FNX Mining Company Inc.
TSX : FNX

FNX Mining Company Inc.

May 14, 2009 06:30 ET

FNX Reports First Quarter Results

TORONTO, ONTARIO--(Marketwire - May 14, 2009) - FNX Mining Company Inc. (TSX:FNX) ("FNX" or the "Company") reports financial and operational results for the quarter ending March 31, 2009 for its Sudbury Mining Operations and its DMC Mining Services business ("DMC").

Terry MacGibbon, Chairman and CEO of FNX noted that, "Faced with the unprecedented and rapid deterioration of global markets in general and the mining sector in particular during the second half of 2008, FNX took prudent and decisive actions late in 2008, including suspending nickel production and reducing its work force by nearly 45%. FNX also implemented a policy for 2009 of strict controls on capital, operating and corporate expenditures, preserving a strong balance sheet with zero debt, focusing production on the higher margin copper-precious metal deposits and aggressively advancing development of the LFD at the Levack Mine." He added "Operating and financial results for the first quarter of 2009 demonstrate that our decisions and spending controls are working. Most expenditures are at or below budget. Cash operating margins returned to acceptable levels and totaled $12.6 million and $148 per ton of ore sold during the quarter. Capital expenditures are below budget at $13.2 million and our cash balance remains strong at $114.6 million. The development of the LFD is proceeding efficiently and slightly ahead of schedule."

Mr. MacGibbon also stated "Although FNX remains very positive on its Gold Wheaton ("GLW") investment and had no intention of writing down that investment (-$140 million in current and future shares). The GLW financing in March 2009 forced FNX to adjust the Company's share of GLW's net book value resulting in a non-cash, accounting-required dilution loss of $31.2 million. This turned positive earnings of $5.1 million ($0.06 per share) to a $26.2 million loss (($0.31) per share) for the first quarter. Excluding the unusual GLW dilution loss, the Company also had a positive adjusted EBITDA of $12.4 million. We will continue to monitor the Company's situation in light of economic challenges, and changes in the global commodity markets and in the Sudbury mining camp during the balance of 2009. I am confident that our actions not only positioned the Company to survive the downturn, but to prosper when the markets improve."

Vale Inco, the Company's custom processor, announced on April 14, 2009 that it will extend its three week scheduled maintenance shutdown in May by an additional eight weeks from June 1 to July 27, 2009. FNX will continue to deliver ore to the custom mill until the end of May. In addition, the collective agreement between Vale Inco and its largest unionized labour force in Sudbury terminates on May 31, 2009. Any processing facility interruption due to labour relations could also affect FNX. FNX is considering several possible alternatives for its Sudbury Mining Operations and will provide more detailed guidance when it becomes available. FNX has a strong cash position and, regardless of any production interruptions, is well funded to continue the planned development of the LFD for initial pre-production later in 2009. The Company could also continue with the planned underground development and detailed definition drilling at Podolsky. FNX will also implement its expanded surface exploration program utilizing the flow-through funds received after the quarter end.



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Table 1 - Financial and Operating Highlights Q1 2009 Q1 2008
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Consolidated
------------
Revenue 48,953 140,716
Net Earnings (Loss) (C$000) (26,151) 24,063
Basic Earnings (Loss) per Share (C$) (0.31) 0.28
Diluted Earnings per Share (C$) (0.31) 0.28
Adjusted Net Earnings (C$000) 5,100 24,063
Adjusted Earnings (Loss) per Share (C$) 0.06 0.28
Cash and Cash Equivalents (C$000) 114,572 29,137
Cash Flow from Operating Activities (C$000) (2,673) 55,796
Cash Flow per Share (C$) (0.03) 0.66

Adjusted EBITDA (C$000) 12,385 48,280

Mining Operations
-----------------
Total Revenue (C$000) 35,485 91,323
Cash Operating Costs (C$000) 22,906 45,232
Cash Operating Margin (C$000) 12,579 46,091
Depreciation and Amortization (C$000) 3,032 8,593
Operating Margin (C$000) 9,547 37,498
Net Earnings (Loss) (C$000) (25,188) 25,019
Cash Flow From Operating Activities (C$000) 1,356 55,153

