PRETIUM RESOURCES INC.
|
||
By:
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/s/ Alicia Milne
|
|
Date: May 13, 2016
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Name:
|
Alicia Milne
|
Title:
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Corporate Secretary
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PRETIUM RESOURCES INC.
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|||||||||||
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION
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|||||||||||
(Unaudited - Expressed in thousands of Canadian dollars)
|
|||||||||||
March 31,
|
December 31,
|
||||||||||
Note
|
2016
|
2015
|
|||||||||
ASSETS
|
|||||||||||
Current assets
|
|||||||||||
Cash and cash equivalents
|
$ | 479,994 | $ | 387,925 | |||||||
Receivables and other
|
3 | 17,154 | 20,406 | ||||||||
497,148 | 408,331 | ||||||||||
Non-current assets
|
|||||||||||
Mineral properties, plant and equipment
|
4 | 1,118,368 | 1,021,415 | ||||||||
Other assets
|
6 | 39,559 | 41,504 | ||||||||
Restricted cash
|
8,495 | 8,495 | |||||||||
1,166,422 | 1,071,414 | ||||||||||
Total assets
|
$ | 1,663,570 | $ | 1,479,745 | |||||||
LIABILITIES
|
|||||||||||
Current liabilities
|
|||||||||||
Accounts payable and accrued liabilities
|
5 | $ | 41,304 | $ | 48,004 | ||||||
41,304 | 48,004 | ||||||||||
Non-current liabilities
|
|||||||||||
Long-term debt
|
6 | 451,610 | 428,829 | ||||||||
Decommissioning and restoration provision
|
7 | 7,348 | 7,253 | ||||||||
Deferred income tax
|
19,189 | 28,018 | |||||||||
519,451 | 512,104 | ||||||||||
EQUITY
|
|||||||||||
Share capital
|
8 | 1,176,230 | 986,579 | ||||||||
Contributed surplus
|
8 | 59,114 | 57,369 | ||||||||
Deficit
|
(91,225 | ) | (76,307 | ) | |||||||
1,144,119 | 967,641 | ||||||||||
Total liabilities and equity
|
$ | 1,663,570 | $ | 1,479,745 | |||||||
Contingencies
|
11 |
On behalf of the Board:
|
|||
“Ross A. Mitchell”
|
“George N. Paspalas”
|
||
Ross A. Mitchell
(Chairman of Audit Committee)
|
George N. Paspalas
(Director)
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PRETIUM RESOURCES INC.
|
|||||||||||
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF LOSS AND COMPREHENSIVE LOSS
|
|||||||||||
(Unaudited - Expressed in thousands of Canadian dollars, except for share data)
|
|||||||||||
For the three months ended
|
|||||||||||
March 31,
|
March 31,
|
||||||||||
Note
|
2016
|
2015
|
|||||||||
EXPENSES
|
|||||||||||
Share-based compensation
|
8 | $ | 1,206 | $ | 2,388 | ||||||
Salaries
|
837 | 902 | |||||||||
Investor relations
|
470 | 272 | |||||||||
Office
|
403 | 302 | |||||||||
Listing and filing fees
|
170 | 264 | |||||||||
Professional fees
|
157 | 158 | |||||||||
Insurance
|
131 | 130 | |||||||||
Travel and accommodation
|
75 | 119 | |||||||||
Amortization
|
4 | 34 | 15 | ||||||||
Consulting
|
12 | 12 | |||||||||
Operating loss
|
(3,495 | ) | (4,562 | ) | |||||||
Foreign exchange gain
|
6,280 | 603 | |||||||||
Interest income
|
271 | 274 | |||||||||
Financing and interest costs
|
(18 | ) | - | ||||||||
Accretion of decommissioning and restoration provision
|
7 | (56 | ) | (9 | ) | ||||||
Loss on financial instruments at fair value
|
6 | (23,894 | ) | - | |||||||
Loss before taxes
|
(20,912 | ) | (3,694 | ) | |||||||
Deferred income tax recovery
|
5,994 | 164 | |||||||||
Net loss and comprehensive loss for the period
|
$ | (14,918 | ) | $ | (3,530 | ) | |||||
Basic and diluted loss per common share
|
$ | (0.10 | ) | $ | (0.03 | ) | |||||
Weighted average number of common shares outstanding
|
154,470,603 | 129,615,991 |
PRETIUM RESOURCES INC.
