TORONTO, ONTARIO--(CCNMatthews - May 11, 2006) - Metallica Resources Inc. (TSX:MR)(AMEX:MRB) (the "Company") is pleased to report its first quarter financial results. All figures are in United States dollars unless otherwise noted. Complete quarterly results will be available on SEDAR, EDGAR and on the Company's website at www.metal-res.com.
Selected Financial Data (unaudited):
Three Months Three Months
Ended March Ended March
31, 2006 31, 2005
Net loss $ (337,061) $ (726,896)
Basic and diluted loss per share $ (0.00) $ (0.01)
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Cash flows provided from (used in)
operating activities $ (301,061) $ 184,231
Cash flows used in investing
activities (4,022,461) (1,542,500)
Cash flows provided from (used in)
financing activities 494,308 6,857
Foreign exchange loss on foreign
cash held (53,645) (362,211)
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Decrease in cash and cash
equivalents $ (3,882,859) $ (1,713,623)
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March 31, December 31,
2006 2005
Current assets:
Cash and cash equivalents $ 38,786,971 $ 42,669,830
Value-added tax and other
current assets 1,308,156 969,947
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Total current assets 40,095,127 43,639,777
Mineral properties, plant and
equipment 61,010,800 56,033,836
Other assets 246,222 246,271
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Total assets $ 101,352,149 $ 99,919,884
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Current liabilities:
Accounts payable and accrued
liabilities $ 2,415,420 $ 1,323,571
Restricted stock units 159,409 59,435
Asset retirement obligation 362,510 343,164
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Total liabilities 2,937,339 1,726,170
Shareholders' equity:
Share capital 108,903,554 108,158,077
Contributed surplus 1,484,554 1,484,554
Warrants 5,883,108 5,889,285
Stock options 1,279,815 1,431,014
Deficit (19,136,221) (18,769,216)
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Total shareholders' equity 98,414,810 98,193,174
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Total liabilities and shareholders'
equity $ 101,352,149 $ 99,919,884
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Mine construction activities at the Cerro San Pedro project were the focus of the first quarter. Significant progress was made towards construction of the mine haul road and pit access roads, and the leach pad and solution ponds. Delivery and grading of the clay underliner for the leach pad and solution ponds are also underway. The synthetic liner for the pad and ponds has been delivered to the site and is being prepared for installation. Work on the process plant facilities, laboratory, haul road tunnel and electric power line is expected to begin in the second quarter. The project currently has over two hundred personnel on site. The initial mine capital cost is expected to be $29.1 million, with total capital costs estimated at $34.3 million over the life of the mine.
The Company reported a loss of $0.37 million ($0.00 per share) for the three months ended March 31, 2006 as compared to a loss of $0.73 million ($0.01 per share) for the three months ended March 31, 2005. The decrease in net loss of $0.36 million principally results from unrealized losses on the Company's Canadian dollar cash balances due to a lesser weakening of the Canadian dollar relative to the U.S. dollar during the current period as compared to the preceding period.
The Company's cash and cash equivalents decreased by $3.88 million for the three months ended March 31, 2006 as compared to a decrease in cash and cash equivalents for the three months ended March 31, 2005 of $1.71 million. The $2.17 million increase in spending in the current period reflects the commencement of construction of the Cerro San Pedro project in February 2006.
Metallica Resources is a Canadian precious and base metal exploration and development company focused on the Americas. It currently has 83.6 million shares outstanding and $38.8 million in cash and cash equivalents, and no debt. For further details on Metallica Resources, please visit the Company's website at www.metal-res.com.
ON BEHALF OF THE BOARD OF DIRECTORS
Richard J. Hall
President and CEO
Information in this news release that is not current or historical factual information may constitute forward-looking information or statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Implicit in this information, particularly in respect of statements as to future operating results and economic performance of the Company, and resources and reserves at the Company's mineral projects, are assumptions regarding projected revenue and expense, gold, silver and copper prices, and mining costs. These assumptions, although considered reasonable by the Company at the time of preparation, may prove to be incorrect. Readers are cautioned that actual results are subject to a number of risks and uncertainties, including risks relating to general economic conditions and mining operations, and could differ materially from what is currently expected. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
FOR FURTHER INFORMATION PLEASE CONTACT:
Metallica Resources Inc.
Richard J. Hall
President and CEO
(303) 796-0229, Ext. 304
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