Total Ore Sold (tons) 105,044 284,899
Nickel Ore Sold (tons) 4,415 199,054
Grade of Nickel Ore Sold (%Ni) 1.8 1.3
Payable Metal Sold - Nickel (000 lbs) 1,177 3,492
Copper Ore Sold (tons) 100,629 85,845
Grade of Copper Ore Sold (%Cu) 5.6 4.2
Payable Metal Sold - Copper (000 lbs) 9,718 6,892

Payable Metal Sold - Total Precious Metals (oz) 7,415 7,272

Minesite Revenue per Ton Sold (C$) 366 321
Cash Operating Costs per Ton Sold (C$) 218 159
Minesite Cash Operating Margin per Ton Sold (C$) 148 162

Realized Nickel Price (US$/lb) 5.00 14.43
Realized Copper Price (US$/lb) 1.77 3.84
Exchange Rate (C$/US$) 1.24 1.00

DMC Mining Services
-------------------
Total Revenue (C$000) 13,468 49,393
Cash Operating Costs (C$000) 13,273 46,984
Cash Operating Margin (C$000) 195 2,409
Net Earnings (Loss) (C$000) (963) (956)
Cash Flow from Operating Activities (C$000) (4,029) 643
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Certain of the above items are considered to be non-GAAP performance
measures (see below)


Consolidated revenues for the first quarter were $49.0 million, compared to $140.7 million in the first quarter of 2008. Operating activity cash flow was $10.4 million and, after $13.1 million of cash outflow for non-cash working capital, the consolidated cash flow from operating activities for this quarter was ($2.7) million or ($0.03) per share, compared to $55.8 million ($0.66 per share) in the comparable period of 2008. Adjusted EBITDA for the first quarter was $12.4 million, compared to $48.3 million during the same period in 2008.

Cash and cash equivalents as at March 31, 2009 were $114.6 million, compared to $129.6 million as at December 31, 2008. Working capital at the end of this reporting period was $137.2 million, compared to $130.1 million as at December 31, 2008. FNX continues to have zero debt.

After including the $31.2 million dilution loss resulting from the GLW common share issuance, FNX incurred a loss of $26.2 million (($0.31) per share) on consolidated revenues of $49.0 million in the first quarter of 2009, compared to net earnings of $24.1 million ($0.28 per share) in the first quarter of 2008 on consolidated revenues of $140.7 million. Excluding the GLW dilution loss, the Company had adjusted earnings of $5.1 million ($0.06 per share). The quarterly loss also included a positive provisional pricing adjustment of $8.5 million and a non-taxable dilution loss of $31.2 million for the Company's share of the change in net book value of GLW as a result of their common share issuance in March of 2009. Table 1 summarizes the key financial and operating measures.

Mining Operations

Production from Sudbury Mining Operations during the quarter generated revenues of $35.5 million, compared to revenues of $91.3 million in the same period in 2008. Sudbury Mining Operations shipped a total of 105,000 tons of ore during the first quarter, primarily (88%) from the Podolsky Mine. This excludes approximately 74,500 tons of production which included normal inventory levels and a batch metallurgical test, stockpiled predominately on surface at the end of the quarter. Most of this inventory was processed in April 2009 and revenue and associated costs will be recognized in second quarter results.

Total payable metals for the first quarter were 1.2 million pounds of nickel, 9.7 million pounds of copper and 7,415 ounces of platinum, palladium and gold. The average realized prices for metals in this quarter were US$5.00 per pound for nickel, US$1.77 per pound for copper, US$1,654 per ounce of gold, US$1,883 per ounce of platinum and US$278 per ounce for palladium, all of which were higher than quoted market prices and resulted in a positive price adjustment of $8.5 million. The average minesite revenue per ton of ore shipped was $366, while the average cash operating cost per ton of ore shipped was $218 leaving an average minesite cash operating margin per ton of ore shipped of $148, compared to $321, $159 and $162, respectively, in the same period of 2008.