|
|||||||||||
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS
|
|||||||||||
(Unaudited - Expressed in thousands of Canadian dollars)
|
|||||||||||
For the three months ended
|
|||||||||||
March 31,
|
March 31,
|
||||||||||
Note
|
2016
|
2015
|
|||||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|||||||||||
Net loss for the period
|
$ | (14,918 | ) | $ | (3,530 | ) | |||||
Items not affecting cash:
|
|||||||||||
Accretion of decommissioning and restoration provision
|
56 | 9 | |||||||||
Amortization
|
34 | 15 | |||||||||
Loss on financial instruments at fair value
|
6 | 23,894 | - | ||||||||
Deferred income tax recovery
|
(5,994 | ) | (164 | ) | |||||||
Share-based compensation
|
8 | 1,206 | 2,388 | ||||||||
Unrealized foreign exchange gain
|
(6,483 | ) | - | ||||||||
Changes in non-cash working capital items:
|
|||||||||||
Receivables and other
|
290 | (512 | ) | ||||||||
Accounts payable and accrued liabilities
|
(1,542 | ) | (301 | ) | |||||||
Net cash used in operating activities
|
(3,457 | ) | (2,095 | ) | |||||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
|||||||||||
Common shares issued
|
8 | 195,318 | 99,126 | ||||||||
Share issue costs
|
(10,395 | ) | (3,470 | ) | |||||||
Proceeds from exercise of stock options
|
1,659 | 120 | |||||||||
Net cash generated by financing activities
|
186,582 | 95,776 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
|||||||||||
Expenditures on mineral properties, plant and equipment
|
4 | (86,074 | ) | (23,759 | ) | ||||||
Restricted cash
|
- | (1,006 | ) | ||||||||
Net cash used in investing activities
|
(86,074 | ) | (24,765 | ) | |||||||
Change in cash and cash equivalents for the period
|
97,051 | 68,916 | |||||||||
Cash and cash equivalents, beginning of the period
|
387,925 | 34,495 | |||||||||
Effect of foreign exchange rate changes on cash and cash equivalents
|
|||||||||||
(4,982 | ) | - | |||||||||
Cash and cash equivalents, end of the period
|
$ | 479,994 | $ | 103,411 |
PRETIUM RESOURCES INC.
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|||||||||||||||||||||||
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY
|
|||||||||||||||||||||||
(Unaudited - Expressed in thousands of Canadian dollars, except for share data)
|
|||||||||||||||||||||||
Note
|
Number of common shares
|
Share capital
|
Contributed surplus
|
Deficit
|
Total
|
||||||||||||||||||
Balance - December 31, 2014
|
116,828,081 | $ | 795,034 | $ | 59,970 | $ | (75,773 | ) | $ | 779,231 | |||||||||||||
Shares issued under private placement
|
15,734,316 | 99,126 | - | - | 99,126 | ||||||||||||||||||
Share issue costs
|
- | (3,470 | ) | - | - | (3,470 | ) | ||||||||||||||||
Deferred income tax on share issue costs
|
- | 902 | - | - | 902 | ||||||||||||||||||
Shares issued upon exercise of options
|
20,000 | 186 | (66 | ) | - | 120 | |||||||||||||||||
Value assigned to options vested
|
- | - | 4,068 | - | 4,068 | ||||||||||||||||||
Loss for the period
|
- | - | - | (3,530 | ) | (3,530 | ) | ||||||||||||||||
