VANCOUVER, British Columbia, March 3, 2003 (PRIMEZONE) -- Crew Development Corp. (Crew) (TSE:CRU) (OSLO:CRU) (Frankfurt:KNC) (Other OTC:CRWVF) today announced its financial results for the second quarter ended December 31, 2002.
The results of operations for the six months ended December 31, 2002, in summary, compared with the six months ended December 31, 2001, were as follows (all figures expressed in Canadian dollars):
In thousands (all figures expressed in Canadian dollars)
Six months Six months
Ended Ended
December 31, December 31,
2002 2001
--------------------------
Head office interest
and other income
$ 175 $ 627
Administrative costs
(excluding African operations) (3,302) (3,238)
Foreign exchange (loss) gain (976) 642
African operations 1,713 (7,404)
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Income (loss) before
the undernoted: (2,390) (9,373)
Loss on disposal of
interest in Metorex (2,426) --
Provision for decline
in market value of
investment in Asia
Pacific (1,980) --
Provision for impairment
of Geothermal asse (2,818) --
Cost of public listing
of Geothermal project -- (1,266)
Costs relating to
Mindoro Nickel Project -- (1,151)
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Net loss for the period $(9,614) $(11,790)
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For the six months ended December 31, 2002, the Company incurred a net loss of $9.6 million ($0.07 per share), compared with a net loss of $11.8 million ($0.09 per share) for the six months ended December 31, 2001.
During the three months ended December 31, 2002, the Company disposed of 28 million shares of Metorex. As a result of this transaction, the Company's interest in Metorex was reduced from 41% to 21% effective October 22, 2002. The Company's share of net income from Metorex, its African operations, amounted to $1.7 million for the six months ended December 31, 2002. The improved results are mainly attributable to an increase of 19% in Metorex group revenues. Administrative, office and general expenses for the six months ended December 31, 2002, amounted to $2.6 million, compared with $6.8 million for the six months ended December 31, 2001, of which $3.9 million arises on consolidation of Metorex.
Cash on hand at December 31, 2002 amounted to $10.4 million (June 30, 2002 - $4.4 million). During the six months ended December 31, 2002, the Company used $2.4 million in cash from operating activities. The net loss of $9.6 million included amortization of $115,000 and Non-controlling interest of $44,000. Included in the net loss for the period was consolidated income from Metorex of $1.7 million; a loss on disposal of investment in Metorex of $2.4 million; a provision for decline in market value of investment in Asia Pacific Resources of $2 million and a provision for impairment of North Pacific Geopower Corp. of $2.8 million.
During the six months ended December 31, 2002, the Company used $6.5 million in investing activities, of which $6 million was invested in advancing the Nalunaq Gold project. During the six months period the Company disposed of 28 million shares of Metorex for cash proceeds of $12.7 million. The proceeds from the sale of Metorex shares will be used for working capital and further exploration of existing projects.
In alignment with Crew's strategic focus on gold and precious metals, as well as in line with the company's intentions of entering into projects with existing or near-term cash flow, Crew announced on February 18, 2003, that it has, as part of a consortium, signed a purchase agreement with Avgold Ltd. for the purchase of Eastern Transvaal Consolidated (ETC), currently producing 100,000 oz of gold per year.
In combination with the forthcoming gold production from the Nalunaq gold mine in Greenland, as well as other projects where Crew is investigating the potential for near term production and cash flow, the acquisition of a 20% equity share of ETC strengthens Crew's future cash flow as well as the company's ambition of becoming a growth oriented gold producer. Crew is well positioned to meet the future with an attractive portfolio of projects, a solid balance sheet and treasury.
"Jan A. Vestrum," President and CEO
For more information or to be put on our email list, please contact the Vancouver Office, (604) 683 7585 or US/Canada Toll Free:1-866-818-2211, email: ir@crewdev.com or the Oslo Office at +47 67 59 2424, email crew@crew.no. Visit our website at http://www.crewdev.com.
To view the full-text release, including financial tables, please click on the following link: http://www.primezone.com/nr/documents/files/crew.doc