Hillsborough Resources Limited

Hillsborough Resources Limited

August 02, 2005 08:00 ET

Hillsborough Resources: Hillsborough Announces Second Quarter Earnings for Fiscal 2005

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 2, 2005) - Hillsborough Resources Limited (TSX:HLB) is pleased to announce net earnings for the second quarter of 2005 of $783,168 or $0.02 per share, with coal revenue from the Quinsam mine for the quarter of $7.5 million. Net earnings for the six months ended June 30, 2005 were $1,810,461 or $0.04 per share, with coal revenue from Quinsam for the period of $13.0 million. Coal revenue in the second quarter included a shipment from the Quinsam mine of approximately 45,000 tonnes into the international short-term delivery contract market, the second such shipment for the year.

At June 30, 2005, cash and cash equivalents totaled $4.5 million and net working capital totaled $5.1 million.

During the second quarter, the first shipments of coal occurred from the new Crossville mine in Tennessee. Crossville is currently in the pre-operating period as a box cut is being taken and a face-up established for the underground mine. Though not included in Hillsborough's reported operating revenues, a total of $418,375 had been generated to June 30, 2005 from the sale of such pre-operating coal, providing a significant offset to the development costs incurred to date bringing the underground mine into production. Commercial production from the underground mine at Crossville is expected to commence during the third quarter of 2005.

Also during the second quarter of 2005, Hillsborough carried out a significant amount of drilling on the Five Cabin property in northeast British Columbia, and drilling on the Five Cabin and surrounding Murray River Group properties is continuing through the summer. Drilling to date has confirmed historical interpretations of stratigraphy and seam structures, and the first National Instrument 43-101 technical report on the Five Cabin is expected to be completed during the third quarter to provide a resource estimate on the Murray Pit area within the property. A second report providing a resource estimate on the main structure area is expected by the end of the year.

David Slater, President & CEO of Hillsborough, stated, "Operating results from our Quinsam mine have once again been strong through this second quarter, and the progress made in bringing the Crossville mine into production has been excellent. I very much look forward to seeing Crossville join Quinsam during this third quarter as Hillsborough's second producing underground mine. We continue to advance the exploration and development of Five Cabin and our other Murray River Group properties, and as the production potential of the resources we hold in the northeast becomes apparent I look forward with great excitement to what 2006 will bring Hillsborough and our shareholders."

Hillsborough Resources Limited is a coal mining company that operates the Quinsam underground thermal coal mine in Campbell River, British Columbia serving the local and west-coast U.S. cement industry, and the Crossville underground coal mine in Tennessee which is currently being brought into commercial production. We are also developing substantial metallurgical coal properties near Tumbler Ridge in the Northeast of British Columbia, as well as the Bingay Creek metallurgical coal project in the Elk Valley region of Southeast British Columbia.

"David J. Slater"

President & Chief Executive Officer

This release may contain forward-looking statements regarding the Company's business or financial condition. Actual results could differ materially from those described in this news release as a result of factors including but not limited to the following: adverse exploration or development results; re-assessments of corporate or development objectives and requirements; additional technical developments and considerations; unexpected increases in the costs of producing coal, changes in international coal or transportation markets, a rapid change in the value of the Canadian dollar particularly with respect to the US dollar, a fundamental slow down in the North American, Asian or worldwide economies; and other factors.

Contact Information

  • Hillsborough Resources Limited
    David Slater
    President & CEO
    (604) 684-9288
    (604) 684-3178 (FAX)