Balance - March 31, 2015
|
132,582,397 | $ | 891,778 | $ | 63,972 | $ | (79,303 | ) | $ | 876,447 | |||||||||||||
Balance - December 31, 2015
|
145,068,405 | $ | 986,579 | $ | 57,369 | $ | (76,307 | ) | $ | 967,641 | |||||||||||||
Shares issued under marketed offering
|
8 | 31,923,755 | 195,318 | - | - | 195,318 | |||||||||||||||||
Share issue costs
|
8 | - | (10,967 | ) | - | - | (10,967 | ) | |||||||||||||||
Deferred income tax on share issue costs
|
- | 2,835 | - | - | 2,835 | ||||||||||||||||||
Shares issued upon exercise of options
|
8 | 272,000 | 2,465 | (806 | ) | - | 1,659 | ||||||||||||||||
Value assigned to options vested
|
8 | - | - | 2,551 | - | 2,551 | |||||||||||||||||
Loss for the period
|
- | - | - | (14,918 | ) | (14,918 | ) | ||||||||||||||||
Balance - March 31, 2016
|
177,264,160 | $ | 1,176,230 | $ | 59,114 | $ | (91,225 | ) | $ | 1,144,119 |
|
·
|
Impairment of exploration and evaluation assets
|
|
·
|
Impairment of mineral properties, plant and equipment
|
|
·
|
Fair value of derivatives and other financial liabilities
|
March 31,
|
December 31,
|
|||||||
2016
|
2015
|
|||||||
Taxes receivable
|
$ | 8,634 | $ | 4,790 | ||||
BC Mineral Exploration Tax Credit receivable
|
6,406 | 13,207 | ||||||
Prepayments and deposits
|
2,087 | 2,386 | ||||||
Other receivables
|
27 | 23 | ||||||
$ | 17,154 | $ | 20,406 |
Mineral properties
|
Construction in progress
|
Plant and equipment
|
Exploration and evaluation assets
|
Total
|
||||||||||||||||
Cost
|
||||||||||||||||||||
Balance, beginning of period
|
$ | 513,306 | $ | 175,247 | $ | 20,337 | $ | 319,216 | $ | 1,028,106 | ||||||||||
Additions
|
- | 95,835 | 2,284 | 62 | 98,181 | |||||||||||||||
Transfer from construction in
|
||||||||||||||||||||
progress to plant and equipment
|
- | (3,900 | ) | 3,900 | - | - | ||||||||||||||
Balance, end of period
|
$ | 513,306 | $ | 267,182 | $ | 26,521 | $ | 319,278 | $ | 1,126,287 | ||||||||||
Accumulated depreciation and depletion
|
||||||||||||||||||||
Balance, beginning of period
|
$ | - | $ | - | $ | 6,691 | $ | - | $ | 6,691 | ||||||||||
Amortization and depletion
|
- | - | 1,228 | - | 1,228 | |||||||||||||||
Balance, end of period
|
$ | - | $ | - | $ | 7,919 | $ | - | $ | 7,919 | ||||||||||
Net book value - March 31, 2016
|
$ | 513,306 | $ | 267,182 | $ | 18,602 | $ | 319,278 | $ | 1,118,368 |
March 31,
|
December 31,
|
|||||||
2016
|
2015
|
|||||||
Accrued liabilities
|
$ | 24,881 | $ | 20,501 | ||||
Trade payables
|
16,204 | 27,436 | ||||||
Restricted share unit liability
|
219 | 67 | ||||||
$ | 41,304 | $ | 48,004 |
Senior secured term credit facility
|
Offtake obligation
|
Stream obligation
|
Total long-term debt
|
|||||||||||||
Balance, December 31, 2015
|
$ | 177,301 | $ | 64,706 | $ | 186,822 | $ | 428,829 | ||||||||
Interest expense including amortization of discount
|
6,013 | - | - | 6,013 | ||||||||||||
Loss on financial instruments at fair value
|
- | 7,381 | 20,853 | 28,234 | ||||||||||||
Foreign exchange gain
|
