Ero Copper Corp.
(TSX: ERO, NYSE:
ERO) (“Ero” or the “Company”) is pleased to
announce its operating and financial results for the three months
ended March 31, 2022. Management will host a conference call
tomorrow, Tuesday, May 10, 2022, at 11:30 a.m. Eastern time to
discuss the results. Dial-in details for the call can be found near
the end of this press release.
HIGHLIGHTS
- Copper production of 9,784 tonnes at C1 cash costs(*) of $1.31
per pound of copper produced;
- Gold production of 8,796 ounces at
C1 cash costs(*) and All-in Sustaining Costs ("AISC")(*) of $638
and $1,092, respectively, per ounce of gold produced;
- Strong net income attributable to
the owners of the Company of $52.1 million ($0.57 per share on
a diluted basis), adjusted net income attributable to owners of the
Company(*) of $33.0 million ($0.36 per share on a diluted basis),
and adjusted EBITDA(*) of $62.4 million;
- Quarterly cash
flows from operations of $44.0 million offset capital expenditures
related to advancing the Company's key growth projects. Combined
with net proceeds of approximately $392.0 million from the
Company's issuance of $400 million of senior unsecured notes due
2030, less the repayment of approximately $50 million in
outstanding borrowings under the Company's senior secured revolving
credit facility, available liquidity at the end of the period was a
record $540.5 million;
- Reaffirming 2022 production, operating cost and capital
expenditure guidance:
- Full-year copper production currently
expected to be at the high-end of the guidance range;
- Based upon the impact of inflation
and exchange rate volatility in the first quarter, the Company is
currently guiding to the higher end of its 2022 operating cost
ranges; and,
- Capital projects remain on schedule
and on budget.
- Advanced the Company's organic growth strategy through the
execution of several critical milestones during the period
including:
- Bolstered balance sheet with the
issuance of $400 million senior unsecured notes offering;
- Received approval from the Company's
Board of Directors to construct Boa Esperança and subsequently
executed the critical-path power transmission line contract;
and,
- Secured several long-lead items
related to the new external shaft and mill expansion at the MCSA
Mining Complex.
“Our vision of high-return organic growth took
several critical steps forward during the first quarter," said
David Strang, Chief Executive Officer. "Following the announcement
of our strategy to double copper production by 2025, we
successfully bolstered our liquidity position to support the
execution of these growth plans and received Board approval to
construct the Boa Esperança Project. During the period, we made
significant progress at the MCSA Mining Complex on our Pilar 3.0
initiative, which included securing key long-lead items such as the
third ball mill and shaft winder, advancing shaft construction and
new surface installations, and completing the installation of our
Cooling Project. Successful execution of these initiatives is
expected to allow us to increase mining and processing capacity to
accommodate significantly higher planned throughput in the years
ahead.
"Despite these significant positive
developments, the first quarter was not without challenges. In
addition to an underlying strengthening of the Brazilian Real
during the first quarter, our operating costs faced the same
inflationary headwinds experienced globally across all industries.
While many of the challenges related to costs are externally
driven, we are focused on continuing to improve our operating
efficiencies through existing programs and by investing in new
technologies applicable across all areas of our business. At
the same time, we are taking a cautious approach and currently
guiding to the higher end of our full-year operating cost guidance
ranges.
"Highlighting our pursuit of continuous
improvement, we commenced an engineering initiative last year,
known as Project Honeypot, that is already delivering significant
near-term value for our operations. Through this initiative our
engineering teams, supported by our geology and exploration group,
have developed a comprehensive program to identify and recover
high-grade stopes at the Pilar Mine that were left behind by
previous operators decades ago. While the addition of Project
Honeypot stopes to the mine plan are expected to be gradual, we
anticipate a positive impact on mined copper grades commencing in
the second quarter of 2022. These contributions are expected to
drive higher copper production through the remainder of the year
and, as a result, we are currently guiding to the high-end of our
full-year production guidance range."
