ROAD TOWN, Tortola, British Virgin Islands, Oct. 14 /CNW/ - CIC Energy Corp. ("CIC Energy" or the "Company") (TSX: ELC, BSE: CIC Energy) reported a net loss for the three month period ended August 31, 2009 of $3,303,000 or $0.06 per share (basic and diluted), compared to a loss of $342,000 or $0.006 per share (basic and diluted) for the same period last year.
The net loss for the nine month period ended August 31, 2009 was $5,269,000 or $0.10 per share (basic and diluted) compared to a loss of $4,431,000 or $0.08 per share (basic and diluted) for the same period last year.
The year over year increase in net loss in the third quarter of 2009 was primarily due to a loss on foreign exchange income in this quarter versus a profit on foreign exchange income in the year ago quarter. The loss foreign exchange income in the third quarter of 2009 arose from a strengthening of the South African Rand and the Botswana Pula, which resulted in a restatement in Canadian Dollars of the receivables due to the Company in such currencies. In addition, higher legal costs also contributed to the year over year increase in net loss in the third quarter of 2009.
Although the Company managed to reduce operational costs by $1 million in the nine month period in 2009, this improvement was not enough to fully mitigate the year over year drop in total income that was the primary driver of the year over year increase in net loss. The decline in total income in 2009 was due to reduced interest received (on smaller cash balances invested at lower interest rates) versus 2008, as well as a year over year drop in profit on foreign exchange income.
Capital expenditure on exploration properties amounted to $150,443,000 with capitalized exploration costs for the nine month period in 2009 totaling $26,449,000.
Consolidated Interim Financial Statements for the three and nine months ended August 31, 2009, along with the Company's Management's Discussion and Analysis ("MD&A"), have been filed on SEDAR and are available at www.sedar.com.
SOURCE CIC Energy Corp.
For further information: For further information: on CIC Energy and its projects visit the Company's website at www.cicenergy.com or contact: Erica Belling, CFA, P.Eng., VP Investor Relations, Tau Capital Corp., Tel: (416) 361-9636 x 243, Email: email@example.com