MEASURED PLUS INDICATED UNDILUTED RESOURCE | ||||||||||||
Cutoff Grade | Mineralized Tonnage | Average Grade | Contained Gold | |||||||||
(g/tonne) | (oz/ton)* | (tonnes) | (tons) | (g/tonne) | (oz/ton) | Au (oz) | ||||||
2 | 0.058 | 390,000 | 429,902 | 9.48 | 0.277 | 119,000 | ||||||
4 | 0.117 | 330,000 | 363,763 | 10.62 | 0.310 | 113,000 | ||||||
6 | 0.175 | 271,000 | 298,727 | 11.89 | 0.347 | 104,000 | ||||||
8 | 0.233 | 203,000 | 223,769 | 13.54 | 0.395 | 88,000 |
INFERRED UNDILUTED RESOURCE | ||||||||||||
Cutoff Grade | Mineralized Tonnage | Average Grade | Contained Gold | |||||||||
(g/tonne) | (oz/ton)* | (tonnes) | (tons) | (g/tonne) | (oz/ton) | Au (oz) | ||||||
2 | 0.058 | 1,280,000 | 1,410,960 | 10.97 | 0.320 | 451,000 | ||||||
4 | 0.117 | 1,180,000 | 1,300,728 | 11.65 | 0.340 | 442,000 | ||||||
6 | 0.175 | 1,017,000 | 1,121,052 | 12.71 | 0.371 | 416,000 | ||||||
8 | 0.233 | 806,000 | 888,464 | 14.22 | 0.415 | 368,000 |
Canarc Resource Corp. | Page 2 |
CANARC RESOURCE CORP. Management’s Discussion and Analysis For the Year ended December 31, 2011 (expressed in United States dollars) |
MEASURED PLUS INDICATED UNDILUTED RESOURCE | ||||||||||||
Cutoff Grade | Mineralized Tonnage | Average Grade | Contained Gold | |||||||||
(g/tonne) | (oz/ton)* | (tonnes) | (tons) | (g/tonne) | (oz/ton) | Au (oz) | ||||||
2 | 0.058 | 1,670,000 | 1,840,861 | 10.62 | 0.310 | 570,000 | ||||||
4 | 0.117 | 1,510,000 | 1,664,491 | 11.42 | 0.333 | 555,000 | ||||||
6 | 0.175 | 1,288,000 | 1,419,778 | 12.54 | 0.366 | 519,000 | ||||||
8 | 0.233 | 1,009,000 | 1,112,233 | 14.08 | 0.411 | 457,000 |
INFERRED UNDILUTED RESOURCE | ||||||||||||
Cutoff Grade | Mineralized Tonnage | Average Grade | Contained Gold | |||||||||
(g/tonne) | (oz/ton)* | (tonnes) | (tons) | (g/tonne) | (oz/ton) | Au (oz) | ||||||
2 | 0.058 | 2,060,000 | 2,270,763 | 10.5 | 0.307 | 697,000 | ||||||
4 | 0.117 | 1,925,000 | 2,121,951 | 11.0 | 0.322 | 683,000 | ||||||
6 | 0.175 | 1,628,000 | 1,794,564 | 12.2 | 0.354 | 636,000 | ||||||
8 | 0.233 | 1,340,000 | 1,477,098 | 13.3 | 0.387 | 571,000 |
Scheduled Resources | 1,056,000 tonnes measured and indicated grading 11.7 gpt Au (after dilution) and 1,132,000 tonnes inferred grading 10.8 gpt Au (after dilution) and a 7 gptcutoff |
Production Rate | 600 tonnes per day |
Grade | 11.3 grams per tonne (diluted 13%) |
Recoveries | 91% gold into concentrate |
Average Output | 72,000 oz gold per year |
Mine life | 10 years |
| |
Canarc Resource Corp. | Page 3 |
CANARC RESOURCE CORP. Management’s Discussion and Analysis For the Year ended December 31, 2011 (expressed in United States dollars) |
Scheduled Resources | 1,056,000 tonnes measured and indicated grading 11.7 gpt Au (after dilution) and 1,132,000 tonnes inferred grading 10.8 gpt Au (after dilution) and a 7 gptcutoff | |
Production Rate | 600 tonnes per day | |
Grade | 11.3 grams per tonne (diluted 13%) | |
Recoveries | 91% gold into concentrate | |
Average Output | 72,000 oz gold per year | |
Mine life | 10 years | |
The base case financial parameters are (in Canadian dollars): | ||
Gold Price | US$ 1200 per oz | |
Exchange Rate | US$ 1.00 = CA$ 1.00 | |
Capital Cost | $101.1 million | |
Cash Cost | US$ 481 per oz (excluding offsites) | |
Pre-Tax | After-Tax | |
Cash Flow (LoM) | $280.8 million | $188.1 million |
Net Present Value (NPV) | ||
NPV (5%) | $197.2 million | $129.8 million |
NPV (8%) | $160.0 million | $103.7 million |
