CALGARY, April 29 /CNW/ - Alhambra Resources Ltd. ("Alhambra" or the
"Corporation") announces its financial and operating results for the year
ended December 31, 2007. All amounts related to the financial results are
expressed in United States dollars unless otherwise indicated. Previous
financial information has always been expressed in Canadian dollars.
BUSINESS SUMMARY
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At December 31, 2007, the Corporation changed its reporting currency from
Canadian dollars to United States dollars as it believes that the United
States dollar is more representative of the industry that it operates within
as well as the location where the majority of its assets are located. The
change was made retroactive.YEAR 2007 HIGHLIGHTS
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- 75% increase in gold sales revenue to $13.0 million
- 267% increase in funds flow from operations to $1.9 million
($0.03/share)
- 30% decrease in net loss to $1.3 million ($0.02/share)
- Debt free with $3.1 million of cash and cash equivalents
- Spent $7.4 million on capital expenditures
- Completed 89,447 metres of drilling and 64,674 cubic metres of
trenching
- Produced 20,665 ounces of gold and sold 18,763 ounces of gold
- Stacked 1.0 million tonnes of ore at a gold grade of 0.91 grams per
tonne on the heap leach pad
- Increased the recoverable gold in work in process as of December 31st
by 1,902 ounces to 23,044 ounces
- Raised C$7.0 million via a non-brokered private placement
FINANCIAL HIGHLIGHTS
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(in US$ except per Three Months ended Year ended
share amounts) December 31 December 31
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2007 2006 2007 2006
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Gross revenue $ 3,554,841 $ 3,081,419 $12,952,684 $ 7,378,016
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Net income/loss 89,431 (766,892) (1,313,349) (1,892,418)
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Per share (basic
and diluted) 0.00 (0.01) (0.02) (0.03)
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Weighted average
shares outstanding 75,375,248 68,663,437 71,298,944 60,880,909
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Shares outstanding
at end of period 75,578,147 69,061,480 75,578,147 69,061,480
-------------------------------------------------------------------------For the year ended December 31, 2007, the net loss for the Corporation
was $1,313,349 ($0.02/share) compared to a net loss in 2006 of $1,892,418
($0.03/share). Funds flow from operations for the year was $1,864,888
($0.03/share) compared to $507,989 ($0.01/share) for 2006.
For the year 2007, 18,763 ounces ("ozs") of gold were sold at an average
gold price of $690.33/oz. Operating cost for the year averaged $354.11/oz of
gold sold. This compares to 12,002 ozs at an average price of $614.73/oz and
per unit operating costs of $334.26/oz for 2006.
At December 31, 2007, the Corporation had $3,056,812 in cash and cash
equivalents and remained debt free.
OPERATING HIGHLIGHTS
--------------------
During the year the Corporation stacked a total of 1,011,750 tonnes of
ore at an average grade of 0.91 grams per tonne ("g/t") of gold onto the pad.
At an average recovery rate of 70%, this resulted in production of 20,665 ozs
of gold for the year. Sales for the year totalled 18,763 ozs resulting in gold
in work in progress increasing 1,902 ozs to 23,044 ozs as at December 31,
2007. In addition the Corporation mined 1,588,970 tonnes of waste during 2007.
CAPITAL PROGRAM
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In 2007, Alhambra spent $7.4 million in capital expenditures on its
mining projects. Of this amount, approximately $5.4 million (73%) was spent on
exploration with the remaining $2.0 million (27%) on capital projects.
The 2007 exploration program's main focus was to continue to delineate
the primary gold mineralization in the West and East zones of the Uzboy gold
deposit and to generate drilling targets on five other zones of gold
mineralization. The entire drilling program totaled 89,447 metres ("m") (up
21% versus 2006) and consisted of 15,690 m of diamond drill holes ("DDH"),
50,379 m of reverse air blast circulation ("RAB") drilling and 23,378 m of
hydro-core lift ("KGK") drilling.
A total of 24,474 m were drilled in the fourth quarter. This was
comprised of 4,505 m of DDH, 7,128 m of RAB drilling and 12,841 m of KGK
drilling. In addition, 23,041 m(3) of trenching was completed.
