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
|
Interest Income1
|
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, 2009 | $18 | $7,471 | $0.03 | $0.03 |
| Three months ended January 31, 2009 | 39 | 7,690 | 0.03 | 0.03 |
| Three months ended October 31, 2008 | 35 | 1,207 | 0.01 | 0.01 |
| Three months ended July 31, 2008 | 104 | (11,689) | (0.06) | (0.06) |
| Three months ended April 30, 2008 | 121 | 5,295 | 0.03 | 0.03 |
| Three months ended January 31, 2008 | 178 | 16,580 | 0.08 | 0.08 |
| Three months ended October 31, 2007 | 252 | 921 | 0.01 | 0.01 |
| Three months ended July 31, 2007 | 188 | 4,733 | 0.02 | 0.02 |
|
1 The Company has no operating revenues. 2 Based on the treasury share method for calculating diluted earnings. |
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During the year ended April 30, 2009, the Company recorded a $13.3 million net gain on the early extinguishment of its $20.0 million principal convertible debentures. This non-cash item accounts for the majority of the Company’s income in the quarter ended July 31, 2008. See “Results of Operations” above for more details.
Quarterly results will vary in accordance with the Company’s exploration and financing activities. Resource property write-offs typically have the most significant impact on the Company’s quarterly results. These write-offs typically vary in accordance with exploration results and changes to the Company’s land position and can rarely be predicted in advance.
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 landholdings 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 periods. 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.
The Company’s activities in the Current Year have focused on continued exploration of its mineral properties and the completion of a Preliminary Assessment on the Renard Diamond Project in Quebec. In a typical quarter, the Company’s legal fees will increase when 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. During the year ended April 30, 2009, the
Company implemented several measures to reduce administrative and overhead expenditures with a view towards cash preservation.