*Earnings before interest, taxes, depreciation
and amortization (“EBITDA”), Adjusted EBITDA, Adjusted net income
attributable to owners of the Company, Adjusted net income per
share attributable to owners of the Company, C1 cash cost per pound
of copper produced, C1 cash cost per ounce of gold produced and
All-in Sustaining Costs (“AISC”) per ounce of gold produced are
non-IFRS measures – see the Notes section of this press release for
additional information. C1 cash cost per pound of copper produced
are net of by-product credits from metal produced at the MCSA
Mining Complex. AISC per ounce of gold produced are net of
by-product credits from metal produced at the NX Gold Mine.
FIRST QUARTER REVIEW
- Mining
& Milling
Operations
- The MCSA Mining
Complex processed 596,230 tonnes of ore grading 1.78% copper,
producing 9,784 tonnes of copper in concentrate during the quarter
after metallurgical recoveries of 92.2%.
- The NX Gold Mine
processed 49,990 tonnes grading 5.93 grams per tonne, producing
8,796 ounces of gold after metallurgical recoveries of 92.3% and
6,042 ounces of silver as a by- product.
-
Organic Growth
Projects
- At the MCSA
Mining Complex, construction of the new external shaft in support
of the "Pilar 3.0" initiative continued to progress during the
quarter while efforts on ancillary related projects delivered
important milestones. Together, the existing and new shaft
currently under construction are expected to increase total
hoisting capacity of the Pilar Mine to approximately 5.7 million
tonnes per annum, an increase of over 60% compared to current
hoisting capacity of 3.5 million tonnes per annum, offering
flexibility for future mine expansions.
- Construction of
the new external shaft continues to progress on schedule and on
budget with excavation for the head-frame and two winder
foundations completed during the first quarter.
- Expansion of the
Caraíba Mill to 4.2 million tonnes per annum is underway with a
third ball mill ordered during the period for which commissioning
is expected in Q2 2023.
- Significant
progress has been made in defining opportunities in the upper
levels of the Pilar Mine that have the potential to add near-term
value through an initiative known as "Project Honeypot". This
engineering initiative is focused on recovering high-grade stopes,
ribs and sill pillars left behind by previous operators during the
late 1990s due to the under-capitalized nature of operations at the
time. The first Project Honeypot stope (RC03) is approximately
130,000 tonnes grading approximately 4.00% copper and is expected
to commence mining in Q2 2022.
- The second and
final phase of the Cooling Project was completed subsequent to
quarter-end at the Pilar Mine with hand-over to operations
occurring at the end of April 2022. The Cooling Project is expected
to support expansions at depth and has the potential to drive
meaningful operating efficiencies.
- Important advances on key workstreams at Boa Esperança
included:
- Execution of the
critical-path power transmission line contract;
- Mobilization of
the first earth works package, including new access road
construction and road upgrades;
- Completion of
Gap Zone and condemnation drilling; and,
- Market tendering
for key contracts completed subsequent to quarter-end. Contractor
and supplier selections remain ongoing.
