Campbell Reports Second Quarter 2007 Financial Results, Provides Summary of Activities



    Achievements to date in 2007 position Campbell for strong second half

    MONTREAL, Aug. 3 /CNW Telbec/ - Campbell Resources Inc. (TSX:CCH; OTC
Bulletin Board:CBLRF, www.campbellresources.com) today announced financial and
operating results for the second quarter and six months ended June 30, 2007.
During and subsequent to the second quarter, the Company:

    
    - Raised $11 million in convertible debt and equity, including the final
      $4 million to finance completion of development of the high-grade
      Corner Bay copper deposit.
    - Awarded contract for Corner Bay development to CMAC-Thyssen, who began
      mine development in early May and to date has completed approximately
      350 metres of the 700 metre decline.
    - Initiated dewatering and other preliminary work on the Merrill Pit
      copper deposit while waiting for the obtention of the environmental
      permit.
    - Implemented the Alimak mining system to increase ore production and
      improve ground conditions at Copper Rand with blasting of the first
      block and completion of the second Alimak raise in July.
    - Increased gold production by 26%, copper production by 9% and silver
      production by 25% over the first quarter of 2007.

    "We are very pleased with the progress we are making in getting Copper
Rand production to where we feel it should be," said André Fortier, President
and CEO. "With the implementation of the Alimak mining system, which will
increase ore availability, decrease waste and improve ground control, we are
forecasting much improved results from Copper Rand in the second half of the
year. This increased production, along with high grade ore from Corner Bay and
the mining of the Merrill Pit, will go a long way toward achieving our
objecting of maximizing throughput at the Copper Rand mill, decreasing unit
costs and improving financial performance."

    FINANCIAL RESULTS

    In the second quarter, consolidated metal production improved
sequentially, increasing over the first quarter of 2007 as follows: gold
production by 26%, silver production by 25%, and copper production by 9%.
    On January 1, 2007, the Company signed a concentrate sales agreement with
Ocean Partners UK Limited. Under terms of the agreement, Campbell recognizes
revenue once Ocean Partners takes delivery of the concentrate. The first
shipment will be made shortly, with at least two more shipments of a minimum
of 5,000 tons of concentrate to be made before year end.
    As a result, $8.5 million of inventory, representing concentrate produced
by Campbell during the first and second quarters of 2007 and stored at the
Port of Quebec, will be recognized as revenue during the third and fourth
quarters. Provisional payment of $7.6 million for concentrate inventory
shipped but not priced has been booked under current liabilities. Inventories
at June 30, 2007 were 5,511 ounces of gold and 2,018,582 pounds of copper,
compared with 426 ounces of gold and 18,432 pounds of copper at the end of the
second quarter of 2006.
    For the second quarter, Campbell recorded a net loss of $4.3 million or
$0.01 per share on net metal sales of $1.2 million. This compares with a net
loss of $1.8 million, or $0.02 per share, on net metal sales of $3.5 million
for the same period in 2006. Cash used by operating activities was
$1.2 million in the second quarter of 2007, compared with $0.9 million in the
second quarter of 2006.
    For the first six months of 2007, the net loss was $6.1 million, or $0.02
per share, on net metal sales of $2.8 million, compared with a net loss of
$4.1 million, or $0.04 per share, on net metal sales of $5.9 million for the
corresponding period in 2006. Cash used in operating activities was
$2.7 million for the first six months of 2007, compared with $1.6 million for
the same period in 2006.
    Mining costs in the second quarter were $4.5 million, compared with
$3.4 million in the second quarter of 2006. In the first six months of 2007,
mining costs were $9.6 million, versus $6.2 million in the first six months of
2006.
    The increase in mining costs was primarily due to the inclusion of
expenses from the Copper Rand Mine, which achieved commercial production on
January 1, 2007. Previously, results from Copper Rand were capitalized.
    Consolidated mining expenses include the development of Alimak raises at
both the Copper Rand and Joe Mann mines, additional rehabilitation costs and
development at the Copper Rand Mine that will improve ground conditions and
improve production going forward, definition drilling at both Copper Rand and
Joe Mann, and training programs for new employees.

    Joe Mann Mine

    In the second quarter of 2007, metal production at Joe Mann increased over
the first quarter of 2007 as follows: gold production increased by 31% to
3,952 oz, despite a 22% quarter-over-quarter decrease in grade; copper
production increased by 84% to 122,065 pounds; and silver production increased
by 71% to 2,670 ounces.
    For the first six months of 2007, Joe Mann produced 6,971 ounces of gold,
188,500 pounds of copper and 4,234 ounces of silver, compared with
7,729 ounces of gold, 282,829 pounds of copper and 5,701 ounces of silver in
the same period of 2006.

