TORONTO, ONTARIO (TSX: CSM.WT)(AMEX: SMC) reports its financial
results for the three months ended March 31, 2008 (currency figures
in U.S. dollars). The consolidated financial statements along with
management's discussion and analysis are available for viewing on
the Central Sun website at www.centralsun.ca. The documents have
been filed with SEDAR (www.sedar.com) and should be available on
SEDAR no later than 24 hours from dissemination of this
release.
The following are highlights of financial results for the first
quarter 2008 (Q1 2008) compared to results for the first quarter
2007 (Q1 2007). The operating results for Q1 2008 reflect only the
Limon Mine compared to three mines in Q1 of 2007. The Orosi Mill
Project development costs have been charged to income as these are
prior to the receipt of a positive feasibility study.
- The Q1 2008 results reflect operations from only the Limon
Mine whereas in Q1 2007 results of operations included the
Company's Bellavista, Orosi and Limon mines. This had the following
impact:
-- Revenue decreased 39% to $12.3 million in Q1 2008 compared to
revenue of $20.3 million in Q1 2007,
-- Gold sales decreased 57% to 13,524 ounces in Q1 2008 compared
to 31,134 ounces in Q1 2007
-- Gold production decreased 69% to 9,844 ounces in Q1 2008
compared to 31,801 ounces in Q1 2007
-- Income from mining operations increased 439% to $4,075,000 in
Q1 2008 compared to $756,000 in Q1 2007
-- Cash operating costs per ounce of gold sold increased to $502
per ounce in Q1 2008 compared to $470 per ounce in Q1 2007
- Orosi Mill Project is on target for Q1 2009 completion with
$4,423,000 spent in Q1 2008 ($4,216,000 expensed and $207,000
capitalized)
- Loss in Q1 2008 was $5.0 million, or $0.08 per share compared
to a $1.2 million, or $0.03 per share
- Cash used in operations totalled $3.3 million in Q1 2008
compared to $5.4 million generated in Q1 2007
- Cash on hand totalled $12.2 million as at March 31, 2008
compared to $16.8 million as at December 31, 2007
Consolidated Statements of Operations (Unaudited)
(US Dollars and shares in thousands, except per share amounts)
Three months ended March 31
2008 2007
Sales $ 12,310 $ 20,297
----------- -----------
Cost of sales 6,786 14,639
Royalties and production taxes 702 856
Depreciation and depletion 597 3,980
Accretion expense 150 66
----------- -----------
8,235 19,541
----------- -----------
Income from mining operations before the
undernoted items 4,075 756
----------- -----------
Expenses and other income
General and administrative 1,296 1,371
Orosi Mine - Mill Project 4,216 -
Care and maintenance 1,214 -
Stock based compensation 1,132 366
Exploration 1,061 417
Other (income) expense 178 (253)
----------- -----------
9,097 1,901
----------- -----------
Loss from continuing operations (5,022) (1,145)
Loss from discontinued operations, net of tax - (28)
----------- -----------
Net loss for the period $ (5,022) $ (1,173)
----------- -----------
----------- -----------
Loss per share from continuing operations
- basic and diluted $ (0.08) $ (0.03)
Income per share from discontinued operations,
net of tax - basic and diluted - -
----------- -----------
Loss per share - basic and diluted $ (0.08) $ (0.03)
----------- -----------
----------- -----------
Weighted average number of shares issued
and outstanding 59,337 34,396
----------- -----------
----------- -----------
Limon Mine
The first quarter gold sales established a good start to the
year and puts the Company on track to reach its 2008 sales and
production targets of 45,000 ounces from the Limon Mine.
- Income from mining operations at Limon totalled $4.2 million
in Q1 2008 compared to $1.0 million in Q1 2007
- Gold sold during Q1 2008 totalled 13,524 ounces (Q1/07: 8,513
ounces) at a cash operating cost per ounce sold of $502 (Q1/07:
$453)
- The mine generated total revenue of $12.3 million (Q1/07: $5.6
million) on an average realized gold price of $910 per ounce
(Q1/07: $654).
"When you compare the Limon Mine's performance in Q1 2008
compared to Q1 2007, we see improvements in almost every aspect.