NPV (10%) | $139.3 million | $ 89.0 million |
Pre-Tax | After Tax | |
Internal Rate of Return | 38.1% | 31.4% |
Payback Period | 2.41 years | 2.51 years |
New Polaris AFTER TAX CASH FLOW SENSITIVITY ANALYSIS | |||
Description of Sensitivity | Cash Flow | NPV @ 5% | NPV @ 8% |
CAD$ (000)s | CAD$ (000)s | CAD$ (000)s | |
Gold US$1,000/oz -17% | $104,287 | $63,920 | $45,788 |
Gold US$1,100/oz -8% | $146,197 | $96,981 | $74,907 |
Base Case US$1,200/oz | $188,107 | $129,819 | $103,707 |
Gold US$1,300/oz +8% | $230,017 | $162,657 | $132,507 |
Gold US$1,400/oz +17% | $271,927 | $195,347 | $161,090 |
Grade -10% | $137,815 | $90,403 | $69,132 |
Grade -5% | $162,961 | $110,116 | $86,427 |
Base Case Grade 11.25 gpt | $188,107 | $129,819 | $103,707 |
Grade +5% | $213,253 | $149,522 | $120,987 |
Grade +10% | $238,399 | $169,225 | $138,267 |
Capital Cost -10% | $193,775 | $135,816 | $109,850 |
Capital Cost -5% | $190,941 | $132,817 | $106,778 |
Base Case $101M Capital | $188,107 | $129,819 | $103,707 |
Capital Cost +5% | $185,273 | $126,821 | $100,635 |
Capital Cost +10% | $182,440 | $123,822 | $97,564 |
Operating Cost -10% | $208,383 | $145,818 | $117,799 |
Operating Cost -5% | $198,245 | $137,819 | $110,753 |
Base Case | $188,107 | $129,819 | $103,707 |
Operating Cost +5% | $177,969 | $121,819 | $96,661 |
Operating Cost +10% | $167,831 | $113,820 | $89,614 |
Exchange rate $0.90 -10% | $238,750 | $169,523 | $138,540 |
Exchange rate $0.95 -5% | $212,104 | $148,633 | $120,213 |
Base Case $1.00 | $188,107 | $129,819 | $103,707 |
Exchange rate $1.05 +5% | $166,384 | $112,788 | $88,765 |
Exchange rate $1.10 +10% | $146,625 | $97,297 | $75,174 |
Canarc Resource Corp. | Page 4 |
CANARC RESOURCE CORP. Management’s Discussion and Analysis For the Year ended December 31, 2011 (expressed in United States dollars) |
Canarc Resource Corp. | Page 5 |
CANARC RESOURCE CORP. Management’s Discussion and Analysis For the Year ended December 31, 2011 (expressed in United States dollars) |
Canarc Resource Corp. | Page 6 |
CANARC RESOURCE CORP. Management’s Discussion and Analysis For the Year ended December 31, 2011 (expressed in United States dollars) |
Canarc Resource Corp. | Page 7 |
CANARC RESOURCE CORP. Management’s Discussion and Analysis For the Year ended December 31, 2011 (expressed in United States dollars) |
Years Ended December 31, | ||||||||||||
(in $000s except per share amounts) | 2011 | 2010 | 2009 (1) | |||||||||
Total revenues | $ | - | $ | - | $ | - | ||||||
Loss before discontinued operations and extraordinary items: | ||||||||||||
(i) Total | $ | (1,209 | ) | $ | (1,396 | ) | $ | (1,579 | ) | |||
(ii) Basic per share | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.02 | ) | |||
(iii) Fully diluted per share | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.02 | ) | |||
Net loss: | ||||||||||||
(i) Total | $ | (1,209 | ) | $ | (1,396 | ) | $ | (1,579 | ) | |||
(ii) Basic per share | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.02 | ) | |||
(iii) Fully diluted per share | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.02 | ) | |||
Total assets | $ | 13,277 | $ | 13,900 | $ | 13,215 | ||||||
Total long-term liabilities | $ | - | $ | - | $ | - | ||||||
Dividends per share | $ | - | $ | - | $ | - | ||||||
Canarc Resource Corp. | Page 8 |
CANARC RESOURCE CORP. Management’s Discussion and Analysis For the Year ended December 31, 2011 (expressed in United States dollars) |
