VANCOUVER, British Columbia, Nov. 18, 2002 (PRIMEZONE) -- Crew Development Corporation (TSE:CRU) (OSLO:CRU) (FRANKFURT:KNC) (Other OTC:CRWVF) today announced that for the year ended June 30, 2002, the Company achieved operating income of CAD 20.2 million (2001 - CAD 9.2 million) on revenues of CAD 111.7 million (2001 - CAD 79.7 million). Also included in the results for the quarter are a provision for the impairment of CAD 19.6 million (2001 - CAD nil) in the value of the Company's investment in Asia Pacific Resources Ltd, and a provision of CAD 5 million (2001 - CAD nil) for the impairment of other mineral property interests, resulting in a net loss for the year ended June 30, 2002 of CAD 40.8 million (2001 - CAD 26.3 million).
The Company's operating results for the period include the consolidated financial results of Metorex Ltd., for the 10 months ended April 30, 2002. On April 24, 2002, Metorex issued 18.1 million shares in a private placement to other shareholders. On April 26, 2002, Crew sold 6.5 million shared of Metorex Ltd. for proceeds of CAD 2.9 million. As a result of these transactions, Company's interest in Metorex was reduced to 41%. Consequently, the Company no longer consolidates its interest in Metorex Ltd., effective April 30, 2002. On October 22, 2002, Crew further reduced its holding in Metorex by selling 28 million shares for proceeds of ZAR 83.2 million (CAD 12.6 million).
Crew is in the final stages of planning the commencement of production from the Nalunaq Gold Mine. Nalunaq has an existing stockpile containing approximately 28,000 oz of gold. Mine construction is expected to start in the first half of 2003, and the economics of the operation are considered to be robust. The average annual production is projected to be 90,000 oz at a cash operating cost of USD $168 per oz, based on an average ore production of 350 tonnes per day. A Memorandum of Understanding has recently been signed with Richmont Mines Ltd. for the batch treatment of Nalunaq ore at the Nugget Pond processing plant in Newfoundland. Relevant authorities are currently reviewing the feasibility and the environmental impact studies, and a mining permit is pending. Assuming all the necessary permits are received as anticipated, Nalunaq should be in production during 2003.
GOING FORWARD Crew has over the last six months changed its strategy from having the ambition of becoming a broadly diversified multi-commodity mining company to focus primarily on precious metals. This change in strategy is a result of a management and board evaluation of where the main potential for near term income is, as well as where the company can see further growth based on the companies own financial and human resources. Management will focus on further reduction of costs, identify new projects with near term cash flow potential as well as developing existing assets.
It is management's view that Crew is well positioned to meet the future with an attractive portfolio of projects, a solid balance sheet and treasury. The company is of the opinion that Nalunaq as well as the other 3 structures with visual gold on Greenland, Lake-410, Ippatit and Nanisiaq individually and together plus Crew's 51% ownership in Hwini-Butre, Ghana, represents a considerable upside for Crew. There is a clear focus from management to develop these assets.