    Copper Rand Mine

    Gold and copper production in the second quarter increased by 10% and 3%
respectively over the first quarter to 969 ounces of gold, with a 2% increase
in grade, and 922,132 pounds of copper, despite an 8% decrease in grade,
quarter over quarter. Silver production totalled 2,210 ounces.
    For the first six months of 2007, Copper Rand produced 1,817,338 pounds of
copper, 1,852 ounces of gold and 4,560 ounces of silver, compared with
1,813,447 pounds of copper, 2,199 ounces of gold and 5,133 ounces of silver
for the corresponding period of 2006.

    OUTLOOK

    The Company is forecasting a much improved second half of 2007 due to an
expected increase in output at Copper Rand, the start of mining at Corner Bay,
and the delivery of the long-awaited certificate of authorization by the
Québec Ministry of Environment that will allow the start of mining at the
Merrill Island open pit.

    Copper Rand

    In line with Campbell's goal of increasing throughput at the Copper Rand
Mill, Alimak stope preparation is progressing well. In addition, the ramp to
bypass the groundfall area will become operational by mid-August and will
facilitate access to levels 4500 and above. Development is also progressing
towards the 01-1 East Extension and the 44-4 veins. In addition, construction
of the ramp to the 4870 level has begun, with the ore zone expected to be
reached by November, and stope preparation will be initiated shortly on level
3950 in order to access additional ore.

    Corner Bay

    To date, the contractor CMAC-Thyssen has excavated more than 350 meters of
ramp. One heading is approaching the 55-meter level where ore is expected to
be intersected by the end of August. The second heading is progressing towards
levels 85 and 100 meter from where a bulk sample of about 40,000 tonnes of
development ore at an expected grade of 3.70% Cu will be extracted. In total,
about 700 meters of decline and 1,500 meters of horizontal development on
three levels will be done, and the milling of material from the bulk sample is
scheduled to begin in October of this year.
    Following the extraction of the bulk sample, Campbell's intends to
continue the development of the project in order to bring it to production
stage. Exploration drilling has shown deep ore intersection at 1,250 meter
below the surface with a 6.3 meter intercept (true thickness) @ 9.27% Cu. To
date, the Corner Bay project resources are estimated at: measured: 181 000 T @
5.07% Cu, indicated: 265 000 T @ 5.93% Cu, inferred: 1 441 000 T @ 6.76% Cu
(Ref.: GEOSTAT Technical Report, July 2006, available on SEDAR at
www.sedar.com).

    Merrill Pit

    Site preparation at this former producer is progressing well, with
dewatering of the pit and upgrading of the access road underway. Engineering
work has begun in order to begin mining as soon as the required environmental
permitting is granted.

    Joe Mann

    As previously announced, production at Joe Mann mine should end at the end
of August. The Company still intends to complete the previously announced
drilling program to test the continuity of the Joe Mann orebody at depth,
however this has been delayed due to the shortage of diamond drill rigs. The
property will be kept on care and maintenance status until the drilling
program is completed.

    Certain information contained in this release contains "Forward-Looking
Statements" within the meaning of the Private Securities Litigation Reform Act
of 1995 and is subject to certain risks and uncertainties, including those
"Risk Factors" set forth in the Campbell's current Annual Report on Form 20-F
for the year ended December 31, 2006. Such factors include, but are not
limited to: differences between estimated and actual mineral reserves and
resources; changes to exploration, development and mining plans due to prudent
reaction of management to ongoing exploration results, engineering and
financial concerns; and fluctuations in the gold price which affect the
profitability and mineral reserves and resources of Campbell. Readers are
cautioned not to place undue reliance on these forward-looking statements,
which speak only as of the date hereof. Campbell undertakes no obligation to
release publicly any revisions to these forward-looking statements to reflect
events or circumstances after the date hereof or to reflect unanticipated
events or developments.