Canarc Resource Corp. | Page 9 |
CANARC RESOURCE CORP. Management’s Discussion and Analysis For the Year ended December 31, 2011 (expressed in United States dollars) |
The deferred income tax recovery is a provision for the difference between the accounting basis and tax basis of assets and tax pools, and for the recognition at the date of actual renunciation, by a reduction in the amount included in share capital for the flow-through shares for the deferred income taxes related to the deductions foregone by the Company. In 2009, the Company raised flow-through equity financing from a private placement for approximately CAD$480,000 of which CAD$475,239 were renounced on February 24, 2010. On February 22, 2011, the Company renounced CAD$4,761 in exploration expenditures for flow-through purposes, resulting in a deferred income tax expense of $1,200.
British Columbia (Canada) | Yukon (Canada) | |||||||
(in $000s) | New Polaris | Windfall Hills | Devil's Thumb | Tay-LP | Total | |||
Acquisition Costs: | ||||||||
Balance, January 1, 2010 | $ 3,605 | $ - | $ - | $ 25 | $ 3,630 | |||
Additions | - | - | - | 49 | 49 | |||
Balance, December 31, 2010 | 3,605 | - | - | 74 | 3,679 | |||
Additions | - | 67 | 6 | 72 | 145 | |||
Adjustments from change in functional currency | 295 | - | - | - | 295 | |||
Balance, December 31, 2011 | 3,900 | 67 | 6 | 146 | 4,119 | |||
Deferred Exploration Expenditures: | ||||||||
Balance, January 1, 2010 | 8,556 | - | - | 440 | 8,996 | |||
Additions, net of recoveries | 104 | - | - | (55) | 49 | |||
Balance, December 31, 2010 | 8,660 | - | - | 385 | 9,045 | |||
Additions | 166 | 106 | 15 | 48 | 335 | |||
Adjustments from change in functional currency | (541) | - | - | (10) | (551) | |||
Balance, December 31, 2011 | 8,285 | 106 | 15 | 423 | 8,829 | |||
Mineral property interests, December 31, 2011 | $ 12,185 | $ 173 | $ 21 | $ 569 | $ 12,948 | |||
At December 31, 2011, to maintain its interest and/or to fully exercise the options under various property agreements covering its property interests, the Company must incur exploration expenditures on the properties and/or make payments in the form of cash and/or shares to the optionors as follows:
Canarc Resource Corp. | Page 10 |
CANARC RESOURCE CORP. Management’s Discussion and Analysis For the Year ended December 31, 2011 (expressed in United States dollars) |
Option | Option | Exploration | Advance Royalty | Net Smelter | Number of | |||||||||||||||
Payments | Payments | Commitments (1) | Payments | Reduction | Shares | |||||||||||||||
(CAD$000s) | (US$000s) | (CAD$000s) | (CAD$000s) | (US$000s) | ||||||||||||||||
New Polaris: | ||||||||||||||||||||
Net profit interest reduction | 150,000 | |||||||||||||||||||
or buydown | ||||||||||||||||||||
Tay-LP: | ||||||||||||||||||||
October 31, 2012 | $ | 25 | $ | 215 | ||||||||||||||||
October 31, 2013 | 850 | 600 | ||||||||||||||||||
Annual advance royalty payments | ||||||||||||||||||||
until commercial production | $ | 25 | ||||||||||||||||||
Net smelter reduction from 3% to 1.5% | $ | 1,950 | ||||||||||||||||||
Windfall Hills: | ||||||||||||||||||||
Atna properties: | ||||||||||||||||||||
April 12, 2012 | $ | 100 | ||||||||||||||||||
April 12, 2013 | 150 | |||||||||||||||||||
April 12, 2014 | 200 | |||||||||||||||||||
April 12, 2015 | 250 | |||||||||||||||||||
Dunn properties: | ||||||||||||||||||||
