509 0 Kommentare Luna Gold Announces Results for the Fourth Quarter 2014

VANCOUVER, BC--(Marketwired - March 30, 2015) - Luna Gold Corp. (TSX: LGC) (LMA: LGC) (OTCQX: LGCUF) ("Luna" or the "Company") today announced its operational and financial results for the fourth quarter ("Fourth Quarter") and year ended ("YTD") December 31, 2014. This news release should be read in conjunction with the audited consolidated financial statements and the Management's Discussion and Analysis for the year ended December 31, 2014.

Luna Gold also announces it is filing today a Technical Report, entitled "NI 43-101 Technical Report Update, Aurizona Mine, Brazil" and dated March 27, 2015. The Report was prepared in accordance with National Instrument 43-101 - Standards for Disclosure for Mineral Projects and will be available under the Company's profile on SEDAR at www.sedar.com.

FOURTH QUARTER 2014 RESULTS HIGHLIGHTS

Revenue of $19.4 million, including sales to Sandstorm;
Gold sales and production of 17,972 ounces and 20,758 ounces, respectively;
Total cash cost of production of $889, All-in sustaining cost of production of $978, All-in cost of $1,160 per ounce of gold produced;
Cash flow from operating activities before changes in non-cash working capital of ($3.5) million ($0.02 per share); and
Net loss, including an impairment charge of $8.8 million, was ($18.7) million ($0.13 per share).


Fourth Quarter and YTD 2014 Highlights
		Q4 2014			YTD 2014
Gold production (ounces)		20,758			74,622
Gold sales, including sales to Sandstorm (ounces)		17,972			72,391
Finished gold inventory at December 31, 2014 (ounces)		11,223			11,223
Ratio of waste to ore		3.4			4.1
Net realized gold price received, including gold sales to Sandstorm (USD per ounce)	$	1,075		$	1,127
Total cash cost of production (USD per ounce)	$	889		$	949
All-in sustaining cost of production (USD per ounce)	$	978		$	1,046
All-in cost (USD per ounce)	$	1,160		$	1,207
Gross profit (USD millions)	$	(1.9	)	$	4.0
Impairment of property, plant and equipment (USD millions)	$	(8.8	)	$	(110.8	)
Net loss (USD millions)	$	(18.7	)	$	(121.5	)
Loss per share - basic and fully diluted (USD)	$	(0.13	)	$	(0.96	)
Cash flow per share from operating activities before changes in non-cash working capital (USD)	$	(0.02	)	$	0.01
Cash flow from operating activities before changes in working capital (USD millions)	$	(3.5	)	$	0.8
Cash flow from operating activities after changes in working capital (USD millions)	$	(2.4	)	$	(6.9	)
Cash flow from financing activities (USD millions)	$	(10.1	)	$	29.7
Cash payments on Phase I Expansion (USD millions)	$	(3.4	)	$	(13.1	)
Cash payments on sustaining capital (USD millions)	$	(1.7	)	$	(4.7	)
Cash payments for mineral property development (USD millions)	$	0.2		$	(2.2	)
Cash balance at December 31, 2014 (USD millions)	$	3.7		$	3.7

Company Developments:

