Jaguar Mining Reports Q4 and FY 2009 Earnings FY 2009 Adjusted Net Income of $0.37/share and Adjusted Operating Cash Flow of $41.1 Million
PRESS RELEASE
March 22, 2010 2010-03 Concord, New Hampshire JAG - TSX/NYSE
Jaguar Mining Reports Q4 and FY 2009 Earnings
FY 2009 Adjusted Net Income of $0.37/share and Adjusted Operating Cash Flow of $41.1 Million
Jaguar Mining Inc. (“Jaguar” or the “Company”) (JAG: TSX/NYSE) reports its financial and operational results for the period ended December 31, 2009. All figures are in U.S. dollars unless otherwise indicated.
FY 2009 Highlights
Net loss of $8.0 million or ($0.10) per basic share and fully diluted share for the year ended December 31, 2009 compared to a net loss of $4.3 million or ($0.07) per basic and fully diluted share for the same period in 2008. Adjusted net income for FY 2009, excluding special non-operating and non-recurring charges totaled $28.0 million or $0.37 per share (See Non-GAAP Performance Measures).
FY 2009 gold sales rose to 143,698 ounces at an average price of $979 per ounce yielding revenue of $140.7 million compared to gold sales of 108,944 ounces at an average price of $860 per ounce and revenue of $93.7 million for the same period in 2008.
FY 2009 gold production totaled 155,102 ounces of gold at an average cash operating cost of $468 per ounce compared to 115,348 ounces at an average cash operating cost of $429 per ounce during FY 2008 (see Non-GAAP Performance Measures).
Gross profit for FY 2009 increased to $42.6 million from $27.4 million in FY 2008.
Cash provided by operating activities during FY 2009 totaled $32.5 million compared to ($1.4) million during FY 2008. Adjusted cash flow from operating activities for FY 2009 totaled $41.1 million, excluding special non-operating and certain non-recurring cash charges that do not reflect ongoing costs in Jaguar’s operations or administrative costs.
Invested $85.5 million in growth projects during FY 2009, down slightly from the $89.3 million invested in FY 2008.
Exceeded underground development targets and achieved 14.9 km for FY 2009 and since the inception of the Company to over 45 km.
On-schedule and on-budget for the construction of the Caeté plant and mines, the Company’s third major project. The Company expects to commission during Q2 2010.
125 North State Street Concord, NH 03301 Phone: (603) 224-4800 Fax: (603) 228-8045 [email protected] www.jaguarmining.com
Q4 2009 Highlights
A Q4 2009 net loss of $29.4 million or ($0.36) per basic and fully diluted share compared to a net loss of $3.4 million or ($0.05) per basic and fully diluted share in Q4 2008. The Company recognized special and non-recurring charges of $30.5 million in Q4 2009, including: (a) $16.9 million for charges related to the repurchase or redemption of all Cdn.$86.25 million of the Company’s then outstanding 10.5% secured notes that were issued pursuant to an indenture in March 2007, which notes were repurchased or redeemed early in November 2009; (b) $3.5 million to write-down the asset value of the Sabará operation, a non-core facility which has remained idle since August 2009;
(c) $0.8 million of charges related to strategic asset reviews during the year, which management believed did not merit further analysis or an investment; (d) stock compensation expense of $7.0 million, the largest portion of which was related to the strengthening of the Company’s stock value as well as charges associated with changes imposed by Jaguar’s Board related to vesting schedules for previous awards; (e) additional depletion related to unconverted resources of $1.0 million and (f) other charges of $1.3 million (See Non-GAAP Performance Measures).
Excluding these special and non-recurring charges, Jaguar posted an adjusted Q4 2009 net income of $1.1 million or $0.01 per share.
Q4 2009 gold sales rose to 35,944 ounces at an average price of $1,099 per ounce yielding revenue of $39.5 million compared to Q4 2008 gold sales of 35,138 ounces at an average price of $793 per ounce and revenue of $27.9 million. This represents a 42% increase in gold sales revenue.
Q4 2009 gold production totaled 39,891 ounces at an average cash operating cost of $539 per ounce compared to 37,916 ounces at an average cash operating cost of $396 per ounce during the same period last year, a production increase of 5% (see Non-GAAP Performance Measures).
Q4 2009 gross profit increased to $10.4 million from $7.1 million in Q4 2008, a gross profit increase of 46%.
