Metalore Resources Limited (MET) 2009年年度報告「TSX-V」.pdf

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1、METALORE RESOURCES LIMITEDGEORGE W.CHILIAN,BAPresident,CEO and Managing Director.Vittoria,OntarioJOHN A.RYAN,CGAInterim CFO.Simcoe,OntarioBRUCE A.DAVIS,MADirector.Grand Rapids,MinnesotaTIMOTHY J.CRONKWRIGHT,BADirector.Simcoe,OntarioMICHAEL A.DEHN,MScDirector.Oakville,OntarioJOHN C.McVICAR,BADirector

2、.Brantford,OntarioPATRICIA SHELANDER,MScDirector.St.Paul,MinnesotaDAVID J.SLATER,MADirector.Lasalle,OntarioOfficers and DirectorsExecutive Office and Natural Gas DivisionRural Route#1.Vittoria,OntarioProduction Manager andHydrocarbon Geologist JONATHAN CHILIAN,BSc.Vittoria,OntarioAssistantProduction

3、 ManagerCARL CHILIAN.Simcoe,OntarioBankersROYAL BANK OF CANADA.Simcoe,OntarioAccountantHOWARD WALTON,BSc,ACMA,CMA.Simcoe,OntarioAuditorsNEAL,PALLETT AND TOWNSEND,LLP.London,OntarioChartered AccountantsRegistrar andTransfer AgentCOMPUTERSHARE TRUST.Toronto,OntarioShare Listingand SymbolTORONTO STOCK

4、EXCHANGE(TSX),“MET”.Toronto,Ontario(Over the Counter,“MTLRF”).United StatesShare Price Range2008 High$21.30 (CD).Low$4.00 (CD)Annual MeetingBEST WESTERN LITTLE RIVER INN.Simcoe,OntarioSkylight RoomSaturday,September 12,2009,12:30 p.m.Website and E 12METALORE RESOURCES LIMITEDSTATEMENT OF INCOMEAS AT

5、 MARCH 31See accompanying notesApproved on behalf of the Board:John A.Ryan,John C.McVicar,CFODirectorMETALORE RESOURCES LIMITEDBALANCE SHEET AS AT MARCH 31See accompanying notes34METALORE RESOURCES LIMITEDSTATEMENT OF CASH FLOWSYEAR ENDED MARCH 3120001999Operating activitiesNet income(loss).$452,792

6、$(2,788,873)Add(subtract)items not involving cash:Depletion.94,00076,000Writedown of mining claims.5,500,000Deferred income taxes.219,000(2,321,000)_Cash flow from operations before changes in non-cash working capital765,792466,127_Changes in non-cash working capital itemsAccounts receivable.(26,874

7、)39,771Inventory of pipe and supplies,at cost.5,4202,200Accounts payable and accrued royalties.4,120(161,862)Capital taxes payable.24,00024,056Municipal taxes payable.47,12742,255Large corporations and minimal provincial taxes payable.(42,900)_Net change in non-cash working capital items.53,793(96,4

8、80)_Cash flows from operating activities.819,585369,647_Financing activitiesDecrease in bank indebtedness.(97,493)Decrease in due to shareholders.(473,086)(195,725)Decrease in long-term debt.(790,507)Sale of mining claims(note 3).2,760,000_Cash flows from financing activities.(473,086)1,676,275_Inve

9、sting in capital activitiesMining exploration costs(notes 1c,4b,and 4 c).69,214(148,214)Natural gas development costs.(528,060)(366,572)Renewable fuel(Ethanol)costs.(11,410)(88,884)Investment in marketable securities.(1,260,000)_Cash flows from investing activities.(470,256)(1,863,670)_Net change in

10、 cash and cash equivalents during the year(123,757)182,252Cash and cash equivalents,beginning of year.182,252nd of year.$58,495$182,252 operations per share.$._See accompanying notes5METALORE RESOURCES LIMITEDSTATEMENT OF COMPREHENSIVE INCOMEYEAR ENDED MARCH 31See accompanying notesSTATEMENT OF RETA

11、INED EARNINGSYEAR ENDED MARCH 31See accompanying notesNeal,Pallett&Townsend LLPChartered Accountants,Licensed Public AccountantsLondon,CanadaJune 4,2009AUDITORS REPORT We have audited the balance sheets of Metalore Resources Limited as at March 31,2009 and 2008 and the statements ofincome,retained e

12、arnings,comprehensive income and cash flows for the years then ended.These financial statements are theresponsibility of the companys management.Our responsibility is to express an opinion on these financial statements basedon our audits.We conducted our audits in accordance with Canadian generally

13、accepted auditing standards.Those standards require that weplan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement.An audit includes examining,on a test basis,evidence supporting the amounts and disclosures in the financial statemen