OPERATING AND FINANCIAL
HIGHLIGHTS |
|
|
3 monthsended |
3 monthsended |
3 monthsended |
|
Mar. 31, 2022 |
Dec. 31, 2021 |
Mar. 31, 2021 |
Operating Highlights |
|
|
|
Copper (MCSA Operations) |
|
|
|
Ore Processed (tonnes) |
|
596,230 |
|
|
646,319 |
|
|
597,594 |
Grade (% Cu) |
|
1.78 |
|
|
2.01 |
|
|
2.30 |
Cu Production (tonnes) |
|
9,784 |
|
|
11,918 |
|
|
12,638 |
Cu Production (000 lbs) |
|
21,570 |
|
|
26,275 |
|
|
27,863 |
Cu Sold in Concentrate (tonnes) |
|
10,045 |
|
|
12,393 |
|
|
12,469 |
Cu Sold in Concentrate (000 lbs) |
|
22,145 |
|
|
27,321 |
|
|
27,488 |
C1 cash cost of Cu produced (per lb)(1) |
$ |
1.31 |
|
$ |
0.96 |
|
$ |
0.49 |
Gold (NX Gold Operations) |
|
|
|
Au Production (oz) |
|
8,796 |
|
|
8,544 |
|
|
9,451 |
C1 cash cost of Au Produced (per oz)(1) |
$ |
638 |
|
$ |
582 |
|
$ |
487 |
AISC of Au produced (per oz)(1) |
$ |
1,092 |
|
$ |
910 |
|
$ |
643 |
|
|
|
|
Financial Highlights ($ in millions, except per share amounts) |
|
|
|
Revenues |
$ |
108.9 |
|
$ |
134.9 |
|
$ |
122.5 |
Gross profit |
|
61.0 |
|
|
84.4 |
|
|
82.8 |
EBITDA(1) |
|
78.1 |
|
|
80.7 |
|
|
55.2 |
Adjusted EBITDA(1) |
|
62.4 |
|
|
86.8 |
|
|
86.7 |
Cash flow from operations |
|
44.0 |
|
|
66.7 |
|
|
62.1 |
Net income |
|
52.5 |
|
|
60.2 |
|
|
32.1 |
Net income attributable to
owners of the Company |
|
52.1 |
|
|
59.8 |
|
|
31.7 |
Per share (basic) |
|
0.58 |
|
|
0.67 |
|
|
0.36 |
Per share (diluted) |
|
0.57 |
|
|
0.65 |
|
|
0.34 |
Adjusted net income
attributable to owners of the Company(1) |
|
33.0 |
|
|
59.7 |
|
|
56.3 |
Per share (basic) |
|
0.37 |
|
|
0.67 |
|
|
0.64 |
Per share (diluted) |
|
0.36 |
|
|
0.65 |
|
|
0.61 |
Cash, cash equivalents, and
short-term investments |
|
465.5 |
|
|
130.1 |
|
|
84.6 |
Working capital(1) |
|
443.7 |
|
|
86.0 |
|
|
63.5 |
Net debt(1) |
|
(54.4 |
) |
|
(70.9 |
) |
|
74.5 |
(1) EBITDA, Adjusted EBITDA, Adjusted net income
(loss) attributable to owners of the Company, Adjusted net income
(loss) per share attributable to owners of the Company, Net Debt,
Working Capital, C1 cash cost of copper produced (per lb), C1 cash
cost of gold produced (per ounce) and AISC of gold produced (per
ounce) are non-IFRS measures – see the Notes section of this press
release for a discussion on non-IFRS Measures.
ADJUSTED EBITDA & NET INCOME
(LOSS) RECONCILIATION |
|
($ in thousands) |
|
3 months endedMar. 31, 2022 |
|
|
|
Adjusted EBITDA |
$ |
62,377 |
|
Adjustments: |
|
|
Unrealized foreign exchange gain on USD denominated balances in
MCSA |
|
11,279 |
|
Unrealized foreign exchange gain on derivative contracts |
|
24,714 |
|
Realized foreign exchange loss on derivative contracts |
|
(4,567 |
) |
Share based compensation and other |
|
(14,707 |
) |
Incremental costs in response to COVID-19 pandemic |
|
(1,004 |
) |
EBITDA |
$ |
78,092 |
|
|
|
|
Adjusted net income attributable to owners of the Company |
$ |
32,951 |
|
Adjustments for non-cash items
(attributable to owners of the Company): |
|
|
Unrealized foreign exchange gain on USD denominated debt in
MCSA |
|
1,337 |
|
Unrealized foreign exchange gain on derivative contracts, net of
tax |
|
24,615 |
|
Share based compensation |
|
(1,990 |
) |
Incremental costs in response to COVID-19 pandemic |
|
(998 |
) |
Reported net income attributable to owners of the Company |
$ |
55,915 |
|
2022 GUIDANCE(*)
The Company is reaffirming its full-year
production, cost and capital expenditure guidance as detailed in
the tables below. At the MCSA Mining Complex, the Company is
guiding to the high-end of its full- year copper production
guidance range. Increased copper production is expected to result
from higher mining rates at the Pilar Mine relative to the first
quarter as well as improved grades due to planned stope sequencing
and mining of an initial stope within the Project Honeypot zone.