(11,466 | ) | - | - | (11,466 | ) | ||||||||||
Balance, March 31, 2016
|
$ | 171,848 | $ | 72,087 | $ | 207,675 | $ | 451,610 |
|
(a)
|
Senior secured term credit facility
|
|
(b)
|
Offtake obligation
|
|
(c)
|
Stream obligation
|
March 31,
|
December 31,
|
|||||||
2016
|
2015
|
|||||||
Opening balance
|
$ | 7,253 | $ | 2,096 | ||||
Change in discount rate
|
39 | (696 | ) | |||||
Change in amount and timing of cash flows
|
- | 5,768 | ||||||
Accretion of decommissioning and restoration provision
|
56 | 85 | ||||||
Ending balance
|
$ | 7,348 | $ | 7,253 |
|
(a)
|
Authorized share capital
|
|
(b)
|
Share Option Plan
|
2016
|
2015
|
|||||||||||||||
Number of options
|
Weighted average exercise price
|
Number of options
|
Weighted average exercise price
|
|||||||||||||
Outstanding, January 1,
|
9,442,950 | $ | 8.48 | 10,810,950 | $ | 8.48 | ||||||||||
Granted
|
710,000 | 6.75 | 1,556,000 | 8.23 | ||||||||||||
Exercised
|
(272,000 | ) | 6.10 | (20,000 | ) | 6.00 | ||||||||||
Forfeited
|
(795,000 | ) | 10.44 | - | - | |||||||||||
Outstanding, March 31,
|
9,085,950 | $ | 9.03 | 12,346,950 | $ | 8.45 |
Stock options outstanding
|
Stock options exercisable
|
||||||||||||||||
Exercise prices
|
Number of options outstanding
|
Weighted average years to expiry
|
Number of options exercisable
|
Weighted average exercise price
|
|||||||||||||
$5.85 - $7.99 | 4,580,000 | 3.73 | 3,037,500 | $ | 6.55 | ||||||||||||
$8.00 - $9.99 | 1,705,250 | 3.04 | 1,343,000 | 8.97 | |||||||||||||
$10.00 - $11.99 | 1,330,700 | 0.73 | 1,330,700 | 11.78 | |||||||||||||
$12.00 - $13.99 | 1,325,000 | 1.66 | 1,325,000 | 13.69 | |||||||||||||
$14.00 - $15.99 | 20,000 | 1.02 | 20,000 | 14.67 | |||||||||||||
$16.00 - $17.99 | 125,000 | 0.83 | 125,000 | 16.48 | |||||||||||||
Outstanding, March 31, 2016
|
9,085,950 | 2.81 | 7,181,200 | $ | 9.48 |
For the three months ended
|
||||||||
March 31,
2016
|
March 31,
2015
|
|||||||
Risk-free interest rate
|
0.51 | % | 1.02 | % | ||||
Expected volatility
|
63.58 | % | 66.80 | % | ||||
Expected life
|
5 years
|
5 years
|
||||||
Expected dividend yield
|
Nil
|
Nil
|
|
(c)
|
Restricted Share Unit (“RSU”) Plans
|
2016
|
2015
|
|||||||||||||||
Number of RSU's
|
Weighted average fair value
|
Number of RSU's
|
Weighted average fair value
|
|||||||||||||
Outstanding, January 1,
|
215,698 | $ | 7.01 | 330,992 | $ | 6.84 | ||||||||||
Granted
|
- | - | - | - | ||||||||||||
Settled
|
- | - | (1,433 | ) | 8.24 | |||||||||||
Forfeited / expired
|
(30,356 | ) | 6.92 | (5,146 | ) | 8.24 | ||||||||||
Outstanding, March 31,
|
185,342 | $ | 6.97 | 324,413 | $ | 6.38 |
2016
|
2015
|
|||||||||||||||
Number of RSU's
|
Weighted average fair value
|
Number of RSU's
|
Weighted average fair value
|
|||||||||||||
Outstanding, January 1,
|
861,344 | $ | 7.01 | - | $ | - | ||||||||||
Granted
|
- | - | - | - | ||||||||||||
Settled
|
- | - | - | - | ||||||||||||
Forfeited / expired
|
(100,000 | ) | 6.85 | - | - | |||||||||||
Outstanding, March 31,
|
761,344 | $ | 6.97 | - | $ | - |
9.