14、ts.Anaudit also includes assessing the accounting principles used and significant estimates made by management,as well asevaluating the overall financial statement presentation.In our opinion,these financial statements present fairly,in all material respects,the financial position of the company as

15、at March31,2009 and 2008 the results of its operations and its cash flows for the years then ended in accordance with Canadiangenerally accepted accounting principles.61.NATURE OF OPERATIONS Metalore Resources Limited is a junior resource company dedicated to natural gas production and gold explorat

16、ion in Ontario.2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES These financial statements have been prepared in accordance with Canadian generally accepted accounting principles,the more significant of which are summarized below.Revenue recognition Sales of natural gas are recognized when title passes

17、to the customer,normally at the transporters(Union Gas Limited)pipeline delivery point,and collectability is reasonably assured.Cash and cash equivalents Cash and cash equivalents are comprised of cash and short term investments that have a fixed maturity date less than three months from the date of

18、 acquisition.InventoryInventory consists of pipe,fittings and processing supplies and is stated at the lower of cost and net realizable value,with the cost of pipe and fittings determined on a first in,first out basis.Natural gas properties The Company owns and/or controls approximately 40,000 acres

19、 of petroleum,natural gas and mineral leases in Charlotteville,Walsingham and Houghton townships in Norfolk County,Ontario,and follows the full cost method of accounting for natural gas properties whereby all acquisition and development costs relating to the properties are capitalized.These costs ar

20、e depleted by theunit of production method based on estimated proven drilled gas reserves.The ratio of production to proved reserves before royalties determines the proportion of depletable costs to be expensed.The natural gas reserves of the Company are assessed annually.Total capitalized costs net

21、 of accumulated depletion and future income taxes is limited to an amount equal to the estimated future net revenue from proven reserves at year end,less estimatedfuture production related general and administrative expenses,financing costs and income taxes.At March 31,2009 and 2008,no write down wa

22、s required.The prices used to estimate future cashflows are based on published forecasted prices for the NYMEX adjusted for the historical price differential between Metalores gas sales and the benchmark.Forecasted prices for the followingsix calendar years are:Remainder of20099.37per Mcf201210.86pe

23、r Mcf201010.03per Mcf201311.33per Mcf201110.42per Mcf201411.57per McfThereafter escalation at a rate of 2%Mining properties The Company owns a 1%net smelter return on 18 claims in the Brookbank and Beardmore area of Ontario and a 26%participating interest in approximately 600 contiguous mining claim

24、s inSandra,Irwin,Walters,Leduc and LeGault townships in Northwestern Ontario which are subject to a working option agreement with Ontex Resources Limited(Ontex).The Company also owns a100%interest in 134 mining claims in the Sioux Narrows(Cedartree Lake)area of Northwestern Ontario.Acquisition and e

25、xploration costs are capitalized.During the year,general and administrativecosts of$5,074(2008-$4,378)and exploration costs of$20,720(2008-$16,571)were capitalized.Disposals of mining property and equipment are offset against the acquisition costs.If explorationactivities are followed by production,

26、capitalized costs will be amortized on the unit of production method based on the estimated reserves in the area.If exploration activities are unsuccessful andthe area is abandoned,all capitalized costs relating to the area will be written off.Mining properties are assessed annually or as economic e

27、vents dictate,for potential write down.Financial instruments The Company has classified its marketable securities and long term investments as available for sale assets.Accounts receivable is classified as loans and receivables.Cash is classified as heldfor trading while accounts payable and accrued

28、 liabilities,income taxes payable and due to shareholders are classified as other financial liabilities.Impairment test The Company performs an impairment test annually to determine the recoverability of capitalized costs associated with reserves.Should the amount of the capitalized costs exceed the

29、 amountof the reserves,the resulting impairment loss will be recognized in earnings.The amount of the impairment loss is determined by making assumptions about future reserves,the price of naturalgas and future costs all of which are subject to uncertainty.By their nature,these estimates are subject

30、 to measurement uncertainty and changes in these estimates may have a material impacton the financial statements of future periods.Asset retirement obligation The Company recognizes the fair value of the estimated asset retirement obligations on the balance sheet when a reasonable estimate of fair v

31、alue can be made.The fair value of the estimatedobligation associated with the retirement and reclamation of tangible long lived assets is recorded in the period the related assets are put into use with a corresponding increase to the carryingamount of the related assets.This increase in capitalized

32、 costs is depleted to income on a basis consistent with the underlying assets.Subsequent changes in the estimated fair value of the assetretirement obligation are capitalized and depleted over the remaining useful life of the underlying asset.The asset retirement obligation liabilities are carried o

33、n the balance sheet at their discounted present value and are accreted over time for the change in their present value.Future income taxes The liability method of tax allocation is used in accounting for income taxes.Under this method,future tax assets and liabilities are determined based on differe