Our gold sales have increased significantly to 13,524 ounces in Q1
2008 as compared to 8,513 in Q1 2007, with actual sales numbers
reaching $12.3 million in Q1 2008 compared to $5.6 million in Q1
2007," said Peter Tagliamonte, President and CEO. "The Orosi Mill
project is progressing well. With a positive feasibility study on
this project now completed, we are in a position to keep the
project on a "fast track" for completion in Q1 of 2009."
About Central Sun Mining Inc.
The Company is a growing gold producer with mining and
exploration activities focused in Nicaragua. The Company operates
the Limon Mine in Nicaragua and is converting the Orosi Mine in
Nicaragua to conventional milling to increase the annual gold
output. It also holds an option to acquire a 100% interest in the
Mestiza gold property which is located 70 kilometres east of the
Limon Mine. The Company is focused on efficient and productive
mining practices to establish high quality and cost effective
operations. Central Sun Mining is committed to growth by optimizing
current operations, expanding mineral reserves and resources at
existing mines, exploring its extensive land holdings and seeking
strategic mergers or acquisitions in the Americas.
Cautionary Note Regarding Forward-Looking Statements: This press
release contains "forward-looking statements", within the meaning
of the United States Private Securities Litigation Reform Act of
1995 and applicable Canadian securities legislation.
Forward-looking statements include, but are not limited to,
statements with respect to the completion of the Company's new
strategic plan, the future financial or operating performance of
the Company, its subsidiaries and its projects, the future price of
gold, estimated recoveries under the milling plan, the estimation
of mineral reserves and resources, the realization of mineral
reserve estimates, the timing and amount of estimated future
production, costs of production, capital for the mill project,
operating and exploration expenditures, costs and timing of the
development of new deposits, outcome, costs and timing of future
exploration, requirements for additional capital, government
regulation of mining operations, environmental risks, reclamation
expenses, title disputes or claims, limitations of insurance
coverage and the timing and possible outcome of pending litigation
and regulatory matters. Generally, these forward-looking statements
can be identified by the use of forward-looking terminology such as
"plans", "expects" or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates" or
"does not anticipate", or "believes", or variations of such words
and phrases or state that certain actions, events or results "may",
"could", "would", "might" or "will be taken", "occur" or "be
achieved".
Forward-looking statements are subject to known and unknown
risks, uncertainties and other factors that may cause the actual
results, level of activity, performance or achievements of the
Company to be materially different from those expressed or implied
by such forward-looking statements, including but not limited to:
general business, economic, competitive, political and social
uncertainties; the actual results of current exploration
activities; actual results of reclamation activities; conclusions
of economic evaluations; changes in project parameters as plans
continue to be refined; future prices of gold; possible variations
of ore grade or recovery rates; failure of plant, equipment or
processes to operate as anticipated; accidents, labour disputes and
other risks of the mining industry; political instability,
insurrection or war; delays in obtaining governmental approvals or
required financing or in the completion of development or
construction activities, as well as those factors discussed in the
section entitled "General Development of the Business - Risks of
the Business" in the Company's annual information form for the year
ended December 31, 2007 on file with the securities regulatory
authorities in Canada and the Company's Form 40-F on file with the
Securities and Exchange Commission in Washington, D.C. Although the
Company has attempted to identify important factors that could
cause actual results to differ materially from those contained in
forward-looking statements, 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. Accordingly, readers should not
place undue reliance on forward-looking statements. The Company
does not undertake to update any forward-looking statements that
are incorporated by reference herein, except in accordance with
applicable securities law.
Cautionary Note to U.S. Investors Concerning Estimates of
Measured, Indicated or Inferred Resources
The information presented uses the terms "measured", "indicated"
and "inferred" mineral resources. United States investors are
advised that while such terms are recognized and required by
Canadian regulations, the United States Securities and Exchange
Commission does not recognize these terms. "Inferred mineral
resources" have a great amount of uncertainty as to their
existence, and as to their economic and legal feasibility. It
cannot be assumed that all or any part of an inferred mineral
resource will ever be upgraded to a higher category. Under Canadian
rules, estimates of inferred mineral resources may not form the
basis of feasibility or other economic studies. United States
investors are cautioned not to assume that all or any part of
measured or indicated mineral resources will ever be converted into
mineral reserves. United States investors are also cautioned not to
assume that all or any part of an inferred mineral resource exists,
or is economically or legally mineable.
Contacts: Central Sun Mining Inc. Andre Bharti Investor
Relations (416) 860-0919 (416) 367-0182 (FAX) Email:
ir@centralsun.ca Website: www.centralsun.ca
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