|
RELATED PARTIES
|
|
Transactions with key management
|
For the three months ended
|
||||||||
March 31,
|
March 31,
|
|||||||
2016
|
2015
|
|||||||
Salaries, benefits and management fees
|
$ | 1,999 | $ | 547 | ||||
Share-based compensation
|
1,013 | 2,828 | ||||||
$ | 3,012 | $ | 3,375 |
10.
|
FAIR VALUE MEASUREMENTS
|
Level 1:
|
Quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.
|
|
Level 2:
|
Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
|
|
Level 3:
|
Inputs for the asset or liability that are not based on observable market data
|
March 31,
|
December 31,
|
|||||||
2016
|
2015
|
|||||||
Assets
|
||||||||
Financial assets at fair value through profit or loss
|
||||||||
Embedded derivatives under the senior secured term credit facility
|
$ | 8,029 | $ | 9,974 | ||||
$ | 8,029 | $ | 9,974 | |||||
Liabilities
|
||||||||
Financial liabilities at fair value through profit or loss
|
||||||||
Offtake obligation
|
$ | 72,087 | $ | 64,706 | ||||
Stream obligation
|
207,675 | 186,822 | ||||||
$ | 279,762 | $ | 251,528 |
11.
|
CONTINGENCIES
|
|
a) Canadian Class Actions
|
|
b) United States Class Actions
|
11.
|
CONTINGENCIES (Cont’d)
|
·
|
During the quarter the underground definition drill program continued to confirm the style and grade distribution of the Valley of the Kings gold mineralization and continued to intersect high grade and visible gold (see news releases dated January 12, 2016 and March 8, 2016).
|
·
|
On February 17, 2016, we announced an updated cost and working capital estimate for the Brucejack Project. The estimated total project capital cost to complete design, construction, installation and commissioning, including contingencies and working capital, is US$696.8 million. The working capital included for the three-month period of post-plant commissioning and initial gold production covers the cost of operations, but does not take into account any revenue generated during this period.
|
·
|
On February 22, 2016, we announced the filing of a preliminary prospectus supplement to our short form base shelf prospectus in connection with a US$120 million marketed offering of our common shares through a syndicate of underwriters. On February 23, 2016, we announced the underwriters had agreed to purchase 26,210,000 of our common shares at US$4.58 per share, for gross proceeds of approximately US$120 million. The underwriters were also granted an over-allotment option to purchase an additional 2,174,000 common shares at US$4.58 per share, exercisable for a period of 30 days following closing. On March 1, 2016, we announced the closing of the marketed offering of our common shares for gross proceeds of approximately US$130 million, which included the exercise of the over-allotment option.
|
·
|
Subsequent to the closing of the marketed offering on March 1, 2016, Orion Co-Investments (ED) Limited (“Orion”) and Zijin Mining Group Co., Ltd (“Zijin”) exercised their participation rights to maintain their respective proportionate ownership interests in the Company in connection with the marketed offering. Orion agreed to subscribe for 752,906 common shares and Zijin agreed to subscribe for 2,786,849 common shares at a price of US$4.58 per share in a non-brokered private placement. On March 31, 2016, we announced the closing of the non-brokered private placement of 3,539,755 common shares for gross proceeds of approximately US$16.2 million. The total number of common shares issued in connection with the marketed offering and private placement was 31,923,755 for aggregate gross proceeds of approximately US$146.2 million.
|
·
|
Subsequent to the end of the quarter, on April 15, 2016, we announced the Board of Directors updated our shareholders rights plan. The purpose of the Plan is to provide Pretivm’s Board of Directors and shareholders with sufficient time to fully consider any unsolicited take-over bid for the Company, to ensure that Pretivm’s Board of Directors has sufficient time to explore alternative transactions that would maximize value for shareholders, and to encourage the fair treatment of all Pretivm shareholders.
|
·
|
On April 18, 2016, we reported on the progress of site construction activities at the Brucejack Project including the camp, mill site, portal excavation and transmission line.
|
·
|
On May 2, 2016, we announced that we had filed a preliminary short form base prospectus with the securities commissions in each of the provinces and territories of Canada, except Quebec, and a corresponding shelf registration statement on Form F-10 with the U.S. Securities and Exchange Commission.
