Yellowhead Mining Inc. - 2015 First Quarter Report
TSX:YMI
VANCOUVER, May 7, 2015 /CNW/ - Yellowhead Mining Inc. ("Yellowhead" or the "Company") (TSX: YMI) reports its results of operations for the first quarter of the financial year ended March 31, 2015.
For the full condensed consolidated interim financial statements and management discussion & analysis for the first financial quarter ended March 31, 2015, please see SEDAR at www.sedar.com or the Company's website at www.yellowheadmining.com.
Highlights
- Highlights for the first quarter ended March 31, 2015 include acceptance by the British Columbia environmental assessment office (BC EAO) of the application (EA Application) for an environmental certificate (EA Certificate) for formal review, with the 180 day application review period commencing on January 28, 2015
Strategy for 2015
The Company's strategy for 2015 includes:
- Completing the formal review of the EA Application and receiving the EA Certificate
- Commencing the construction permitting process for Harper Creek upon receipt of the EA Certificate
- Continuing consultation with First Nations and all stakeholders, including the public and local communities, to address any potential environmental and socio-economic impacts of Harper Creek and the Company's mitigation strategies
- Pursuing additional working capital to continue the ongoing development of Harper Creek
CEO Remarks
"The first quarter witnessed another milestone in the development of Harper Creek with the initiation of the 180 day review period for the EA Application" noted Mr. Frank D. Wheatley, CEO of Yellowhead. "Our focus going forward is to complete the formal review phase by working with the BC EAO and the Working Group to address and resolve all questions and concerns on the EA Application."
Summary of Quarterly Results
(Amounts are expressed in thousands of Canadian dollars, except per-share amounts)
| Three |
Three |
|
| Administrative expenses |
$ 597 |
$ 525 |
| Exploration and evaluation expenses |
456 |
918 |
| Other income |
(7) |
(28) |
| Net loss and comprehensive loss for the period |
1,046 |
1,415 |
| Basic and diluted loss per share for the period |
$ 0.01 |
$ 0.01 |
Yellowhead has no revenue from operations. Results can fluctuate significantly from period to period due to the level of project development on Harper Creek.
Review of Quarterly Results
The loss in Q1 2015 was $1.05M compared to $1.42M in Q1 2014. This decrease in loss of $369K was mainly due to a decrease in exploration and evaluation expenses. Exploration and evaluation expenses were $456K for Q1 2015, as compared to $918K for Q1 2014. In Q1 2014 the Company incurred costs related to the initiation of the update of both the feasibility study and the EA Application for the Harper Creek Project. In Q1 2015 the Company incurred costs related primarily to the EA Application. Environmental assessment costs were lower in Q1 2015 as compared to Q1 2014 as the Company entered the review phase and waited for the regulators to review the EA Application and provide comments. Environmental assessment costs decreased from $665K in Q1 2014 to $427K in Q1 2015. Administration costs in Q1 2015 were $597K compared to $525K in Q1 2014. The increase in administration costs is due to higher consulting costs in Q1 2015 compared to Q1 2014. In Q1 2015 the Company recorded $156K for consulting fees related to costs incurred in connection with ongoing consultation and discussions with the First Nations.
Cash and Cash Equivalents
The Company had cash and cash equivalents of $2.07M as at March 31, 2015, as compared to cash and cash equivalents of $3.68M as at December 31, 2014. As at March 31, 2015, the Company had working capital of $1.66M, as compared to working capital of $2.69M as at December 31, 2014.
Outlook
The Company's focus going forward is continuing the development of Harper Creek. Major activities include completing the review of the EA Application and receiving the EA Certificate, commencing the construction permitting process and pursuing funding activities to increase its working capital to fund the continued development of Harper Creek. In order to complete the review of the EA Application and receive the EA Certificate, have working capital for twelve months of general and administrative expenses and to continue as a going concern, additional funding will be required by the Company. Upon receipt of the EA Certificate for the Project, the Company will require additional funding to proceed with the next phase of development of the Project, including the mine permitting process.
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. Harper Creek has a four year development period, with the initial two years focused on environmental and construction permitting, and the second two years dedicated to construction. When developed, Harper Creek will 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 the Harper Creek Project, located in the North Thompson - Nicola region of British Columbia, Canada. The proposed Harper Creek mine will be a large scale, long life, low cost open pit copper mine, has a NI 43-101 compliant feasibility study, and is currently in the environmental permitting phase of development.
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 D. Wheatley, Chief Executive Officer, 604-681-1709 Ext. 212, Email: [email protected], Website: www.yellowheadmining.com, Twitter: http://twitter.com/YMI_Mining
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