In a news release dated April 8, 2008 the Corporation announced that its
updated independent National Instrument 43-101 compliant resource estimates
for its Uzboy gold deposit had been completed by A.C.A. Howe International
Limited ("Howe") effective December 31, 2007. Based on a 0.2 g/t per tonne
cut-off, Alhambra had the following resources:- Measured resource of 20,462,400 tonnes with an estimated average
grade of 1.15 g/t containing 758,400 ozs, up 15% versus the
December 31, 2006 estimate (see News Release dated June 13, 2007).
- Indicated resource of 10,442,500 tonnes with an estimated average
grade of 0.92 g/t containing 308,000 ozs, up 32% versus the
December 31, 2006 estimate (see News Release dated June 13, 2007).
- Measured and Indicated resource of 30,904,900 tonnes grading 1.07 g/t
containing 1,066,400 ozs, up 19% versus the December 31, 2006
estimate (see News Release dated June 13, 2007).
- Inferred resource of 18,714,800 tonnes with an estimated average
grade of 0.82 g/t containing 491,200 ozs down 7% versus the
December 31, 2006 estimate (see News Release dated June 13, 2007).Howe determined that the 0.2 g/t cut-off was the "natural" boundary of
the deposit. The complete news release can be viewed on the Corporation's
website or at www.sedar.com.
FOURTH QUARTER 2007 RESULTS
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During the fourth quarter of 2007 Alhambra realized $3,554,841 from the
sale of 4,570 ozs of gold at average price of $777.86/oz. This is down from
the third quarter of 2007 when the Corporation sold 5,843 ozs of gold at an
average gold price of $676.91. Operating costs for the quarter averaged
$357.54/oz which was an improvement over the previous quarter average of
$376.64/oz. Overall, results remained consistent with the third quarter as the
Corporation recorded its second straight month of positive net earnings. Net
earnings for the fourth and third quarters were $89,431 and $67,540
respectively. This amounted to a net income per share of $nil for both
quarters on a weighted average number of shares of 75,375,248 and 70,739,415,
respectively. The net loss for the fourth quarter of 2006 was $766,892 or
$0.01/share on a weighted average number of shares outstanding of 68,663,437.
AUDITED FINANCIAL STATEMENTS AND MANAGEMENT DISCUSSION AND ANALYSIS
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("MD&A")
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The Corporation's 2007 audited financial statements and MD&A are
available on the Corporation's website, can be obtained on application from
the Corporation and are available under the Corporation's profile on SEDAR at
www.sedar.com.
ABOUT ALHAMBRA
--------------
Alhambra is a Canadian based gold exploration and production corporation
engaged in the exploration of and production from its 100% owned Uzboy
Project. Alhambra is currently in its sixth year of operations in the Republic
of Kazakhstan.
Alhambra common shares trade on The TSX Venture Exchange under the symbol
ALH and in Germany on the Frankfurt Open Market under the symbol A4Y. The
Corporation's website can be accessed at www.alhambraresources.com.
Elmer B. Stewart, MSc. P. Geol., a director of Alhambra, is the
Corporation's nominated Qualified Person responsible for monitoring the
supervision and quality control of the programs completed within the Uzboy
Project. Mr. Stewart has reviewed and verified the technical information
contained in this news release.
The TSX Venture Exchange Inc. has neither approved nor disapproved the
information contained herein.
Forward-Looking Statements
This press release includes certain "forward-looking statements" within
the meaning of the United States Private Securities Litigation Reform Act of
1995. All statements, other than statements of historical fact, included
herein, including without limitation, statements regarding potential
mineralization, exploration results and timing and future plans, actions,
objectives and achievements of Alhambra, are forward-looking statements.
Resource estimates also are forward-looking statements as they constitute
certain estimates and assumptions as to the mineralization that would be
encountered if a deposit is developed and mined. Forward-looking statements
involve various risks and uncertainties. There can be no assurance that such
statements will prove to be accurate, and actual results and future events
could differ materially from those anticipated in such statements.
Important factors that could cause actual results to differ materially
from Alhambra's expectations include fluctuations in gold prices and currency
exchange rates; uncertainties relating to interpretation of drill results and
the geology, continuity and grade of mineral deposits, the possibility of
adverse developments in the financial markets generally, and other risks and
uncertainties disclosed under the heading "Cautionary Note Concerning Reserve
and Resource Estimates" and in other information released by Alhambra and
filed with the appropriate regulatory agencies.
For further information: Ihor P. Wasylkiw, Chief Information Officer,
(403) 508-4953; Jim Clarke, Investor Relations, (888) 290-1335 (Toll Free)