In Q1 2014, the Company successfully completed a public offering of 16,950,000 common shares at a price of C$1.18 per share for net proceeds to the Company of approximately C$18.6 million, to be used for general corporate purposes;
In Q2 2014, Geoff Chater, Director was appointed Chief Executive Officer ("CEO") and President of the Company. Subsequent to December 31, 2014, Geoff Chater resigned from the position of Director, CEO and President;
In Q3 2014, the Company completed a non-brokered private placement of 19,500,000 common shares priced at C$1.02 per share, for net proceeds of C$19.9 million as part of a strategic investment agreement with Sandstorm Gold Ltd. ("Sandstorm") which resulted in Sandstorm becoming the Company's largest shareholder. Pursuant to the agreement, Sandstorm will have the right to maintain its ownership percentage through future private placements or public offerings and to appoint one member to the Company's Board of Directors if its ownership is greater than 15%;
In Q4 2014, the Company halted the Phase I Expansion due to cash constraints and technical challenges with the existing operation;
For the year ended December 31, 2014, the Company recognized an impairment charge of $110.8 million related to the Aurizona Gold mine. The estimated net realizable value of the Aurizona Gold mine is based on the current and expected gold price over the foreseeable future and its estimated recoverable amount based on the latest operating parameters and assumptions, including an estimate of capital costs required to construct a hard rock processing circuit;
In Q4 2014, the Company established a Special Committee (the "Special Committee") comprised of independent members of the Company's Board of Directors (Messrs. Wayne Kirk (Chairman), Steven Krause, Bill Lindqvist and Federico Schwalb) with a mandate to explore all strategic alternatives available to the Company to offer greater value to the Company's shareholders. Steven Krause subsequently replaced Wayne Kirk as the Chairman of the Special Committee, and Luis Baertl was also appointed to the Special Committee as to certain matters. The Special Committee engaged Canaccord Genuity Corp. as its financial advisor and Blake, Cassels & Graydon LLP as its legal counsel to evaluate proposals and other alternatives and to provide advice and make recommendations to the Company's Board of Directors regarding any potential transactions;
The Board of Directors adopted an advance notice policy regarding the nomination of directors (the "Advance Notice Policy") effective October 8, 2014. The purpose of the Advance Notice Policy is to provide shareholders, directors and management of the Company with direction on the procedure for shareholder nomination of directors. The Advance Notice Policy is the framework by which the Company seeks to fix a deadline by which registered or beneficial holders of common shares of the Company must submit director nominations to the Company prior to any annual or special meeting of shareholders and sets forth the information that a shareholder must include in the notice to the Company for the notice to be in proper written form. No person nominated by holders of common shares will be eligible for election as a director of the Company unless nominated in accordance with the provisions of the Advance Notice Policy;
In Q1 2015, Marc Leduc was appointed to the position of Director, CEO and President of the Company;
In Q1 2015, the Company announced the suspension of mining operations at Aurizona and a plan to process the existing ore stockpile through the process plant over the first half of 2015;
In Q1 2015, the Company announced that the core relogging program of the Piaba resource resulted in a new geologic model, including the reinterpretation of geology, alteration, oxidation, structure and ore hardness. This new model resulted in a material reduction in the amount of remaining saprolite ore that can be processed through the existing plant. As a result of the new geologic model, the suspension of mining operations and the need for additional capital to restart economical mining activities, the Aurizona existing mineral reserve estimates (effective as of January 29, 2013) contained in its public disclosure and in its last technical report are no longer considered current and should therefore not be relied upon;
In Q1 2015, the Company entered into a forbearance agreement (the "Forbearance Agreement") with Société Générale, Mizuho Bank, Ltd. and the other parties (collectively, the "Finance Parties") to the Company's February 15, 2013 credit agreement, as amended (the "Corporate Facility"), in connection with the Company not being in compliance with certain covenants under the Corporate Facility. Under the terms of the Forbearance Agreement, the Finance Parties will refrain from exercising any rights or remedies that they may have under the Corporate Facility or otherwise in respect of the Company's covenant breach and any subsequent default by the Company until May 1, 2015, unless a breach of the Forbearance Agreement occurs. The Company does not expect to remedy its default under the Corporate Facility prior to May 1, 2015. Consequently, if the Forbearance Agreement is not extended, the Finance Parties would be entitled to exercise any of their rights under the Corporate Facility. There can be no assurance that the Forbearance Agreement will be extended;
In Q1 2015, the Company announced a letter of intent to restructure the Sandstorm Stream Agreement, which includes the termination of the existing gold stream to be replaced by two net smelter return royalties and a convertible debenture;
In Q1 2015, the Company released an updated NI 43-101 Resource report dated March 27, 2015;
During the 2014 year, the Company appointed Federico Schwalb and David Awram as Directors of the Company; and
During the 2014 year, John Blake resigned from the positions of Director, CEO and President, Peter Mah resigned from the positions of Executive Vice-President and Chief Operation Officer ("COO") and Mark Halpin resigned from the position of Vice President Corporate Development.

