Yellowhead Mining Announces 2016 Year End Report
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.
Frank Wheatley, Chief Executive Officer, Email: [email protected]; David McGoey, Chief Financial Officer / Darryl Coates, Phone: 403-294-6497, Email: [email protected], Website: www.yellowheadmining.com
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