34、nces between the financial reportingand tax basis of assets and liabilities,and measured using the substantially enacted tax rates and laws that will be in effect when the differences are expected to reverse.Stock options The Company uses the fair value method using the Black Scholes option pricing

35、model to account for stock options granted to employees.Under the fair value method,the Company recognizesestimated compensation expense related to stock options over the vesting period of the options granted,with the related credit being charged to contributed surplus.Upon exercise of these stockop

36、tions,amounts previously credited to contributed surplus are reversed and credited to share capital.Earnings per share Earnings per share has been calculated using the weighted average common shares outstanding.Fully diluted earnings per share reflects the maximum possible dilution from the potentia

37、l exerciseof stock options and is anti dilutive for fiscal 2009 and fiscal 2008.Changes in accounting policies Effective April 1,2008,the Company adopted the following new CICA Handbook sections:Section 3031-Inventories.The section provides guidance regarding the measurement of inventories including

38、 the allocation of costs such as overhead and fixed production costs and allows forthe reversal of previous impairment.The section was adopted retrospectively and had no impact on these financial statements.Section 3863,Financial Instruments-Presentation,Section 1535,Capital Disclosures and Section

39、1400,General Standards of Financial Statement Presentation.The only impact of these sectionswas a requirement for additional disclosure in the notes to the financial statements.METALORE RESOURCES LIMITEDNOTES TO FINANCIAL STATEMENTSYEARS ENDED MARCH 31,20097METALORE RESOURCES LIMITEDNOTES TO FINANCI

40、AL STATEMENTSYEARS ENDED MARCH 31,2009(Continued from previous page)Future changes in significant accounting policies The following accounting standards have been issued by the CICA but are not yet effective.The company is currently evaluating the effect of adopting these standards on their financia

41、l statements.In February 2008,the CICA issued Section 3064,Goodwill and intangible assets,(Section 3064)replacing Section 3062,Goodwill and other intangible assets(Section 3062)and Section 3450,Research and development costs.Various changes have been made to other standards to be consistent with the

42、 new Section 3064.Section 3064 will be applicable to financial statements relatingto fiscal years beginning on or after October 1,2008.Accordingly,the Company will adopt the new standards for its fiscal year beginning April 1,2009.Section 3064 establishes standards for therecognition,measurement,pre

43、sentation and disclosure of goodwill and of intangible assets.Standards concerning goodwill are unchanged from the standards included in the previous Section3062.The Company is currently evaluating the impact of the adoption of this new Section on its financial statements but does not anticipate tha

44、t the adoption of this Section will have a materialimpact on the financial statements.The Accounting Standards Board confirmed that public companies will be required to report under IFRS effective for all interim and annual financial statements for fiscal years beginning on or afterJanuary 1,2011.Th

45、e transition date of January 1,2011 will require the restatement of comparative balances for the year ended December 31,2010.While the Company has commenced assessingthe adoption of IFRS for 2011,the impact of the change to IFRS cannot reasonably be estimated at this time.Measurement uncertainty The

46、 preparation of financial statements in conformity with Canadian generally accepted accounting principles requires management to make estimates and assumptions that affect the reportedamount of assets and liabilities,disclosure of contingent assets and liabilities at the date of the financial statem

47、ents and the reported amounts of revenues and expenses during the period.Suchestimates are periodically reviewed and any adjustments necessary are reported in earnings in the period in which they become known.Actual results could differ from these estimates.3.MARKETABLE SECURITIES 20092008CostFMVCos

48、tFMVMarketable securities$689,726$464,320$664,460$680,9464.LONG TERM INVESTMENTS In 1999,the Company purchased 3,600,000 shares of Ontex at$0.35 per share,for total consideration of$1,260,000.In fiscal 2002,the Company purchased an additional 600,000 shares at$0.30per share on a flow through basis f

49、or$180,000.At year end,the market value of the Ontex shares is$1,029,000(2008-$1,344,000).The investment in Ontex is currently treated as available forsale and as a result it is presented at its fair market value in accordance with CICA Handbook Section 3855.5.NATURAL GAS PROPERTIES 20092008CostAccu

50、mulated amortizationNet book valueNet book valueGas wells,transmission lines and leases$14,621,150$4,258,504$10,362,646$10,016,927A portion of general and administrative costs of$19,902(2008-$28,196)and production costs of$288,783(2008-$267,908)were capitalized to natural gas properties,the Companys

51、 core business.6.RELATED PARTY TRANSACTIONS Related party transactions are measured at the exchange amount,which is the amount of consideration established and agreed to by the related parties.The Company has an agreement with Southern Ontario Natural Gas Limited(SONG),a private company controlled b

52、y the Companys president,George W.Chilian,to provide technical servicesfor the gas operations for an annual fee of$78,000 plus 10%of the Companys annual gas revenue in excess of$1,000,000.The fiscal 2009 expense charged by SONG amounted to$188,000(2008-$150,920).The Company and SONG also have a join