OUTLOOK AND STRATEGY

Aurizona Operation
The Company suspended mining operations at Aurizona on February 15, 2015. The remaining ore stockpile of approximately 470,000 tonnes of mixed soft and hard saprolite ore containing an average expected head grade of 1.12 grams per tonne of gold and 390,000 tonnes of transitional ore containing an average expected head grade of 1.06 grams per tonne of gold will be processed through the plant at an initial blended ratio of 80% mixed saprolite ore to 20% transitional ore. The Company expects to process approximately 860,000 tonnes of material grading approximately 1.10 grams per tonne during Q1 and Q2 of 2015. The tailings facility has an estimated available capacity of 900,000 tonnes of tailings space before reaching maximum safe containment. The Company expects this capacity will be sufficient to contain the tailings from the stockpiled ore to be processed over this period.

A tailings dam raise from its current level of 29.5 metres to 31.6 metres has been permitted and will be required to increase the available storage volume to process ore beyond the current available limit. This construction can only take place in the dry season from July - December.

The Aurizona operation reduced personnel to better align the remaining workforce for processing stockpiled ore at the plant and associated activities. The number of employees at Aurizona was reduced from approximately 900 at mid-2014 to approximately 350 in March 2015.

The results of the new geologic model and the reclassification of material types, which materially reduced the amount of remaining soft saprolite material that can be processed through the existing plant has led to the need to bring forward process plant capital requirements, specifically related to crush and grind requirements. These requirements are necessary to process the majority of the material available in the current resource. The expected capital requirements to implement this process plant facility are being reviewed and will be presented in an updated NI 43-101 technical report in due course.

As a result of the technical and financial challenges that the Company currently faces, the Company will temporarily cease operations after the stockpile is exhausted and will place the existing facilities into a care and maintenance condition. This will require all the equipment to be cleaned and placed in a secure manner. The Company is currently in the process of filing a care and maintenance permit in Brazil.

The Company requires new funding to satisfy its financial obligations and to execute on its capital needs and future plans. The Company is actively pursuing strategic financing alternatives.

The timing of and the milestones outlined below are management's proposed planned targets only. Certain milestones are dependent on earlier targeted milestones being achieved. These targets are forward looking in nature and subject to the Company securing the required financing, the completion of the restructuring of the streaming relationship with Sandstorm, completing the required studies, technical report and obtaining all applicable approvals and meeting various other conditions. There is no assurance that these targeted milestones will be achieved on time or at all. See "Forward Looking Statements".

Upon achievement of a successful refinancing and repayment of its financial obligations, the Company intends to commence the redesign and redevelopment of the Aurizona project. The redevelopment goal is to design and construct the crushing and grinding circuit to handle all the ore types which remain within the resource.

In Q3 2015, the Company's exploration group plans to start exploration for additional ore resources within the nearby pit area and within the existing pit. The goal of this exploration program will be to provide greater confidence on the grade and material properties of the resources and also provide higher levels of confidence in these resources for the engineering designs. Additionally, the Company is contemplating to commence a 2.1 metre raise of the tailings dam facility. This tailings dam raise will provide greater flexibility to the mine operations group because of the larger water containing capacity and will also allow for the quicker restart of the mine.

The Company intends to perform internal scoping studies during the first half of 2015 to establish the optimal crush and grind solution for the process plant followed by more detailed engineering studies in the second half of 2015. The Company expects to prepare a pre-feasibility study that should be completed by the end of 2015 and then implemented into a new NI 43-101 Technical Report.

In the first half of 2016, the Company is targeting to complete a detailed feasibility study on the selected option. It is anticipated that detailed engineering should commence during the completion of the pre-feasibility study and the procurement process would start in Q2 of 2016. The current estimate for the commissioning of a new crushing and grinding circuit may commence in Q2 2017 and there would be a three-month commissioning period of the crush and grind circuit. This implies that the process plant, including the hard rock crushing and grinding circuit, would be operational by the beginning of the third quarter in 2017.

Meanwhile, the Company will also be active in completing the permitting on the Tatajuba licenses in 2015 and 2016. In addition, the Company will be working on acquiring any permits for any new components of the mine restart and also advancing a number of permits that have been submitted to the Brazilian authorities. Strategic mine and operational planning will continue with a focus on future operations at a lower cost structure with greater efficiencies. The Company will utilize past information from the previous operations and leveraging off of this to set up a new lower cost operation. The exploration group will continue its efforts in exploring for additional nearby resources both in the western extension of the Piaba zone and also to the east and northeast of the current pit.

