Yellowhead Mining Inc. - 2016 Third Quarter Report
VANCOUVER, Nov. 3, 2016 /CNW/ - Yellowhead Mining Inc. ("Yellowhead" or the "Company") (TSX: YMI) reports its results of operations for the three and nine months ended September 30, 2016.
For the full condensed consolidated interim financial statements and management discussion & analysis for the third financial quarter ended September 30, 2016, please see SEDAR at www.sedar.com or the Company's website at www.yellowheadmining.com.
Third Quarter 2016
During the third quarter of 2016, the Harper Creek Project ("Harper Creek") remained on care and maintenance, and the Company intends to keep Harper Creek on care and maintenance for the foreseeable future, including through the balance of 2016, until such time as more favorable commodity and capital markets exist that would permit the development of Harper Creek to continue.
Summary of Third Quarter Results
(Amounts are expressed in thousands of Canadian dollars, except per-share amounts)
| 2016 | 2015 | |
| Quarter Ended | 30-Sep | 30-Sep |
| Administrative expenses | 123 | $ 285 |
| Exploration and maintenance expenses | 32 | 35 |
| Other expenses/(income) | (1) | 1 |
| Net loss and comprehensive loss for the period | 154 | 322 |
| Basic and diluted loss per share for the period | $0.00 | $ 0.00 |
Yellowhead has no revenue from operations. Results can fluctuate significantly from period to period due to the level of development activities on the Project.
Review of Quarterly Results
The Company recorded a net loss of $154K for Q3 2016 (2015 - $322K), a decrease of $168K.
In Q3 2016, professional fees increased to $25K from $11K due to the out-sourcing of the accounting, administration, and financial reporting function; rent decreased to $20K from $32K due to the non-renewal of the Vancouver office lease; wages and benefits decreased to $38K from $202K due to the care and maintenance program; and the other Q3 administrative costs are comparable between 2016 and 2015 and relate mostly to the costs of being a public company. Exploration and maintenance expenses decreased to $32K from $35K due to the Harper Creek project being under the care and maintenance program.
Cash and Cash Equivalents
The Company's working capital decreased $599K during 2016 from $1,117K at December 31, 2015 to $518K. Included in working capital were cash and cash equivalents of $754K (December 31, 2015 - $1,299K).
Outlook
The Company intends to keep Harper Creek on care and maintenance for the foreseeable future, including through the balance of 2016, until such time as more favorable commodity and capital markets exist that would permit the development of Harper Creek to continue.
On September 15, 2016 the Company was informed that the TSX is reviewing the common shares of the Company with respect to meeting the continued listing requirement of incurring a minimum of $350,000 in expenditures on its mineral projects during the past year. The Company has been granted 120 days in which to regain compliance with this requirement, pursuant to the Remedial Review Process, or its common shares will be delisted from the TSX. At the present time, the Board of Directors of the Company intends to keep the Project on care and maintenance for the foreseeable future, including through the balance of 2016, until such time as more favorable commodity and capital markets exist that would permit the development of the Project to continue.
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. If developed, Harper Creek would 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 Harper Creek, located in the North Thompson - Nicola region of British Columbia, Canada.
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.
Contact
David McGoey, Chief Financial Officer, 403-294-6497, Email: DMcgoey@yellowheadmining.com; Website: www.yellowheadmining.com