|
·
|
On April 5, April 26 and on May 12, 2016, we announced additional results from the underground infill program at the Brucejack Project’s Valley of the Kings. Results continue to demonstrate high-grade gold mineralization, including hole VU-722 which intersected 37,117 grams of gold per tonne uncut over 0.50 meters.
|
Updated Estimate
(US$ million) (1)
|
Feasibility Study Estimate
(US$ million) (2) (3)
|
|
Mine underground
|
101.4
|
151.7
|
Mine site(4)
|
165.3
|
183.6
|
Offsite Infrastructure
|
81.0
|
85.9
|
Total Direct Costs
|
347.7
|
421.2
|
Indirect Costs
|
97.5
|
106.7
|
Owner's Costs
|
160.3
|
150.0
|
Contingency(5)
|
35.3
|
69.0
|
Total Capital Cost
|
640.8
|
746.9
|
Working Capital
|
56.0
|
---(6)
|
Total Construction Cost
|
696.8
|
746.9
|
(1)
|
US$0.75:C$1
|
(2)
|
US$0.92:C$1
|
(3)
|
Certain costs were re-classified to conform to updated estimate categories/presentation.
|
(4)
|
Includes mine site, mine site process, mine site utilities, mine site facilities, tailings facilities, mine site temporary facilities and surface mobile equipment.
|
(5)
|
Contingency has been reduced to US$35.3 million based on 60% level of engineering and significant commitments now in place.
|
(6)
|
Working capital was included in the financial model, but not in capital cost estimate.
|
Low Case
|
Base Case
|
High Case
|
|
Gold Price (US$/ounce)
|
$800
|
$1,100
|
$1,400
|
Silver Price (US$/ounce)
|
$10.00
|
$14.00
|
$18.00
|
Net Cash Flow (US$)
|
$2.21 billion (pre-tax)
$1.53 billion (post-tax)
|
$4.31 billion (pre-tax)
$2.88 billion (post-tax)
|
$6.42 billion (pre-tax)
$4.23 billion (post-tax)
|
Net Present Value(9)
(5.0% discount) (US$)
|
$1.09 billion (pre-tax)
$0.72 billion (post-tax)
|
$2.36 billion (pre-tax)
$1.55 billion (post-tax)
|
$3.63 billion (pre-tax)
$2.36 billion (post-tax)
|
Internal Rate of Return
|
20.2% (pre-tax)
16.8% (post-tax)
|
33.0% (pre-tax)
27.4% (post-tax)
|
43.8%(pre-tax)
36.3% (post-tax)
|
Payback(from start of production period)
|
4.9 years (pre-tax)
5.0 years (post-tax)
|
3.4 years (pre-tax)
3.5 years (post-tax)
|
2.7 years (pre-tax)
2.8 years (post-tax)
|
Exchange Rate (US$:C$)
|
0.75
|
0.75
|
0.75
|
(7)
|
Includes impact from financing announced September 15, 2015.
|
|||||
(8)
|
Financing impact assumes repayment of debt facility at maturity, exercise of maximum buyout options for offtake and stream facilities at December 31, 2018.
|
|||||
(9)
|
NPV is discounted to December 31, 2015.
