Aurora Energy Resources Inc. ("the Company" or "Aurora") (TSX: AXU)
reports its financial and operating results for the year ended
December 31, 2008. The following summary of the Company's financial
results is based upon and qualified in its entirety by reference to
the audited financial statements and Management's Discussion and
Analysis (MD&A) for the year ended December 31, 2008, each
available on SEDAR at www.sedar.com. Further details on each of the
Company's projects and activities can be found on the Company's
website www.aurora-energy.ca and on SEDAR at 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 Newfoundland and 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 CMB properties consist of a total of more than 90,000
ha in 32 licenses or groups of mineral claims collectively
containing a measured and indicated resource of 83.9 million pounds
of U3O8 and an inferred resource of 49.8 million pounds of
U3O8.(1)
Significant events for the year ended December 31, 2008
include:
- Key leadership change in August 2008 with the appointment of
Mr. Bruce Dumville as the new President and Chief Executive Officer
and the appointment of Dr. Mark O'Dea to the position of Deputy
Chair of the Company's Board of Directors. Mr. Dumville has over 25
years of experience in the international mining industry, including
functional responsibility for pre-feasibility and feasibility
studies, project management, operations, and the analysis of new
investment opportunities.
- Aurora took steps to move from an exploration to a mining
development company with the recruitment of Mr. Paul Coombs as
Chief Financial Officer and Corporate Secretary, Mr. Paul McNeill
as Vice-President Exploration, Mr. Chesley Andersen as
Vice-President Labrador Affairs, and Mr. Steve Cole as Director of
Engineering. Detailed senior management biographies can be found on
Aurora's website.
- Completion of the 2008 summer drill program in Labrador, which
included an infill drill campaign of 13,233.49 metres of drilling
in 26 holes at the Jacques Lake and Michelin deposits. Aurora also
completed a 2,908 metre geotechnical, environmental and
metallurgical drill program in August 2008 in 25 holes. The
environmental work plan for 2008 was also substantially completed
(see press releases of Aurora dated October 24, 2008 for further
details).
- Initiated a tailings management study to identify potential
tailings sites for the Michelin Project. Tailings options were
identified and those that are acceptable from an environmental,
technical and operations standpoint are being used to create a
short list for further consideration in 2009 and 2010.
- Development of an education, training and employment program
for residents of North Coast Labrador is underway.
- Selection of members for the Michelin Project Community Panel,
announced in June 2008, and completion of its first meeting.
- In April 2008, the Nunatsiavut Government placed a three-year
moratorium on mining and milling of uranium on Labrador Inuit
Lands. In response Aurora implemented a revised work program to
fulfill the Company's contractual and financial obligations for
2008.
- Signing of an option agreement with Pacific Ridge Exploration
Ltd. pursuant to which the Company was granted the right to earn a
51% interest in a uranium exploration and development property
located in the Baker Lake Basin of Nunavut, Canada. The property
provides the potential to build value at an excellent entry cost
and in a jurisdiction with clearly defined policies on exploration
and mining. The Baker Lake Basin property covers 96,000 hectares
and boasts attractive near-surface uranium mineralization,
including five targets with drill-indicated mineralization, with at
least 15 target areas yet to be drill-tested (for further details,
please refer to the press release of Aurora dated September 23,
2008).
- Completion of an initial 600 metre drill program to test the
Lucky 7 zone at the Baker Lake Basin property, as well as
geological mapping and ground magnetic surveys, and an airborne
magnetic, radiometric and broadband electromagnetic survey, of
which results are pending. This work is designed to cover the
property and aid in the design of the subsequent exploration
program.
Aurora's 2009 program focuses on conserving the Company's
substantial cash position, while continuing to build community
support and advancing environmental and engineering studies. The
program also involves completing a tailings management options
study, continuing environmental baseline studies and metallurgical
studies, and progressing the mill process design, while
implementing a comprehensive community engagement plan.
Aurora's net cash outlay for 2009 is forecasted to be C$5.9
million. The 2009 budget includes estimated interest revenue of
$3.5 million and exploration activity to reclaim $1.46 million held
in bond by the province of Newfoundland and Labrador. This is a
significantly reduced budget from last year's $35 million
budget.
Operations
Selected Financial Data
This summary of selected audited financial data should be read
in conjunction with the MD&A and the audited financial
statements of the Company and related notes thereto, for the
periods indicated.
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For the year ended
December 31, December 31,
2008 2007
----------------------------------------------------------------------------
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Loss for the period $ 4,054,639 $ 7,414,906
Basic and diluted loss per share $ 0.06 $ 0.11
Cash invested in mineral properties $ 28,787,749 $ 27,981,820
Cash generated (used) by financing
activities $ 483,622 $ 110,244,554
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As at
December 31, December 31,
2008 2007
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Cash, cash equivalents & short term
deposits $ 99,720,807 $ 131,384,190
Working capital $ 98,272,334 $ 129,898,119
Exploration properties and deferred
exploration expenditures $ 87,511,616 $ 56,710,497
Total assets $ 191,024,073 $ 192,186,937
Shareholder's equity $ 179,448,674 $ 184,879,251
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The Company's net loss for the year ended December 31, 2008, was
$4,054,639, or a loss per share of $0.06, compared to a net loss of
$7,414,906 and loss per share of $0.11 for the year ended December
31, 2007. Increased interest income offset by a reduction in
stock-based compensation are the primary factors for the
improvement in the Company's net loss in 2008 as compared to
2007.