53、t ownership(52%and 48%respectively)in natural gas properties in Houghton Township,Ontario.The Company collects the proceedsfor all of the gas produced from this natural gas property and provides SONG with its proportionate share of the revenue.The Houghton battery has been shut in for the past two y

54、ears due to alack of market demand.As at March 31,2009,the Company owed SONG$37,425(2008-$172,380)which is comprised of amounts payable related to technical services and natural gas production of$37,425(2008-$128,584)and$Nil(2008-$43,796)respectively.This indebtedness is unsecured,non interest beari

55、ng,due on demand and included with accounts payable and accrued liabilities.7.SHARE CAPITAL Authorized:4,000,000 Common shares20092008Issued:1,775,035 Common shares$2,468,832$2,468,8328.STOCK OPTIONS On July 15,2002,the Company was authorized to grant 25,000 stock options of which 20,000,with an exe

56、rcise price of$6,were issued to four Directors of the Company.All of those options wereexercised during fiscal 2007 for proceeds of$120,000.On February 6,2006,the remaining 5,000 stock options,with an exercise price of$7.50,were granted to another Director for a period offour years from the grant da

57、te.The exercise price was determined by the Board of Directors at the time of grant subject to the conditions that the exercise price will not be less than the marketprice of the common shares at the time of being granted.None of these options were exercised during fiscal 2009 or 2008.9.INCOME TAXES

58、 The provision for income taxes recorded in the financial statements varies from the amount that would be computed by applying the statutory income tax rate of 33%(2008-33%)as a result of thefollowing:20092008Income before income tax provision$930,243$584,673Anticipated income tax expense307,000195,

59、000Tax effect of the following:Resource rate deductions-(13,000)Non taxable portion of capital transactions3,000-Adjustment for substantially enacted rates(99,000)(159,000)Corporate minimum taxes38,00020,000Capital transactions(15,000)-Other(1,000)-Provision for income taxes$233,000$43,0008METALORE

60、RESOURCES LIMITEDNOTES TO FINANCIAL STATEMENTSYEARS ENDED MARCH 31,2009(Continued from previous page)Only corporate minimum taxes are payable as the Income Tax Act provides for certain deductions of exploration and development expenses.Tax benefits in excess of any current income arereflected in the

61、 calculation of the future income tax liability.The tax balances,available in perpetuity to reduce future income taxes,are as follows:20092008Cumulative Canadian exploration expenses$1,887,000$2,304,400Investment in flow through shares180,000180,000Cumulative Canadian development expenses440,700455,

62、900Cumulative Canadian oil and gas property expenses479,400460,200Foreign exploration and development expenses3,2003,500Undepreciated capital costs property,plant and equipment662,900629,500In addition,the Company has incurred accumulated corporate minimum taxes of$131,000 which can be used to reduc

63、e future provincial income taxes payable.This benefit has not been recognizeddue to the uncertainty of realizing this benefit within the carry forward period.Upon the transition to harmonized corporate filing of Federal and Provincial income tax returns,the Company recognized a transitional credit o

64、f approximately$229,000.This credit is availableover a period of five years to reduce future corporate income taxes payable.10.ASSET RETIREMENT OBLIGATION 20092008Asset retirement obligation beginning of year$186,900$-Revisions to estimated cash flows(21,100)175,500Accretion10,80011,400Asset retirem

65、ent obligation end of year$176,600$186,900During fiscal 2008 the Company revised its methodology for estimating its asset retirement obligation.This revision resulted in the initial recognition of$175,500 as an estimated cost of pluggingthe Companys wells.The total undiscounted amount of estimated c

66、ash flows required to settle the obligation at year end is$2,670,744(2008-$2,551,000)which has been discounted at 6.5%using a fifty year maximumlife in accordance with estimates prepared by independent engineers.11.COMMITMENTS The Company is party to natural gas and mining lease commitments.As the a

67、mounts ultimately payable pursuant to these agreements are dependent on production or development,it is notpractical to disclose the amount of contractual commitments in each of the next five years.The Company has an outstanding letter of guarantee in the amount of$70,000(2008-$70,000)that isrequire

68、d under the Regulations prescribed by the Ministry of Natural Resources.12.FINANCIAL INSTRUMENTS Credit RiskAs the Companys accounts receivable were due from one customer,there is increased exposure as a result of this concentration.In order to reduce this risk,the Company only sells to high quality

69、,investment grade customers.Fair ValueThe Company has various financial instruments including cash and cash equivalents,marketable securities,accounts receivable,long term investment,accounts payable and accrued royalties.Except for the marketable securities and the long term investment,book values

