TSX: YMI
CALGARY, March 7, 2017 /CNW/ - Yellowhead Mining
Inc. ("Yellowhead" or the "Company") (TSX: YMI) reports its
results of operations for the financial year ended December 31, 2016.
For the full audited consolidated financial statements and
management discussion & analysis for the financial year ended
December 31, 2016, please see SEDAR
at www.sedar.com or the Company's website at
www.yellowheadmining.com.
Highlights for 2016 and Outlook for 2017
During 2016, the Harper Creek Project (the "Project") remained
on care and maintenance due to conditions in the commodity markets
and the international capital markets. For 2017, the Board of
Directors continues to be of the view that it is in the best
interest of all shareholders to continue to defer all expenditures
on the Project until such time as more favorable commodity and
capital markets present themselves.
In February 2017, the Company made
an application to the TSX Venture Exchange (TSX-V) to list its
common shares on the TSX-V, as a result of the Company not being in
compliance with the continuous listing requirements of the Toronto
Stock Exchange (TSX) and the TSX notifying the Company that its
common shares would be delisted from the TSX on March 10, 2017. The Company's application
for listing on the TSX-V is subject to the Company meeting all
necessary requirements and conditions of the TSX-V and the TSX-V
approving the application.
Summary of Financial Results
(Amounts are expressed
in thousands of Canadian dollars, except per-share amounts)
|
|
|
|
|
|
Q4
|
Q4
|
FY
|
FY
|
|
2016
|
2015
|
2016
|
2015
|
Administrative
expenses
|
$
|
103
|
$
|
596
|
$
|
644
|
$
|
1,916
|
Exploration and
maintenance expenses
|
66
|
22
|
163
|
822
|
Other
expenses/(income)
|
(2)
|
(4)
|
(5)
|
(16)
|
Gain on write-off of
accounts payable
|
(260)
|
-
|
(260)
|
-
|
Net loss/(gain) and
comprehensive loss/(gain) for the period
|
(93)
|
614
|
543
|
2,723
|
Basic and diluted
loss per share for the period
|
$0.00
|
$0.00
|
$0.00
|
$0.03
|
|
|
|
|
|
Yellowhead has no revenue from operations. Results can
fluctuate significantly from period to period due to the level of
project development on the Project.
Review of Quarterly Results
Q4 2016 had a gain of $93k
compared to a loss of $614k in Q4
2015. This gain was due to the write-off of accounts payable
of $260k, comprised of the reversal
of liabilities for exploration and maintenance expenses of
$187k, director fees of $43k, and vacation liabilities of $30k. Administrative expenses decreased by
$493k due to less staff, the Project
remaining on care and maintenance, and Q4 2015 including
$349k of severance payments.
Exploration and maintenance expenses were $44k higher in Q4 2016 mostly due to a one-time
cost of $30k to dispose of all
petroleum products on-site at the Vavenby industrial property owned by the
Company for safety and environmental reasons.
Review of Annual Results
FY 2016 had a loss of $543k
compared to a loss of $2,723k in FY
2015. This decrease of $2,180k is due to a decrease of $1,272k of administrative expenses, a decrease in
exploration and maintenance expenses of $659k, a decrease in interest income of
$11k, and a gain on the write-off of
accounts payable of $260k. The
decrease in administrative expenses is mostly due to decreased
wages and benefits of $1,020k and
decreased consulting fees of $173k.
The decrease in exploration and maintenance expenses is mostly due
to the Project being on care and maintenance in FY 2016. The
decrease in other income is due to lower interest income on lower
cash balances. The gain on write-off of accounts payable of
$260k as previously described, is
comprised of the reversal of liabilities for exploration and
maintenance expenses of $187k,
director fees of $43k, and vacation
liabilities of $30k.
Cash and Cash Equivalents
The Company had cash and cash equivalents of $618k as at December 31,
2016, as compared to $1,299k
as at December 31, 2015. As at
December 31, 2016, the Company had
working capital of $611k, as compared
to working capital of $1,117k as at
December 31, 2015.
Outlook
The Company intends to keep the Project on care and maintenance
for the foreseeable future, including during 2017, until such time
as more favorable commodity and capital markets exist that would
permit the development of the Project to continue.
About Yellowhead Mining Inc.
Yellowhead Mining Inc. is a development stage company with a
100% interest in the Project, located in the North Thompson - Nicola region of British Columbia, Canada.
About the Harper Creek Project
The Project 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, the Project would provide up to 600 jobs during
construction and up to 450 permanent jobs during operations.
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.