The net loss for the year ended December 31, 2008, consists
primarily of wages and benefits of $2,566,660, stock-based
compensation expense of $1,706,682, office and general expenses of
$1,521,430, investor relations, promotion and advertising expenses
of $602,377, consulting fees of $522,947 and Part XII.6 tax of
$261,444, offset by interest income of $3,798,374.
Exploration Projects
The Company incurred cash expenditures of $28,787,749 for the
year ended December 31, 2008, on the development and exploration of
its CMB uranium assets and the Baker Lake Basin property (net of
stock-based compensation of $1,089,880, amortization of $478,329
and future income taxes of $445,161).
Liquidity
At December 31, 2008, the Company had cash, cash equivalents and
short term deposits on its balance sheet of $99,720,807 and working
capital of $98,272,334, as compared to cash, cash equivalents and
short term deposits of $131,384,190 and working capital of
$129,898,119 at December 31, 2007. The changes in cash and working
capital of $31,663,383 and $31,625,785, respectively, are primarily
related to the use of funds for deferred exploration and
development expenditures of $17,240,983 and $11,546,766, and net
equipment purchase of $459,281 offset by interest income of
$3,798,374 and receipt of $550,800 upon the exercise of stock
options.
The Company currently has no operating revenues other than
interest income and relies primarily on existing cash balance to
fund its exploration, development and administrative costs.
ABOUT AURORA
Aurora is a uranium exploration and development company active
in the CMB of North Coast Labrador - one of the world's most
promising uranium districts - and in Nunavut, Canada, where it has
entered into an option agreement on a Baker Lake Basin
property.
Aurora has no debt and approximately $96 million in cash that is
fully liquid and held with a large Canadian commercial bank.
The Company will be hosting its annual general meeting on April
21, 2009 at The Rooms in St. John's, Newfoundland and Labrador.
Aurora is committed to responsible development, which includes
community consultation, lasting local benefits and the highest
standards of safety, health, and environmental protection.
(1) The Michelin deposit contains a measured resource of 1.289
million tonnes of resource grading 0.12% U3O8 (underground) and
5.795 million tonnes of resource grading 0.08% U3O8 (open pit), an
indicated resource of 16.170 million tonnes of resource grading
0.13% (underground) and 7.146 million tonnes of resource grading
0.06% U3O8 (open pit), and an inferred resource of 12.577 million
tonnes of resource grading 0.12% U3O8 (underground) and 1.564
million tonnes of resource grading 0.05% U3O8 (open pit). The
Jacques Lake deposit contains a measured resource of 0.415 million
tonnes of resource grading 0.09% U3O8 (underground) and 0.401
million tonnes of resource grading 0.09% U3O8 (open pit), an
indicated resource of 3.357 million tonnes of resource grading
0.08% (underground) and 1.909 million tonnes of resource grading
0.07% U3O8 (open pit), and an inferred resource of 2.778 million
tonnes of resource grading 0.08% U3O8 (underground) and 2.210
million tonnes of resource grading 0.05% U3O8 (open pit). The
Rainbow deposit contains an indicated resource of 1.088 million
tonnes of resource grading 0.09% U3O8 and an inferred resource of
0.931 million tonnes of resource grading 0.08% U3O8 (both open
pit). The Nash deposit contains an indicated resource of 0.757
million tonnes of resource grading 0.08% U3O8 and an inferred
resource of 0.613 million tonnes of resource grading 0.07% U3O8
(both open pit). The Inda deposit contains an indicated resource of
1.460 million tonnes of resource grading 0.06% U3O8 and an inferred
resource of 3.042 million tonnes of resource grading 0.07% U3O8
(both open pit). The Gear deposit contains an indicated resource of
0.520 million tonnes of resource grading 0.06% U3O8 and an inferred
resource of 0.210 million tonnes of resource grading 0.06% U3O8
(both open pit). Aurora's CMB Mineral Resources are reported at
cut-off grades that contemplate underground (0.05% U3O8) and open
pit (0.03% U3O8) mining scenarios, based on preliminary economic
assumptions, and may be refined with more in-depth economic
analyses. For further details of the property interests of Aurora,
please refer to the National Instrument 43-101 compliant technical
report dated April 7, 2008 and amended August 28, 2008 entitled "An
Update on the Exploration Activities of Aurora Energy Resources
Inc. on the CMB Uranium Property, Labrador, Canada, during the
period January 1, 2007 to December 31, 2007, Part II - CMB Mineral
Resources" prepared by Ian Cunningham-Dunlop, P. Eng. and
Christopher Lee, P. Geo., and available on SEDAR at
www.sedar.com.
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 2008 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. Bruce Dumville President
and Chief Executive Officer (709) 726-2223 Aurora Energy Resources
Inc. Paul Coombs Chief Financial Officer and Corporate Secretary
(709) 726-2223 Website: www.aurora-energy.ca
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