VANCOUVER, BRITISH COLUMBIA (TSX: AXU) reports its financial and
operating results for the year ended December 31, 2007. Details of
the Company's financial results are described in the audited
financial statements and Management's Discussion and Analysis for
the year ended December 31, 2007. Further details on each of the
Company's projects and activities can be found on the Company's
website http://www.aurora-energy.ca and on SEDAR at
http://www.sedar.com. All amounts are in Canadian dollars unless
otherwise stated.
Overview
The Corporation was incorporated on June 8, 2005, and operates
in the mineral resource industry. Its principle focus is on the
exploration and development of uranium projects in the Central
Mineral Belt ("CMB") in Labrador, Canada one of the most promising
uranium districts in the world, as well as potential evaluation and
acquisition of opportunities throughout the world. Aurora is
committed to responsible development with lasting local benefits
and the highest standards of safety, health, and environmental
protection.
Aurora's properties consist of a total of 223,074 acres in 28
licenses or groups of mineral claims. On November 27, 2007, the
Company completed its 2007 drill program which had commenced on
April 16, 2007. A total of 141 diamond drill holes totaling 49,793
metres were completed, utilizing up to 11 helicopter-supported
drill rigs over the course of the program. This work significantly
expanded the size of the Michelin and Jacques Lake deposits, and
tested a number of new and historic uranium targets on the
property. During the first quarter of 2008, the Company released an
updated NI 43-101 compliant resource estimate for the Michelin and
Jacques Lake deposits, and initial NI 43-101 compliant resource
estimates for the Gear, Inda, Nash and Rainbow deposits.
For 2008, an $8 million, 20,000 metre winter infill drilling
program has recently concluded at the Michelin and Jacques Lake
deposits, to convert inferred resources to indicated resources.
This will be followed by a $20 million, 50,000 metre summer diamond
drilling program, aimed at advancing the development of deposits
and exploration targets. The main focus of the 2008 drilling
program will be to continue to expand and convert inferred
resources to indicated resources at the Michelin and Jacques Lake
deposits, expand the size of the Gear, Inda, Nash and Rainbow
deposits and to test a number of other targets on the property.
Operations
Selected Financial Data
This summary of selected financial data should be read in
conjunction with the Management Discussion and Analysis
("MD&A") of the financial position and operating results of the
company for the twelve months ended December 31, 2007 and 2006 and
the audited consolidated financial statements and related notes for
the same period.
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Year ended Year ended
December 31, December 31,
2007 2006
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Loss for year $7,414,906 $12,571,640
Basic and diluted loss per share $0.11 $0.23
Cash invested in mineral properties $27,981,820 $14,534,070
Cash generated by financing activities $110,244,554 $68,515,868
Cash and cash equivalents $131,094,585 $53,137,862
Working capital $129,898,119 $52,386,417
Total assets $192,186,937 $76,419,309
Shareholders' equity $184,879,251 $74,570,752
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The Company's net loss for the year ended December 31, 2007 was
$7,414,906, or a loss per share of $0.11, compared to a net loss of
$12,571,640 and loss per share of $0.23 for the year ended December
31, 2006. An increase in interest income and reduction in
stock-based compensation are the primary factors for the
improvement in the Corporation's net loss in 2007 vs. 2006.
The net loss for the year ended December 31, 2007 consists
primarily of stock-based compensation expenses ($5.8 million),
wages and benefits ($2.5 million) and investor relations, promotion
and advertising expenses ($1 million), offset by interest income of
$2.2 million.
Exploration Projects
The Company incurred expenditures of $27.98 million for the year
ended December 31, 2007 on the development and exploration of its
CMB uranium assets (net of stock-based compensation of $4.19
million, amortization of $0.3 million and future income taxes of
$1.9 million) as compared to a budget of $27.6 million.
Liquidity
At December 31, 2007, the Company had cash on its balance sheet
of $131 million and working capital of $129.9 million, as compared
to cash of $53.1 million and working capital of $52.4 million at
December 31, 2006. The change in cash and working capital of $77.9
million and $77.5 million, respectively, is primarily related to
the receipt of November 27, 2007 bought deal financing with gross
proceeds of $111.6 million, proceeds from the exercise of stock
options and warrants throughout 2007 of $3.5 million, offset by
deferred development and exploration expenditures of $27.98 million
and cash operating costs of $2.99 million.
The Company currently has no operating revenues other than
interest income and relies primarily on equity financing as well as
the exercise of warrants and stock options to fund its exploration,
development and administrative costs.
ABOUT AURORA
Aurora is a uranium exploration and development company focused
on the Central Mineral Belt in coastal Labrador. It owns 100% of
one of Canada's largest undeveloped uranium deposits. Aurora is
committed to generating superior shareholder value and responsible
development, with lasting local benefits. Aurora has offices in
Postville, Makkovik, Happy Valley - Goose Bay, Labrador, St.
John's, Newfoundland, Toronto and Vancouver.
The Company will be hosting its annual general meeting on June
10, 2008 at The Rooms in St. John's, Newfoundland and Labrador.
Except for the statements of historical fact contained herein,
certain information presented constitutes "forward-looking
statements". Such forward-looking statements, including but not
limited to the timing and level of exploration activities,
including drilling activities, the timing of completion of a
pre-feasibility study and anticipated results of the 2007 work
program; involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or
achievement of Aurora to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statements. Such factors include, among others,
risks related to the actual results of current exploration
activities, conclusions of economic evaluations, uncertainty in the
estimation of mineral resources, changes in project parameters as
plans continue to be refined, future prices of uranium, economic
and political stability in Canada, environmental risks and hazards,
increased infrastructure and/or operating costs, labor and
employment matters, and government regulation as well as those
factors discussed in the section entitled "Risk Factors" in
Aurora's Annual Information Form on file with the Canadian
Securities Commissions. Although Aurora has attempted to identify
important factors that could cause actual results to differ
materially, there may be other factors that cause results not to be
as anticipated, estimated or intended. There can be no assurance
that such statements will prove to be accurate as actual results
and future events could differ materially from those anticipated in
such statements. Aurora disclaims any intention or obligation to
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise. Accordingly,
readers should not place undue reliance on forward-looking
statements.
Contacts: Aurora Energy Resources Inc. Mark O'Dea President
& CEO (604) 632-0110 or (709) 726-2223 Aurora Energy Resources
Inc. Paul Coombs Chief Financial Officer (604) 632-0110 or (709)
726-2223 Website: www.aurora-energy.ca
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