At the Podolsky Mine, production for this reporting period achieved the planned mining rate of 1,000 tons per day. Tight grade control delivered ore at 10% above planned grades and initial narrow vein mining in the upper parts of the 2000 Deposit progressed well and initial stage performances indicated that grades can be maintained (See Table 2).

At the McCreedy West Mine, most of the stockpiled tonnage came from large scale, bulk mining at the PM Deposit, while 15--20% was contributed from narrow vein mining of the 700 Deposit. Only 12,700 tons of ore were shipped from the Levack Complex during the quarter consisting of 8,300 tons of copper-precious metal ore and 4,400 tons of nickel-copper ore (See Table 3).

Capital expenditures during the quarter totaled $13.2 million versus a budget of $19.3 million, with the difference being delayed until later this year.

First quarter safety performance for Sudbury Operations consisted of zero lost time injuries and eight medical aid injuries for a Lost Time Injury Frequency Rate ("LTIFR") of 0.0 and a Total Medical Injury Frequency Rate ("TMIFR") of 6.9. This compares to a LTIFR and TMIFR of 0.0 and 7.0 in the first quarter of 2008 and 0.0 and 6.7 respectively in the fourth quarter of 2008. There were no reportable environmental incidents in the first quarter of 2009.

Tables 2 and 3 summarize first quarter production statistics from the Podolsky operations and Levack Complex, respectively.



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Table 2 - Production and Sales Summary
Podolsky Mine Q1 - 2009 Q1 - 2008
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Ore Sold (tons)
Copper Ore 92,349 24,112
Grade of Ore Sold
Copper Ore (%Cu) 6.0 11.7
Payable Metal Sold
Nickel (000s lbs) 799 342
Copper (000s lbs) 9,352 4,635
TPM (ozs) 3,923 2,726
Metal Sales and Costs
Minesite Revenue ($/ton of ore sold) 331 1,068
Cash Cost ($/ton of ore sold) 213 359

Minesite Cash Operating Margin ($/ton of ore sold) 118 709
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Table 3 - Production and Sales Summary
Levack Complex Q1 - 2009 Q1 - 2008
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Ore Sold (tons)
Nickel Ore 4,415 199,054
Copper Ore 8,280 61,733
Total Ore Sold 12,695 260,787
Grade of Ore Sold
Nickel Ore (%Ni) 1.8 1.3
Copper Ore (%Cu) 1.4 1.2
Payable Metal Sold
Nickel (000s lbs) 378 3,150
Copper (000s lbs) 366 2,257
TPM (ozs) 3,492 4,546
Metal Sales and Costs
Minesite Revenue ($/ton of ore sold) 618 251
Cash Cost ($/ton of ore sold) 252 140
Minesite Cash Operating Margin ($/ton of ore sold) 366 111
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Development

At the Levack Mine, the primary focus for 2009 is the development of the LFD in preparation for initial pre-production later in 2009. The advance of the LFD access ramp during the quarter was ahead of its scheduled location by approximately 100 ft. The access ramp began this quarter at the 3135 Level and ended it at the 3310 Level, a vertical advance of 175 vertical ft. Level accesses are being cut at every vertical 60 ft and are positioned to allow future access on the 3270, 3330 and 3390 levels. Work to rehabilitate the Levack No. 2 Shaft below the 2950 Level to the bottom of the shaft at the 3600 Level continued to within 310 ft of the 3600 Level. Access to the 3600 Level is expected to be completed by mid-2009 to be followed by installation of the rock handling system and level rehabilitation.

Development at the Podolsky Mine during this quarter focused on advancing the main access ramp and completing related lateral development. Total advancement during the first quarter was 1,891 ft and included lateral work on the 2000, 2075, 2300 and 2375 Levels plus access ramp development downwards to the 2150 Level and upwards 2225 Level. The main access ramp will be connected internally later in 2009 to support ongoing stope access. The 2000 Level was driven through Grey Gabbro ore and development ore was stored underground until metal accountabilities are in place.

Exploration

First quarter exploration expenditures were under budget by nearly 60% at $1.0 million and more than half of that was spent at Rob's/LFD.