    CONSOLIDATED BALANCE SHEETS (UNAUDITED)
    (Expressed in thousands of Canadian dollars)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                         June 30 December 31
                                                            2007        2006
    -------------------------------------------------------------------------
                                                               $           $
    Assets

    Current assets
      Cash and cash equivalents                            1,229       1,964
      Restricted cash                                      1,095       2,784
      Short-term investments                                 763         792
      Receivables                                          2,402       1,591
      Settlements receivable                                  11       5,413
      Restricted deposits and exchange agreement               -      50,000
      Production inventories                               9,930         401
      Supply inventories                                   3,684       3,844
      Prepaids                                               992       1,194
    -------------------------------------------------------------------------
                                                          20,106      67,983

    Amount receivable from Copper Rand/Portage
     Restoration Fiduciary Trust                           2,905       2,826
    Restricted cash                                        1,158       1,158
    Future income tax assets                               1,462       1,484
    Property, plant and equipment                         37,671      37,135
    Accrued benefit asset                                  4,584       4,427
    Deferred charges and other assets                        259         129
    -------------------------------------------------------------------------
                                                          68,145     115,142
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Liabilities

    Current liabilities
      Short term loan                                      2,000       3,891
      Accounts payable                                    11,406      13,973
      Accrued liabilities                                  4,797       5,475
      Provisional payments for concentrate
       inventory shipped and not priced                    7,629           -
      Current portion of long-term debt                   15,854      65,287
    -------------------------------------------------------------------------
                                                          41,686      88,626

    Asset retirement obligations                           6,911       7,804
    Long-term debt                                            59          70
    Future income tax liabilities                          6,614       6,636
    -------------------------------------------------------------------------
                                                          55,270     103,136
    -------------------------------------------------------------------------

    Shareholders' equity

      Capital stock                                       92,768      85,572
      Warrants, stock options and conversion rights        7,333       9,263
      Contributed surplus                                  3,991       1,996
      Deficit                                            (91,138)    (84,825)
      Accumulated other comprehensive income                 (79)          -
    -------------------------------------------------------------------------
                                                          12,875      12,006
    -------------------------------------------------------------------------
                                                          68,145     115,142
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
    (Expressed in thousands of Canadian dollars except per share amounts)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                  Three months ended        Six months ended
                                        June 30                 June 30
                                ---------------------------------------------
                                    2007        2006        2007        2006
    -------------------------------------------------------------------------
                                                               $           $
    Gross metal sales              1,482       3,840       3,196       6,484
    Treatment charges and
     transportation                  282         367         404         634
    -------------------------------------------------------------------------
    Net metal sales                1,200       3,473       2,792       5,850
    -------------------------------------------------------------------------

    Expenses
      Mining                       4,542       3,385       9,629       6,186
      Depreciation and
       amortization                  577         778       1,389       1,541
      General administration         628         692       1,362       1,316
      Reorganisation and CCAA
       costs                         102         306         207         589
      Care and maintenance            34          45          76         121
      Exploration                      -        (169)          -        (158)
    -------------------------------------------------------------------------
                                   5,883       5,037      12,663       9,595
    -------------------------------------------------------------------------

    Loss before the following
     items                        (4,683)     (1,564)     (9,871)     (3,745)

    Interest expense on
     short-term loan                 (86)        (96)       (161)       (224)
    Interest expense on
     long-term debt                 (288)       (237)       (568)       (436)
    Interest income                   20           9          28          16
    -------------------------------------------------------------------------
    Loss from operations          (5,037)     (1,888)    (10,572)     (4,389)

    Other income (expense)
    Other income                     696         177       4,486         389
    -------------------------------------------------------------------------

    Loss before taxes             (4,341)     (1,711)     (6,086)     (4,000)

    Income and mining tax              -         (44)          -         (53)
    -------------------------------------------------------------------------

    Net loss                      (4,341)     (1,755)     (6,086)     (4,053)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Weighted average number
     of common shares ('000)     396,829     108,213     372,925     108,213
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Loss per share undiluted
     and diluted                   (0.01)      (0.02)      (0.02)      (0.04)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    CONSOLIDATED STATEMENTS OF CONTRIBUTED SURPLUS AND DEFICIT (UNAUDITED)
    (Expressed in thousands of Canadian dollars)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                  Three months ended        Six months ended
                                        June 30                 June 30
                                ---------------------------------------------
                                    2007        2006        2007        2006
    -------------------------------------------------------------------------
                                                               $           $
    Contributed surplus

    Balance, beginning of period   3,991       1,404       1,996       1,404

    Warrants expired                   -           -       1,995           -

    -------------------------------------------------------------------------
    Balance, end of period         3,991       1,404       3,991       1,404
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Deficit