Q4 2009 cash generated by operating activities totaled $1.2 million compared to ($5.5) million in Q4 2008. Excluding the cash portion of the special non-operating and non-recurring charges noted above, which totaled approximately $8.3 million, adjusted operating cash flow totaled $9.5 million in Q4 2009.
Jaguar invested $32.6 million in growth projects in Q4 2009, up 134% from the $13.9 million invested in Q4 2008.
In early-Q4 2009, the Company completed the construction of the Phase I expansion at Turmalina to boost annual gold production capacity at Turmalina from 80,000 ounces per year to 100,000 ounces per year and the mill operated at design levels during the quarter.
Repurchased all outstanding Cdn.$86.25 million principal amount of the Company’s 10.5% Secured Notes due March 23, 2012.
Jaguar acquired Mineração Chega Tudo Ltda. ("MCT") from Companhia Nacional de Mineração ("CNM"), an indirect, wholly-owned subsidiary of Kinross Gold Corporation ("Kinross") in Q4 2009 for $42.5 million, which includes $3.5 million adjustment to reflect the fair value for accounting purposes on the closing date. Jaguar issued 3,377,354 common shares to satisfy the purchase price of $39 million. MCT holds the minerals licenses for the Gurupi Project, which the Company is moving forward to develop.
Subsequent to the closing of the MCT transaction, the Company filed a technical resource statement on SEDAR compliant with National Instrument (“NI”) 43-101for the Gurupi Project, which contains measured and indicated resources of approximately 2.52 million ounces of gold and additional inferred resources of 0.62 million ounces.
A feasibility study for the Gurupi Project was initiated by the Company prior to the closing with Kinross and is scheduled to be completed in early-April 2010.
As of December 31, 2009 the Company held cash, cash equivalents and short-term investments of approximately $121.3 million.
Commenting on the 2009 accomplishments, Daniel R. Titcomb, Jaguar’s President and CEO stated, “As we began 2009, given the state of credit, financial and commodity markets, we made some tough decisions. We had placed our Caeté Project on-hold, slashed operating and exploration budgets and trimmed staff to preserve capital. Fortunately, capital markets improved and we were able to raise the funds to re-take the Caeté Project at a critical time and place Jaguar’s production plans back on-track. As the year progressed, our operations continued to perform well and a buoyant gold market allowed us to streamline our capital structure with the elimination of the 10.5% secured notes through funds raised in a convertible offering. The elimination of those secured notes allowed us to regain valuable collateral which we intend to put to work to further grow our asset base.”
Mr. Titcomb added, “During the fourth quarter, our production assets performed as expected, even though sequencing at the mines changed temporarily. The result was lower grade ore was used to feed the mill. Within the next 30 to 45 days, we expect to commission our third major operation at Caeté. Completion of this new project achieves an important step in our plan to reach the mid-tier status within the next 18 months.”
Summary of Key Operating Results
The following is a summary of key operating results.
Three Months Ended Year Ended December 31 December 31 2009 2008 2009 2008 (unaudited)
($ in 000s, except per share amounts)
| Gold sales | $ 39,497 | $ 27,874 | $ 140,734 | $ 93,657 |
| Ounces sold | 35,944 | 35,138 | 143,698 | 108,944 |
| Average sales price $ / ounce | 1,099 | 793 | 979 | 860 |
| Gross profit | 10,363 | 7,103 | 42,583 | 27,354 |
| Net loss | (29,381) | (3,443) | (7,992) | (4,256) |
| Basic loss per share | (0.36) | (0.05) | (0.10) | (0.07) |
| Diluted loss per share | (0.36) | (0.05) | (0.10) | (0.07) |
| Weighted avg. # of shares outstanding - basic | 80,738,919 | 63,982,281 | 76,410,916 | 62,908,676 |
| Weighted avg. # of shares outstanding - diluted | 80,738,919 | 63,982,281 | 76,410,916 | 62,908,676 |
Additional details are available in the Company’s filings on SEDAR and EDGAR, including Management’s Discussion and Analysis of Financial Condition and Results of Operations and Interim Consolidated Financial Statements for the period ended December 31, 2009.
