Dalradian reports 2016 financial results
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TORONTO, ONTARIO -- (Marketwired) -- 03/27/17 -- Dalradian Resources Inc. (TSX: DNA)(AIM: DALR) ("Dalradian" or the "Company") announces results for the year ended December 31, 2016 including closing cash and cash equivalents of $35.7 million1. The 2017 work program for the Curraghinalt Gold Project includes infill, step-out and geotechnical drilling (approximately 40,000 metres in total), geotechnical studies and ore-sorting tests. Subsequent to year-end, approximately 15,000 tonnes of mineralized material from the underground development at Curraghinalt was shipped to a mill in North America for processing, with results expected during Q2. ESIA, permitting and stakeholder relations activities will continue in support of the planning application to build a mine, submission of which is planned for 2017. Regional exploration will continue across all of the licence areas.
Supporting documents
The 2016 Financial Statements (not including notes) can be found below. The full 2016 Management Discussion and Analysis and Financial Statements are available on www.dalradian.com and on www.sedar.com.
Dalradian Resources Inc.
Consolidated Statement of Financial Position
(Expressed in Canadian dollars)
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As at As at
Dec. 31, 2016 Dec. 31, 2015
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ASSETS
Current assets:
Cash and cash equivalents $35,719,242 $43,322,899
Amounts receivable 666,166 856,244
Prepaid expenses and advance payments 506,785 1,373,798
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36,892,193 45,552,941
Non-Current assets:
Restoration deposit 1,032,135 1,268,930
Property, plant and equipment 118,988,157 12,096,928
Exploration and evaluation assets 3,943,077 82,356,346
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123,963,369 95,722,204
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$160,855,562 $141,275,145
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued
liabilities $4,908,196 $6,070,328
Current portion of provision for
reclamation 347,844 -
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5,256,040 6,070,328
Non-Current liabilities:
Provision for reclamation 679,124 1,265,234
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Shareholders' equity:
Share capital 195,974,511 162,680,450
Warrants 10,745,550 15,019,060
Contributed surplus 12,314,675 12,533,961
Accumulated deficit (64,114,338) (56,293,888)
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154,920,398 133,939,583
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$160,855,562 $141,275,145
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------------------------------------
Dalradian Resources Inc.
Consolidated Statements of Loss and Comprehensive Loss
(Expressed in Canadian dollars)
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Year ended Year ended
Dec. 31, 2016 Dec. 31, 2015
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Operating expenses:
Salaries and related benefits $3,119,915 $4,213,550
Professional fees and consulting 1,145,288 816,131
Share-based payments 1,094,623 1,365,594
Investor relations and general travel 1,061,043 1,187,366
Office, regulatory and general 762,423 908,618
Amortization 4,606 103,356
Foreign exchange loss (gain) 809,272 (898,577)
Interest and bank charges 11,454 8,628
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$8,008,624 $7,704,666
Interest income and other 188,174 241,097
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Loss and comprehensive loss for the
period $(7,820,450) $(7,463,569)
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Loss per share - basic and diluted $(0.03) $(0.04)
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Dalradian Resources Inc.
Consolidated Statements of Shareholders' Equity
(Expressed in Canadian dollars)
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Year ended Year ended
Dec. 31, 2016 Dec. 31, 2015
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Share capital:
Balance, beginning of year $162,680,450 $110,693,043
Common shares issued 220,932 40,178,329
Warrants exercised 30,869,137 11,395,255
Options exercised 1,260,492 413,823
RSUs redeemed 943,500 -
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Balance, end of year $195,974,511 $162,680,450
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Warrants:
Balance, beginning of year $15,019,060 $7,288,894
Warrants issued - 9,648,206
Warrants exercised (4,229,727) (1,864,955)
Warrants expired (43,783) (53,085)
------------------------------------
Balance, end of year $10,745,550 $15,019,060
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------------------------------------
Contributed surplus:
Balance, beginning of year $12,533,961 $11,118,485
Increase from share-based payments 1,183,623 1,521,214
Warrants expired 43,783 53,085
Options exercised (503,192) (158,823)
RSUs redeemed (943,500) -
------------------------------------
Balance, end of year $12,314,675 $12,533,961
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Accumulated deficit:
Balance, beginning of year $(56,293,888) $(48,830,319)
Loss and comprehensive loss for the year (7,820,450) (7,463,569)
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Balance, end of year $(64,114,338) $(56,293,888)
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Total shareholders' equity $154,920,398 $133,939,583
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Dalradian Resources Inc.