April 20, 2012 | 25 | |||||||||||||||||||
April 20, 2013 | 35 | |||||||||||||||||||
April 20, 2014 | 50 | |||||||||||||||||||
April 20, 2015 | 125 | |||||||||||||||||||
$ | 1,110 | $ | 700 | $ | 815 | $ | 25 | $ | 1,950 | 150,000 |
Canarc Resource Corp. | Page 11 |
CANARC RESOURCE CORP. Management’s Discussion and Analysis For the Year ended December 31, 2011 (expressed in United States dollars) |
(in $000s except | 2011 | 2010 | ||||||||||||||||||||||||||||||
per share amounts) | Dec 31 | Sept 30 | June 30 | Mar 31 | Dec 31 | Sept 30 | June 30 | Mar 31 | ||||||||||||||||||||||||
Total revenues | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||
(Loss) income before | ||||||||||||||||||||||||||||||||
discontinued operations and | ||||||||||||||||||||||||||||||||
extraordinary items: | ||||||||||||||||||||||||||||||||
(i) Total | $ | (323 | ) | $ | (283 | ) | $ | (280 | ) | $ | (323 | ) | $ | (1,473 | ) | $ | 29 | $ | 84 | $ | (36 | ) | ||||||||||
(ii) Basic per share | $ | - | $ | - | $ | (0.01 | ) | $ | - | $ | (0.02 | ) | $ | - | $ | - | $ | - | ||||||||||||||
(iii) Fully diluted | ||||||||||||||||||||||||||||||||
per share | $ | - | $ | - | $ | (0.01 | ) | $ | - | $ | (0.02 | ) | $ | - | $ | - | $ | - | ||||||||||||||
Net (loss) income: | ||||||||||||||||||||||||||||||||
(i) Total | $ | (323 | ) | $ | (283 | ) | $ | (280 | ) | $ | (323 | ) | $ | (1,473 | ) | $ | 29 | $ | 84 | $ | (36 | ) | ||||||||||
(ii) Basic per share | $ | - | $ | - | $ | (0.01 | ) | $ | - | $ | (0.02 | ) | $ | - | $ | - | $ | - | ||||||||||||||
(iii) Fully diluted | ||||||||||||||||||||||||||||||||
per share | $ | - | $ | - | $ | (0.01 | ) | $ | - | $ | (0.02 | ) | $ | - | $ | - | $ | - | ||||||||||||||
Total assets | $ | 13,277 | $ | 13,019 | $ | 14,203 | $ | 14,349 | $ | 13,900 | $ | 13,016 | $ | 13,008 | $ | 12,989 | ||||||||||||||||
Total long-term liabilities | $ | - | $ | 113 | $ | 123 | $ | 123 | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||
Dividends per share | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||
December 31, | ||||||||
(in $000s) | 2011 | 2010 | ||||||
Cash | $ | 45 | $ | 592 | ||||
Working capital (deficiency) | $ | (577 | ) | $ | (1,149 | ) | ||
Canarc Resource Corp. | Page 12 |
CANARC RESOURCE CORP. Management’s Discussion and Analysis For the Year ended December 31, 2011 (expressed in United States dollars) |
Canarc Resource Corp. | Page 13 |
CANARC RESOURCE CORP. Management’s Discussion and Analysis For the Year ended December 31, 2011 (expressed in United States dollars) |
Net balance receivable (payable) | ||||||||||||||||||
($000s) | Year ended December 31, | as at December 31, | ||||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||||
Key management compensation: | ||||||||||||||||||
Executive salaries and remuneration | $ | 473 | $ | 291 | $ | (14 | ) | $ | - | |||||||||
Directors fees | 40 | 39 | (146 | ) | (109 | ) | ||||||||||||
Share-based payments | 212 | 116 | - | - | ||||||||||||||
$ | 725 | $ | 446 | $ | (160 | ) | $ | (109 | ) | |||||||||
Legal fees incurred to a law firm in which a senior officer of the Company is a partner | $ | 72 | $ | 71 | $ | 83 | $ | 62 | ||||||||||
Net office, sundry, rent and salary allocations recovered from (incurred to) company(s) sharing certain common director(s) | $ | 55 | $ | 88 | $ | 16 | $ | (4 | ) | |||||||||
Canarc Resource Corp. | Page 14 |
