TORONTO, ONTARIO--(CCNMatthews - March 3, 2006) - Metallica Resources Inc. (TSX:MR)(AMEX:MRB) is pleased to report its year end financial results. Full details of the Company's year end audited financial results, and management's discussion and analysis, are available on SEDAR, EDGAR and the Company's website at www.metal-res.com. All figures are in United States dollars unless otherwise noted.
Selected Financial Data:
Year Ended Year Ended Year Ended
December 31, December 31, December 31,
2005 2004 2003
Net income (loss) $ 7,958,798 $ 1,368,462 $(1,715,547)
Basic net income
(loss) per share 0.10 0.02 (0.04)
Diluted net income
(loss) per share 0.10 0.01 (0.04)
Cash flows provided
from (used for)
operating activities 7,120,459 (1,081,213) (1,213,601)
Cash flows (used
for) investing
activities (7,542,769) (20,143,804) (4,072,383)
Cash flows provided
from (used for)
financing activities 429,737 (5,437,252) 66,265,607
Foreign exchange
gain on foreign cash
held 1,045,359 2,169,257 609,547
------------ ------------ ------------
Increase (decrease)
in cash and cash
equivalents $ 1,052,786 $(24,493,012) $ 61,589,170
------------ ------------ ------------
------------ ------------ ------------
December December
31, 2005 31, 2004
Current assets:
Cash $ 42,669,830 $ 41,617,044
Value-added tax and
other current assets 969,947 640,244
------------ ------------
Total current assets 43,639,777 42,257,288
Mineral properties
and deferred
expenditures 55,530,251 47,355,378
Property, plant and
equipment, and other
assets 749,856 680,434
------------ ------------
Total assets $ 99,919,884 $ 90,293,100
------------ ------------
------------ ------------
Current liabilities:
Accounts payable and
accrued liabilities $ 1,383,006 $ 738,384
Asset retirement
obligation 343,164 203,818
------------ ------------
Total liabilities 1,726,170 942,202
Shareholders'
equity:
Share capital 108,158,077 107,661,917
Contributed surplus 1,484,554 --
Warrants 5,889,285 7,373,839
Stock options 1,431,014 1,043,156
Deficit (18,769,216) (26,728,014)
------------ ------------
Total shareholders'
equity 98,193,714 89,350,898
------------ ------------
Total liabilities
and shareholders'
equity $ 99,919,884 $ 90,293,100
------------ ------------
------------ ------------
Net income for 2005 of $7.96 million was primarily due to $8.35 million of income from property payments and $1.05 million of foreign exchange gains. The $8.35 million of income from property payments results from a $10 million earn-in payment received from Falconbridge Limited in August 2005, which resulted in Falconbridge earning a 70% interest in the El Morro project. Foreign exchange gains of $1.05 million are principally due to unrealized gains associated with holding large cash balances in Canadian dollars (Cdn$39.4 million and Cdn$42.3 million at December 31, 2005 and 2004, respectively), and the strengthening of the Canadian dollar relative to the U.S. dollar in 2005.
Net income for 2004 of $1.37 million was primarily attributable to an increase in foreign exchange gains from $0.61 million in 2003 to $2.17 million in 2004, which resulted from a strengthening of the Canadian dollar relative to the U.S. dollar in 2004, and an increase in interest income from $0.16 million in 2003 to $0.93 million in 2004.
The Company's cash and cash equivalents increased by $1.05 million for the year ended December 31, 2005 as compared to a decrease in cash and cash equivalents of $24.49 million for the year ended December 31, 2004. The $25.54 million decrease in 2005 cash outflows is primarily attributable to the following: $11.0 million in acquisition and debt payments in 2004 to the Company's former joint venture partner on the Cerro San Pedro project versus nil in the current period, a decrease in expenditures on mineral properties of $5.86 million in the current period and an increase in cash received from property payments of $9.70 million in the current period.
As of December 31, 2005, the Company had capitalized mineral properties and deferred expenditures totaling $55.53 million. This amount includes $53.14 million relating to the Cerro San Pedro project, of which $7.93 million and $19.75 million was capitalized in 2005 and 2004, respectively, for acquisition and other project related costs.
Metallica Resources is an emerging gold and silver producer focused on the exploration and development of precious metal rich properties throughout the Americas. It currently has 83.5 million shares outstanding. For further details on Metallica Resources, please visit the Company's website at www.metal-res.com.
ON BEHALF OF THE BOARD OF DIRECTORS
Richard J. Hall
President and CEO
THE STATEMENTS IN THIS PRESS RELEASE THAT ARE NOT HISTORICAL FACTS CONTAIN FORWARD LOOKING INFORMATION. THESE STATEMENTS ADDRESS FUTURE EVENTS INVOLVING KNOWN AND UNKNOWN RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO VARY MATERIALLY FROM PROJECTED RESULTS. THESE RISKS AND UNCERTAINTIES INCLUDE THOSE DESCRIIBED IN METALLICA'S FORM 20-F.
FOR FURTHER INFORMATION PLEASE CONTACT:
Metallica Resources Inc.
Richard J. Hall
President and CEO
(303) 796-0229 ext. 304
|