Metallica Resources Inc.
TSX : MR
AMEX : MRB

Metallica Resources Inc.

August 11, 2005 13:02 ET

Metallica Resources Announces Second Quarter Results

TORONTO, ONTARIO--(CCNMatthews - Aug. 11, 2005) - Metallica Resources Inc. (TSX:MR)(AMEX:MRB) is pleased to report its second quarter financial results. All figures are in United States dollars unless otherwise noted. Complete quarterly results are available on SEDAR, EDGAR and on the Company's website at www.metal-res.com.



Selected Financial Data (unaudited)


Three Three Six Six
Months Months Months Months
Ended Ended Ended Ended
June 30, June 30, June 30, June 30,
2005 2004 2005 2004

Net loss $ (993,277) $ (1,174,302) $ (1,720,173) $ (1,863,888)
Basic
and
diluted
loss
per
share (0.01) (0.01) (0.02) (0.02)

Cash
flows
from
(used
in)
operating
activities (623,561) 17,464 (439,330) (925,052)
Cash
flows
from
(used
in)
investing
activities (1,674,207) (4,336,772) (3,216,707) (15,659,010)
Cash
flows
from
(used
in)
financing
activities 129,899 -- 136,756 (5,548,355)
Foreign
exchange
(loss)
gain
or
foreign
cash
held (320,809) (895,249) (683,020) (1,483,152)
----------------------------------------------------------

Increase
(decrease)
in
cash
and
cash
equival-
ents $ (2,488,678) $ (5,214,557) $ (4,202,301) $ (23,615,569)
----------------------------------------------------------
----------------------------------------------------------

June 30, December 31,
2005 2004

Current assets:


Cash $ 37,646,685 $ 41,848,986

Value-added
tax
and
other
current
assets 526,481 640,244
---------------------------
Total
current
assets 38,173,166 42,489,230
Mineral
properties
and
deferred
expendi-
tures 51,650,191 47,355,378
Fixed
assets
and
other
assets 413,973 448,492
---------------------------
Total
assets $ 90,237,330 $ 90,293,100
---------------------------
---------------------------


Current
liability:
Accounts
payable
and
accrued
liabil-
ities $ 1,868,371 $ 738,384

Asset
retirement
obligation 213,163 203,818
---------------------------
Total
liabil-
ities 2,081,534 942,202


Shareholders'
equity:
Share
capital 107,809,242 107,661,917
Contributed
surplus 1,484,464 --
Warrants 5,889,375 7,373,839
Stock
options 1,420,902 1,043,156
Deficit (28,448,187) (26,728,014)
---------------------------
Total
shareholders'
equity 88,155,796 89,350,898
---------------------------
Total
liabilities
and
shareholders'
equity $ 90,237,330 $ 90,293,100
---------------------------
---------------------------



The Company reported a loss of $0.99 million ($0.01 per share) for the three months ended June 30, 2005 as compared to a loss of $1.17 million ($0.01 per share) for the three months ended June 30, 2004.

The Company reported a loss of $1.72 million ($0.02 per share) for the six months ended June 30, 2005 as compared to a loss of $1.86 million ($0.02 per share) for the six months ended June 30, 2004.

The Company's cash and cash equivalents decreased by $2.49 million for the three months ended June 30, 2005 as compared to a decrease in cash and cash equivalents of $5.21 million for the three months ended June 30, 2004. The $2.72 million decrease in 2005 cash outflows is primarily due to a decrease in expenditures on mineral properties and deferred costs in the current period of $2.65 million, which principally results from a suspension of construction activities at the Cerro San Pedro project in June 2004. Construction of the Cerro San Pedro mine was suspended in June 2004 pending resolution of various permitting and other issues involving the project. As of August 11, 2005, construction of the mine has not recommenced. The Company is pursuing various legal and administrative remedies in order to recommence construction at Cerro San Pedro; however, there are no assurances that the Company will be successful in these efforts.

The Company's cash and cash equivalents decreased by $4.20 million for the six months ended June 30, 2005 as compared to a decrease in cash and cash equivalents of $23.62 million for the six months ended June 30, 2004. The $19.42 million decrease in 2005 cash outflows primarily results from payments in 2004 to Glamis to acquire its 50% equity interest in the Cerro San Pedro project and a related royalty totaling $13.25 million, and a decrease in expenditures on mineral properties and deferred costs in the current period of $4.95 million due to the suspension of construction activities the at the Cerro San Pedro project in June 2004.

The Company had working capital of $36.08 million at June 30, 2005 as compared to working capital of $41.75 million at December 31, 2004. The $5.67 million decrease in working capital primarily results from additions to mineral properties and deferred expenditures on the Company's exploration and development projects, principally the Cerro San Pedro and Rio Figueroa projects, totaling $4.29 million.

Metallica Resources is a Canadian precious and base metal exploration and development company focused on the Americas. It currently has 82.9 million shares outstanding, approximately $37 million in cash and cash equivalents, and no debt. For further details on Metallica Resources, please visit the Company's website at www.metal-res.com

ON BEHALF OF THE BOARD OF DIRECTORS

Richard J. Hall

THE STATEMENTS IN THIS PRESS RELEASE THAT ARE NOT HISTORICAL FACTS CONTAIN FORWARD LOOKING INFORMATION. THESE STATEMENTS ADDRESS FUTURE EVENTS INVOLVING KNOWN AND UNKNOWN RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO VARY MATERIALLY FROM PROJECTED RESULTS. THESE RISKS AND UNCERTAINTIES INCLUDE THOSE DESCRIBED IN METALLICA'S FORM 20-F.

Contact Information

  • Metallica Resources Inc.
    Richard J. Hall
    President and CEO
    (303) 796-0229, Ext. 304