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Crew Gold Corporation (OSL:CRU) Corporate news announcement processed and transmitted by Hugin AS. The issuer is solely responsible for the content of this announcement. ---------------------------------------------------------------------- --------------
DATE: November 17, 2008
TRADING SYMBOLS; TORONTO AND OSLO - CRU FRANKFURT - KNC OTC, BB, OTHER - CRUGF
N E W S R E L E A S E
Financial Results for the Quarter and Nine Months Ended September 30, 2008
LONDON, United Kingdom, November 17, 2008 - Crew Gold Corporation ("Crew" or "the Company") (TSE & OSE: CRU; Frankfurt: KNC; OTC-BB-OTHER: CRUGF.PK) HIGHLIGHTS * Overview - Quarterly gold production of 66,996 ounces ("oz") (up 34% from 49,871 oz in Q3 2007) - Nine months' gold production of 198,288 ounces (up 69% from 117,123 oz for the nine months to Q3 2007) - 73,554 oz poured and 71,769 oz sold in the quarter at an average realised gold price of $871/oz * Results - Net loss of $106.9 million (quarter ended September 30, 2007 - net loss of $51.3 million primarily due to non cash foreign exchange losses of $32.2 million on translation of NOK denominated debt) for the quarter ended September 30, 2008 due mainly to impairment charges of $131.3 million in anticipation of moving to care and maintenance of the Nalunaq Gold Mine A/S ("Nalunaq"), the Nugget Pond processing facility ("Nugget Pond") and the write down of goodwill on the LEFA reporting unit, corporate related costs of $8.3 million and interest and finance charges of $8.5 million partly offset by non cash foreign exchange gains of $43.1 million on translation of NOK denominated debt * LEFA - Quarterly production of 46,078 oz (up 70% from Q3 2007 production of 27,122 oz). See graph on following page - Continued positive operating cash flow - Upgrade and rectification program nearing completion - Changeover from contractor mining to owner mining completed within the scope of the contract with minimal disruption to mining production - Ounce production less than Q2 2008 as a result of rainy season, scheduled repairs and necessary stoppages for the rectification program * Maco - Quarterly production of 5,053 oz (up 137% from Q3 2007 production of 2,136 oz) - Continued review of ore resources, mine plan and carrying value and ongoing evaluation of expansion opportunities - Exploration of strategic alternatives with potential partners * Nalunaq Gold Mine and Nugget Pond Processing Facility - Quarterly production of 15,865 oz (down 23% from Q3 2007 production of 20,613 oz) - Review of ore resources and expenditures to delineate ore body resulted in decision to suspend operations and move to care and maintenance once the available stope ore removed, and consequently to write down its carrying value * Exploration - Field exploration work at Wa, Ghana and at Glover Island, Canada * Outlook - LEFA production growth - Continued improvement of LEFA process plant resulting in increased reliability - LEFA resource expansion focused on targets with higher grade potential - Ongoing technical review of Maco mill expansion, mine plan and copper porphyry potential - Greenfield exploration continuing at Glover Island and commencing at Wa after the wet season in September - Review and reduction of corporate costs - Crew intends to undertake a rights offering to raise up to NOK 102 million ($14.7 million) for working capital purposes
For full results, please see attached file.
William LeClair Interim CEO
Safe Harbour Statement Certain statements contained herein that are not statements of historical fact, may constitute forward-looking statements and are made pursuant to applicable and relevant national legislation (including the Safe-Harbour provisions of the United States Private Securities Litigation Reform Act of 1995) in countries where Crew is conducting business and/or investor relations. Forward-looking statements, include, but are not limited to those with respect to (1) the price of gold, (2) the estimation of mineral reserves and resources, (3) the realization of mineral reserves estimates, (4) the timing and amount of estimated future success of exploration activities, (5) the timing and amount of production estimates, (6) targeted production cash costs and forecasted cash reserves, (7) Crews hedging practices, (8) currency fluctuations, (9) requirements for additional capital, (10) government regulation of mining operations, (11) environmental risk, (12) title disputes or claims limitations on insurance coverage and (13) the timing and possible outcome of pending litigation. Often, but not always, forward-looking statements can be identified by the use of words such as plans, expects, does not expect, is expected, targets, budget, estimates, forecasts, intends, anticipates or does not anticipate, or believes, or equivalents or variation, including negative variation, of such words and phrases, or state that certain actions, events or results, may, could, would, might or will be taken, occur or be achieved.
Forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of the Company to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. Such risks and uncertainties include, among others, (1) the actual results of current exploration activities, conclusions of economic evaluations, (2) changes in project parameters as plans continue to be refined, (3) possible variations in grade and ore densities or recovery rates, (4) failure of plant, equipment or processes to operate as anticipated, (5) accidents, labour disputes and other risks of the mining industry, (6) delays in obtaining government approvals or financing or in completion of development or construction activities. Although Crew has attempted to identify important factors that could cause actual actions, events or cause actions events or results not to be anticipated, estimated or intended, there can be no assurance that forward looking statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements.
The material factors and assumptions used to develop forward-looking statements which may be incorrect, include, but are not limited to, (1) there being no significant disruptions affecting operations, whether due to labour disruptions, supply disruptions, damage to equipment or otherwise, (2) continued development, operation and production at LEFA, Nalunaq and Maco consistent with our current expectations, (3) foreign exchange rates among the currencies the Crew does business in being approximately consistent with current levels, (4) certain price assumptions for gold, (5) prices for electricity, fuel oil and other key supplies remaining consistent with current levels, (6) production forecasts meeting expectations, (7) the accuracy of our current mineral reserve and mineral resource estimates, and (8) materials and labour costs increasing on a basis consistent with Crews expectations.
Except as may be required by applicable law or stock exchange regulation, the Company undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events. Accordingly, readers should not place undue reliance on forward-looking statements.
Cautionary Note to US investors The United States Securities and Exchange Commission permits US mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this document, such as measured, indicated, and inferred resources, which the SEC guidelines strictly prohibit US registered companies from including in their filings with the SEC. US Investors are urged to consider closely the disclosure from the SECs website at http://www.sec.gov/edgar.shtml.
