ANNOUNCEMENT OF RESULTS FOR THE SECOND QUARTER ENDED JUNE 30, 2021
CALGARY/HONG KONG – Sunshine Oilsands Ltd. (the“Corporation” or “Sunshine”) (HKEX: 2012) today announced its financial results for the second quarter ended June 30, 2021. The Corporation’s condensed consolidated interim financial statements, notes to the condensed consolidated interim financial statements and management’s discussion and analysis have been filed on SEDAR (www.sedar.com) and with The Stock Exchange of Hong Kong Limited (the “Hong Kong Stock Exchange”) (www.hkexnews.hk) and are available on the Corporation’s website (www.sunshineoilsands.com). All figures used in this release are in Canadian dollars unless otherwise stated.
Message to Shareholders
Sunshine’s Capital Raising Activities during 2Q21
On April 1, 2020, the Corporation and a company wholly owned by Mr. Kwok Ping Sun entered into a Subscription Agreement for convertible bonds (“Chairman CB”) in an aggregate principal amount of HK$ 72,000,000. With an initial conversion price of HK$0.632 per share, a maximum of 113,924,051 new Class “A” common shares were to be allotted and issued upon the full conversion of the CB. The CB interest rate was 8% per annum and would mature in two years. The Subscription has been approved by the independent shareholders at the Special General Meeting on May 25, 2020. The subscription was completed on June 15, 2020. The entire proceeds were used for financing general working capital and repayment of debts. On October 1, 2020, the Corporation has received notice for conversion from the Subscriber. The Conversion and the Whitewash Waiver was then approved by the independent shareholders at the Special General Meeting on March 5, 2021. On April 7, 2021, the Conversion was completed and 113,924,051 new shares were duly allotted and issued to the Subscriber.
Summary of Financial Figures
For 2Q21, net Dilbit sales remained $0 as for the same period of 2020 mainly due to suspension of production in 2Q20. Net recurring loss was CAD $14.9 million for 2Q21.
As at June 30, 2021 and December 31, 2020, the Corporation notes the following selected balance sheet figures.
|
(Canadian $000s) |
|
June 30, 2021 |
|
December 31, 2020 |
|
Cash |
|
262 |
|
838 |
|
Trade and other receivables |
|
3,278 |
|
1,636 |
|
Exploration and evaluation assets |
|
255,593 |
|
256,195 |
|
Property, plant and equipment |
|
475,437 |
|
481,825 |
|
Total liabilities |
|
604,669 |
|
596,240 |
|
Shareholders’ equity |
$ |
148,756 |
|
165,420 |
2021 Outlook
Sunshine will continue to focus on cost controls and carefully monitor developments in crude oil markets as well as the development of COVID-19 pandemic in North America. The Corporation is also continuing with its joint venture for re-activation of the Muskwa and Godin Area activities as international oil price recovers.
|
Kwok Ping Sun |
|
Gloria Ho |
|
Executive Chairman |
|
Chief Financial Officer |
About Sunshine Oilsands Ltd.
The Corporation is a Calgary based public corporation, listed on the Hong Kong Stock Exchange since May 1, 2012. The Corporation is focused on the development of its significant holdings of oil sands and heavy oil leases in the Athabasca oil sands region. The Corporation owns interests in oil sands and petroleum and natural gas leases in the Athabasca region of Alberta. The Corporation is currently focused on executing milestone undertakings in the West Ells project area. West Ells Phase 1 has an initial production target of 5,000 barrels per day.
For further enquiries, please contact:
Kwok Ping Sun
Executive Chairman
Tel: + 852-3188-9298
Gloria Ho
Chief Financial Officer
Tel: + 852-3188-9298
Email: [email protected]
Website: www.sunshineoilsands.com