Exploration activities during first quarter were focused on Rob's/LFD development support and delineation. A backlog of core from Rob's/LFD underground drilling was cleared early in the quarter, while new drilling platforms were developed simultaneously. Drilling with one underground rig restarted in late January from the LFD access ramp. By the end of March, the drill rig had completed 10,147 ft in 16 completed holes and one in-progress hole from setups on the 3060 Level vent raise and 3130 Level remuck. Drilling from these two setups tested Rob's/LFD between the 3300 and 3350 Levels. The drilling traced a Ni-Cu trunk vein along a strike length of 325 ft on the 3300 Level and a mixture of Ni-Cu and Cu-Ni veins on the 3350 Level.

Another drill will be moved onto 3270 and 3300 Level drilling platforms in the second quarter to test between the 3400 and 3500 Levels of Rob's/LFD.

At the Podolsky Property, 2009 exploration will focus on the surface testing of the new quartz diorite offset environment discovered in 2008. During the first quarter, applications for permits and access planning were the focus in preparation for mobilizing a drill in May.

At the end of the first quarter, an annual internal review of the Company's NI 43-101 reserve and resource estimates was completed and disclosed. The updated estimates were detailed in the Q4 and 2008 full year Management Discussion and Analysis, which is filed on SEDAR.

On April 28, 2009, the Company announced the sale on a private placement basis of 2,173,914 flow-through common shares of the Company at a price of $6.90 per share for gross proceeds of $15.0 million. The proceeds will be used for Canadian Exploration Expenses ("CEE") related to the exploration of the Company's Canadian properties located in Ontario.

DMC Mining Services

Revenues from DMC totaled $13.5 million for the three months ended March 31, 2009. The operating margin for the same period was $0.2 million. Net earnings for the period, after administrative costs, depreciation and amortization expenses, was a loss of $1.0 million. Operating cash flow for the period was $0.6 million and, after the net change in non-cash working capital of $4.6 million, cash flow from operating activities was ($4.0) million.

Overall, the business climate in mining contracting in the United States remains robust mainly due to the gold sector, while in Canada contracting budgets have been severely impacted by current market conditions. As at the end of March, DMC had a backlog of work to complete totaling $36.8 million with 250 active employees.

During the quarter, DMC reported one lost time injury and two medical aid injuries. The LTIFR for the quarter was 1.5 and the TMIFR was 4.6, compared to a LTIFR of 0.4 and a TMIFR of 3.5 for the first quarter of 2008.

Investments

The current investment portfolio consists primarily of 360 million common shares of GLW, which had a market value of approximately $90 million at quarter end. In addition, FNX has a renegotiated note receivable dated July 16, 2010 for $50 million of additional GLW common shares, which has both a call and put option on the issue price. This derivative must be fair valued at the end of each reporting period and any changes credited or debited to earnings. As a result, the carrying value of the note receivable as at March 31, 2009 was approximately $35.8 million.

There were no sales or purchases in other investment positions during first quarter and their collective fair value as at March 31, 2009 was approximately $4.6 million.

Share Capital

On April 2, 2009, 1,672,000 common share purchase options were granted to directors, officers and employees of the Company in accordance with the Company's Stock Option Plan, representing 2% of the issued and outstanding shares of the Company. In addition, 240,000 deferred share units were issued on April 2, 2009 to certain officers of the Company.

There were 84,876,776 common shares and 3,694,667 stock options outstanding on April 2, 2009 for a total fully diluted share count of 88,571,443. There were also 313,249 deferred share units in effect after the April 2, 2009 issue.

