Tahera Corporation - Results for the twelve months ended December 31, 1999 |
03/10/2000 |
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TORONTO, March 10 /CNW/ -
Summary of Financial Results
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Tahera Corporation ('Tahera' or the 'Company') recorded a loss of$7,340,000 million ($0.046 per share) for the year ended December 31, 1999,which compares with a loss of $36,860,000 million for the year ended December31, 1998 ($0.320 per share). In 1998, a write-down of mineral properties of$35,464,000 was recorded following a review of the carrying value of theCompany's mineral properties by the Board.
Tahera's operating expenses increased slightly to $3,858,000 for the yearended December 31, 1999 compared to $3,783,000 for the year ended December 31,1998. Tahera's expenditures on exploration and development projects increasedin 1999 to $5,659,600 compared to $4,998,760 during the comparable period in1998.
Jericho Diamond Project
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Tahera remains focused on bringing its wholly owned Jericho DiamondProject to commercial production by early 2002. In tandem with thisdevelopment focus, Tahera will continue to explore its highly prospectivelandholdings in close proximity to the Jericho kimberlite. Any new discoveriesin the project area could enhance both the scale and economics of the JerichoDiamond Project.
A final feasibility study for the Jericho Diamond Project is scheduledfor completion by May 2000 and the target date for receipt of regulatorypermits is the summer of 2000.
Tahera Corporation
Consolidated Balance Sheets
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December 31 December 31
1999 1998
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ASSETS
Current Assets
Cash and short-term deposits $ 1,133,671 $ 3,691,122
Accounts receivable 157,270 147,707
Due from related parties - 5,193,888
Prepaid expenses 115,761 48,019
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1,406,702 9,080,736
Exploration and Development Projects 56,680,328 35,117,184
Plant and Equipment 1,663,944 3,437,996
Deferred Financing Costs 682,696 -
Investments 17,952 915,510
Deferred Amalgamation Costs - 235,936
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$ 60,451,622 $ 48,787,362
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LIABILITIES
Current Liabilities
Accounts payable and accrued
liabilities $ 2,690,224 $ 2,040,805
Debenture interest payable 109,259 -
Settlement with the Fern Trust - 913,414
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2,799,483 2,954,219
Secured Convertible Debentures 3,417,000 -
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6,216,483 2,954,219
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SHAREHOLDERS' EQUITY
Share Capital
Common shares 62,537,425 82,246,570
Preferred shares 30,668 31,042
Equity component of secured
convertible debentures 265,360 -
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62,833,453 82,277,612
Common Share Purchase Warrants - 45,000
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62,833,453 82,322,612
Deficit (8,598,314) (36,489,469)
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54,235,139 45,833,143
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$ 60,451,622 $ 48,787,362
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Tahera Corporation
Consolidated Statements of Loss and Deficit
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Year Ended Year Ended
December 31 December 31
1999 1998
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Revenue
Interest $ 119,765 $ 339,004
Contract processing 321,430 -
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441,195 339,004
Expenses
Salaries and benefits 1,142,766 553,889
Depreciation 503,012 348,905
Office and general 541,245 734,496
Legal and audit 344,875 698,190
Travel 334,009 175,106
Financing costs 278,778 -
Directors' fees and expenses 201,682 183,113
Debenture interest and financing
amortization 176,869 -
Capital tax 117,439 40,000
Transfer agent and listing fees 108,261 53,613
Consulting 94,286 735,352
Interest on short-term borrowings 14,766 4,855
Amalgamation costs - 255,378
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3,857,988 3,782,897
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(3,416,793) (3,443,893)
Other Items
Loss on sale of equipment (1,302,264) -
Write down of exploration and
development Projects (1,578,229) (35,758,220)
Settlement of legal proceedings - (1,079,733)
Share of losses of equity affiliates - (2,426)
Gain (loss) on sale of investment
in equity affiliate (893,143) 2,912,726
Gain on dilution of investment in equity
affiliate - 695,510
Write down of other investments - (71,050)
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Loss for the Year Before Income Taxes (7,190,429) (36,747,086)
Provision for Income Taxes (149,359) (113,333)
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Loss for the Year (7,339,788) (36,860,419)
Deficit - Beginning of Year (36,489,469) (13,180,745)
Capital Reduction 35,185,943 13,551,695
Assigned value of expired warrants 45,000 -
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Deficit - End of Year $ (8,598,314) $(36,489,469)
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Loss per Share $ (0.046) $ (0.320)
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Tahera Corporation
Consolidated Statements of Cash Flows
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Year Ended Year Ended
December 31 December 31
1999 1998
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Cash flows from (used in) operating
activities:
Loss for the year $ (7,339,788) $(36,860,419)
Items not affecting cash -
Depreciation 503,012 348,905
Debt principal accretion and
financing 62,063 -
Loss on sale of fixed assets 1,302,264 -
Write down of exploration and
development projects 1,578,229 35,758,220
Loss (gain) on sale of investments 893,143 (2,912,726)
Share of losses of equity affiliates - 2,426
Gain on dilution of investment in
equity affiliate - (695,510)
Write off deferred amalgamation costs - 50,441
Write down of other investments - 71,050
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(3,001,077) (4,237,613)
Changes in non-cash working
capital items -
Accounts receivable (2,767) (24,542)
Prepaid expenses (67,742) (33,093)
Accounts payable and accrued
liabilities (351,231) 1,901,880
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(3,422,817) (2,393,368)
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Cash flows from (used in) investing
activities:
Exploration and development projects (5,659,566) (4,998,755)
Plant and equipment (230,503) (347,391)
Proceeds on sale of fixed assets 2,314,471 -
Proceeds on sale of investment in
equity affiliates - 8,456,800
Investments in equity affiliates 4,415 11,932
Deferred amalgamation costs (20,676) (235,936)
Cash acquired on purchase of New
Indigo Resources Inc. 13,992 -
Reclamation deposit (68,000) -
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(3,645,867) 2,886,650
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Cash flows from (used in) financing
activities:
Issuance of common shares for cash 1,981,625 3,943,037
Redemption of preferred shares (374) (527)
Secured convertible debentures -
net of issue costs 3,046,859 -
Due to or from related parties (516,877) (1,070,534)
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4,511,233 2,871,976
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Net Increase (Decrease) in Cash (2,557,451) 3,365,258
Cash - Beginning of Year 3,691,122 325,864
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Cash - End of Year $ 1,133,671 $ 3,691,122
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%SEDAR: 00003313E
For further information: Grant Ewing, Vice President Investor Relations and Corporate Development, Tel: (416) 777-1998, Fax: (416) 777-1898, Toll Free: (877) 777-2004, Email: investor@tahera.com, www.tahera.com
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