70、approximate fair value due to their short term maturity.Details of the fair market value of the marketable securitiesand long term investments are disclosed in notes 3 and 4 respectively.Commodity RiskThe company is exposed to fluctuations in commodity prices for natural gas.Commodity prices are aff

71、ected by many factors including supply,demand and the Canadian to U.S.dollar exchangerate.The company had the following price commodity contracts in place at year end.July 2009 to October 2009 5,000 mmbtu per month$5.60 US/mmbtu November 2009 to March 2010 5,000 mmbtu per month$7.40 CDN/mmbtu13.CAPI

72、TAL MANAGEMENT The Companys objectives when managing capital are to protect the Companys ability to continue as a going concern so that it can continue to provide an appropriate return to shareholders relativeto the risk of the Companys mining exploration,natural gas properties,and long term investm

73、ents.The Company considers its capital structure to include shareholders equity and working capital.The Company manages its capital structure and makes adjustments to it in the light of changes ineconomic conditions and the risk characteristics of the underlying assets noted above.In order to mainta

74、in or adjust the capital structure,the Company may issue new shares,seek external financingor adjust its capital expenditures and other investment programs.The Company does not have any externally imposed capital requirements.As the Company does not currently have a requirement for any external fina

75、ncing,its main objective is to ensuresufficiency of working capital to fund operations and investment activities.Working capital is defined as current assets less current liabilities.At March 31,2009 the Companys working capital was$765,329(2008-$788,872).14.ACCUMULATED COMPREHENSIVE INCOME 20092008

76、Accumulated comprehensive income beginning of year$394,486$-Other comprehensive income(581,120)394,486Accumulated comprehensive income-end of year$(186,634)$394,4869METALORE RESOURCES LIMITEDManagements Discussion&Analysis of Financial ResultsFor the Fiscal Year ended March 31,2009Managements Discus

77、sion and Analysis(MD&A)in respect of Metalore Resources Limited(“Metalore”or the“Company”)should be read in conjunction with the audited financial statements for the twelve months ended March 31,2009.The Companysfinancial statements and financial data set out below have been prepared in accordance w

78、ith Canadian generally accepted accountingprinciples.Unless specified otherwise,all dollar amounts are in Canadian dollars.Additional information relating to the Company,including the Annual Report for the fiscal year 2009,is available on SEDAR at .This discussion contains certain forward-looking st

79、atements.All statements,other than statements of historical fact,thataddress activities,events or development that the Company believes,expects or anticipates will or may occur in the future areforward-looking statements.These statements are based upon certain assumptions and analyses made by manage

80、ment in light ofits experiences and perception of historical trends,current conditions and expected future developments,as well as other factorsmanagement believes are appropriate in the circumstances.However,whether actual results and developments will conform tomanagements expectations is subject

81、to a number of risks and uncertainties.Forward-looking statements are not guarantees as tothe Companys future results since there are inherent difficulties in predicting future results.Accordingly,actual results could differfrom those expressed or implied.Corporate ProfileMetalore is a unique Compan

82、y in the junior resource sector.It has the lowest number of shares outstanding of any resourcestock listed on the Toronto Stock Exchange(TSX).The Company has protected the equity of shareholders for the past forty yearsby financing all exploration and development costs with cash flow from operations

83、.Metalore inaugurated payment of its first cashdividend to shareholders in the year 2000 and has since paid its ninth consecutive annual dividend from operating profits.Metalore has been active in mining exploration for over sixty-five years and in natural gas development for over fifty years.The co

84、mpany participated in early development of the Provost gas field in Alberta from 1956 through 1961 and was the major playerin developing the Norfolk gas field in Southwestern Ontario since 1964,pioneering advanced completion and fracturing techniques.The Ontario natural gas operations constitute the

85、“core business”of the company as the principal source of revenue.The cash flowfrom production and investments is balanced and allocated between drilling new wells to sustain and/or increase production,fieldingselect mining exploration projects,maintaining capital liquidity and paying dividends to Sh

86、areholders.Management of the Company has also established a record of discovering and outlining precious metal resources(Brookbank,Fox Ear,Cherbourg and Irwin are 43-101 compliant).The majority interests in these resources were sold in 1998 subjectto various participations and future overriding roya

87、lty payments(see“Current Business Strategy Table”hereunder).Current Business StrategyThe Company has further strengthened its financial condition during the past year.Considering the current low price fornatural gas and general economic conditions we have temporarily shut in approximately 50%of our

88、production and reducedexpenditures on exploration and development.One new gas well was completed in December/08 and a second well is nearingcompletion(June/09)on a program that was initiated and announced last year.A very extensive ongoing exploration program is currently under way in the Beardmore

89、area of Ontario whereon Metaloreholds various interests in mining claims covering some thirty miles of strike length along the Brookbank,Fox Ear,Cherbourg and Irwintrends that contain 43-101 compliant gold resources.A recent addition to executive management of Ontex Resources along with aninfusion o