Higher mined and processed volumes from the Surubim Mine are also
expected to contribute to higher copper production volumes through
the balance of the year.
Unit operating costs during the first quarter
were affected by inflation in the cost of key consumables and
impacted by the strengthening of the BRL versus the US dollar.
While unit costs are expected to benefit through the remainder of
the year from higher copper and gold production, based upon the
influence of first quarter operating costs, the Company is
currently guiding to the higher end of its full- year operating
cost guidance ranges.
2022 PRODUCTION
AND COST
GUIDANCE(*)
The Company's cost guidance for 2022 assumes a USD:BRL foreign
exchange rate of 5.30, a gold price of $1,725 per ounce and a
silver price of $20.00 per ounce.
MCSA Mining Complex |
|
Copper Production (tonnes) |
43,000 - 46,000 |
C1 Cash Cost Guidance (US$/lb)(1) |
$1.05 - $1.15 |
|
|
|
|
NX Gold Mine |
|
Gold Production (ounces) |
39,000 - 42,000 |
C1 Cash Cost Guidance (US$/oz)(1) |
$500 - $600 |
All-in Sustaining Cost (AISC) Guidance (US$/oz)(1) |
$925 - $1,025 |
(1) C1 Cash Costs and AISC are a non-IFRS measure - see the
Notes section of this press release for additional information.
2022 CAPITAL
EXPENDITURE
GUIDANCE(*)
The Company's capital expenditure guidance for 2022 assumes a
USD:BRL foreign exchange rate of 5.30 and has been presented below
in USD millions.
MCSA Mining Complex |
|
Growth |
$125 - $140 |
Sustaining |
$80 - $90 |
Exploration |
$25 - $30 |
Total, MCSA Mining Complex |
$230 - $260 |
|
|
Boa Esperança Project |
|
Growth |
$70 - $80 |
Sustaining |
$0 |
Exploration |
$5 - $6 |
Total, Boa Esperança Project |
$75 - $86 |
|
|
NX Gold Mine |
|
Growth |
$0 - $1 |
Sustaining |
$16 - $18 |
Exploration |
$9 - $10 |
Total, NX Gold Mine |
$25 - $29 |
|
|
Company Total |
|
Growth |
$195 - $221 |
Sustaining |
$96 - $108 |
Exploration |
$39 - $46 |
Total, Company |
$330 - $375 |
(*) Guidance is based on certain estimates and
assumptions, including but not limited to, mineral reserve
estimates, grade and continuity of interpreted geological
formations and metallurgical performance. Please refer to the
Company’s SEDAR and EDGAR filings, including the Company's most
recent Annual Information Form, for complete risk factors.
CONFERENCE CALL
DETAILS
The Company will hold a conference call on Tuesday, May 10, 2022
at 11:30 am Eastern time (8:30 am Pacific time) to discuss these
results.
Date: |
Tuesday, May 10, 2022 |
Time: |
11:30 am Eastern time (8:30 am
Pacific time) |
Dial in: |
North America: 1-800-319-4610,
International: +1-604-638-5340 |
|
please dial in
5-10 minutes prior and ask to join the
call |
|
|
Replay: |
North America: 1-800-319-6413,
International: +1-604-638-9010 |
Replay Passcode: |
8813 |
NOTES
Non-IFRS measures
The Company utilizes certain alternative performance (non-IFRS)
measures to monitor its performance, including C1 cash cost of
copper produced (per lb), C1 cash cost of gold produced (per
ounce), AISC of gold produced (per ounce), realized gold price (per
ounce), EBITDA, adjusted EBITDA, adjusted net income attributable
to owners of the Company, adjusted net income per share, net (cash)
debt, working capital and available liquidity. These performance
measures have no standardized meaning prescribed within generally
accepted accounting principles under IFRS and, therefore, amounts
presented may not be comparable to similar measures presented by
other mining companies. These non-IFRS measures are intended to
provide supplemental information and should not be considered in
isolation or as a substitute for measures of performance prepared
in accordance with IFRS.
