VANCOUVER, British Columbia, Dec. 2, 2002 (PRIMEZONE) -- Crew Development Corporation (TSE:CRU) (OSLO:CRU) (Frankfurt:KNC) (Other OTC:CRWVF) today announced its financial results for the first quarter ended September 30, 2002.
Results of Operations:
For the three months ended September 30, 2002, the Company incurred a net loss of $52,534 ($0.00 per share), compared with a net loss of $395,726 ($0.00 per share) for the three months ended September 30, 2001.
In thousands
(all figures expressed in Canadian dollars)
Three months Three months
ended ended
Sept. 30, Sept. 30,
2002 2001
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Head office interest and other income 51 159
Administrative costs
(excluding African operations) (1,485) (1,178)
Foreign exchange (loss) gain (117) 1,005
African operations 1,499 179
Costs relating to Mindoro Nickel Project -- (561)
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Net loss for the fiscal period $ (52) $ (396)
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For the three months ended September 30, 2002, the Company's 41% investment in Metorex, accounted for using the equity method amounted to $1,499,408. (The Company began accounting for its investment in Metorex on an equity basis effective April 30, 2002. The Company's 41% equity income in Metorex for the two months ended June 30, 2002 amounted to $1,549,819). In comparison, for the three months ended September 30, 2001, the company consolidated its 53% interest in Metorex in the financial statements, the net income for the period amounted to $179,000. The performance of the Metorex operations was assisted by an increase in revenues by 34%, which was assisted by increased sales volumes from the coal and antimony, improved commodity prices and the devaluation of the Rand/US dollar exchange rate.
The net loss for the three months ended September 30, 2002, includes realized foreign exchange loss of $116,863, compared with an unrealized foreign exchange gain of $1,004,740 for the three months ended September 30, 2001. The unrealized gains in 2001 were due primarily to the company holding significant cash balances denoted in denominated in Norwegian krone, which strengthened against the Canadian dollar during the quarter ended September 30, 2001.
Administrative, office and general expenses for the three months ended September 30, 2002, amounted to $1,120,074, compared with $2,795,275 for the three months ended September 30, 2001, of which $1,801,056 arises on consolidation of Metorex. Professional fees for the three months ended September 30, 2002, amounted to $304,096, compared to $163,029 for the three months ended September 30, 2001. The primary increase in the professional fees relate to Standard Bank financing and formation of the new company for the Nalunaq Gold project.
During the three months ended September 30, 2002, the Company used $2,204,116 in investing activities. The Company invested $1,922,090, in advancing the Nalunaq Gold project. The Company also invested $95,492 on a new mineral property in Northern Norway, Ringvassoy Gold project. In addition $157,967 was spent on the ongoing resource confirmation program at the Meager Creek Geothermal project.
Geothermal Project - British Columbia (87% owned)
The economic and regulatory conditions impacting the project were impacted by the recent announcement by the British Columbia government of its new energy plan, "Energy for Our Future: A Plan for B.C." The energy plan is expected to provide the Geothermal project through access to the transmission grid and wholesale markets, in conjunction with an open and transparent structure for establishing energy prices and transmission rates.
The Company is well positioned to meet the future with an attractive portfolio of projects, a solid balance sheet and treasury. The company's cash position at September 30, 2002, was $2,324,717. On October 22, 2002, the company sold an additional 28,208,412 million shares of Metorex for cash proceeds of $12,656,698. On October 14, 2002, Crew received dividend income from Metorex Limited in the amount of $858,500 (representing dividend income for Crew's 41% shares). The proceeds from the sale of Metorex shares will be used for working capital, further exploration of existing projects and in line with Crew's new strategy to acquire and hold assets directly and focus mainly on precious metals.
CREW DEVELOPMENT CORPORATION
Consolidated Balance Sheets
(expressed in Canadian dollars)
As at September 30, June 30,
2002 2002
(unaudited) (audited)
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ASSETS
CURRENT
Cash $ 2,324,717 $ 4,376,481
Accounts receivable 303,413 198,812
Prepaid expenses 193,170 250,389
Due from Metorex Limited 868,165 2,263,232
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3,689,465 7,088,914
NALUNAQ MINERAL PROPERTY INTEREST 36,382,337 34,460,247
INVESTMENT IN METOREX LIMITED 30,611,211 28,809,532
GEOTHERMAL PROJECT 2,771,564 2,613,596
INVESTMENT IN ASIA PACIFIC RESOURCES 4,950,000 4,950,000
PROPERTY, PLANT AND EQUIPMENT 840,977 891,347
OTHER MINERAL PROPERTY INTERSTS 3,340,790 3,245,298
OTHER 27,000 27,000
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$82,613,344 $82,085,934
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LIABILITIES
CURRENT
Accounts payable and accrued liabilities $ 2,789,147 $ 2,648,712
Promissory note 154,121 --
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2,943,268 2,648,712
FUTURE INCOME TAXES 3,338,484 3,338,484
NON-CONTROLLING INTEREST 2,307,766 2,324,649
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8,589,518 8,311,845
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SHAREHOLDERS' EQUITY
Share capital 160,114,934 160,114,934
Share purchase warrants 275,250 275,250
Deficit (83,899,132) (83,846,598)
Cumulative translation adjustment (2,467,226) (2,769,497)
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74,023,826 73,774,089
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$82,613,344 $82,085,934
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CREW DEVELOPMENT CORPORATION
Consolidated Statements of Loss and Deficit
(expressed in Canadian dollars)
Three months ended September 30 September 30
2002 2001
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MINERAL SALES $ -- $32,190,581
DIRECT COSTS OF MINERAL SALES -- (28,147,957)
AMORTIZATION -- (1,700,897)
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-- 2,341,727
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EXPENSES
Administration, office and general (1,120,074) (2,795,275)
Amortization (58,390) (19,958)
Interest -- (228,239)
Professional fees (304,096) (163,029)
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(1,482,560) (3,206,501)
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OTHER INCOME (EXPENSES)
Equity in income of associated companies 1,499,408 --
Foreign exchange (loss) gain (116,863) 1,004,740
Loss on disposal of assets (20,546) --
Interest and other income 51,144 720,758
Costs related to Mindoro Nickel Project -- (560,654)
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1,413,143 1,164,844
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LOSS BEFORE PROVISION FOR INCOME TAXES AND
NON-CONTROLLING INTEREST (69,417) 300,070
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PROVISION FOR INCOME TAXES
Current -- 698,687
Future -- (156,481)
-- 542,206
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LOSS BEFORE NON-CONTROLLING INTEREST (69,417) (242,136)
NON-CONTROLLING INTEREST 16,883 (153,590)
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NET LOSS (52,534) (395,726)
DEFICIT, BEGINNING OF FISCAL PERIOD (83,846,598) (42,697,223)
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DEFICIT, END OF FISCAL PERIOD $(83,899,132) $(43,092,949)
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LOSS PER SHARE - BASIC AND DILUTED $ (0.00) $ (0.00)
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