CANARC RESOURCE CORP. Management’s Discussion and Analysis For the Year ended December 31, 2011 (expressed in United States dollars) |
Canarc Resource Corp. | Page 15 |
CANARC RESOURCE CORP. Management’s Discussion and Analysis For the Year ended December 31, 2011 (expressed in United States dollars) |
(i) | Warrants: |
(ii) | Share-based payments: |
Canarc Resource Corp. | Page 16 |
CANARC RESOURCE CORP. Management’s Discussion and Analysis For the Year ended December 31, 2011 (expressed in United States dollars) |
(iii) | Income tax: |
(d) | Reconciliation from Canadian GAAP to IFRS: |
Canarc Resource Corp. | Page 17 |
CANARC RESOURCE CORP. Management’s Discussion and Analysis For the Year ended December 31, 2011 (expressed in United States dollars) |
(i) | The January 1, 2010 Canadian GAAP consolidated statement of financial position has been reconciled to IFRS as follows: |
January 1, 2010 | ||||||||||
Canadian GAAP | Effect of Transition to IFRS | IFRS | ||||||||
ASSETS | ||||||||||
CURRENT ASSETS | ||||||||||
Cash | $ | 155 | $ | — | $ | 155 | ||||
Receivables and prepaids | 193 | 193 | ||||||||
Royalty receivable - current portion | 50 | 50 | ||||||||
Total Current Assets | 398 | — | 398 | |||||||
NON-CURRENT ASSETS | ||||||||||
Mineral properties | 12,626 | 12,626 | ||||||||
Equipment | 2 | 2 | ||||||||
Royalty receivable - long-term portion | 46 | 46 | ||||||||
Long-term investments | 143 | 143 | ||||||||
Total Non-Current Assets | 12,817 | — | 12,817 | |||||||
Total Assets | $ | 13,215 | $ | — | $ | 13,215 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||
CURRENT LIABILITIES | ||||||||||
Accounts payable and accrued liabilities | $ | 607 | $ | — | $ | 607 | ||||
Notes payable | 63 | 63 | ||||||||
Flow-through obligation | 377 | 377 | ||||||||
Derivative liability for warrants | — | 193 | 193 | |||||||
Total Current Liabilities | 1,047 | 193 | 1,240 | |||||||
SHAREHOLDERS' EQUITY | ||||||||||
Share capital | 56,436 | 56,436 | ||||||||
Contributed surplus | 2,354 | (2,354 | ) | — | ||||||
Reserve for share-based payments | — | 1,316 | 1,316 | |||||||
Deficit | (46,622 | ) | 845 | (45,777 | ) | |||||
Total Shareholders' Equity | 12,168 | (193 | ) | 11,975 | ||||||
Total Liabilities and Shareholders' Equity | $ | 13,215 | $ | — | $ | 13,215 |
Canarc Resource Corp. | Page 18 |
CANARC RESOURCE CORP. Management’s Discussion and Analysis For the Year ended December 31, 2011 (expressed in United States dollars) |
(ii) | The December 31, 2010 Canadian GAAP consolidated statement of financial position has been reconciled to IFRS as follows: |
December 31, 2010 | ||||||||||
Canadian GAAP | Effect of Transition to IFRS | IFRS | ||||||||
ASSETS | ||||||||||
CURRENT ASSETS | ||||||||||
Cash | $ | 592 | $ | - | $ | 592 | ||||
Receivables and prepaids | 105 | 105 | ||||||||
Marketable securities | 25 | 25 | ||||||||
Royalty receivable - current portion | 50 | 50 | ||||||||
Total Current Assets | 772 | - | 772 | |||||||
NON-CURRENT ASSETS | ||||||||||
Mineral properties | 12,724 | 12,724 | ||||||||
Deposit on asset acquisition | 300 | 300 | ||||||||
Equipment | 10 | 10 | ||||||||
Royalty receivable - long-term portion | - | - | ||||||||
Long-term investments | 94 | 94 | ||||||||
Total Non-Current Assets | 13,128 | - | 13,128 | |||||||
Total Assets | $ | 13,900 | $ | - | $ | 13,900 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||
CURRENT LIABILITIES | ||||||||||