Non-GAAP Performance Measures
The Company has included the non-GAAP performance measures discussed below in this press release. These non-GAAP performance measures do not have any standardized meaning prescribed by Canadian GAAP (“GAAP”) and, therefore, may not be comparable to similar measures presented by other companies. The Company believes that, in addition to conventional measures prepared in accordance with GAAP, these non-GAAP measures provide investors with additional information that will better enable them to evaluate the Company’s performance. Accordingly, these Non-GAAP measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared with GAAP.
The Company has included cash operating cost per tonne processed, cash operating cost per ounce processed and cash operating margin per ounce because it believes these figures are a useful indicator of a mine’s performance as they provide: (i) a measure of the mine’s cash margin per ounce, by comparison of the cash operating costs per ounce to the price of gold; (ii) the trend in costs as the mine matures; and, (iii) an internal benchmark of performance to allow for comparison against other mines. Additionally, the Company has provided Adjusted Net Income and Adjusted Cash Flow information which reflect the elimination of special non-operating and certain non-recurring charges that do not reflect on-going costs in Jaguar’s operations or administrative costs. The definitions for these performance measures and reconciliation of the non-GAAP measures to reported GAAP measures are set out in the following tables.
Adjusted Net Income
($000s)
Three Months Year Ended Ended December December 31, 31, 2009 2009 Net (loss) as reported $ (29,381) $ (7,992) Adjustments:
| Note payable redemption | 16,902 | 16,902 |
| Stock based compensation(1) | 6,981 | 11,080 |
| Write-down of Sabará operation | 3,522 | 3,522 |
| Strategic asset review | 838 | 838 |
| Additional depletion related to unconverted resources | 963 | 1,858 |
| Other | 1,293 | 1,763 |
Adjusted net income $ 1,118 $ 27,971
(1) Stock based compensation excludes $57 and $164 from options for the three months and year ended.
Adjusted Cash provided by operating activities
($000s)
Three Months Year Ended Ended December December 31, 31, 2009 2009 Cash provided by operating activities as reported $ 1,189 $ 31,923 Adjustments:
| Note payable redemption | 4,082 | 4,082 |
| Stock based compensation | 3,283 | 3,283 |
| Additional depletion related to unconverted resources | 963 | 1,858 |
Adjusted cash provided by operating activities $ 9,517 $ 41,146
Cash Operating Margin per oz of gold Three Months Year Ended Ended December December 31, 31, 2009 2009
Average sales price per oz of gold $ 1,099 $ less Cost per oz of gold produced 539 468 equals Cash operating margin per oz of gold $ 560 $
Summary of Cash Operating Cost per tonne processed Three Months Year Ended Ended December December 31, 31, 2009 2009
Production costs per statement of operations1 $ 19,306,000 $ 70,117,000 Change in inventory 2 2,548,000 2,396,000 Operational cost of gold produced 3 21,854,000 72,513,000 divided by Tonnes processed 357,000 1,403,000 equals Cost per tonne processed $ 61.20 $ 51.70
Turmalina Cash Operating Cost per tonne processed Three Months Year Ended December Ended 31, 2009 December 31, 2009 Production costs $ 9,291,000 $ 33,029,000 Change in inventory 2 1,970,000 2,016,000 Operational cost of gold produced 3 11,261,000 35,045,000 divided by Tonnes processed 179,000 588,000 equals Cost per tonne processed $ 63.00 $ 59.60
Paciência Cash Operating Cost per tonne processed Three Months Year Ended December Ended 31, 2009 December 31, 2009 Production costs $ 10,015,000 $ 33,667,000 Change in inventory 2 578,000 (612,000) Operational cost of gold produced 3 10,593,000 33,055,000 divided by Tonnes processed 178,000 646,000 equals Cost per tonne processed $ 59.30 $ 51.20
Sabará Cash Operating Cost per tonne processed Three Months Year Ended December Ended 31, 2009 December 31, 2009 Production cost $
- $ 3,421,000
Change in inventory 2 - 992,000 Operational cost of gold produced 3 - 4,413,000 divided by Tonnes processed - 169,000 equals Cost per tonne processed $