Additional financial resources will be needed to fund the procurement and construction associated with the hard rock crushing and grinding circuit.

Corporate

The Company remains in non-compliance with its debt covenants. As a result, the Company has entered into a forbearance agreement (the "Forbearance Agreement") with Société Générale ("Société Générale"), Mizuho Bank Ltd. ("Mizuho Bank") and the other parties (collectively, the "Finance Parties") to the Company's February 15, 2013 credit agreement, as amended (the "Corporate Facility").

Under the terms of the Forbearance Agreement, the Finance Parties will refrain from exercising any rights or remedies that they may have under the Corporate Facility or otherwise in respect of the Company's covenant breach and any subsequent default by the Company until May 1, 2015, unless a breach of the Forbearance Agreement occurs. The Company does not expect to remedy its default under its covenants under the Corporate Facility prior to May 1, 2015. Consequently, if the Forbearance Agreement is not extended, the Finance Parties would be entitled to exercise any of their rights under the Corporate Facility. There can be no assurances that the Forbearance Agreement will be extended by the Finance Parties.

As compensation for their forbearance, the Company paid the Finance Parties a fee of $0.1 million, paid $4.8 million to the outstanding principal amount owed, and applied $1.8 million to a restricted account as collateral against its outstanding hedge agreements. The outstanding balance on this Corporate Facility at the date of this report was $19.2 million.

The Company continues to seek alternative financing to satisfy the terms of the Corporate Facility and identify financial solutions to exploit the gold resources at Aurizona.

Sandstorm Stream Agreement Restructuring Proposal

The Company has signed a letter of intent with Sandstorm Gold Ltd. outlining a restructuring of its gold stream and debt facility agreement (the "Proposed Restructuring"). Sandstorm currently holds a 17% gold stream (the "Gold Stream") on the Aurizona Project and has a debt facility outstanding to Luna with a principal amount of $20.0 million (the "Sandstorm Debt Facility").

The Proposed Restructuring is subject to a number of conditions, including (i) a concurrent equity raise with gross proceeds to Luna of at least C$20.0 million, (ii) regulatory approvals such as the approval of the Toronto Stock Exchange, (iii) the approval of Luna's shareholders, and (iv) the negotiation and execution of definitive agreements for the Proposed Restructuring. Until the conditions are satisfied there can be no assurances that the Proposed Restructuring will be completed. The Company is seeking equity investors as part of its ongoing review of strategic alternatives, but as of this date has no agreement with any investor for an equity investment that meets Sandstorm's terms. Subject to the execution of definitive agreements, the Company anticipates completion of the Proposed Restructuring on or around June 30, 2015, assuming the conditions can be met.

Restructuring Terms

Gold Stream Restructuring
Under the terms of the Proposed Restructuring, the Gold Stream would be terminated and replaced by two net smelter return royalties ("NSR") (the "Aurizona Project NSR" and the "Greenfields NSR") and a convertible debenture. The Aurizona Project NSR would cover the entire Aurizona Project, including the NI 43-101 compliant Resources, and all adjacent exploration upside that would be processed through the Aurizona mill net of certain third party refining costs. The Aurizona Project NSR would be a sliding scale royalty based on the price of gold as follows:

3% if the price of gold is less than or equal to $1,500 per ounce;
4% if the price of gold is between $1,500 per ounce and $2,000 per ounce; and
5% if the price of gold is greater than $2,000 per ounce.

The Greenfields NSR would cover the entire Luna Greenfields exploration ground held by Luna and would be a 2% NSR. Luna would have the right to purchase one-half of the Greenfields NSR for $10.0 million at any time prior to commercial production.

Sandstorm would hold a right of first refusal on any future streams or royalties on the Aurizona Project and Greenfields.

Under the Proposed Restructuring, Sandstorm would also receive a $30.0 million debenture bearing interest at a rate of 5% per annum (the "Debenture"). The Debenture would be payable in three equal annual tranches of $10.0 million plus accrued interest beginning January 1, 2018. Luna would have the right to convert principal and interest owing under the Debenture into common shares of Luna, so long as Sandstorm does not own more than 20% of the outstanding common shares of Luna.