|
2016
|
2015
|
2015
|
2015
|
2015
|
2014
|
2014
|
2014
|
|||||||||||||||||||||||||
Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | |||||||||||||||||||||||||
Total revenue
|
$ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||
Earnings (loss) per share -
|
||||||||||||||||||||||||||||||||
basic and diluted
|
$ | (0.10 | ) | $ | 0.06 | $ | (0.02 | ) | $ | (0.02 | ) | $ | (0.03 | ) | $ | (0.02 | ) | $ | (0.04 | ) | $ | (0.03 | ) | |||||||||
Income (loss) and
|
||||||||||||||||||||||||||||||||
comprehensive
|
||||||||||||||||||||||||||||||||
income (loss)
|
$ | (14,918 | ) | $ | 8,757 | $ | (3,335 | ) | $ | (2,426 | ) | $ | (3,530 | ) | $ | (2,094 | ) | $ | (4,668 | ) | $ | (3,306 | ) | |||||||||
Total assets
|
$ | 1,663,570 | $ | 1,479,745 | $ | 1,433,292 | $ | 931,111 | $ | 915,153 | $ | 816,816 | $ | 811,896 | $ | 749,142 | ||||||||||||||||
Long-term liabilities
|
$ | 478,147 | $ | 464,100 | $ | 461,298 | $ | 24,336 | $ | 23,252 | $ | 24,308 | $ | 23,379 | $ | 20,303 | ||||||||||||||||
Cash dividends
|
$ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||
Cash and cash equivalents
|
$ | 479,994 | $ | 387,925 | $ | 453,233 | $ | 68,871 | $ | 103,412 | $ | 34,495 | $ | 63,981 | $ | 19,739 | ||||||||||||||||
Mineral properties, plant
|
||||||||||||||||||||||||||||||||
and equipment
|
$ | 1,118,368 | $ | 1,021,415 | $ | 919,522 | $ | 841,691 | $ | 793,349 | $ | 768,072 | $ | 736,526 | $ | 717,247 |
Proposed use of proceeds (2)
|
Actual use
of proceeds
|
Remaining to be spent / difference(2,3)
|
||||||||||
Principal purpose
|
(US$)
|
(US$)
|
(US$)
|
|||||||||
Development of Brucejack Project
|
$ | 44,000 | $ | - | $ | 44,000 | ||||||
Working capital during start-up
|
56,000 | - | 56,000 | |||||||||
General corporate purposes (1)
|
12,900 | - | 22,200 | |||||||||
Total
|
$ | 112,900 | $ | - | $ | 122,200 |
|
1)
|
Funds included in general corporate purposes may be allocated to corporate expenses, business development, potential future acquisitions, and to other purposes.
|
|
2)
|
The Company estimated the net proceeds from the offering to be US$112,940, before the over-allotment option, at the time of the 2016 Supplement. The over-allotment option was exercised in full and actual gross proceeds were US$129,999. Share issuance costs were US$7,840 for actual net proceeds of US$122,159.
|
|
3)
|
As at March 31, 2016, the marketed offering of common shares has not been expended.
|
Less than
1 year
|
1 – 3 years
|
3 – 5 years
|
More than
5 years
|
Total
|
||||||||||||||||
Operating activities:
|
||||||||||||||||||||
Decommissioning and restoration provision
|
$ | 11 | $ | 81 | $ | - | $ | 7,256 | $ | 7,348 | ||||||||||
Office lease
|
693 | 1,369 | - | - | 2,062 | |||||||||||||||
Financing activities:(1)(2)
|
||||||||||||||||||||
Repayment of credit facility (US$192,029)
|
- | 249,081 | - | - | 249,081 | |||||||||||||||
$ | 704 | $ | 250,531 | $ | - | $ | 7,256 | $ | 258,491 |
|
1)
|
Pursuant to the stream arrangement, we are obligated to deliver, subject to prepayment options, 8% of up to 7,067,000 ounces of refined gold and 8% of up to 26,297,000 ounces of refined silver commencing on January 1, 2020 and a payment of US$20,000.
|
|
2)
|
Under the Offtake agreement, we are obligated to sell 100% of refined gold (in excess of any delivered ounces pursuant to the stream obligation) up to 7,067,000 ounces. The final purchase price to be paid by the purchaser will be, at the purchase’s option, a market referenced gold price in US dollars per ounce during a defined pricing period before and after the date of each sale.
