The Company posted net earnings of $179,883 or $nil per share in Q2-2009, compared to a net loss of $1,114,984 or $0.02 per share in the three months ended June 30, 2008 ("Q2-2008"). Earnings posted by the Company in Q2-2009 follow a foreign exchange gain of $450,014 in the quarter, of both a realized and unrealized nature, due to fluctuations of the Canadian dollar and the Peruvian nuevo sol with respect to the U.S. dollar during the quarter, and are not indicative of projected future results. On a year-to-date basis the Company posted a loss of $215,611 to June 30, 2009, compared to a loss of $2,164,501 in the six months ended June 30, 2008.
The sharp reduction in net loss between the comparative three and six month periods follows variations in foreign exchange gains or losses, lower stock-based compensation expense and reduced general and administrative expenses due to the implementation of cost savings initiatives by management in response to the global economic crisis and the sharing of certain overhead costs with Candente Gold Corp. ("Candente Gold") as of May 2009.
The Company's major general and administrative expenses in Q2-2009 were salaries and management fees of $57,709, audit and accounting fees of $46,552 and stock-based compensation of $46,129.
Mineral property expenditures were $572,568 in Q2-2009 and a reduction in carrying value of $1,091,694 in connection with the transfer of the El Oro property to Candente Gold. At June 30, 2009, and since inception, the Company's mineral properties' expenditures now total $40,583,370.
At June 30, 2009, the Company had 81 million common shares outstanding plus 6.8 million stock options and 4.4 million share purchase warrants, for a fully-diluted total of 92.1 million common shares.
At June 30, 2009, the Company had cash and cash equivalents of $1,624,682 and working capital of $618,573.
Candente Management is very pleased to see the continuation of the strengthening in the price of copper and plans to resume studies on the Cañariaco Norte project. The initial work plan will focus on resumption of metallurgical studies and a re-evaluation of the economics of the Cañariaco Norte project. Factors which are expected to benefit the project economics include: 1) decreased mine and process equipment capital costs; 2) reduced capital construction costs and shortening of the project construction schedule; 3) lower concentrate transport costs due to plans for a new port to be built at Eten, which is much closer to the Cañariaco project than the port identified in the Preliminary Economic Assessment ("PEA") and, 4) new tax incentives in Peru which may provide tax credits for qualifying infrastructure development.
Management is also evaluating strategies for financing ongoing requirements including the program described above which is estimated to cost less than $400,000. Looking ahead, Management plans to resume work towards completion of prefeasibility and definitive feasibility studies for the Cañariaco Norte project.
In addition, the Company plans to resume exploration of the Cañariaco Sur copper porphyry discovery announced last fall (see Candente news release October 2, 2008) and the Quebrada Verde copper porphyry target. Cañariaco Sur and Quebrada Verde are located within 4 kilometres of the Cañariaco Norte deposit and the discovery of additional deposits would have the potential to significantly enhance the overall Cañariaco project economics through use of common mine and process infrastructure.
For a detailed analysis of the financial results presented above, refer to the June 30, 2009 Unaudited Consolidated Financial Statements and Management's Discussion and Analysis available on the Company's website at www.candente.com and at www.sedar.com.
About Candente Resource Corp.
Candente is a diversified exploration and development company with copper, gold, silver, and zinc projects in Peru and Mexico. Candente's Management Team and Board of Directors are senior mining industry executives with a track record in the discovery and development of copper, gold and silver deposits. Candente subscribes to principles, which ensure that exploration and development activities are consistent with best practice and beneficial to the local communities.
This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Candente relies upon litigation protection for forward-looking statements.
CAUTIONARY NOTE TO U.S. INVESTORS
We advise U.S. investors that this news release uses terms which are not recognized by the United States Securities and Exchange Commission ("SEC"), including "mineral resources", "measured resources", "indicated resources" and "inferred resources". The estimation of measured and indicated resources involves greater uncertainty as to their existence and economic feasibility than the estimation of proven and probable reserves. U.S. investors are cautioned not to assume that mineral resources in these categories will be converted to reserves. The estimation of inferred resources involves far greater uncertainty as to their existence and economic viability than the estimation of other categories of resources. U.S. investors are cautioned not to assume that estimates of inferred mineral resources exist, are economically mineable, or will be upgraded into measured or indicated mineral resources. U.S. investors are cautioned not to assume that mineral resources in any of these categories will be converted into reserves.
For further information please contact:
Joanne C. Freeze, PGeo.
+ 1 (604) 689-1957
Sean Waller, P. Eng.
+ 1 (604) 689-1957