90、f from five to nine million dollars in new financing should hasten the objectives of(1)increasing tonnage and ounces of theknown deposits for feasibility and ultimate production as well as(2)increasing the possibility of making new discoveries.Metalorewill be carefully monitoring and probably partic

91、ipating in some of these programs during the months ahead.Overall PerformanceMetalores natural gas operations yield a stable base income.The Company has consistently located its wells on ultra widespacing patterns to minimize the year to year decline in deliverability and maximize the longevity of p

92、roduction,which is consistentwith the Companys long term production record.Production is being maintained by the systematic drilling of additional wells whenrequired.The Company has consistently obtained“forward”prices for its gas that average higher than current“spot”prices at timeof delivery.The C

93、ompany continues to diligently protect the equity of both its Natural Gas and Mining properties.Brookbank Area Gold Deposits 2.0 g/t Au Cut-off,43-101 CompliantMetaloresInterest1%N.S.R.26%J.V.26%J.V.26%J.V.ZoneNameBROOKBANK1,3CHERBOURG1,4FOXEAR1,4Sub-Total 1IRWIN2,4TOTALIndicatedInferredTonnes1,517,

94、00088,600189,7001,795,30045,0001,840,300Tonnes1,817,400322,800385,4002,525,600130,0002,655,600Un-CutAu g/t8.05.72.97.45.17.3Un-CutAu g/t5.35.72.84.94.94.9Un-CutAu oz390,80016,20017,900424,9007,400432,300Un-CutAu oz307,40059,40034,300401,10020,300421,4001Estimated by Scott Wilson RPA(2009)at a 2.00 g

95、/t Au cut-off.2Estimated by Thompson(2006)at a 2.00 g/t Au cut-off.3N.S.R.means Net Smelter Return.4J.V.means Joint Venture Participating Interest.For more detailed information visit SEDAR,Ontex Resources Ltd.,March 30,2009 filing.10METALORE RESOURCES LIMITEDMD&A(contd)Results of Operations-Commenta

96、ryTwelve Months ended March 31,2009Statement of Income&Retained Earnings1.Natural Gas Revenue has increased compared to the preceding year due to the securing of very favorable forwardcontracts.Subsequent to the year end these contracts expired.2.Royalties revenue from natural gas wells has increase

97、d slightly for the same reasons as applicable to Metalore itself givenin(1)above.3.Investment&Interest Income has risen because the company continues to maintain marketable securities that yield highmonthly dividend and interest payments.4.Metalore was not immune to market conditions and this is ref

98、lected in this years nominal loss on sale of investments,whichwere actually offset by dividends received.5.Production expenses have decreased due to managements diligence in preparing the company for the global economicslowdown.6.Royalties expense has increased in proportion to natural gas revenues.

99、7.Depletion expense has decreased in proportion to natural gas production.8.Administrative expenses have also decreased for the same reason that are applicable to production expenses.9.Accretion expense is described by the auditors in note 10 of the financial statements.10.The accounting treatment o

100、f income taxes is described by the auditors in notes 2&9 of the financial statements.11.Dividends paid are in accordance with the shareholder dividend policy which is stated separately in this MD&A report.Statement of Cash Flows12.Cash flow from operating activities increased compared to the prior y

101、ear in line with the improvement in natural gasrevenue.13.No stock options were exercised this year.The current status of stock options is dealt with in note 8 of the financialstatements.14.Natural Gas Development:one gas well was drilled this fiscal year and another partly drilled.15.Mining Explora

102、tion expenses relate to diamond drilling at the Cedartree Lake properties.16.The company continued its acquisition of high yielding low risk marketable securities.17.The effect of the preceding lines resulted in an increase in cash in the twelve months of this reporting period of$174,016.Accumulated

103、 Comprehensive Income18.This is described in detail in note 2 of the financial statements.This income recognizes changes in the value of balancesheet items.These changes are reflected only in the balance sheet and not in the regular statement of income.Balance Sheet19.Cash&cash equivalents have incr

104、eased in the last twelve months to a total of$301,072.20.Marketable securities that are described in note 18 above,have now accumulated to$464,320.21.Accounts receivable is for one months natural gas production only.22.Inventory of pipe and supplies is held on hand for new well tie-ins and work on o

105、ur pipe line grid as and when required.23.The long term investment is accounted at fair market value.The changes in the market value are included in accumulatedcomprehensive income as described in note 18 above.24.Natural Gas properties have increased in cost by the amount shown on the statement of

106、cash flows less depletion asshown on the statement of income and any adjustments to the asset retirement obligation as described in note 10 of thefinancial statements.Accounting for the natural gas properties is described in the notes to the financial statements,specifically notes 1 and 5.25.Mining

