Entrée Gold Announces Second Quarter 2015 Results
July 31, 2015
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 07/31/15 -- Entrée Gold Inc. (TSX:ETG)(NYSE MKT:EGI)(FRANKFURT:EKA) ("Entrée" or the "Company") has today filed its interim operational and financial results for the quarter ended June 30, 2015.
Greg Crowe, Entrée's President and CEO commented, "A critical development during the second quarter of 2015 was the joint announcement on May 18 that the Government of Mongolia, Oyu Tolgoi LLC, Turquoise Hill Resources Ltd. and Rio Tinto had signed the Oyu Tolgoi Underground Mine Development and Financing Plan. This agreement addresses outstanding Oyu Tolgoi LLC shareholder matters and provides a pathway forward to the eventual restart of Phase 2 underground development, including Lift 1 of the Entrée-OTLLC joint venture's Hugo North Extension deposit."
Mr. Crowe further noted, "Subsequent to the end of the quarter, we signed a binding letter of intent to acquire a 0.5% net smelter returns royalty on Candente Copper Corp.'s Cañariaco project in Peru for US$500,000. Like our Ann Mason deposit in Nevada, Cañariaco Norte is a large scale, open pittable, long life porphyry copper deposit, which we believe is well positioned for eventual development."
"Entrée remains focused on expanding its portfolio of high quality copper and gold assets in mining friendly jurisdictions, and is actively evaluating several potential opportunities."
Also subsequent to the end of the quarter, Anna Stylianides was appointed to Entrée's board of directors. Mr. Crowe added, "Ms. Stylianides has a strong background in finance and operations and is a welcome addition to our board."
The Company's technical team is currently incorporating the results of the infill drilling program conducted earlier this year at Ann Mason into an updated resource estimate. This resource estimate, along with preliminary results from the latest metallurgical testing program, will be incorporated into an updated Preliminary Economic Assessment expected to be complete by the end of September.
On May 18, 2015, Turquoise Hill Resources Ltd.("Turquoise Hill"), Rio Tinto and the Government of Mongolia jointly announced the execution of the Oyu Tolgoi Underground Mine Development and Financing Plan (the "Mine Plan"). In addition to addressing outstanding Oyu Tolgoi LLC ("OTLLC") shareholder matters, the Mine Plan confirms the project cost for Oyu Tolgoi's initial construction and development and reinforces the principles set out in the Oyu Tolgoi Investment Agreement and the Amended and Restated Shareholders Agreement, which governs the relationship among OTLLC shareholders.
On July 15, 2015, Turquoise Hill stated that it and Rio Tinto are advancing Oyu Tolgoi project financing and updating the underground feasibility study. Turquoise Hill further stated that it continues to expect signing of project financing by the end of 2015.
For the three months ended June 30, 2015, the Company incurred a net loss of US$3,049,021 (US$0.02 per share) compared to a net loss of US$2,925,791 (US$0.02 per share) for the three months ended June 30, 2014. For the six months ended June 30, 2015, the Company incurred a net loss of US$3,609,699 (US$0.02 per share) compared to a net loss of US$4,205,776 (US$0.03 per share) for the six months ended June 30, 2014.
As at June 30, 2015, the Company had working capital of US$27,346,585, including cash of US$27,375,691.
During the three months ended June 30, 2015, the Company incurred higher operating expenditures primarily due to higher exploration costs, partially offset by lower general and administration expenses, lower consultancy and advisory fees and lower foreign exchange losses.
SELECTED FINANCIAL INFORMATION
June 30, 2015
June 30, 2014
|Working capital (1)
|Total long term liabilities (2)
|Working Capital is defined as Current Assets less Current Liabilities
|Long term liabilities includes US$32,092,353 of deferred revenue related to a deposit on a metal credit delivering obligation
The Company's Interim Financial Statements and accompanying management's discussion and analysis ("MD&A") for the quarter ended June 30, 2015 and its Annual Information Form for the year ended December 31, 2014 are available on the Company website, on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.
ABOUT ENTRÉE GOLD INC.
Entrée Gold Inc. is a Canadian mineral exploration company balancing opportunity and risk with key assets in Nevada and Mongolia. Entrée has been advancing its Ann Mason Project in one of the world's most favourable mining jurisdictions, Nevada and recently completed a pre-feasibility level drill program. The Ann Mason Project hosts the Ann Mason copper-molybdenum deposit as well as the Blue Hill copper deposit within the rejuvenated Yerington copper camp.