- $ 26.10
Summary of Cash Operating Cost per oz of gold produced Three Months Year Ended December Ended December 31, 2009 31, 2009
| Production costs per statement of operations1 | $19,306,000 | $70,117,000 |
| Change in inventory2 | 2,195,000 | 2,471,000 |
| Operational cost of gold produced3 | 21,501,000 | 72,588,000 |
divided by Gold produced (oz) 39,890 155,102 equals Cost per oz of gold produced $ 539 $ 468
Turmalina Plant Cash Operating Cost per oz produced Three Months Year Ended December Ended December 31, 2009 31, 2009
| Production costs | $9,291,000 | $33,029,000 |
| Change in inventory2 | 1,798,000 | 1,767,000 |
| Operational cost of gold produced3 | 11,089,000 | 34,796,000 |
divided by Gold produced (oz) 21,184 82,070 equals Cost per oz of gold produced $ 523 $ 424
Paciência Plant Cash Operating Cost per oz produced Three Months Year Ended December Ended December 31, 2009 31, 2009
| Production costs | $10,015,000 | $33,667,000 |
| Change in inventory2 | 397,000 | (200,000) |
| Operational cost of gold produced3 | 10,412,000 | 33,467,000 |
divided by Gold produced (oz) 18,707 66,671 equals Cost per oz of gold produced $ 556 $ 502
Sabará Cash Operating Cost per oz produced Three Months Year Ended December Ended December 31, 2009 31, 2009
Production costs $
- $ 3,421,000
Change in inventory 2 - 904,000 Operational cost of gold produced 3 - 4,325,000 divided by Gold produced (oz) - 6,360 equals Cost per oz of gold produced $
- $ 680
1Production costs do not include cost of goods sold adjustment of approximately $1.5 million for the three months ended December 31, 2009 and $4.2 million for the twelve months ended December 31, 2009.
2Under the Company’s revenue recognition policy, revenue is recognized when legal title passes. Since total cash operating costs are calculated on a production basis, this change reflects the portion of gold production for which revenue has not been recognized in the period.
3 The basis for calculating cost per ounce produced includes the change to gold in process inventory, whereas the cost per tonne processed does not.
The following tables are included in Jaguar’s audited financial statements as filed on SEDAR and EDGAR. Readers should refer to those filings for the associated footnotes which are an integral part of the tables.
JAGUAR MINING INC.
Consolidated Balance Sheet (Expressed in thousands of U.S. dollars)
December 31, December 31, 2009 2008
Assets Current assets:
Cash and cash equivalents $ 121,256 $ 20,560
| Inventory | 36,986 | 19,946 |
| Prepaid expenses and sundry assets | 19,050 | 5,351 |
| Unrealized foreign exchange gains | 1,280 | - |
178,572 45,857
| Prepaid expenses and sundry assets | 35,837 | 26,164 |
| Net smelter royalty | 1,006 | 1,006 |
| Restricted cash | 108 | 3,106 |
| Property, plant and equipment | 205,329 | 148,422 |
| Mineral exploration projects | 129,743 | 79,279 |
$ 550,595 $ 303,834
Liabilities and Shareholders' Equity Current liabilities:
Accounts payable and accrued liabilities $ 22,892 $ 13,416
| Notes payable | 5,366 | 4,319 |
| Income taxes payable | 15,641 | 8,626 |
| Asset retirement obligations | 510 | 1,337 |
| Unrealized foreign exchange losses | - | 2,421 |
44,409 30,119
| Deferred compensation liability | 8,616 | 434 | |
| Notes payable | 126,784 | 69,729 | |
| Future income taxes | 11,821 | - | |
| Asset retirement obligations | 12,331 | 6,828 | |
| Other liabilities | 738 | - | |
| Total liabilities | 204,699 | 107,110 |
Shareholders' equity
| Common shares | 365,667 | 245,067 |
| Stock options | 14,762 | 19,059 |
| Contributed surplus | 42,028 | 1,167 |
| Deficit | (76,561) | (68,569) |
345,896 196,724 Commitments
$ 550,595 $ 303,834
Consolidated Statements of Operations and Comprehensive Loss (Expressed in thousands of U.S. dollars, except per share amounts)
December 31, December 31, December 31, 2009 2008 2007
Gold sales $ 140,734 $ 93,657 $ 47,834
| Production costs | (74,287) | (53,610) | (28,313) |
| Stock-based compensation | (600) | (24) | - |
| Depletion and amortization | (23,264) | (12,669) | (5,232) |
| Gross profit | 42,583 | 27,354 | 14,289 |