107、properties have increased in cost by the amount shown on the statement of cash flows.26.Land is accounted for using the cost method.The carrying value is written down only in the event of a decline in valuewhich is considered other than temporary.27.Accumulated amortization has increased by the amou

108、nt shown on the statement of income.28.Accounts payable and accrued liabilities are comprised of regular trade payables which by company policy are paid within30 days and accrued royalties,which are paid annually in March of each year.Royalties are accrued on a calendar yearbasis and then paid in Ma

109、rch.An estimate is made of the accrued royalty to the end of the fiscal year.29.Future income taxes accrue because the Income Tax Act of Canada provides for certain deductions for exploration anddevelopment expenses and credits in excess of any current income in the accounts.The company has accumula

110、tedbalances of cost to effectively defer future taxes into perpetuity.This is more fully described in note 9 of the companysannual report.30.There has been no change in share capital during the year.Please refer to note 7 of the financial statements for moredetails.31.Contributed surplus consists of

111、 an amount of$16,000 that has remained unchanged for over thirty years and$20,634resulting from stock options exercised in 2007.32.Retained earnings has increased by net income less dividends paid.11METALORE RESOURCES LIMITEDMD&A(contd)Comparative Summary&Financial Data by Quarter P S 1 The current

112、status of stock options is dealt with in n This income recognizes changes i These changes are reflected only in the balance sheet and n The changes in the market value are i Accounting for the n The carrying value is written down only in the event o 2 Royalties are accrued on a calendar year basis a

113、nd then paid in March.An e The company has accumulated balances of cost to effectively defer f This is more fully described in note 9 of the companys annual report.3 Please refer to note 7 of the financial s p y&Financial Data by Quarter Mar 31/08 Dec 31/08 Sept 30/08 June 30/08 Mar 31/08 Dec 31/07

114、Sept 30/07 June 30/07 Mar 31/07 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr 4th Qtr Revenue 585,541 685,744 358,155 495,621 484,011 454,335 399,239 442,699 781,909 Net Income 132,428 300,197 83,753 180,965 150,394 145,055 105,714 140,510-20,313 Earnings per share 0.07 0.17 0.05 0

115、.10 0.08 0.08 0.06 0.08-0.04 Cash flow per share(0.53)0.29 0.17 0.17 0.06 0.15 0.12 0.14 0.21 Dividends per share 0.07-0.08-0.08 The comparability of selected consolidated financial information set out above is affected by the samematerial factors as set out under“Overall Performance”and“Results of

116、Operations”herein.For a more detailedexplanation of the Companys results of operations,please refer to items 1 and 2 in the Notes to the FinancialStatements for the year ended March 31,2009.Fourth Quarteri)Summarized Financial Data P For the three months ended:Statement of Income Mar 31/09 Mar 31/08

117、 Total Revenues$585,541$484,011 Total Expenses 378,213 489,767 Income tax recovery(expense)75,000 167,550 Net after tax income(loss)132,328 150,394 Statement of Cash Flows Cash flow from operations before changes in working capital 306,888 109,348 Changes in working capital(42,935)(71,738)Cash flow

118、from operations 269,953 37,610 Financing activities 5,248(10,439)Trading in marketable securities(90,476)(29,790)Mining exploration(24,074)(128,814)Natural gas development(182,320)(77,063)Increase(decrease)in cash 19,783(204,496)Balance Sheet Data (is provided in the selected annual information para

119、graph above)The 2009 investment income was up compared to prior y Operating expenses d Accretion expense is dealt with in item 10 of the financial statement notes.A Changes in working capital are quarter by quarter changes in accounts receivable,i P The Company has consistently l The C Years ended M

120、arch 31:2009 2008 2007 Statement of Income$Total Revenues 2,125,061 1,780,284 2,406,184 Operating expenses 1,177,558 1,195,611 1,187,716 Net Income after taxes 697,243 541,673 543,468 Earnings per share(fully diluted)0.39 0.30 0.31 Statement of Cash Flows Cash flow from operations 1,179,235 831,177

121、1,402,275 Cash flow from operations per share 0.66 0.47 0.79 Accumulated Comprehensive Income Accumulated gains&losses included in the balance sheet at the end of the year(581,120)394,486 Not applicable Balance Sheet Data Current Assets 1,062,592 1,182,106 1,219,438 Current liabilities 297,263 393,2

122、34 430,546 Mining properties 3,448,593 3,279,192 3,077,459 Natural gas properties 10,362,646 10,016,927 9,593,512 Total Assets 15,980,831 15,900,225 14,934,409 Total long term financial liabilities Nil Nil Nil Shareholders Equity 12,538,968 12,547,091 11,753,863 Dividends paid 124,246 142,931 142,44

123、5 Dividends per share 0.07 0.08 0.08 Subsequent to the year end these contracts expired.2 1 1 *The company pays a minimum corporate tax;however no tax on income is presently payable by the company because of aninventory of exploration and development expenditures that are carried forward.For further

