SWEF TERRAWINDS RESOURCES CORP. Files Second Quarter Financial Results
TORONTO, Aug. 3, 2012 /CNW/ - SWEF TERRAWINDS RESOURCES CORP. (the "Company") announces it has filed with Canadian securities regulators its unaudited interim financial statements and Management's Discussion and Analysis ("MD&A") for the three and six month periods ended June 30, 2012 and 2011. These documents will be available at www.sedar.com and www.sweflp.com.
On January 16, 2008, March 10, 2008, April 29, 2008, August 29, 2008, November 13, 2008, December 1, 2008, March 26, 2009 and July 24, 2009 management provided instructions to shareholders regarding the process for submitting tax indemnity claims and the status of the claims process. Distributions of the funds held in trust by the Agent continue, and the relevant taxation authorities continue to provide individual reassessments for the 2005 tax year allowing shareholders to make their tax indemnity claims. Further information is available at www.sweflp.com and www.terida.com/paymentagent.
Recent Developments
The tax indemnity period has been extended to July 31, 2013. Investors who intend to file claims against the tax indemnity fund and have not yet done so are urged to do so as soon as possible.
Results of Operations
Three Month Comparison
Net loss for the three month period ended June 30, 2012 was $88 thousand compared to a net loss of $336 thousand for the same period in fiscal 2011. The decrease in net loss of $248 thousand is due primarily to a decrease in tax indemnity payments and related deferred tax recovery when comparing the three months ended June 30, 2012 to the same period ended June 30, 2011.
Interest income for the three month period ended June 30, 2012 was $31 thousand, which compares to $28 thousand for the same period in fiscal 2011.
Professional fees and other expenses for the three month period ended June 30, 2012 were $129 thousand compared to $146 thousand for the same period in fiscal 2011. The decrease of $17 thousand is attributable to lower levels of activity during the current fiscal year.
Deferred income tax recovery for the three month period ended June 30, 2012 was $29 thousand, compared to a recovery of $96 thousand for the same period in fiscal 2011. The deferred income tax recovery for the three month period ended June 30, 2012 arises due to the tax indemnity claims made in the period. The recovery decreased by $67 thousand due to fewer tax indemnity claims made in the second quarter of 2012 when compared to 2011.
Six Month Comparison
Net loss for the six month period ended June 30, 2012 was $233 thousand compared to a net loss of $703 thousand for the same period in fiscal 2011. The decrease in net loss of $470 thousand is due primarily to a decrease in tax indemnity payments and related deferred tax recovery when comparing the six months ended June 30, 2012 to the same period ended June 30, 2011.
Interest income for the six month period ended June 30, 2012 was $52 thousand, which compares to $51 thousand for the same period in fiscal 2011.
Professional fees and other expenses for the six month period ended June 30, 2012 were $253 thousand compared to $302 thousand for the same period in fiscal 2011. The reduction in professional fees is a result of IFRS conversion efforts undertaken by the Company in the prior year, which did not recur in the current year.
Deferred income tax recovery for the six month period ended June 30, 2012 was $72 thousand, compared to a recovery of $201 thousand for the same period in fiscal 2011. The deferred income tax recovery for the six month period ended June 30, 2012 arises due to the tax indemnity claims made in the period. The recovery decreased by $129 thousand due to fewer tax indemnity claims made in the second quarter of 2012 when compared to 2011.
SOURCE: SWEF TERRAWINDS RESOURCES CORP.
W. Judson Martin, Chairman SWEF Terrawinds Resources Corp. [email protected]
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