Yellowhead Mining Inc. - 2014 Year End Report

TSX:YMI

VANCOUVER, March 19, 2015 /CNW/ - Yellowhead Mining Inc. ("Yellowhead" or the "Company") (TSX: YMI) reports its results of operations for the financial year ended December 31, 2014.

For the full audited consolidated financial statements and management discussion & analysis for the financial year ended December 31, 2014, please see SEDAR at www.sedar.com or the Company's website at www.yellowheadmining.com.

Highlights

Highlights for the financial year ended December 31, 2014 include:

  • Completion of an updated feasibility study for the Harper Creek Project ("Harper Creek"), including updated resource and reserve estimates, initial capital costs, sustaining capital costs and operating costs, and demonstrating the economic viability of the Project
  • Submission of an application ("EA Application") for an environmental assessment certificate ("EA Certificate") for Harper Creek to the British Columbia Environmental Assessment Office ("EAO")
  • Acceptance by the BC EAO of the EA Application for formal review, with the 180 day application review period commencing on January 28, 2015

Strategy for 2015

The Company's strategy for 2015 includes:

  • Completing the review of the EA Application and receiving the EA Certificate
  • Commencing the construction permitting process for Harper Creek upon receipt of the EA Certificate
  • Continuing consultation with First Nations and all stakeholders, including the public and local communities, to address any potential environmental and socio-economic impacts of Harper Creek and the Company's mitigation strategies
  • Pursuing additional working capital to continue the ongoing development of Harper Creek

CEO Remarks

"2014 was a turning point for Harper Creek with the acceptance of the EA Application for Harper Creek for formal review.  We look forward to 2015 as the year Yellowhead receives an EA Certificate for Harper Creek and begins the construction permitting phase of development" noted Mr. Frank D. Wheatley, CEO of Yellowhead.  "We are of the strong view that Harper Creek is both a permittable and a buildable project, and will provide economic development in the Thompson - Nicola region of British Columbia in an environmentally responsible fashion" continued Mr. Wheatley.

Summary of Financial Results
(Amounts are expressed in thousands of Canadian dollars, except per-share amounts)












Q4
2014


Q4
2013


FY
2014


FY
2013

Administrative expenses


$    633


$    925


$ 2,095


$ 3,699

Exploration and evaluation expenses


1,149


194


5,133


2,865

Other (income)/expenses


(18)


102


(83)


(49)

Net loss and comprehensive loss for the period


1,764


1,220


7,144


6,516

Basic and diluted loss per share for the period


$   0.02


$   0.02


$   0.07


$   0.10

 

Yellowhead has no revenue from operations.  Results can fluctuate significantly from period to period due to the level of project development on Harper Creek.

Review of Quarterly Results

The loss in Q4 2014 was $1.76M compared to $1.22M in Q4 2013.  This increase in loss of $544K was due to an increase in exploration and evaluation expenses of $955K.  This increase in exploration and evaluation expenses was due to the preparation and submission to the BC EAO of the EA Application for Harper Creek.  Costs associated with the preparation of the EA Application increased from $143K in Q4 2013 to $1.09M in Q4 2014. Administration expenses were $633K in Q4 2014 compared to $925K in Q4 2013. At the end of 2013, the Company undertook a reduction in general and administrative expenses, including staffing levels, and this resulted in lower wages and benefits, professional fees and travel and investor relations costs in Q4 2014 compared to Q4 2013.  Share based compensation was also lower in Q4 2014 compared to Q4 2013, as no incentive stock options were granted in 2014.

Review of Annual Results

The loss in FY 2014 was $7.14M as compared to $6.52M in FY 2013.  This increase in loss was primarily due to an increase in exploration and evaluation expenses of $2.27M. The 2014 exploration and evaluation expenses related to the update of both the feasibility study and the EA Application for Harper Creek, whereas the FY 2013 costs were primarily related to the in-fill drilling program.  The higher exploration and evaluation expenses were partially offset by the decrease in administration expenses.  The decrease in administrative expenses was primarily due to lower wages and benefits costs, professional fees, and travel and investor relations costs in FY 2014 as compared to FY 2013.  In 2013, the Company incurred costs related to various corporate strategic initiatives and these costs were not incurred in FY 2014 as the Company implemented a reduction in general and administrative expenses and did not pursue similar initiatives.

Cash and Cash Equivalents

The Company had cash and cash equivalents of $3.68M as at December 31, 2014, as compared to cash and cash equivalents of $10.00M as at December 31, 2013.  As at December 31, 2014, the Company had working capital of $2.69M, as compared to working capital of $9.70M as at December 31, 2013.

Outlook

The Company's focus going forward is continuing the development of Harper Creek. Major activities include completing the review of the EA Application and receiving the EA Certificate, commencing the construction permitting process and pursuing funding activities to increase its working capital to fund the continued development of Harper Creek.  In order to complete the review of the EA Application and receive the EA Certificate, have working capital for twelve months of general and administrative expenses and to continue as a going concern, additional funding will be required by the Company.  Upon receipt of the EA Certificate for the Project, the Company will require additional funding to proceed with the next phase of development of the Project, including the mine permitting process.

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.  Harper Creek has a four year development period, with the initial two years focused on environmental and construction permitting, and the second two years dedicated to construction.  When developed, Harper Creek will 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 the Harper Creek Project, located in the North Thompson - Nicola region of British Columbia, Canada.  The proposed Harper Creek mine will be a large scale, long life, low cost open pit copper mine, has a NI 43-101 compliant feasibility study, and is currently in the environmental permitting phase of development.

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.

For further information: Frank D. Wheatley, Chief Executive Officer, 604-681-1709 Ext. 212, Email: fwheatley@yellowheadmining.com, Website: www.yellowheadmining.com, Twitter: http://twitter.com/YMI_Mining

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