Sandstorm $20.0 million Debt Facility Agreement
Under the existing Sandstorm Debt Facility amendment, the maturity date of the Sandstorm Debt Facility would be extended from June 30, 2017 to June 30, 2021, the interest rate would be revised to 5% per annum, payable in cash on the maturity date, and Luna would be subject to a default rate of interest equal to 10% per annum.

AURIZONA GOLD MINE - MARANHAO STATE, BRAZIL

Operating results
			Three months ended December 31								Years ended December 31
(tabled monetary amounts are expressed in thousands of US dollars)			2014				2013				2014				2013
Mined waste - tonnes			3,304,995				2,115,474				8,772,092				6,647,960
Mined ore - tonnes			962,179				568,679				2,155,554				1,981,564
Ratio of waste to ore			3.4				3.7				4.1				3.4
Ore grade mined (g/t)			1.26				1.34				1.38				1.44
Cost per tonne mined (USD)		$	3.32			$	1.71			$	3.60			$	2.17
Processed ore - tonnes			539,214				562,501				2,014,237				1,934,176
Average grade processed (g/t)			1.39				1.38				1.31				1.43
Average recovery rate %			87%				89%				88%				90%
Gold produced (ounces)			20,758				22,177				74,622				79,229
Gold sales (ounces)			17,972				16,755				72,392				72,404
Cash costs of production			USD per ounce		USD per tonne processed		USD per ounce		USD per tonne processed		USD per ounce		USD per tonne processed		USD per ounce		USD per tonne processed
	Mining	$	422	$	17	$	212	$	8	$	439	$	17	$	224	$	9
	Processing		355		15		351		14		389		14		392		15
	Administration		85		3		49		2		90		3		68		4
	Refining and transport		14		1		27		1		19		1		27		1
	Royalties		13		1		13		1		12		1		13		1
Total cash costs of production		$	889	$	37	$	652	$	26	$	949	$	36	$	724	$	30
	Sustaining capital		80				122				63				145
	Brownfield exploration		9				58				34				22
All-in sustaining costs		$	978			$	832			$	1,046			$	891

Mining production
During the three months and year ended December 31, 2014, total material mined (ore and waste) increased from the comparative periods of 2013 by 59% and 27%, respectively. The increase in tonnes mined was the result of the increase in waste stripping which was required to access ore at greater depths in the ore body than in past periods. Both waste and ore tonnes increased in Q4 2014 compared to the same period in 2013 in an effort to rebuild the ore stockpile, which is being processed during the rainy first half of 2015. The increase in fourth quarter mine production was achieved by increasing the size of the mine contractor fleet, which resulted in catching up on lost production during the first half of the year due to pit flooding. Partly, as a result of the increase in the contractor fleet, the total tonnes moved for the year was higher than 2013.

The average ore grades mined in the fourth quarter and full year ended December 31, 2014 were lower than the comparative periods of 2013 due to a slight increase in waste dilution in the areas mined and in the early part of 2014 lower grade was mined because the pit was flooded and there was limited access of the mine to higher grade ore.

After adjusting for foreign exchange, the costs per tonne mined were approximately 117% and 81% higher for the fourth quarter and full year ended December 31, 2014, respectively, compared to the 2013 year. The significant increase in costs were related to costs associated with dewatering the pit and building proper water management systems to improve pit access during rainy periods and costs to repair and rebuild all the mine equipment as all the mine equipment had achieved their maximum usage hours during the year. Costs were also higher due to the engagement of a mine management contractor from Canada and the increased use of a contractor mining fleet.

Mill processing
Gold production during both the fourth quarter and year ended December 31, 2014 was 6% lower than the comparable periods for 2013.

The gold production decrease in the fourth quarter of 2014 compared to Q4 2013 was due to a 4% decrease in the tonnes of ore processed and a decrease in the percentage of gold recovered from the ore processed. The decreases were due to a change in the ore types processed, resulting in higher retention times in the grinding mills and lower recoveries.

The gold production decrease for the year ended 2014 compared to 2013 was due to an 8% decrease in the average grade of the ore processed and a decrease in the percentage of gold recovered from the ore processed. The drop in grade was the result of mining lower grade ore because the mine was limited to accessing ore suitable for treatment in the existing plant and an increase in the waste dilution of the areas mined during the year compared to 2013. The lower gold recovery percentage was due to a change in the ore types processed during the year as compared to 2013, with harder ores being more common in the 2014 feed resulting in coarser grinds and poorer liberation.

