Crew Gold Corporation

Crew Gold Corporation

May 13, 2008 09:06 ET

Crew Gold Corporation: Financial Results for Quarter Ended March 31, 2008

LONDON, UNITED KINGDOM--(Marketwire - May 13, 2008) - Crew Gold Corporation ("Crew" or "the Company") (TSX:CRU) (OSLO:CRU) (FRANKFURT:KNC) (PINK SHEETS:CRUGF) today announces:

Financial Results for Quarter Ended March 31, 2008


- Overview

-- Quarterly production increased by 36% to 61,189 ounces ("oz") from 44,914 oz in Q4 2007

-- Sold remaining 10.4 million Intex Resources ASA ("Intex") shares for aggregate net proceeds of $13.3 million

- Results

-- EBITDA of $0.5 million (quarter ended March 31, 2007 - negative $5.0 million)

-- Net loss of $27.6 million (quarter ended March 31, 2007 - net loss of $19.1 million) primarily due to non cash foreign exchange losses on translation of NOK denominated debt of $18.3 million and depletion and depreciation of $2.4 million and LEFA and Maco not being in commercial production


-- 43,811 oz produced in the quarter, representing a 59% increase over Q4 2007 of 27,579 oz

-- Upgrade and rectification program nearing completion

-- Average plant recoveries increase from 88% to 94% in the quarter

-- Encouraging results from exploration drilling in Q1 2008 at Firifirini and Camp de Base

- Maco

-- Quarterly production from pilot plant of 4,704 oz (up 140% from Q4 2007 production of 1,957 oz)

-- Infrastructure development and ore development progressing, including construction of new tailings facility

-- Technical review of the mill expansion and mine plan nearing completion

- Nalunaq Gold Mine and Nugget Pond Processing Facility

-- Quarterly production of 12,674 oz (down 18% from 15,378 oz in Q4 2007)

-- Nugget Pond facility continued to operate satisfactorily

- Outlook

-- Continued production growth following commissioning

-- LEFA reserve and resource expansion to continue with reserve and resource updates expected to be released during Q2 2008.

-- Continued focus on securing new strategic land claims


Crew is an international mining company focused on identifying, acquiring and developing gold resource projects worldwide.

Our objective is to become a significant mid-tier gold producer. We believe we have the assets in place and under development to achieve our strategic objective of an annual production rate in excess of 500,000 oz per year in the near term.


Operating revenues and costs at both the LEFA and Maco operations during the quarter were capitalized as these two operations have not attained commercial production status.

For the quarter ended March 31, 2008, Crew reported EBITDA of $0.5 million (quarter ended March 31, 2007 - negative $5.0 million). EBITDA from operations of $2.5 million and gains from the sale of Intex shares of $2.6 million were offset by corporate expenditures of $4.3 million.

Net loss for the quarter ended March 31, 2008 was $27.6 million (quarter ended March 31, 2007 - net loss of $19.1 million). The losses in the period were mainly due to non cash foreign exchange losses of $18.3 million (following a 5.7% appreciation of the Norwegian Kroner against the US dollar), interest and finance costs on the bonds and long term debt of $5.7 million, depletion and depreciation of $2.4 million and corporate expenditures of $4.3 million, partially offset by gains on the sale of Intex shares of $2.6 million.

Crew produced 61,189 oz of gold during the quarter ended March 31, 2008 (quarter ended March 31, 2007 - 12,912 oz). Gold sold during the quarter ended March 31, 2008 was 60,660 oz (quarter ended March 31, 2007 - 8,836 oz).

For Full Results, please see attached file.

Jan A Vestrum, President and CEO


Certain statements contained herein that are not statements of historical fact, may constitute "forward-looking statements" and are made pursuant to applicable and relevant national legislation (including the Safe-Harbour provisions of the United States Private Securities Litigation Reform Act of 1995) in countries where Crew is conducting business and/or investor relations. Forward-looking statements, include, but are not limited to those with respect to (1) the price of gold, (2) the estimation of mineral reserves and resources, (3) the realization of mineral reserves estimates, (4) the timing and amount of estimated future success of exploration activities, (5) the timing and amount of production estimates, (6) targeted production cash costs and forecasted cash reserves, (7) Crew's hedging practices, (8) currency fluctuations, (9) requirements for additional capital, (10) government regulation of mining operations, (11) environmental risk, (12) title disputes or claims limitations on insurance coverage and (13) the timing and possible outcome of pending litigation. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "does not expect", "is expected", "targets", "budget", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or equivalents or variation, including negative variation, of such words and phrases, or state that certain actions, events or results, "may", "could", "would", "might" or "will" be taken, occur or be achieved.

Forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of the Company to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. Such risks and uncertainties include, among others, (1) the actual results of current exploration activities, conclusions of economic evaluations, (2) changes in project parameters as plans continue to be refined, (3) possible variations in grade and ore densities or recovery rates, (4) failure of plant, equipment or processes to operate as anticipated, (5) accidents, labour disputes and other risks of the mining industry, (6) delays in obtaining government approvals or financing or in completion of development or construction activities. Although Crew has attempted to identify important factors that could cause actual actions, events or cause actions events or results not to be anticipated, estimated or intended, there can be no assurance that forward looking statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements.

The material factors and assumptions used to develop forward-looking statements which may be incorrect, include, but are not limited to, (1) there being no significant disruptions affecting operations, whether due to labour disruptions, supply disruptions, damage to equipment or otherwise, (2) continued development, operation and production at LEFA, Nalunaq and Maco consistent with our current expectations, (3) foreign exchange rates among the currencies the Crew does business in being approximately consistent with current levels, (4) certain price assumptions for gold, (5) prices for electricity, fuel oil and other key supplies remaining consistent with current levels, (6) production forecasts meeting expectations, (7) the accuracy of our current mineral reserve and mineral resource estimates, and (8) materials and labour costs increasing on a basis consistent with Crew's expectations.

Except as may be required by applicable law or stock exchange regulation, the Company undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events. Accordingly, readers should not place undue reliance on forward-looking statements.

Cautionary Note to US investors - The United States Securities and Exchange Commission permits US mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this document, such as "measured", "indicated", and "inferred" "resources", which the SEC guidelines strictly prohibit US registered companies from including in their filings with the SEC. US Investors are urged to consider closely the disclosure from the SEC's website at


"EBITDA" is a non-GAAP measure of performance that describes earnings before interest, taxes, depletion and depreciation, stock compensation charges and non-cash foreign exchange movements.

"Operating cash cost" is a non-GAAP measure calculated in accordance with the Gold Institute Production Cost Standard and includes site costs for all mining (excluding deferred stripping costs), processing and administration, royalties and production taxes, but exclusive of depletion, depreciation, reclamation, financing costs, capital costs, and exploration costs. Operating cash cost is presented as we believe it represents an industry standard of comparison.

"Operating cash cost per ounce" is a non-GAAP measure derived from the operating cash cost of ounces produced as a measure of total ounces produced. "Sales price per ounce" is a non-GAAP measure derived by dividing the total cash amounts received on gold sales by the number of ounces sold in the period.

EBITDA, operating cash cost per ounce and sales price per ounce are not terms defined under Canadian generally accepted accounting principles, nor do they have a standard, agreed upon meaning. As such, EBITDA, operating cash cost per ounce and sales price per ounce may not be directly comparable to EBITDA, operating cash cost per ounce and sales price per ounce reported by other similar issuers.

For the balance of this news release: Q1 31 March 2008

Contact Information