    Balance, beginning of period,
     as previously reported       86,797      45,928      84,825      43,630
    Financial Instrument-
     recognition and measurement       -           -         227           -
    -------------------------------------------------------------------------
                                  86,797      45,928      85,052      43,630

    Net loss (income)              4,341       1,755       6,086       4,053
    -------------------------------------------------------------------------
    Balance, end of period        91,138      47,683      91,138      47,683
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
    (Expressed in thousands of Canadian dollars)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                  Three months ended        Six months ended
                                        June 30                 June 30
                                ---------------------------------------------
                                    2007        2006        2007        2006
    -------------------------------------------------------------------------
                                                               $           $

    Net Loss                       4,341       1,755       6,086       4,053

    Other comprehensive income,
     net of income tax:
    Net change in unrealized
     gain on short term
     investments                      50           -          79           -
    -------------------------------------------------------------------------
    Comprehensive income           4,391           -       6,165       4,053
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    CONSOLIDATED STATEMENTS OF CASH FLOW (UNAUDITED)
    (Expressed in thousand of Canadian dollars)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                  Three months ended        Six months ended
                                        June 30                 June 30
                                ---------------------------------------------
                                    2007        2006        2007        2006
    -------------------------------------------------------------------------
                                                               $           $

    Operating activities
    Net loss                      (4,341)     (1,755)     (6,086)     (4,053)
    Adjustments to reconcile
     net loss to net cash
     provided by (used in)
     operating activities
      Depreciation and
       amortization                  577         778       1,389       1,541
      Loss (gain) on sale of
       short-term investment           -           2         105        (262)
      Gain on sale of property,
       plant and equipment           (92)          -      (3,920)         (1)
      Devaluation of short-term
       investments                     -           8           -          10
      Excess of pension plan
       expenses over amount paid     (14)          5          73          10
      Amortization of deferred
       charges and other assets       32          68         129         123
      Deferred interest accrued
       on long term debt             288          13         567          26
      Accretion of long-term
       debt                            -          58           -         115
      Share issued in payment
       of services                    75           -         156           -
      Asset retirement
       obligation accretion
       expense                        57          70         126         141
    -------------------------------------------------------------------------
                                  (3,418)       (753)     (7,461)     (2,350)

    Change in non-cash working
     capital                       2,193        (130)      4,812         711
    -------------------------------------------------------------------------
    Cash used in operating
     activities                   (1,225)       (883)     (2,649)     (1,639)
    -------------------------------------------------------------------------

    Financing activities
      Increase (decrease) in
       short-term loan            (1,956)       (567)     (1,891)     (1,901)
      Issuance of capital stock    6,448           -       7,105           -
      Deferred charges              (195)       (156)       (259)       (156)
      Decrease in long-term debt      (4)         (3)        (10)         (6)
    -------------------------------------------------------------------------
    Cash provided by (used in)
     financing activities          4,293        (726)      4,945      (2,063)
    -------------------------------------------------------------------------

    Investing activities
      Restricted cash                  -        (225)     (3,053)       (225)
      Increase in property,
       plant and equipment        (2,636)      1,277      (3,255)      1,591
      Acquisition of short-term
       investments                   (20)          -         (20)        (12)
      Proceeds on sale of
       short-term investments          -          (2)        665         362
      Proceeds on sale of
       property, plant and
       equipment                      92       1,475       2,632       1,515
      Amount paid in excess of
       the pension plan expenses
       capitalized to mining
       properties                      -        (222)          -        (444)
    -------------------------------------------------------------------------
    Cash (used in) provided by
     investing activities         (2,564)      2,303      (3,031)      2,787
    -------------------------------------------------------------------------

    Decrease in cash and cash
     equivalents                     504         694        (735)       (915)
    Cash and cash equivalents,
     beginning of period             725         163       1,964       1,772
    -------------------------------------------------------------------------
    Cash and cash equivalents,
     end of period                 1,229         857       1,229         857
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    
    %SEDAR: 00001579EF




For further information:

For further information: Campbell Resources Inc.: André Fortier,
President and Chief Executive Officer, (514) 875-9037, Fax: (514) 875-9764,
afortier@campbellresources.com; Renmark Financial Communications Inc.: Henri
Perron: hperron@renmarkfinancial.com; Philippe DeSerres:
pdeserres@renmarkfinancial.com, (514) 939-3989, Fax: (514) 939-3717,
www.renmarkfinancial.com

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CAMPBELL RESOURCES INC.

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