VANCOUVER, Aug. 10, 2016 /CNW/ - Yellowhead Mining Inc.
("Yellowhead" or the "Company") (TSX: YMI) reports its results
of operations for the three and six months ended June 30, 2016.
For the full condensed consolidated interim financial statements
and management discussion & analysis for the second financial
quarter ended June 30, 2016, please
see SEDAR at www.sedar.com or the Company's website at
www.yellowheadmining.com.
Second Quarter 2016
During the second quarter of 2016, the Harper Creek Project
("Harper Creek") remained on care and maintenance, and the Company
intends to keep Harper Creek on care and maintenance for the
foreseeable future, including through the balance of 2016, until
such time as more favorable commodity and capital markets exist
that would permit the development of Harper Creek to continue.
Summary of Second Quarter Results
(Amounts are expressed in thousands of Canadian dollars,
except per-share amounts)
|
|
|
|
2016
|
2015
|
Quarter Ended
|
30-Jun
|
30-Jun
|
Administrative
expenses
|
134
|
$
438
|
Exploration and evaluation
expenses
|
44
|
309
|
Other
expenses/(income)
|
(2)
|
(6)
|
Net loss and comprehensive loss for the
period
|
176
|
742
|
Basic and diluted loss per share for the
period
|
$0.00
|
$
0.01
|
Yellowhead has no revenue from operations. Results can
fluctuate significantly from period to period due to the level of
development activities on the Project.
Review of Quarterly Results
The Company recorded a net loss of $176K for Q2 2016 (2015 - $742K), a decrease of $566K.
In Q2 2016 under the care and maintenance program, as compared
to Q2 2015, and within the administrative expense caption,
consulting fees decreased to $0 from
$18K, wages and benefits (including
all required 2016 severance) decreased to $31K from $300K,
travel and investor relations decreased to $2K from $15K,
professional fees increased to $32K
from $22K due to the out-sourcing of
reporting, and the other Q2 administrative costs are comparable
between 2016 and 2015 and relate mostly to the costs of being a
public company. Exploration and evaluation expenses decreased
to $44K from $309K due to the Harper Creek project being under
the care and maintenance program.
Cash and Cash Equivalents
The Company's working capital decreased $460 in Q1 and Q2 2016. ($1,117K at December 31,
2015 to $657 at June 30, 2016.) Included in working capital
at June 30, 2016 were cash and cash
equivalents of $865K (December 31, 2015 - $1,299K).
Outlook
The Company intends to keep Harper Creek on care and maintenance
for the foreseeable future, including through the balance of 2016,
until such time as more favorable commodity and capital markets
exist that would permit the development of Harper Creek to
continue.
About the Harper Creek Project
Harper Creek is a proposed 70,000 tonnes-per-day open pit copper
mine with a 28 year mine life, located in the Thompson – Nicola region of British Columbia near Vavenby. If
developed, Harper Creek would provide up to 600 jobs during
construction and up to 450 permanent jobs during operations.
About Yellowhead Mining Inc.
Yellowhead Mining Inc. is a development stage company with a
100% interest in Harper Creek, located in the North Thompson - Nicola region of British Columbia, Canada.
Forward Looking Statements
Except for statements of historical fact, this news release
contains certain "forward-looking information" within the meaning
of applicable securities laws. Forward-looking information is
frequently characterized by words such as "plan", "expect",
"project", "intend", "believe", "anticipate", "estimate" and other
similar words, or statements that certain events or conditions
"may" or "will" occur. Forward-looking statements are based on the
opinions and estimates of management at the date the statements are
made, and are subject to a variety of risks and uncertainties and
other factors that could cause actual events or results to differ
materially from those anticipated in the forward-looking
statements, including, among others, the accuracy of mineral grades
and related assumptions, inherent operating risks, planned
expenditures, proposed exploration and development at the Harper
Creek Project, operating and economic aspects of the Harper Creek
Project, as well as those risk factors identified in the Company's
Annual Information Form filed under the Company's SEDAR profile.
Yellowhead undertakes no obligation to update forward-looking
information if circumstances or management's estimates or opinions
should change except as required by law. The reader is cautioned
not to place undue reliance on forward-looking statements. More
detailed information about potential factors that could affect
projected results is included in the documents filed from time to
time with the Canadian securities regulatory authorities by
Yellowhead.
SOURCE Yellowhead Mining Inc.