Forward-Looking Statement

Certain information included in this press release, including information relating to future financial or operating performance and other statements that express management's expectations or estimates of future performance constitute "forward-looking statements." Such forward-looking statements include, without limitation, (i) estimates of future capital expenditures; (ii) estimates regarding timing of future development and production; and (iii) estimates of future costs towards profitable commercial operations. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to, interpretation and implications of drilling and geophysical results; estimates regarding timing of future capital expenditures and costs towards profitable commercial operations. Other factors that could cause actual results, developments or events to differ materially from those anticipated include, among others, increases/decreases in production; volatility in metals prices and demand; currency fluctuations; cash operating margins; cash operating cost per pound sold; costs per ton of ore; variances in ore grade or recovery rates from those assumed in mining plans; reserves and/or resources; the ability to successfully integrate acquired assets; operational risks inherent in mining or development activities, and legislative factors relating to prices, taxes, royalties, land use, title and permits, importing and exporting of minerals and environmental protection. Accordingly, undue reliance should not be placed on forward-looking statements. These forward-looking statements are made as at the date hereof and the Company does not undertake any obligation to update publicly or revise any such forward-looking statements or any forward-looking statements contained in any other documents whether as a result of new information, future events or otherwise, except as may be required under applicable securities law. For a more detailed discussion of such risks and other factors, see the Company's latest filings with Canadian securities regulators.

CONFERENCE CALL

FNX will be hosting a First Quarter Conference Call on May 14, 2009 at 10:00am Eastern Time.



CONFERENCE CALL numbers are:

Live in North America:
Toll-Free Access: 1-888-789-9572 or 416-695-7806
------------------------------------------------
Ask for the FNX Mining Conference Call

Replay Access information:
Toll-Free Access: 1-800-408-3053 or 416-695-5800
------------------------------------------------
Passcode: 4426101#
Available until June 12, 2009 at Midnight EST


Slides for the conference call may be accessed on the Company's website www.fnxmining.com.

Note: The unaudited balance sheet, statement of operations and statement of cash flow are appended to this news release.



Consolidated Balance Sheets
(in thousands of Canadian dollars)
(Unaudited) March 31 December 31
As at 2009 2008
---------------------------------------------------------------------------
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$ $
Assets
Current
Cash and cash equivalents 114,572 129,561
Accounts receivable 51,053 59,324
Inventory 7,677 2,307
Prepaid and other assets 1,770 1,504
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175,072 192,696
Investments 4,601 4,009
Investment in Gold Wheaton 184,840 215,620
Property, plant and equipment 443,579 435,114
Reclamation deposits 6,485 6,485
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814,577 853,924
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Liabilities
Current
Accounts payable and accrued liabilities 21,205 36,136
Deferred revenue 16,618 26,433
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37,823 62,569
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Long-term deferred revenue 375,890 368,969
Mine closure and site restoration 5,474 5,393
Future income and resource taxes 62,476 60,499
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443,840 434,861
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481,663 497,430
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Shareholders' equity
Share capital 571,750 571,750
Contributed surplus - stock-based compensation 14,924 13,741
Retained earnings (deficit) (246,731) (220,580)
Accumulated other comprehensive income (loss) (7,029) (8,417)
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332,914 356,494
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814,577 853,924
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Consolidated Segmented Balance Sheets
(in thousands of Canadian dollars)
As at March 31, 2009 Mining DMC Total
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Assets $ $ $
Cash and cash equivalents 108,304 6,268 114,572
Accounts receivable 36,036 15,017 51,053
Other current assets 8,055 1,392 9,447
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152,395 22,677 175,072
Investments 4,601 - 4,601
Investment in Gold Wheaton 184,840 - 184,840
Property, plant and equipment 419,534 24,045 443,579
Reclamation deposits 6,485 - 6,485
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767,855 46,722 814,577
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Liabilities
Accounts payable and accrued liabilities 16,859 4,346 21,205
Deferred revenue 16,396 222 16,618
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33,255 4,568 37,823
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Long-term deferred revenue 375,890 - 375,890
Mine closure and site restoration 5,474 - 5,474
Future income and resource taxes 61,573 903 62,476
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442,937 903 443,840
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476,192 5,471 481,663
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As at December 31, 2008 Mining DMC Total
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Assets $ $ $
Cash and cash equivalents 120,131 9,430 129,561
Accounts receivable 44,459 14,865 59,324
Other current assets 2,823 988 3,811
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167,413 25,283 192,696
Investments 4,009 - 4,009
Investment in Gold Wheaton 215,620 - 215,620
Property, plant and equipment 409,718 25,396 435,114
Reclamation deposits 6,485 - 6,485
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803,245 50,679 853,924
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Liabilities
Accounts payable and accrued liabilities 28,469 7,667 36,136
Deferred revenue 25,456 977 26,433
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53,925 8,644 62,569
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Long-term deferred revenue 368,969 - 368,969
Mine closure and site restoration 5,393 - 5,393
Future income and resource taxes 59,374 1,125 60,499
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433,736 1,125 434,861
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487,661 9,769 497,430
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Consolidated Statements of Operations
(in thousands of Canadian dollars except earnings per share)
(Unaudited)
For the three months ended March 31 2009 2008
---------------------------------------------------------------------------
---------------------------------------------------------------------------
$ $

