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ANNUAL REPORT 2006
President's message
A year ago, we committed to four fundamental objectives that would position Campbell Resources
to take maximum advantage of the opportunities available to us at our Chibougamau operations.
These objectives involved:
- Restructuring our organization in order to improve its financial base;
- Continuing production at the Joe Mann Mine;
- Tansitioning from the development to the production stage at the Copper Rand Mine;
- Preparing the Corner Bay project with the development of an exploration ramp.
We made significant progress on all of these fronts, though 2006 presented some very serious
challenges. Putting in place new financing was a lengthy process, and we also had to address critical
production issues at the Joe Mann and Copper Rand mines. As we embark upon the 2007 fiscal year,
we are devoting all of our energies to resolving these issues, and we believe that our efforts are laying
a much stronger foundation for profitable growth.
Highlights and Objectives
2006 HIGHLIGHTS
- On December 30, 2006: Campbell closed a private placement with Nuinsco Resources Limited. Nuinsco subscribed to 31,250,000 Units, for gross proceeds of $2.5 million.
- On November 24, 2006: The Company announced that its Rights Offering was fully subscribed. The Company issued 69,966,264 Units, for gross proceeds of $5,597,301.
- On July 12, 2006: Campbell announced the appointment of W. Warren Holmes and René R. Galipeau as Directors of the Corporation. René Galipeau has also been appointed a member of the Audit Committee, replacing James C. McCartney.
- On June 26, 2006: The Company filed Plans of Arrangement which were approved by its creditors and sanctioned by the Superior Court of Quebec.
- On May 29, 2006: The Company completed a first equity financing with Sprott Securities Inc. for gross proceeds of $10.0 million.
- On April 24, 2006: Campbell announced it had signed an Operating Consulting Agreement with Nuinsco Resources Ltd.
2007 OBJECTIVES
- Complete the exit from CCAA protection for all Campbell companies.
- Treat Copper Rand Mine as having reached commercial production.
- Complete the financing to develop the high-grade Corner Bay copper project.
- Initiate production from the Merrill Island open pit.
Selected Financial Data
year ended December 31
| 2006 | 2005 | |
| INCOME | ||
| Gross metal sales | $11.925 | $19.915 |
| Net loss | 41.195 | 24.430 |
| Cash flow provided by (used for) operations | (5.779) | (748) |
| FINANCIAL POSITION | ||
| Assets | 115.142 | 134.643 |
| Long-term debt* | 65.357 | 67.782 |
| Equity | 12.006 | 30.503 |
| OTHER DATA | ||
| Share outstanding ('000) | 346.529 | 108.213 |
| Net loss per share | 0.27 | 0.23 |
*Including current portion of long-term debt
Management discussion and analysis
HIGHLIGHTS
Significant developments during and subsequent to the year ended December 31, 2006 included:
- Approval by creditors of the Plans of Arrangement under the Companies' Creditors Arrangement Act ("CCAA").
- Campbell and GéoNova exiting CCAA protection subsequent to year end. The Court granted extensions of the CCAA protection for both subsidiaries MS V and Meston.
- An increase in working capital of $26.2 million on a proforma basis.
- The completion of three equity financings totaling $18.1 million.
- The repayment of $4.0 million of secured debt.
- The sale of the Discovery property to Strateco Resources Inc. for $0.5 million and 1 million shares of Cadiscor Resources Inc.
- The completion by Geostat Systems International Inc. ("Geostat") of a 43-101 compliant resource estimate technical report (Ref. SE DAR) on the high-grade Corner Bay copper deposit and recommending proceeding with the extraction of a 42,000 ton bulk sample with a forecast grade of 3.7% copper.
- The start of development at Corner Bay, including collaring the portal and installing surface infrastructure.
- The entry into an Operating Consulting Agreement with Nuinsco Resources Limited ("Nuinsco") for consulting services at the Chibougamau operations.
- The sale of the Eastmain property as of February 27, 2007 to Eastmain Resources Inc. for $2.5 million in cash, two million common shares, one million common share purchase warrants and a 2% net smelter return royalty.
- The initiation of plans and permitting on the Merrill Island copper property to begin open pit mining in order to increase ore throughput at the Copper Rand mill.
Consolidated Financial Statements
To view the Consolidated Financial Statements download the pdf below
 CONSOLIDATED FINANCIAL STATEMENTS (PDF 570kB) |
To view the Notes on Consolidated Financial Statements download the pdf below
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (PDF 527kB) |
Board of Directors
James C. McCartney, Q.C. - Chairman of the Board -
Counsel McCarthy Tétrault, LLP (1, 3, 5)
André Y. Fortier - President and Chief Executive Officer - Campbell Resources Inc. (1)
Louis Archambault - President, Groupe conseil Entraco Inc. (4, 5)
Michel Blouin - Partner, Lavery, de Billy, General Partnership (*, 5)
Graham G. Clow - Mining Engineer - Roscoe Postle Associates Inc. (2, 4)
René R. Galipeau - Chief Executive Officer and Vice-Chairman, Nuinsco Resources Inc. (2)
W. Warren Holmes - Chairman, Nuinsco Resources Inc.
G.E. "Kurt" Pralle - Mining and Metallurgical Consultant (2, 3)
James D. Raymond - Private Investor and Company Director (1)
André Y. Fortier - President and Chief Executive Officer - Campbell Resources Inc. (1)
Louis Archambault - President, Groupe conseil Entraco Inc. (4, 5)
Michel Blouin - Partner, Lavery, de Billy, General Partnership (*, 5)
Graham G. Clow - Mining Engineer - Roscoe Postle Associates Inc. (2, 4)
René R. Galipeau - Chief Executive Officer and Vice-Chairman, Nuinsco Resources Inc. (2)
W. Warren Holmes - Chairman, Nuinsco Resources Inc.
G.E. "Kurt" Pralle - Mining and Metallurgical Consultant (2, 3)
James D. Raymond - Private Investor and Company Director (1)
1. Executive Committee
2. Audit Committee
3. Compensation Committee
4. Environmental Committee
5. Corporate Governance Committee
* Corporate Secretary
2. Audit Committee
3. Compensation Committee
4. Environmental Committee
5. Corporate Governance Committee
* Corporate Secretary
© 2008 Campbell Resources Inc. All rights reserved.
Cautionary Note to U.S. Investors - The United States Securities and Exchange Commission limits disclosure for U.S. reporting purposes to mineral deposits that a company can economically and legally extract or produce. We use certain terms on this web site, such as "reserves," "resources," "geologic resources," "proven," "probable," "measured," "indicated," or "inferred," which may not be consistent with the reserve definitions established by the SEC. U.S. investors are urged to consider closely the disclosure in our Form 20 -F, File No. 001-08488. You can review and obtain copies of these filings from the SEC's website at http://www.sec.gov/edgar.shtml.
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