Operating expenses:
| Exploration | 3,079 | 3,536 | 2,365 |
| Stock-based compensation | 10,644 | 1,238 | 10,750 |
| Administration | 16,411 | 12,571 | 9,617 |
| Management fees | 1,604 | 854 | 747 |
| Amortization | 452 | 264 | - |
| Accretion expense | 786 | 490 | 138 |
| Other | 2,440 | 379 | 2,782 |
| Total operating expenses | 35,416 | 19,332 | 26,399 |
| Income (loss) before the following | 7,167 | 8,022 | (12,110) |
| Loss on forward derivatives | - | 318 | 9,908 |
| Loss (gain) on forward foreign exchange derivatives | (2,642) | 2,623 | (3,690) |
| Foreign exchange gain | (17,307) | (2,477) | (2,280) |
| Amortization of deferred financing expense | - | - | - |
| Interest expense | 28,847 | 11,584 | 11,170 |
| Interest income | (4,203) | (3,850) | (4,601) |
| Gain on disposition of property | (2,043) | (452) | (381) |
| Write down on Sabará property | 3,522 | - | - |
| Other non-operating expenses | 145 | - | 230 |
| Total other expenses | 6,319 | 7,746 | 10,356 |
| Income (loss) before income taxes | 848 | 276 | (22,466) |
Income taxes
| Current income taxes | 4,979 | 6,172 | 3,519 |
| Future income taxes (recovered) | 3,861 | (1,640) | 1,675 |
| Total income taxes | 8,840 | 4,532 | 5,194 |
| Net loss and comprehensive loss for the year | (7,992) | (4,256) | (27,660) |
Basic and diluted net loss per share $ (0.10) $ (0.07) $ (0.52)
Weighted average number of common shares outstanding (Note16) 76,410,916 62,908,676 53,613,175 Consolidated Statements of Cash Flows (Expressed in thousands of U.S. dollars)
December 31, December 31, December 31, 2009 2008 2007
Cash provided by (used in):
Operating activities:
Net loss and comprehensive loss for the year $ (7,992) $ (4,256) $ (27,660) Items not involving cash:
| Unrealized foreign exchange (gain) loss | (3,227) | (3,471) | 7,907 |
| Stock-based compensation | 7,962 | 1,262 | 10,750 |
| Non-cash interest expense | 15,320 | 1,982 | 2,953 |
| Accretion expense | 786 | 490 | 138 |
| Future income taxes (recovered) | 3,861 | (1,640) | 1,675 |
| Depletion and amortization | 23,716 | 12,933 | 5,232 |
| Write down on Sabará property (Note 9) | 3,522 | - | - |
| Amortization of net smelter royalty | - | 219 | 310 |
| Unrealized loss on forward sales derivatives | - | - | 4,284 |
| Unrealized loss (gain) on foreign exchange contracts | (3,701) | 4,102 | (972) |
| Gain on disposition of property | - | - | (381) |
| Reclamation expenditure | (328) | - | (157) |
Change in non-cash operating working capital
| Accounts receivable | - | - | 1,742 |
| Inventory | (11,106) | (4,361) | (2,624) |
| Prepaid expenses and sundry assets | (13,612) | (14,200) | (11,659) |
| Accounts payable and accrued liabilities | 9,707 | 423 | 6,991 |
| Current taxes payable | 7,015 | 5,107 | 2,928 |
| 31,923 | (1,410) | 1,457 |
Financing activities:
Issuance of common shares, special
| warrants and warrants, net | 114,294 | 105,803 | 30,138 | ||
| Shares purchased for cancellation | - | (6,381) | (2,089) | ||
| Settlement of forward derivatives | - | (14,500) | - | ||
| Decrease (increase) in restricted cash | 2,998 | (4) | 2,925 | ||
| Repayment of debt | (84,614) | (18,654) | (6,086) | ||
| Increase in debt | 118,204 | 3,848 | 64,604 | ||
| Other long term liabilities | 738 | - | - | ||
| 151,620 | 70,112 | 89,492 |
Investing activities
| Mineral exploration projects | (25,200) | (37,087) | (27,233) |
| Purchase of property, plant and equipment | (60,300) | (52,210) | (35,859) |
| (85,500) | (89,297) | (63,092) |
Effect of foreign exchange on non-U.S. dollar denominated
| cash and cash equivalents | 2,653 | (4,556) | 3,095 |
| Increase (decrease) in cash and cash equivalents | 100,696 | (25,151) | 30,952 |
| Cash and cash equivalents, beginning of year | 20,560 | 45,711 | 14,759 |
Cash and cash equivalents, end of year $ 121,256 $ 20,560 $ 45,711
Outlook
The Company’s production and cash operating costs for the year ended December 31, 2009 and 2010 estimates are as follows:
| Actual | Actual | Estimated | Estimated | |
|---|---|---|---|---|
| Operation | 2009 Production (oz) | 2009 Cash Operating Costs ($/oz) | FY 2010 Production (oz) | FY 2010 Cash Operating Costs ($/oz) |