Operating revenues 48,953 140,716
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Operating expenses
Expenses, excluding depreciation and amortization 36,179 92,216
Depreciation and amortization 4,251 10,890
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40,430 103,106
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8,523 37,610
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Expenses
Administration 2,967 2,675
Depreciation 234 220
Stock-based compensation 1,353 1,174
Dilution loss 31,238 -
Other expenses (income) (3,547) (2,822)
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32,245 1,247
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Earnings (loss) before taxes and other items (23,722) 36,363
Income and resource taxes recovery (expense) (2,199) (12,300)
Share of loss of equity investee (230) -
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Net earnings (loss) for the period (26,151) 24,063
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Basic earnings (loss) per share (0.31) 0.28
Diluted earnings (loss) per share (0.31) 0.28
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Consolidated Segmented Statements of Operations
(in thousands of Canadian dollars)
(Unaudited)
For the three months ended March 31, 2009 Mining DMC Total
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$ $ $

Operating revenues 35,485 13,468 48,953
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Operating expenses
Expenses, excluding depreciation and amortization 22,906 13,273 36,179
Depreciation and amortization 3,032 1,219 4,251
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25,938 14,492 40,430
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9,547 (1,024) 8,523
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Expenses
Administration 2,967 - 2,967
Depreciation 234 - 234
Stock-based compensation 1,150 203 1,353
Dilution loss 31,238 - 31,238
Other expenses (income) (3,283) (264) (3,547)
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32,306 (61) 32,245
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Earnings (loss) before taxes and other items (22,759) (963) (23,722)
Income and resource taxes recovery (expense) (2,199) - (2,199)
Share of loss of equity investee (230) - (230)
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Net earnings (loss) for the period (25,188) (963) (26,151)
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For the three months ended March 31, 2008 Mining DMC Total
----------------------------------------------------------------------------
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$ $ $
Operating revenues 91,323 49,393 140,716
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Operating expenses
Expenses, excluding depreciation and amortization 45,232 46,984 92,216
Depreciation and amortization 8,593 2,297 10,890
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53,825 49,281 103,106
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37,498 112 37,610
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Expenses
Administration 2,675 - 2,675
Depreciation 220 - 220
Stock-based compensation 598 576 1,174
Other expenses (income) (2,423) (399) (2,822)
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1,070 177 1,247
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Earnings (loss) before taxes 36,428 (65) 36,363
Income and resource taxes recovery (expense) (11,409) (891) (12,300)
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Net earnings (loss) for the period 25,019 (956) 24,063
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Consolidated Statements of Cash Flow
(in thousands of Canadian dollars)
(Unaudited)
For the three months ended March 31 2009 2008
--------------------------------------------------------------------------
--------------------------------------------------------------------------
$ $
Operating activities
Net earnings (loss) for the period (26,151) 24,063
Non-cash items
Depreciation and amortization 4,485 11,110
Stock-based compensation 1,183 1,174
Future income and resource taxes 2,199 8,974
Amortization of Gold Wheaton deferred revenue (2,139) -
Mark-to-market and accretion of Gold Wheaton
note receivable (688) -
Loss on disposal of fixed assets - (94)
Decrease in value of investments held-for-trading 3 38
Share of loss of equity investee 230 -
Dilution loss 31,238
Other 18 (244)
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10,378 45,021
Net change in non-cash working capital (13,051) 10,775
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(2,673) 55,796
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Financing activities
Common shares issued - 340
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Investing activities
Investments - (10,000)
Property, plant and equipment (13,111) (52,660)
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(13,111) (62,660)
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Effect of exchange rate changes on cash 795 501
