Campbell Emerges From Credit Protection, Seeks Turnaround

Campbell Resources (CCH-T, CBLRF-O) didn’t make much money or have much fun in 2006, but expects that to change this year following its refinancing.

The company lost $41.2 million in 2006 on revenue of $11.9 million, a loss per share of 27. In 2005, it lost $24.4 million on revenue of $19.9 million. Campbell spent the year in creditor protection under the Companies’ Creditors Arrangement Act, but emerged from protection in February.

The Joe Mann gold mine south of Chibougamau, Que., produced 14,000 oz. gold at a cash cost of US$922 per oz., plus 200 tonnes copper. It had been scheduled to close in November 2005, but continues to produce from mineralized zones that were never brought into reserves. Campbell, which refinanced during 2006 with help from Nuinsco Resources (NWI-T, NUIRF-O) now expects to have enough cash to pay for an exploration program at the mine.

Campbell’s Copper Rand mine, under development through 2006, is now in commercial production and a decline has been started on the Corner Bay copper project.

The company now has $2.8 million in cash and short-term investments, plus another $50 million in restricted cash to be made available once financings are complete. It sold its Eastmain property to Eastmain Resources (ER-T, EANRF-O) for $2.5 million plus 2 million shares and 1 million warrants of Eastmain (T.N.M., Mar. 19-25/07), and has paid off $4 million of secured debt.