CREW DEVELOPMENT CORPORATION
Consolidated Balance Sheets
(expressed in Canadian dollars)
As at June 30,
2002 2001
ASSETS
CURRENT
Cash $ 4,376,481 $ 40,156,933
Accounts receivable 198,812 23,396,808
Inventories -- 8,693,470
Prepaid expenses 250,389 295,823
Due from Metorex Limited 2,263,232 --
Future income taxes -- 1,044,899
7,088,914 73,587,933
NALUNAQ MINERAL PROPERTY INTEREST 34,460,247 25,994,352
INVESTMENT IN METOREX LIMITED 28,809,532 --
GEOTHERMAL PROJECT 2,613,596 249,853
INVESTMENT IN ASIA PACIFIC RESOURCES 4,950,000 19,543,056
PROPERTY, PLANT AND EQUIPMENT 891,347 93,512,669
OTHER MINERAL PROPERTY INTERSTS 3,245,298 8,106,818
REHABILITATION TRUST FUND -- 3,763,882
OTHER 27,000 396,723
$ 82,085,934 $225,155,286
LIABILITIES
CURRENT
Bank indebtedness $ -- $ 1,361,120
Accounts payable and
accrued liabilities 2,648,712 29,584,363
Income taxes payable -- 2,567,968
Current portion of long-term debt -- 7,748,460
Current portion of provisions -- 3,482,998
2,648,712 44,744,909
LONG-TERM DEBT -- 10,484,144
FUTURE INCOME TAXES 3,338,484 16,412,842
PROVISIONS -- 6,453,365
EMPLOYEE FUTURE BENEFITS -- 2,781,730
NON-CONTROLLING INTEREST 2,324,649 36,995,376
8,311,845 117,872,366
SHAREHOLDERS' EQUITY
Share capital 160,114,934 156,750,902
Share purchase warrants 275,250 --
Deficit (83,846,598) (42,697,223)
Cumulative translation adjustment (2,769,497) (6,770,759)
73,774,089 107,282,920
$ 82,085,934 $225,155,286
CREW DEVELOPMENT CORPORATION
Consolidated Statements of Loss and Deficit
(expressed in Canadian dollars)
Year ended June 30,
2002 2001
MINERAL SALES $111,730,701 $ 79,702,138
DIRECT COSTS OF MINERAL SALES (87,425,868) (66,508,590)
AMORTIZATION (4,108,590) (3,985,344)
20,196,243 9,208,204
EXPENSES
Administration, office
and general (13,798,260) (8,132,725)
Amortization (242,525) (83,138)
Interest (1,530,963) (634,274)
Professional fees (1,857,503) (795,648)
(17,429,251) (9,645,785)
OTHER INCOME (EXPENSES)
(Loss) gain on investment in
Metorex Limited (8,036,773) 3,540,665
Provision for impairment of
Chibuluma South Mine (8,450,857) --
Loss on dilution of interest
in geothermal asset (1,503,055) --
Provision for impairment in
investment in Asia Pacific
Resources (19,593,056) --
Provision for decline in value of
investment in Mindoro Nickel Project -- (34,024,132)
Costs related to Mindoro
Nickel Project (1,572,585) --
Provision for impairment of other
mineral property interests (5,009,878) --
Foreign exchange gain (loss) 736,095 (1,043,032)
Gain on sale of other assets 431,480 211,113
Interest and other income 1,726,067 4,225,236
(41,272,562) (27,090,150)
LOSS BEFORE PROVISION FOR INCOME
TAXES AND NON-CONTROLLING INTEREST (38,505,570) (27,527,731)
PROVISION FOR INCOME TAXES
Current 4,875,053 3,151,223
Future (4,228,918) (7,499,169)
646,135 (4,347,946)
LOSS BEFORE NON-CONTROLLING INTEREST (39,151,705) (23,179,785)
NON-CONTROLLING INTEREST (1,598,984) (3,103,752)
NET LOSS (40,750,689) (26,283,537)
DEFICIT, BEGINNING OF THE YEAR (42,697,223) (16,413,686)
DIVIDEND (228,284) --
NET LIABILITIES ACQUIRED ON
REVERSE TAKEOVER OF NORTH PACIFIC
GEOPOWER CORP (170,402) --
DEFICIT, END OF YEAR $(83,846,598) $(42,697,223)
LOSS PER SHARE
- BASIC AND DILUTED $ (0.31) $ (0.26)
WEIGHTED AVERAGE NUMBER OF
SHARES OUTSTANDING 131,790,183 101,708,357
For more information or to be put on the Company's email list, please contact the Vancouver Office, (604) 683 7585 or US/Canada Toll Free: 1-866-818-2211, email: ir@crewdev.com or the Oslo Office at +47 67 59 2424, email crew@crew.no. Visit our website at http://www.crewdev.com