copper Rand mine by December 31,
2008. Campbell has 100% ownership of the Copper Rand mine, an
underground copper and gold mine located near the town of Chibougamau,
Quebec.
- On October 15, 2008, the Company announced that it suspended its bulk
sample exploration program at the Corner Bay property. Campbell owns
100% of the project subject to a 50-50 sharing of future cash flow with
Nuinsco Resources Limited ("Nuinsco"). Corner Bay is currently fully
permitted for the extraction of a 42,000 ton bulk sample. Despite the
suspension of the bulk sample exploration program, the Company is
moving ahead with an application for an environmental permit to allow
for commercial mining of the deposit once extraction of the bulk sample
is ultimately completed.
- Also on October 15, Campbell announced that James McCartney and James
Raymond resigned from the Board of Directors. Andre Fortier was named
Chairman of the Board, replacing Mr. McCartney.
"With the Company's recent decisions to discontinue mining operations at Copper Rand by year-end and to suspend the bulk sample exploration program at Corner Bay because of extreme difficulties in securing financing in the current marketplace and the decline in copper prices, there is uncertainty about the Company's ability to successfully execute its operating plans," said Andre Fortier, Campbell's President and Chief Executive Officer. "We are still looking at various scenarios for the Company, but because these scenarios are largely dependent on items outside our control, there is no assurance that the Company will be able to continue to operate as a going concern."
FINANCIAL RESULTS
As of
As of
In
In the third quarter of 2008, Campbell operations produced 64,572 tons of ore yielding 2,080 ounces of gold and 2,343,188 pounds of copper. In the third quarter of 2007, 70,223 tons of ore were milled, yielding 5,030 ounces of gold and 1,625,926 pounds of copper. Production was slowed in August because of equipment and liquidity issues.
For the first nine months of fiscal 2008, Campbell operations produced 227,765 tons of ore yielding 6,103 ounces of gold and 6,290,973 pounds of copper. In the first nine months of fiscal 2007, 161,749 tons of ore were milled, yielding 13,853 ounces of gold and 3,631,764 pounds of copper.
A total of 1,600 ounces of gold and 1,894,123 pounds of copper were sold in the third quarter of 2008 compared to 8,341 ounces of gold and 2,463,726 pounds of copper for the same period of 2007. The average market price for gold in the third quarter of 2008 was
Net metal sales for the third 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 third quarter of 2008, Campbell recorded a net loss of
BOARD CHANGES
Campbell also announced today that
TERMINATION OF CONSULTING AGREEMENT
The Company also announced today that Campbell and Nuinsco have jointly agreed to terminate their Operating Consulting Agreement, which was originally signed in 2006.
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)
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September 30 December 31
2008 2007
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$ $
Assets
Current assets
Cash 471 474
Restricted cash 2,028 1,113
Short-term investments 28 33
Receivables 1,560 3,066
Settlements receivable 2,178 739
Concentrate and metal inventories 7,282 1,218
Supply inventories 824 2,882
Prepaids 226 408
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14,597 9,933
Amount receivable from Copper Rand/Portage
Restoration Fiduciary Trust 3,160 3,028
Restricted cash 1,158 1,158
Future income tax assets 1,338 1,317
Property, plant and equipment 30,381 45,017
Accrued benefit asset 5,132 4,897
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55,766 65,350
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Liabilities
Current liabilities
Short-term loan 7,193 1,996
Accounts payable 20,030 15,411
Accrued liabilities 9,832 5,954
Prepayments for concentrate 7,672 965
Current portion of long-term debt 23,145 18,337
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67,872 42,663
Asset retirement obligations 7,716 7,396
Long-term debt 121 2,688
Future income and mining tax liabilities 6,661 6,472
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82,370 59,219
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Shareholders' (deficiency) equity
Capital stock 98,810 96,639
Warrants, stock options and conversion rights 8,269 9,432
Contributed surplus 6,421 4,109
Deficit (140,090) (104,040)
Accumulated other comprehensive loss (14) (9)
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(140,104) (104,049)
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(26,604) 6,131
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55,766 65,350
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CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Expressed in thousands of Canadian dollars except per share amounts)
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Three months ended Nine months ended
September 30 September 30
2008 2007 2008 2007
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$ $ $ $
Gross metal sales 7,069 14,201 18,550 17,397
Treatment charges 1,028 1,420 2,786 1,490
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Net metal sales 6,041 12,781 15,764 15,907
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Expenses
Cost of sales 7,900 15,025 19,240 24,988
Depreciation and
amortization 904 814 2,940 2,203
Write-down of properties 26,283 - 26,283 -
General administration 610 539 2,103 1,901
Stock-based compensation - 336 - 336
Warrants issued as fee for
short-term financial
arrangement - - 427 -
Reorganisation and CCAA
costs 114 74 148 281
Care and maintenance 434 15 1,336 91
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36,245 16,803 52,477 29,800
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Loss before the following
items (30,204) (4,022) (36,713) (13,893)
Interest expense on
short-term loan (9) (24) (211) (185)
Interest and financial
expenses on long-term
debt (314) (712) (1,106) (1,280)
Interest income 1 9 20 37
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Loss from operations (30,526) (4,749) (38,010) (15,321)
Other income (expense)
Other (expense) income 645 809 338 5,295
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Loss before taxes (29,881) (3,940) (37,672) (10,026)
Income and mining taxes - - 1,622 -
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Net loss (29,881) (3,940) (36,050) (10,026)
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Weighted average number of
common shares ('000) 468,712 409,205 449,325 385,151
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Loss per share undiluted
and diluted 0.06 0.01 0.08 0.03
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CONSOLIDATED STATEMENTS OF CONTRIBUTED SURPLUS AND DEFICIT (UNAUDITED)
(Expressed in thousands of Canadian dollars)
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Three months ended Nine months ended
September 30 September 30
2008 2007 2008 2007
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$ $ $ $
Contributed surplus
Balance, beginning of period 6,421 3,991 4,109 1,996
Stock options expired and
cancelled - 5 69 5
Warrants expired - - 2,243 1,995
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Balance, end of period 6,421 3,996 6,421 3,996
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Deficit
Balance, beginning of
period 110,209 91,138 104,040 85,052
Net loss 29,881 3,940 36,050 10,026
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Balance, end of period 140,090 95,078 140,090 95,078
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(Expressed in thousands of Canadian dollars)
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Three months ended Nine months ended
September 30 September 30
2008 2007 2008 2007
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$ $ $ $
Net Loss 29,881 3,940 36,050 10,026
Other comprehensive income,
net of income tax:
Unrealized losses (gain)
on available-for-sale
investments arising
during the period 3 36 5 115
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Comprehensive loss 29,884 3,976 36,055 10,141
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SOURCE CAMPBELL RESOURCES INC.