Additionally, as a joint venture partner with a carried interest on a portion of the Oyu Tolgoi mining project in Mongolia, Entrée has a unique opportunity to participate in one of the world's largest copper-gold projects managed by one of the premier mining companies - Rio Tinto. Oyu Tolgoi, with its series of deposits containing copper, gold and molybdenum, has been under exploration and development since the late 1990s.
Sandstorm Gold, Rio Tinto and Turquoise Hill Resources are major shareholders of Entrée, holding approximately 12%, 11% and 9% of issued and outstanding shares, respectively.
This news release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of applicable Canadian securities laws.
Forward-looking statements include, but are not limited to, statements with respect to the estimation of mineral reserves and resources; the realization of mineral reserve and resource estimates; anticipated future production, cash flows and mine life; the preparation and release of an updated resource estimate and PEA for the Ann Mason deposit; the potential development of the Ann Mason Project; anticipated capital and operating costs; the potential funding and development of the Oyu Tolgoi underground mine; potential types of mining operations; potential metallurgical recoveries and grades; plans for future exploration and/or development programs and budgets; permitting timelines; anticipated business activities; corporate strategies; requirements for additional capital; uses of funds; proposed acquisitions and dispositions of assets; and future financial performance.
In certain cases, forward-looking statements and information can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budgeted", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "does not anticipate" or "believes" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" "will be taken", "occur" or "be achieved". While the Company has based these forward-looking statements on its expectations about future events as at the date that such statements were prepared, the statements are not a guarantee of Entrée's future performance and are subject to risks, uncertainties, assumptions and other factors which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements and information. Such factors and assumptions include, amongst others, that the size, grade and continuity of deposits and resource and reserve estimates have been interpreted correctly from exploration results; that the results of preliminary test work are indicative of what the results of future test work will be; that the prices of copper, gold, molybdenum and silver will remain relatively stable; the effects of general economic conditions, changing foreign exchange rates and actions by Rio Tinto, Turquoise Hill and/or OTLLC and by government authorities including the Government of Mongolia; the impact of the delay in the funding and development of the Oyu Tolgoi underground mine, and the costs which would result from the delay; the timing to satisfy all conditions precedent to the availability of Oyu Tolgoi project financing; the approval of the underground feasibility study by OTLLC and its shareholders; the availability of funding on reasonable terms; the impact of changes in interpretation to or changes in enforcement of laws, regulation and government practices, including laws, regulation and government practices with respect to mining, foreign investment, royalties and taxation; the terms and timing of obtaining necessary environmental and other government approvals, consents and permits; the availability and cost of necessary items such as skilled labour, transportation, power, water, and appropriate smelting and refining arrangements; uncertainties associated with legal proceedings and negotiations; and misjudgements in the course of preparing forward-looking statements.
In addition, there are also known and unknown risk factors which may cause the actual results, performances or achievements of Entrée to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements and information. Such factors include, among others, risks related to international operations, including legal and political risk in Mongolia; risks associated with changes in the attitudes of the governments to foreign investment; risks associated with the conduct of joint ventures; discrepancies between actual and anticipated production, mineral reserves and resources and metallurgical recoveries; global financial conditions; changes in project parameters as plans continue to be refined; inability to upgrade Inferred mineral resources to Indicated or Measured mineral resources; inability to convert mineral resources to mineral reserves; conclusions of economic evaluations; future prices of copper, gold, silver and molybdenum; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; delays in obtaining government approvals, permits or licences or financing or in the completion of development or construction activities; environmental risks; title disputes; limitations on insurance coverage; as well as those factors discussed in the section entitled "Risk" in the Company's most recently filed Management's Discussion and Analysis and in the Company's Annual Information Form for the financial year ended December 31, 2014, dated March 30, 2015 filed with the Canadian Securities Administrators and available at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements and information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements and information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements and information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking statements and information, whether as a result of new information, future events, or otherwise. Accordingly, readers should not place undue reliance on forward-looking statements and information.
Entrée Gold Inc.
Manager Investor Relations
604-687-4777 or Toll Free: 866-368-7330