Consolidated Statements of Cash Flows
(Expressed in Canadian dollars)
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Year ended Year ended
Dec. 31, 2016 Dec. 31, 2015
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Cash flows from (used in) operating
activities:
Loss and comprehensive loss for the
year $(7,820,450) $(7,463,569)
Items not affecting cash:
Unrealized foreign exchange loss
(gain) on cash 1,164,808 (953,398)
Interest income and other (188,174) (236,004)
Amortization 4,606 103,356
Share-based payments 1,094,623 1,365,594
Unrealized foreign exchange loss
(gain) on restoration deposit 236,795 (148,060)
Change in non-cash operating working
capital:
Amounts receivable 188,603 (606,865)
Prepaid expenses and advance payments (14,663) (56,435)
Accounts payable and accrued
liabilities 1,529,526 233,410
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Cash flows used in operating activities $(3,804,326) $(7,761,971)
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Cash flows from financing activities:
Net proceeds from common shares and
warrants issued $- $49,142,965
Exercise of warrants 26,639,410 9,530,300
Exercise of options 757,300 255,000
------------------------------------
Cash flows from financing activities $27,396,710 $58,928,265
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Cash flows from (used) in investing
activities:
Expenditures on exploration and
evaluation assets $(24,810,417) $(27,148,794)
Additions to property, plant and
equipment (5,410,717) (11,657,887)
Interest received 189,901 233,016
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Cash flows used in investing activities $(30,031,233) $(38,573,665)
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Net change in cash and cash equivalents (6,438,849) 12,592,629
Cash and cash equivalents, beginning of
year 43,322,899 29,776,872
Effect of exchange rate fluctuations on
cash held (1,164,808) 953,398
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Cash and cash equivalents, end of year $35,719,242 $43,322,899
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About Dalradian Resources Inc.
Dalradian Resources Inc. is a gold exploration and development company that is focused on advancing its high-grade Curraghinalt Gold Project located in Northern Ireland, United Kingdom.
FORWARD LOOKING STATEMENTS
This press release contains "forward looking information" which may include, but is not limited to, statements with respect to the future financial or operating performance of the Company and its subsidiary and its mineral project, the future price of metals, test work and confirming results from work performed to date, the estimation of mineral resources and mineral reserves, the realization of mineral resource and mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital, operating and exploration expenditures, costs and timing of the development of new deposits, costs and timing of future exploration, requirements for additional capital, government regulation of mining operations, environmental risks, reclamation expenses, title disputes or claims, limitations of insurance coverage, the timing and possible outcome of pending regulatory matters and the realization of the expected production, economics and mine life of the Curraghinalt gold deposit. Often, but not always, forward looking statements can be identified by the use of words and phrases such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.
Forward looking statements are based on the opinions and estimates of management as of the date such statements are made and are based on various assumptions such as the continued political stability in Northern Ireland, that permits required for Dalradian's operations will be obtained on a timely basis in order to permit Dalradian to proceed on schedule with its planned exploration and mine development, construction and production programs, that skilled personnel and contractors will be available as Dalradian's operations commence and continue to grow towards production and mining operations, that the price of gold will be at levels that render Dalradian's mineral project economic, that the Company will be able to continue raising the necessary capital to finance its operations and realize on mineral resource and mineral reserve estimates and current mine plans, that the assumptions contained in the Company's Technical Report dated January 25, 2017 are accurate and complete, that the results of the ESIA will be positive and that a permitting application for mine construction will be approved.
Forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Dalradian to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, general business, economic, competitive, political and social uncertainties; the actual results of current and future exploration activities; the actual results of reclamation activities; conclusions of economic evaluations; meeting various expected cost estimates; changes in project parameters and/or economic assessments as plans continue to be refined; future prices of metals; possible variations of mineral grade or recovery rates; the risk that actual costs may exceed estimated costs; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; political instability; delays in obtaining governmental approvals or financing or in the completion of development or construction activities, as well as those factors discussed in the section entitled "Risk Factors" in the Company's Annual Information Form for the year ended December 31, 2016 dated March 23, 2017 (the "AIF").
Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward looking statements contained herein are made as of the date of this press release and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results, except as may be required by applicable securities laws. There can be no assurance that forward looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking statements.
1 All amounts are in Canadian dollars unless otherwise noted.
Contacts: Marla Gale Vice President Communications +1 416 583 5622 [email protected] Grant Thornton UK LLP (Nominated Adviser) Philip Secrett / Richard Tonthat / Harrison Clarke +44 (0)20 7383 5100 Canaccord Genuity Limited (Broker) Henry Fitzgerald-O'Connor / Martin Davison +44 (0)20 7523 8000
Source: Dalradian Resources Inc.
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