Accounts payable and accrued liabilities | $ | 532 | $ | - | $ | 532 | ||||
Notes payable | 81 | 81 | ||||||||
Flow-through obligation | 226 | 226 | ||||||||
Derivative liability for warrants | - | 1,082 | 1,082 | |||||||
Total Current Liabilities | 839 | 1,082 | 1,921 | |||||||
Future income tax liability | 120 | (120 | ) | - | ||||||
Total Liabilities | 959 | 962 | 1,921 | |||||||
SHAREHOLDERS' EQUITY | ||||||||||
Share capital | 57,660 | 25 | 57,685 | |||||||
Contributed surplus | 2,483 | (2,483 | ) | - | ||||||
Accumulated other comprehensive income | 10 | 10 | ||||||||
Reserve for share-based payments | - | 1,259 | 1,259 | |||||||
Deficit | (47,212 | ) | 237 | (46,975 | ) | |||||
Total Shareholders' Equity | 12,941 | (962 | ) | 11,979 | ||||||
Total Liabilities and Shareholders' Equity | $ | 13,900 | $ | - | $ | 13,900 |
Canarc Resource Corp. | Page 19 |
CANARC RESOURCE CORP. Management’s Discussion and Analysis For the Year ended December 31, 2011 (expressed in United States dollars) |
(iii) | The Canadian GAAP consolidated statement of comprehensive loss for the year ended December 31, 2010 has been reconciled to IFRS as follows: |
December 31, 2010 | ||||||||||
Canadian GAAP | Effect of Transition to IFRS | IFRS | ||||||||
Expenses: | ||||||||||
Amortization | $ | 1 | $ | - | $ | 1 | ||||
Corporate development | 12 | 12 | ||||||||
Employee and director remuneration | 383 | 383 | ||||||||
Foreign exchange loss | 43 | 43 | ||||||||
General and administrative | 308 | 308 | ||||||||
Shareholder relations | 62 | 62 | ||||||||
Share-based payments | 130 | 13 | 143 | |||||||
Loss before the undernoted | (939 | ) | (13 | ) | (952 | ) | ||||
Gain on disposition of long-term investment | 257 | 257 | ||||||||
Accretion of royalty receivable | 4 | 4 | ||||||||
Write-off of equipment | (1 | ) | (1 | ) | ||||||
Unrealized loss from derivative warrant liability | — | (913 | ) | (913 | ) | |||||
Due diligence costs on asset acquisition | (20 | ) | (20 | ) | ||||||
Interest expense | (14 | ) | (14 | ) | ||||||
Flow-through financing costs | 150 | 150 | ||||||||
Loss before income tax | (563 | ) | (926 | ) | (1,489 | ) | ||||
Future income tax expense | (27 | ) | 120 | 93 | ||||||
Net loss for the year | (590 | ) | (806 | ) | (1,396 | ) | ||||
Other comprehensive (loss) income: | ||||||||||
Unrealized gain on available-for-sale securities | 10 | 10 | ||||||||
Comprehensive loss for the year | $ | (580 | ) | $ | (806 | ) | $ | (1,386 | ) | |
Basic and diluted loss per share | $ | (0.01 | ) | $ | (0.02 | ) | ||||
Weighted average number of common shares outstanding | 82,446,825 | 82,446,825 |
| |
Canarc Resource Corp. | Page 20 |
CANARC RESOURCE CORP. Management’s Discussion and Analysis For the Year ended December 31, 2011 (expressed in United States dollars) |
- | cash as financial assets at fair value through profit or loss (“FVTPL”), |
- | marketable securities and long term investments as available-for-sale(“AFS”) financial assets, |
- | receivables as loans and receivables, |
- | royalties receivable as loans and receivables, |
- | accounts payable and accrued liabilities, notes payables and flow-through obligationsas other financial liabilities, and |
- | derivative liability for warrants as derivative financial liabilities. |
| |
Canarc Resource Corp. | Page 21 |
CANARC RESOURCE CORP. Management’s Discussion and Analysis For the Year ended December 31, 2011 (expressed in United States dollars) |