C1 cash cost
of copper
produced (per
lb.)
C1 cash cost of copper produced (per lb) is a non-IFRS
performance measure used by the Company to manage and evaluate the
operating performance of its copper mining segment and is
calculated as C1 cash costs divided by total pounds of copper
produced during the period. C1 cash costs includes total cost of
production, transportation, treatment and refining charges, and
certain tax credits relating to sales invoiced to the Company's
Brazilian customer on sales, net of by-product credits and
incentive payments. C1 cash cost of copper produced per pound is
widely reported in the mining industry as benchmarks for
performance but does not have a standardized meaning and is
disclosed in supplement to IFRS measures.
C1 cash cost
of gold produced
(per ounce)
C1 cash cost of gold produced (per ounce) is a non-IFRS
performance measure used by the Company to manage and evaluate the
operating performance of its gold mining segment and is calculated
as C1 cash costs divided by total ounces of gold produced during
the period. C1 cash cost includes total cost of production, net of
by-product credits and incentive payments. C1 cash cost of gold
produced per ounce is widely reported in the mining industry as
benchmarks for performance but does not have a standardized meaning
and is disclosed in supplemental to IFRS measures.
All-in Sustaining
Cost of gold
produced (per
ounce)
All-in sustaining cost of gold produced (per ounce) is an
extension of C1 cash cost of gold produced (per ounce) discussed
above and is also a key performance measure used by management to
evaluate operating performance of its gold mining segment. AISC of
gold produced (per ounce) is calculated as AISC divided by total
ounces of gold produced during the period. AISC includes C1 cash
costs, site general and administrative costs, accretion of mine
closure and rehabilitation provision, sustaining capital
expenditures, sustaining leases, and royalties and production
taxes. AISC of gold produced (per ounce) is widely reported in the
mining industry as benchmarks for performance but does not have a
standardized meaning and is disclosed in supplement to IFRS
measures.
Earnings before
interest, taxes,
depreciation and
amortization (EBITDA)
and Adjusted
EBITDA
EBITDA and adjusted EBITDA are non-IFRS performance measures
used by management to evaluate its debt service capacity and
performance of its operations. EBITDA represents earnings before
finance expense, income taxes, depreciation and amortization.
Adjusted EBITDA is EBITDA before the pre-tax effect of adjustments
for non-cash and/or non-recurring items required in determination
of EBITDA under its revolving credit facility for covenant
calculation purposes.
Adjusted net income attributable to
owners of the Company and Adjusted net income per share
attributable to owners of
the Company
“Adjusted net income attributable to owners of the Company” is
net income attributed to shareholders as reported, adjusted for
certain types of transactions that, in management's judgment, are
not indicative of our normal operating activities or do not
necessarily occur on a recurring basis. “Adjusted net income per
share attributable to owners of the Company” (“Adjusted EPS”) is
calculated as "adjusted net income attributable to owners of the
Company" divided by weighted average number of outstanding common
shares in the period. The Company believes that, in addition to
conventional measures prepared in accordance with IFRS, the Company
and certain investor and analysts use these supplemental non-IFRS
performance measures to evaluate the normalized performance of the
Company. The presentation of Adjusted EPS is not meant to
substitute the net income (loss) per share attributable to owners
of the Company (“EPS”) presented in accordance with IFRS, but
rather it should be evaluated in conjunction with such IFRS
measures.
Net (Cash)
Debt
Net (cash) debt is a performance measure used by the Company to
assess its financial position and ability to pay down its debt. Net
(cash) debt is determined based on cash and cash equivalents,
short-term investments, net of loans and borrowings as reported in
the Company’s condensed consolidated interim financial
statements.
Working
capital and
Available liquidity
Working capital is calculated as current assets less current
liabilities as reported in the Company’s condensed consolidated
interim financial statements. The Company uses working capital as a
measure of the Company’s short-term financial health and ability to
meet its current obligations using its current assets. Available
liquidity is calculated as the sum of cash and cash equivalents,
short-term investments and the undrawn amount available on its
revolving credit facilities. The Company uses this information to
evaluate the liquid assets available.