|
Number of securities
|
Exercise price
($)
|
Weighted average
remaining life (years)
|
||||||||||
Common shares
|
177,749,660 | |||||||||||
Share purchase options
|
8,525,450 | $5.85 - $17.46 | 2.68 | |||||||||
Fully diluted
|
186,275,110 |
|
·
|
uncertainty as to the outcome of legal proceedings including certain class action proceedings in the U.S. and Canada;
|
|
·
|
our ability to repay indebtedness;
|
|
·
|
the effect of indebtedness on cash flow and business operations;
|
|
·
|
our ability to satisfy commitments under stream and offtake agreements and the effect of restrictive covenants in such agreements;
|
|
·
|
our ability to raise enough capital to fully fund the capital costs required to complete construction at the Brucejack Project;
|
|
·
|
assumptions regarding expected operating costs and expenditures, production schedules, economic returns and other projections, including the 2016 cost update and the project economics update (refer to the “Revised Brucejack Project Capital Costs and Economics” section of this MD&A);
|
|
·
|
our production estimates, including the accuracy thereof;
|
|
·
|
the fact that we have no mineral properties in production and no history of production or revenue;
|
|
·
|
the exploration, development and operation of a mine or mine property, including the potential for undisclosed liabilities on our mineral projects;
|
|
·
|
our ability to obtain adequate financing for our planned exploration and development activities and to complete further exploration programs;
|
|
·
|
our ability to achieve commercial production at the Brucejack Project in the timeline we anticipate;
|
|
·
|
the operation and economic viability of the development of the Brucejack Project;
|
|
·
|
dependency on the Brucejack Project for our future operating revenue;
|
|
·
|
the accuracy of our resource and reserve estimates (including, with respect to size, grade and recoverability) and the geological, operational and price assumptions on which they are based;
|
|
·
|
our mineral resource estimates, including accuracy thereof and our ability to upgrade such mineral resource estimates and establish mineral reserve estimates;
|
|
·
|
uncertainties relating to the interpretation of drill results and the geology, grade and continuity of our mineral deposits;
|
|
·
|
commodity price fluctuations, including gold price volatility;
|
|
·
|
our history of negative operating cash flow, incurred losses and accumulated deficit;
|
|
·
|
failure of counterparties to perform their contractual obligations;
|
|
·
|
market events and general economic conditions;
|
|
·
|
the inherent risk in the mining industry;
|
|
·
|
the commercial viability of our current and any acquired mineral rights;
|
|
·
|
availability of suitable infrastructure or damage to existing infrastructure;
|
|
·
|
governmental regulations, including environmental regulations;
|
|
·
|
delay in obtaining or failure to obtain required permits, or non-compliance with permits that are obtained;
|
|
·
|
increased costs and restrictions on operations due to compliance with environmental laws and regulations;
|
|
·
|
compliance with emerging climate change regulation;
|
|
·
|
uncertainties relating to additional claims and legal proceedings;
|
|
·
|
adequate internal control over financial reporting;
|
|
·
|
increased costs of complying with the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”);
|
|
·
|
potential opposition from non-governmental organizations;
|
|
·
|
uncertainty regarding unsettled First Nations rights and title in British Columbia;
|
|
·
|
uncertainties related to title to our mineral properties and surface rights;
|
|
·
|
land reclamation requirements;
|
|
·
|
our ability to identify and successfully integrate any material properties we acquire;
|
|
·
|
currency fluctuations;
|
|
·
|
competition in the mining industry for properties, qualified personnel and management;
|
|
·
|
our ability to attract and retain qualified management;
|
|
·
|
some of our directors’ and officers’ involvement with other natural resource companies;
|
|
·
|
potential inability to attract development partners or our ability to identify attractive acquisitions;
|
|
·
|
potential liabilities associated with our acquisition of material properties;
|
|
·
|
our ability to comply with foreign corrupt practices regulations and anti-bribery laws;
|
|
·
|
changes to relevant legislation, accounting practices or increasing insurance costs;
|
|
·
|
our anti-takeover provisions could discourage potentially beneficial third party takeover offers;
|
|
·
|
significant growth could place a strain on our management systems;
|
|
·
|
future sales or issuance of our debt or equity securities;
|
|
·
|
the trading price of our common shares is subject to volatility due to market conditions;
|
|
·
|
share ownership by our significant shareholders;
|
|
·
|
certain actions under U.S. federal securities laws may be unenforceable;
|
|
·
|
we do not intend to pay dividends in the near future; and
|
|
·
|
our being treated as a passive foreign investment company for U.S. federal income tax purposes.
|
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