Held in Canadian dollars | ||||
Cash | $ | 32 | ||
Accounts payable and accrued liabilities | (74 | ) | ||
Net assets (liabilities) | $ | (42 | ) |
(iii) | Other price risk: |
| |
Canarc Resource Corp. | Page 22 |
CANARC RESOURCE CORP. Management’s Discussion and Analysis For the Year ended December 31, 2011 (expressed in United States dollars) |
(a) | may be found on SEDAR at www.sedar.com; |
(b) | may be found in the Company’s annual information form; and |
(c) | is also provided in the Company’s consolidatedfinancial statements for the year ended December 31, 2011. |
Number of Shares | Amount | ||||||
(in $000s) | |||||||
Balance at December 31, 2010 | 90,985,890 | $ | 57,685 | ||||
Issued: | |||||||
Conversion of convertible debenture | 1,282,051 | 291 | |||||
Exercise of stock options | 299,000 | 54 | |||||
Exercise of warrants | 1,313,650 | 205 | |||||
Property acquisition | 215,580 | 24 | |||||
Renunciation of flow-through expenditures | - | (1 | ) | ||||
Balance at December 31, 2011 | 94,096,171 | $ | 58,258 |
| |
Canarc Resource Corp. | Page 23 |
CANARC RESOURCE CORP. Management’s Discussion and Analysis For the Year ended December 31, 2011 (expressed in United States dollars) |
December 31, 2011 | |||||||
Number of Shares | Weighted average exercise price (CAD$) | ||||||
Outstanding balance, beginning of year | 9,410,000 | $ | 0.31 | ||||
Granted | 2,220,000 | $ | 0.14 | ||||
Exercised | (299,000 | ) | $ | 0.11 | |||
Forfeited | (16,000 | ) | $ | 0.10 | |||
Expired | (1,200,000 | ) | $ | 0.69 | |||
Outstanding balance, end of year | 10,115,000 | $ | 0.24 |
Exercise Prices (CAD$) | Expiry Dates | Oustanding at December 31, 2010 | Issued | Exercised | Expired | Oustanding at December 31, 2011 | ||||||||||||||
$ | 0.15 | April 22, 2011 | 39,410 | - | (31,675 | ) | (7,735 | ) | - | |||||||||||
$ | 0.15 | October 22, 2011 | 202,160 | - | - | (202,160 | ) | - | ||||||||||||
$ | 0.15 | April 22, 2011 | 2,319,140 | - | (1,185,975 | ) | (1,133,165 | ) | - | |||||||||||
$ | 0.165 | May 9, 2011 | 128,410 | - | (96,000 | ) | (32,410 | ) | - | |||||||||||
$ | 0.22 | June 13, 2012 | 4,250,000 | - | - | - | 4,250,000 | |||||||||||||
6,939,120 | - | (1,313,650 | ) | (1,375,470 | ) | 4,250,000 |
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Canarc Resource Corp. | Page 24 |
CANARC RESOURCE CORP. Management’s Discussion and Analysis For the Year ended December 31, 2011 (expressed in United States dollars) |
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Canarc Resource Corp. | Page 25 |
CANARC RESOURCE CORP. Management’s Discussion and Analysis For the Year ended December 31, 2011 (expressed in United States dollars) |
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CANARC RESOURCE CORP. Management’s Discussion and Analysis For the Year ended December 31, 2011 (expressed in United States dollars) |
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Canarc Resource Corp. | Page 27 |
CANARC RESOURCE CORP. Management’s Discussion and Analysis For the Year ended December 31, 2011 (expressed in United States dollars) |
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Canarc Resource Corp. | Page 28 |
CANARC RESOURCE CORP. Management’s Discussion and Analysis For the Year ended December 31, 2011 (expressed in United States dollars) |
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Canarc Resource Corp. | Page 29 |