Q2 - 2008 ( Aug 6 ) ... Conference Call NOTES .
Campbell Resources Conference Call
Q2 2008
Forward-looking statements
Certain information contained in these notes may contain "Forward-Looking Statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and is subject to certain risks, assumptions 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, 2007, which may cause actual future results to differ materially from those expressed or implied in any forward-looking statement. 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 and copper prices which affect the profitability and mineral reserves and resources of Campbell. The key assumptions underlying the forward-looking statements contained in this release are that the gold and copper prices remain equal to or above the prices disclosed herein. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Forward-looking statements are expressly qualified in their entirety by this cautionary statement.
André Fortier: Good afternoon, ladies and gentlemen. Welcome to our conference call for the second quarter ended June 30, 2008. With me are Réal Savoie, our Vice-President, Finance and CFO and Alain Blais, Vice-President and General Manager of Operations. We will provide you with a brief overview of the release we issued earlier today; and afterwards, Réal, Alain and I will be pleased to answer any questions you may have.
During the second quarter of the current fiscal year, Campbell realized a number of achievements:
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Increased our year-to-date ore production by approximately 78%
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Increased our year-to-date copper production by approximately 97%
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Reduced the year-to-date loss from operations by approximately 29%
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Reached the 105-metre level at Corner Bay
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Identified the vertical continuity of high-grade mineralized zone at Copper Rand
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Completed a $3.54 million financing
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Increased the credit facility with Nuinsco Resources Limited to a maximum aggregate amount of $5.0 million
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Some progress has been slower than expected
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Operational and financial challenges
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Copper grade
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Equipment issues
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Working capital deficiencies
I will now turn the call over to Alain, who will provide you with a more detailed
discussion of our operations.
Alain Blais: Thank you, André, and good afternoon ladies and gentlemen.
In the second quarter of 2008, Campbell operations produced 71,673 tons of ore yielding 1,434 ounces of gold and 1,780,718 pounds of copper. In the second quarter of 2007, 52,739 tons of ore were milled, yielding 4,921 ounces of gold and 1,044,197 pounds of copper.
For the first six months of fiscal 2008, Campbell operations produced 163,193 tons of ore, yielding 4,024 ounces of gold and 3,947,785 pounds of copper. In the first six months of fiscal 2007, 91,526 tons of ore were milled, yielding 8,823 ounces of gold and 2,005,838 pounds of copper.
Production at Copper Rand in the second quarter of 2008 was 37,303 tons yielding 1,199 ounces of gold, 1,025,137 pounds of copper and 3,192 ounces of silver. In the second quarter of 2007, production totaled 24,656 tons yielding 969 ounces of gold, 922,132 pounds of copper and 2,209 ounces of silver. For the first six months of fiscal 2008, Copper Rand produced 84,028 tons of ore yielding 2,830,133 pounds of copper, 3,488 ounces of gold and 9,039 ounces of silver, compared 46,699 tons of ore yielding 1,817,338 pounds of copper, 1,852 ounces of gold and 4,559 ounces of silver in the first six months of fiscal 2007.
There are currently three production areas at Copper Rand, identified as “44-4,” “4850 depth extension” and “Lower H-2.” Campbell has also identified the vertical
continuity of higher-grade mineralized ore at the “Upper H-2” area which should be available by the end of 2008. Two additional areas are currently under evaluation. Those two additional sectors could provide ore feed to the Copper Rand mill in the second half of 2009. Campbell expects to be able to maintain current production levels at Copper Rand in the coming months.
The first tons of ore from Merrill pit were milled in October 2007. In the second quarter of 2008, a total of 24,375 tons of ore were milled, yielding 198,814 pounds of copper, 144 ounces of gold and 1,266 ounces of silver. In the first six months of 2008, a total of 68,098 tons were milled, yielding 517,339 pounds of copper, 420 ounces of gold and 3,790 ounces of silver. A major breakdown to the crusher occurred in early March and operations at the pit only resumed in late April. Operations at the Merrill pit were suspended in June as the term of the mining contractor’s agreement had expired. Campbell is currently in discussions with a new contractor and hopes to resume operations at Merrill in the third quarter.
Corner Bay is still in the development stage, but we began shipping ore to the Copper Rand mill in March. In the second quarter of 2008, 9,995 tons of mineralized material were extracted at Corner Bay, yielding 556,768 pounds of copper, 91 ounces of gold and 1,640 ounces of silver.
I will now turn the call over to Réal, who will provide you with an overview of our financial results.