Cash costs of production
The Company's results are subject to seasonal variation, in particular the wet season in Northeastern Brazil. The wet season generally starts in January and continues through June, with the heaviest rainfall normally experienced in the months of March to May. As a result of the wet season, pit access and the ability to mine ore is typically lower in this period than other periods of the year and the unit cost of production are generally higher. To address this issue, the Company mines ore and waste at higher elevations within the pit in the wet season and stockpiles ore in the dry season ahead of the wet season for processing.

The total cash costs of production were 36% and 31% higher for the three months and year ended December 31, 2014 compared to the same periods in 2013. For the three months and year ended December 31, 2014, the strengthening of the US dollar in relation to the Brazilian Real had a positive impact on the total cash costs of approximately $105 per ounce and $86 per ounce, respectively, compared to the 2013 periods.

After adjusting for foreign exchange movements, the mining costs per ounce produced in the three month and year ended December 31, 2014 were higher by approximately 123% and 113%, respectively compared to the same periods of 2013. Higher costs associated with increased waste mining activities, such as hauling and loading costs, stockpile and waste dump management costs, contractor mining costs, equipment rental and mobile maintenance costs and water management activities all led to the increase in costs for the year.

After adjusting for foreign exchange movements, processing costs per ounce produced in the three months and year ended December 31, 2014, were approximately 13% and 8% higher than the comparative period of 2013, respectively. The increase in the average process cost per ounce produced was due to the processing of the lower grade stockpile ore and higher leaching costs related to lower recoveries from increased amounts of laterite and transitional ore processed as well intermittent ore throughput due to a lack of steady feed from the mine.

The administration costs per ounce produced for the three months and year ended December 31, 2014 were higher than the comparative periods of 2013 primarily due to lower gold production, inflation related salary increases and termination costs.

Refining and transportation costs were lower due to a change in gold refineries in 2014.

Royalty costs for the three months ended December 31, 2014 are comparable to the same period in 2013 and lower for the 2014 year as a result of a lower average realized gold price and timing of sales.

The total all-in sustaining costs of production were higher by 18% and 17% for the three months and year ended December 31, 2014, as compared with the same periods of 2013. The higher AISC was primarily the result of higher cash cost of production partially offset by deferring all non-essential sustaining capital projects to the future on an as-needed basis.

After adjusting for foreign exchange, total costs per tonne processed were 57% and 24% higher for the three months and year ended December 31, 2014, respectively, compared to the same periods of 2013. This was generally due to the higher mining costs associated with higher waste mining activity and implementation of water management programs.

About Luna Gold Corp.
Luna is a gold production company engaged in the operation, expansion, and exploration of gold projects in Brazil.

On behalf of the Board of Directors

LUNA GOLD CORP.
Marc Leduc - President and CEO

Website: www.lunagold.com

Forward-Looking Statements
This release contains certain "forward looking statements" and certain "forward looking information" as defined under applicable Canadian and U.S. securities laws. Forward-looking statements can generally be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "continue", "plans" or similar terminology. Forward-looking statements include, but are not limited to, statements with respect to future gold production and/or the results of analysis on gold production. Forward-looking statements are based on forecasts of future results, estimates of amounts not yet determinable and assumptions that while believed by management to be reasonable, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Forward-looking statements are subject to various risks and uncertainties concerning the specific factors identified in Luna Gold Corp.'s periodic filings with Canadian Securities Regulators. These factors include the inherent risks involved in the mechanical completion and commissioning of the Aurizona Phase I expansion, preparation and delivery of the Aurizona Phase II expansion prefeasibility study, exploration and development of mineral properties, the uncertainties involved in interpreting drill results and other exploration data, the potential for delays in exploration or development activities, the geology, grade and continuity of mineral deposits, the possibility that future exploration, development or mining results will not be consistent with the Company's expectations, accidents, equipment breakdowns, title matters, labor disputes or other unanticipated difficulties with or interruptions in production and operations, fluctuating metal prices, unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future, the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, regulatory restrictions, including environmental regulatory restrictions and liability, competition, loss of key employees, and other related risks and uncertainties. The Company undertakes no obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.