| Turmalina | 82,070 | $424 | 95,000 – 101,000 | $480 – 490 |
| Paciência | 66,671 | $502 | 75,000 – 81,000 | $495 – 510 |
| Caeté | - | - | 30,000 – 35,000 | $500 – 510 |
| Total | 148,742 | $459 | 200,000 – 217,000 | $489 –500 |
| Sabará | 6,360 | $680 | - | |
| Total | 155,102 | $468 | 200,000 – 217,000 |
Notes
1. Estimated 2010 cash operating costs based on R$1.75 per $1.00.
2. The 2009 exchange rate was R$2.04 per $1.00.
3. Sabará is a non-core/idle facility.
Conference Call Details
The Company will hold a conference call tomorrow, March 23 at 10:00 a.m. EDT, to discuss the results.
From North America: 800-218-5691 International: 213-416-2192 Replay:
From North America: 800-675-9924 International: 213-416-2185 Replay ID: 32310 Webcast: www.jaguarmining.com
A presentation will be available prior to the call on the Company’s homepage at www.jaguarmining.com.
About Jaguar Mining
Jaguar is one of the fastest growing gold producers in Brazil with operations in a prolific greenstone belt in the state of Minas Gerais and has plans to develop the Gurupi Project in northern Brazil in the state of Maranhão. Jaguar is actively exploring and developing additional mineral resources at its approximate 575,000-acre land base in Brazil. The Company has no gold hedges in place thereby providing the leverage to gold prices directly to its investors. Additional information is available on the Company’s website at www.jaguarmining.com.
For Information:
Investors and analysts: Media inquiries:
Bob Zwerneman Valéria Rezende DioDato Vice President Corporate Development and Director of Communication Director of Investor Relations 603-224-4800 603-224-4800 [email protected] [email protected]
Forward Looking Statements
This press release contains forward-looking statements, within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws, concerning the Company’s objectives, such as estimated 2010 gold production and cash operating costs, steadily gain of the Company’s financial performance, including operating cash flow and earnings, commissioning of the Caeté Project in Q2 2010 and completion of the Gurupi Project feasibility study in early-April 2010. These forward-looking statements can be identified by the use of the words “intends”, “plans”, “expects”, “expected” and "will". Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, or performance to be materially different from any future results or performance expressed or implied by the forward-looking statements.
These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other geological data, fluctuating gold prices and monetary exchange rates, the possibility of project cost delays and overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future, uncertainties related to production rates, timing of production and the cash and total costs of production, changes in applicable laws including laws related to mining development, environmental protection, and the protection of the health and safety of mine workers, the availability of labor and equipment, the possibility of labor strikes and work stoppages and changes in general economic conditions. 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 information, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended.
These forward-looking statements represent our views as of the date of discussion. The Company anticipates that subsequent events and developments may cause the Company's views to change. The Company does not undertake to update any forward-looking statements, either written or oral, that may be made from time to time by or on behalf of the Company subsequent to the date of this discussion except as required by law. For a discussion of important factors affecting the Company, including fluctuations in the price of gold and exchange rates, uncertainty in the calculation of mineral resources, competition, uncertainty concerning geological conditions and governmental regulations and assumptions underlying the Company’s forward-looking statements, see the “CAUTIONARY NOTE” regarding forwardlooking statements and "RISK FACTORS" in the Company's Annual Information Form for the year ended December 31, 2009 filed on System for Electronic Document Analysis and Retrieval and available at http://www.sedar.com and the Company’s Annual Report on Form 40-F for the year ended December 31, 2009 filed with the United States Securities and Exchange Commission and available at www.sec.gov.
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