Summary of Quarterly Results
The following table sets out selected unaudited consolidated quarterly financial information of Stornoway and is derived from the unaudited quarterly consolidated financial statements prepared by management. Stornoway’s interim consolidated financial statements are prepared in accordance with Canadian generally accepted accounting principles and expressed in thousands of Canadian dollars (except for per share amounts).
|
Period
|
Revenues1
|
Loss
or (Income) from Continued Operation and Net Loss (Income) |
Basic Loss (Earnings) per share2 from Continued Operation and Net Loss (Income)
|
Fully Diluted Loss (Income) per share2 – from Continued Operation and Net Loss (Income)
|
|---|---|---|---|---|
| Three months ended April 30, 2008 | $121 | $5295 | $0.03 | $0.03 |
| Three months ended January 31, 2008 | 178 | 16580 | 0.08 | 0.08 |
| Three months ended October 30, 2007 | 252 | 921 | 0.01 | 0.01 |
| Three months ended July 31, 2007 | 188 | 4733 | 0.02 | 0.02 |
| Three months ended April 30, 2007 | (99) | 3037 | 0.02 | 0.02 |
| Three months ended January 31, 2007 | 188 | 3953 | 0.03 | 0.03 |
| Three months ended October 30, 2006 | 628 | 7794 | 0.08 | 0.08 |
| Three months ended July 31, 2006 | 223 | 4353 | 0.05 | 0.05 |
|
1 Revenues consist of interest income earned on short-term, liquid investments and property management fees earned from several joint venture properties. The Company has no operating revenues. 2 Based on the treasury share method for calculating diluted earnings. |
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The Company’s exploration activities in northern Canada are seasonal, with work typically conducted between March and October. During the winter months, the Company’s technical team typically reviews the results from lab and analytical work to plan for the next field season. Land acquisitions in other parts of Canada, including the land-holdings of Ashton and Contact in Ontario and Quebec in particular, have allowed the Company to expand its current field season by several months in recent years. The Company’s cash flow is affected by the seasonality of the exploration business, and fluctuations in general and administrative expenses are typically seasonal as well.
Quarterly results will vary in accordance with the Company’s exploration and financing activities. The acquisition of Ashton and Contact in the Comparative Year significantly increased the Company’s land position, employees and market capitalization. To finance this growth, between November 2006 and April 2007, the Company raised approximately $52.7 million through the issuance of equity (including subscription receipts of $22.5 million from Agnico-Eagle) and $20.0 million through the issuance of convertible debentures. In addition, the Company sold its interest in the Buffalo Hills Property in Alberta for $15.0 million cash plus common shares with a fair value of $2.5 million at the July 2007 agreement date. The Company’s growth was reflected in higher general and administrative expenses in the Comparative Year. The Company’s activities in the Current Year have focused on continued exploration of its mineral properties and the completion of a pre-feasibility study on the Renard Project in Quebec. In a typical year, the Company’s legal fees will increase in periods where property option and joint venture agreements are in development and negotiation, and investor relations activities increase in proportion to shareholder inquiries, communications and as a result of the Company’s periodic “roadshows”. Stock-based compensation expense varies, and is dependant upon the size, timing and estimated fair value of the stock option grants. Resource property write-offs also vary in accordance with exploration results and changes to the Company’s land position and typically cannot be predicted in advance.