ABOUT ERO
COPPER CORP
Ero Copper Corp is a high-growth, clean copper
producer with operations in Brazil and corporate headquarters in
Vancouver, B.C. The Company's primary asset is a 99.6% interest in
the Brazilian copper mining company, Mineração Caraíba S.A.
("MCSA"), 100% owner of the MCSA Mining Complex, which is comprised
of operations located in the Curaçá Valley, Bahia State, Brazil,
where the Company currently mines copper from the Pilar and
Vermelhos underground mines and the Surubim open pit mine, and the
Boa Esperança development project, an IOCG-type copper project
located in Pará, Brazil. The Company also owns 97.6% of NX Gold
S.A. ("NX Gold") which owns the NX Gold Mine, an operating gold and
silver mine located in Mato Grosso, Brazil. Additional information
on the Company and its operations, including technical reports on
the MCSA Mining Complex, Boa Esperança and NX Gold properties, can
be found on the Company's website (www.erocopper.com), on SEDAR
(www.sedar.com), and on EDGAR (www.sec.gov).
ERO COPPER
CORP.
/s/ David Strang |
For further information contact: |
David Strang, CEO |
Courtney
Lynn, VP, Corporate Development & Investor Relations |
|
(604)
335-7504 |
|
info@erocopper.com |
CAUTION REGARDING FORWARD LOOKING INFORMATION
AND STATEMENTS
This press release contains “forward-looking
statements” within the meaning of the United States Private
Securities Litigation Reform Act of 1995 and “forward-looking
information” within the meaning of applicable Canadian securities
legislation (collectively, “forward-looking statements”).
Forward-looking statements include statements that use
forward-looking terminology such as “may”, “could”, “would”,
“will”, “should”, “intend”, “target”, “plan”, “expect”, “budget”,
“estimate”, “forecast”, “schedule”, “anticipate”, “believe”,
“continue”, “potential”, “view” or the negative or grammatical
variation thereof or other variations thereof or comparable
terminology. Such forward-looking statements include, without
limitation, statements with respect to the Company's guidance
and/or outlook on future production, costs and capital
expenditures; development plans, costs, timelines, ability to
finance and/or approvals for, as well as benefits, production
and/or performance expected by, growth projects including
development of the Deepening Extension Zone, construction of the
new external shaft, and expansion of mill processing capacity, and
construction of the Boa Esperança mine; the Company’s expectations,
strategies, and plans for the MCSA Mining Complex, the NX Gold
Property and the Boa Esperança Property, including, but not limited
to, the Company’s planned exploration, development and production
activities; the expected impact of Project Honeypot on future mine
plans and production; and the significance and timing of any
particular exploration program or result and the Company’s
expectations for current and future exploration plans.
Forward-looking statements are not a guarantee
of future performance and are based upon a number of estimates and
assumptions of management in light of management’s experience and
perception of trends, current conditions and expected developments,
as well as other factors that management believes to be relevant
and reasonable in the circumstances, as of the date of this press
release including, without limitation, assumptions about: continued
effectiveness of the measures taken by the Company to mitigate the
possible impact of COVID-19 on its workforce and operations;
favourable equity and debt capital markets; the ability to raise
any necessary additional capital on reasonable terms to advance the
production, development and exploration of the Company’s properties
and assets; future prices of copper and other metal prices; the
timing and results of exploration and drilling programs; the
accuracy of any mineral reserve and mineral resource estimates; the
geology of the MCSA Mining Complex, NX Gold Property and the Boa
Esperança Property being as described in the technical reports for
these properties; production costs; the accuracy of budgeted
exploration and development costs and expenditures; the price of
other commodities such as fuel; future currency exchange rates and
interest rates; operating conditions being favourable such that the
Company is able to operate in a safe, efficient and effective
manner; work force conditions to remain healthy in the face of
prevailing epidemics, pandemics or other health risks (including
COVID-19), political and regulatory stability; the receipt of
governmental, regulatory and third party approvals, licenses and
permits on favourable terms; obtaining required renewals for
existing approvals, licenses and permits on favourable terms;
requirements under applicable laws; sustained labour stability;
stability in financial and capital goods markets; availability of
equipment and critical supplies, spare parts and consumables;
positive relations with local groups and the Company’s ability to
meet its obligations under its agreements with such groups; and
satisfying the terms and conditions of the Company’s current loan
arrangements. While the Company considers these assumptions to be
reasonable, the assumptions are inherently subject to significant
business, social, economic, political, regulatory, competitive,
global health, and other risks and uncertainties, contingencies and
other factors that could cause actual actions, events, conditions,
results, performance or achievements to be materially different
from those projected in the forward-looking statements. Many
assumptions are based on factors and events that are not within the
control of the Company and there is no assurance they will prove to
be correct.