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Change in cash and cash equivalents for the period (14,989) (6,023)
Cash and cash equivalents - beginning of period 129,561 35,160
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Cash and cash equivalents - end of period 114,572 29,137
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Consolidated Segmented Statements of Cash Flow
(in thousands of Canadian dollars) (Unaudited)
For the three months ended March 31, 2009 Mining DMC Total
----------------------------------------------------------------------------
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Operating activities $ $ $
Net earnings (loss) for the period (25,188) (963) (26,151)
Non-cash items
Depreciation and amortization 3,266 1,219 4,485
Stock-based compensation 980 203 1,183
Future income and resource taxes 2,199 - 2,199
Amortization of Gold Wheaton deferred revenue (2,139) - (2,139)
Mark-to-market and accretion of Gold Wheaton note (688) - (688)
Share of loss of equity investee 230 - 230
Dilution loss 31,238 - 31,238
Other (124) 145 21
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9,774 604 10,378
Net change in non-cash working capital (8,418) (4,633) (13,051)
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1,356 (4,029) (2,673)
Financing activities - - -
Investing activities
Property, plant and equipment (13,183) 72 (13,111)
Effect of exchange rate changes on cash - 795 795
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Change in cash and cash equivalents for the period (11,827) (3,162) (14,989)
Cash and cash equivalents - beginning of period 120,131 9,430 129,561
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Cash and cash equivalents - end of period 108,304 6,268 114,572
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For the three months ended March 31, 2008 Mining DMC Total
----------------------------------------------------------------------------
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Operating activities $ $ $
Net earnings (loss) for the period 25,019 (956) 24,063
Non-cash items
Depreciation and amortization 8,813 2,297 11,110
Stock-based compensation 598 576 1,174
Future income and resource taxes 8,974 - 8,974
Loss on disposal of fixed assets - (94) (94)
Decrease in value of investments held-for-trading 38 - 38
Other (244) - (244)
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43,198 1,823 45,021
Net change in non-cash working capital 11,955 (1,180) 10,775
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55,153 643 55,796
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Financing activities
Common shares issued 340 - 340
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Investing activities
Investments (10,000) - (10,000)
Property, plant and equipment (50,783) (1,877) (52,660)
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(60,783) (1,877) (62,660)
----------------------------------------------------------------------------
Effect of exchange rate changes on cash - 501 501
----------------------------------------------------------------------------
Change in cash and cash equivalents for the period (5,290) (733) (6,023)
Cash and cash equivalents - beginning of period 24,247 10,913 35,160
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Cash and cash equivalents - end of period 18,957 10,180 29,137
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Consolidated Statements of Retained Earnings (Deficit)
(in thousands of Canadian dollars)
(Unaudited)
For the three months ended March 31 2009 2008
----------------------------------------------------------------------------
----------------------------------------------------------------------------
$ $
Retained earnings (deficit) - beginning of period (220,580) 167,960
Net earnings (loss) for the period (26,151) 24,063
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Retained earnings (deficit) - end of period (246,731) 192,023
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Consolidated Statements of Comprehensive Income (Loss)
(in thousands of Canadian dollars)
(Unaudited)
For the three months ended March 31 2009 2008
----------------------------------------------------------------------------
----------------------------------------------------------------------------
$ $
Net earnings (loss) for the period (26,151) 24,063
Other comprehensive income (loss), net of tax
Unrealized gain (loss) on available for sale investments 593 (2,075)
Cumulative translation adjustment 795 670
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Comprehensive income (loss) (24,763) 22,658
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Contact Information

  • FNX Mining Company Inc.
    Terry MacGibbon
    Chairman and Chief Executive Officer
    416-628-5929
    or
    FNX Mining Company Inc.
    Ronald P. Gagel
    Senior Vice President and Chief Financial Officer
    416-628-5929
    or
    FNX Mining Company Inc.
    David Constable
    Vice President Investors Relations
    416-628-5929
    info@fnxmining.com
    www.fnxmining.com