CAMPBELL RESOURCES INC. 
By
- Increased ore production by approximately 140%
- Increased copper production by approximately 125%
- Reduced loss from operations by approximately 46%
- Opened up two new sources of higher-grade ore at the Copper Rand mine
- Confirmed expansion of mineralized zone at Copper Rand mine
- Began development of the high-grade Corner Bay deposit at both the 55
and 75 metre levels and began shipment of ore to the Copper Rand mill.
"During the first quarter, Campbell continued to make significant progress
towards its goals of increasing production and improving its financial
performance," said
FINANCIAL RESULTS
As of
As of
In
In the first quarter of 2008, Campbell operations produced 91,520 tons of ore yielding 2,590 ounces of gold and 2,167,067 pounds of copper. In the first quarter of 2007, 38,787 tons of ore were milled, yielding 3,902 ounces of gold and 961,641 pounds of copper.
A total of 791 ounces of gold and Nil pounds of copper were sold in the
first quarter of 2008 compared to 2,096 ounces of gold and Nil pounds of
copper for the same period of 2007. The average market price for gold in the
first quarter of 2008 was
Net metal sales for the first quarter of 2008 reached
As per the contract for the sale of concentrate between Campbell and Ocean
Partners UK Limited ("OP"), revenues for concentrate inventory shipped cannot
be recognized until the transfer of ownership is completed when the
concentrate is delivered to the discharge port. As at
The loss from operations, before interest, totalled
For the first quarter of 2008, Campbell recorded a net loss of
OPERATING PERFORMANCE
Joe Mann Mine
Production at the Joe Mann mine ceased on
Copper Rand Mine
The Copper Rand mine started commercial production on
The introduction of the Alimak mining method as well as other initiatives to diversify the sources of ore at the mine have generated a constant increase in production output in recent months. There are currently three production areas at Copper Rand, and a fourth zone should be in production in the second quarter of 2008. Two new zones should also be available at the end of 2008 and in the first half of 2009. Further, the Company has also confirmed the expansion of a mineralized zone that runs parallel to the main ore body now developed to the 4,850 foot level. Campbell expects to be able to maintain increased production levels in the coming months.
Merrill Pit
The first tons of ore from Merrill pit were milled in
Production at Merrill was curtailed in early March because of a major
equipment failure, but as of
Corner Bay Development
In
During the first quarter of 2008,
At a 3% Cu cut-off, Corner Bay has measured and indicated resources of
446,000 tonnes averaging 5.58% Cu (181,000 @ 5.07% Cu measured and 265,000 @
5.93% Cu indicated); inferred resources total 1,441,000 tonnes averaging 6.76%
Cu (Ref.: GEOSTAT Technical Report,
OUTLOOK
"The operating and development initiatives the Company is pursuing put us
very much on track to reach our objectives for 2008, which include doubling
Campbell's ore production over 2007 totals, improving the efficiency at the
Copper Rand mill, reducing our costs per pound of copper, and significantly
increasing our revenues. Additionally, we are continuing to look at
opportunities to acquire and bring into production additional assets in the
prolific
Campbell Resources will hold a conference call on
About Campbell Resources Limited
Campbell Resources Inc. concentrates on the development and exploitation
of copper and gold mining properties in the
The qualified person,
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
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Expressed in thousands of Canadian dollars)
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March 31 December 31
2008 2007
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$ $
Assets
Current assets
Cash 33 474
Restricted cash 1,113 1,113
Short-term investments 30 33
Receivables 2,185 3,066
Settlements receivable 739 739
Concentrate and metal inventories 9,014 1,218
Supply inventories 2,740 2,882
Prepaids 689 408
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16,543 9,933
Amount receivable from Copper Rand/Portage
Restoration Fiduciary Trust 3,072 3,028
Restricted cash 1,158 1,158
Future income tax assets 1,338 1,317
Property, plant and equipment 48,662 45,017
Accrued benefit asset 4,975 4,897
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75,748 65,350
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Liabilities
Current liabilities
Short-term loan 3,264 1,996
Accounts payable 17,231 15,411
Accrued liabilities 6,809 5,954
Prepayments for concentrate 10,248 965
Current portion of long-term debt 18,394 18,337
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55,946 42,663
Asset retirement obligations 7,503 7,396
Long-term debt 2,919 2,688
Future income and mining tax liabilities 6,656 6,472
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73,024 59,219
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Shareholders' equity
Capital stock 94,854 96,639
Warrants, stock options and conversion rights 9,776 9,432
Contributed surplus 4,191 4,109
Deficit (106,085) (104,040)
Accumulated other comprehensive loss (12) (9)
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(106,097) (104,049)
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2,724 6,131
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75,748 65,350
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CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Expressed in thousands of Canadian dollars except per share amounts)
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Three months ended
March 31
2008 2007
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$ $
Gross metal sales 726 1,714
Treatment charges 4 18
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Net metal sales 722 1,696
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Expenses
Cost of good sold 692 5,191
Depreciation and amortization 1,125 812
General administration 668 734
Warrants issued as fee for short-term
financial arrangement 427 -
Reorganisation and CCAA costs - 105
Care and maintenance 584 42
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3,496 6,884
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Loss before the following items (2,774) (5,188)
Interest expense on short-term loan (124) (75)
Interest and financial expense on long-term debt (475) (280)
Interest income 14 8
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Loss from operations (3,359) (5,535)
Other income (expense)
Other (expense) income (308) 3,790
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Loss before taxes (3,667) (1,745)
Income and mining tax 1,622 -
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Net loss (2,045) (1,745)
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Weighted average number of common shares ('000) 432,605 348,669
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Loss per share undiluted and diluted 0.00 0.01
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CONSOLIDATED STATEMENTS OF CONTRIBUTED SURPLUS AND DEFICIT (UNAUDITED)
(Expressed in thousands of Canadian dollars)
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Three months ended
March 31
2008 2007
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$ $
Contributed surplus
Balance, beginning of period 4,109 1,996
Stock options expired and cancelled 25 -
Warrants expired 57 1,995
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Balance, end of period 4,191 3,991
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Deficit
Balance, beginning of period 104,040 85,052
Net loss 2,045 1,745
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Balance, end of period 106,085 86,797
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(Expressed in thousands of Canadian dollars)
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Three months ended
March 31
2008 2007
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$ $
Net Loss (2,045) (1,745)
Other comprehensive income, net of income tax:
Unrealized (losses) gain on available-for-sale
investments arising during the period (3) 29
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Comprehensive loss (2,048) (1,716)
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SOURCE CAMPBELL RESOURCES INC.