Furthermore, such forward-looking statements
involve a variety of known and unknown risks, uncertainties and
other factors which may cause the actual plans, intentions,
activities, results, performance or achievements of the Company to
be materially different from any future plans, intentions,
activities, results, performance or achievements expressed or
implied by such forward-looking statements. Such risks include,
without limitation the risk factors listed under the heading “Risk
Factors” in the Company's most recent Annual Information Form.
Although the Company has attempted to identify
important factors that could cause actual actions, events,
conditions, results, performance or achievements to differ
materially from those described in forward-looking statements,
there may be other factors that cause actions, events, conditions,
results, performance or achievements to differ from those
anticipated, estimated or intended.
The Company cautions that the foregoing lists of
important assumptions and factors are not exhaustive. Other events
or circumstances could cause actual results to differ materially
from those estimated or projected and expressed in, or implied by,
the forward-looking statements contained herein. There can be no
assurance that forward-looking statements will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking
statements.
Forward-looking statements contained herein are
made as of the date of this press release and the Company disclaims
any obligation to update or revise any forward-looking statement,
whether as a result of new information, future events or results or
otherwise, except as and to the extent required by applicable
securities laws.
CAUTIONARY NOTES REGARDING MINERAL RESOURCE AND
MINERAL RESERVE ESTIMATES
In accordance with applicable Canadian
securities regulatory requirements, all mineral reserve and mineral
resource estimates of the Company disclosed in this press release
have been prepared in accordance with NI 43-101 and are classified
in accordance with the Canadian Institute of Mining, Metallurgy and
Petroleum (“CIM”) Definition Standards for Mineral Resources and
Mineral Reserves, adopted by the CIM Council on May 10, 2014 (the
“CIM Standards”). NI 43-101 is a rule developed by the Canadian
Securities Administrators that establishes standards for all public
disclosure an issuer makes of scientific and technical information
concerning mineral projects. NI 43-101 differs significantly from
the disclosure requirements of the Securities and Exchange
Commission (the “SEC”) generally applicable to U.S. companies. For
example, the terms “mineral reserve”, “proven mineral reserve”,
“probable mineral reserve”, “mineral resource”, “measured mineral
resource”, “indicated mineral resource” and “inferred mineral
resource” are defined in NI 43-101. These definitions differ from
the definitions in the disclosure requirements promulgated by the
SEC. Accordingly, information contained in this press release may
not be comparable to similar information made public by U.S.
companies reporting pursuant to SEC disclosure requirements.
Mineral resources which are not mineral reserves
do not have demonstrated economic viability. Pursuant to the CIM
Standards, mineral resources have a higher degree of uncertainty
than mineral reserves as to their existence as well as their
economic and legal feasibility. Inferred mineral resources, when
compared with measured or indicated mineral resources, have the
least certainty as to their existence, and it cannot be assumed
that all or any part of an inferred mineral resource will be
upgraded to an indicated or measured mineral resource as a result
of continued exploration. Pursuant to NI 43-101, inferred mineral
resources may not form the basis of any economic analysis.
Accordingly, readers are cautioned not to assume that all or any
part of a mineral resource exists, will ever be converted into a
mineral reserve, or is or will ever be economically or legally
mineable or recovered.
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