124、 details see“INCOME TAXES”,note 9,pages 7 and 8 attached hereto.Selected Annual Information12METALORE RESOURCES LIMITEDMD&A(contd)Financial InstrumentsThe Companys financial instruments consist of cash,cash equivalents,accounts receivable and incometrusts.It is managements opinion that the Company i

125、s not exposed to abnormal interest,currency or credit risk arisingfrom these financial instruments.Management expects to adequately meet its present and future working capital andexploration and development requirements with cash flow from operations.Off Balance Sheet InstrumentThe company maintains

126、 a surety bond in the amount of$70,000,which is the maximum required by theMinistry of Natural Resources as assurance for the abandonment of dry holes and or depleted wells.Capital Resources&Liquidity P F Y/E Mar 31/09 Y/E Mar 31/08 Current Assets$1,062,592$1,182,106 Current Liabilities 297,263 393,

127、234 Excess of Current Assets over Current Liabilities 765,329 788,872 This was a The expenditures were mainly comprised of natural gas development.It is managements opinion that the Company is not exposed to abnormal interest,c Management expects to adequately meet i 146,000 20 609 On December 15,20

128、08 the Company paid its ninth consecutive annual dividend to S 1 Cash&cash equivalents increased in the last twelve months to a total of$301,072.This was after capitaland investment expenditures of$880,973 during the fiscal year 2009,compared to a decrease in cash of$193,960after capital and investm

129、ent expenditures of$795,453 during the fiscal year 2008.The expenditures were mainlycomprised of natural gas development.ii)Management Discussion&Analysis of Fourth QuarterThe operating profit in the fourth quarter is mostly the result of advantageous contracts for the sale of naturalgas at prices a

130、bove the prevailing market price at the time of delivery,as well as greater efficiencies applied in gasfield management.The 2009 investment income was up compared to prior years due to the continued acquisition ofhigh yielding marketable securities.Operating expenses decreased compared to 2008 partl

131、y due to managementcutbacks in expenses in preparation for a lean year in fiscal 2010.Accretion expense is dealt with in item 10 of thefinancial statement notes.As a result of factors described in the preceding paragraph,cash flow from operations was strong compared to2008.Changes in working capital

132、 are quarter by quarter changes in accounts receivable,inventories and accountspayable and represented nothing out of the ordinary.Working capital increased in the quarter.Internal Control Over Financial ReportingThe current Chief Executive Officer and current Chief Financial Officer are responsible

133、 for establishing andmaintaining internal control over financial reporting for the Company and have designed such controls to providereasonable assurance regarding the reliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with GAAP.It shoul

134、d be noted that,while the Companys current Chief Executive Officer and current Chief FinancialOfficer believe that the Companys internal controls over financial reporting provide a reasonable level of assurancethat they are effective,they do not expect that the Companys internal control over financi

135、al reporting will prevent allerrors and fraud.A control system,no matter how well conceived or operated,can provide only reasonable,notabsolute,assurance that the objectives of the control system are met.Forward Strip ContractsAs of June 26,2009,Metalore has only two forward strip contracts in place

136、.P F Contract Period Minimum Contract Quantity Price per MMBTU July/09 through Oct/09 5,000 MMBTU per month 5.60 US$Nov/09 through Mar/10 5,000 MMBTU per month 7.40 CF$297,263 765,329 This was a The expenditures were mainly comprised of natural gas development.It is managements opinion that the Comp

137、any is not exposed to abnormal interest,c Management expects to adequately meet i 146,000 20 609 On December 15,2008 the Company paid its ninth consecutive annual dividend to S 1 13METALORE RESOURCES LIMITEDMD&A(contd)Critical Accounting EstimatesManagement is required to make estimates in preparing

138、 its financial statements in conformity with generallyaccepted accounting principles.These estimates affect the reported amounts of assets and liabilities at the date ofthe financial statements and reported amounts of net income during the reporting period.The critical accountingestimates made by th

139、e Company are used in the determination of natural gas property costs,mining property costs,amortization and depletion of any resource established or found,and future income taxes.i.Natural Gas Property CostsThe full cost method of accounting is used whereby acquisition and development cost relating

140、 to theseproperties are capitalized.These costs are depleted by the unit of production method based on estimated provendrilled gas reserves.The ratio of production to proven reserves before royalties determines the proportion ofdepletable costs to be expensed.The natural gas reserves of the company

141、are assessed annually by an independentengineer,as verified by the annual filing of National Instrument Form 51-101 with SEDAR.Total capitalized costs netof accumulated and future income taxes is limited to an amount equal to the estimated future net revenue form provenreserves at year end and costs

142、,less future cash flows are based on the NYMEX Henry Hub prices adjusted by$1.32per mmbtu to allow for actual prices received near Dawn,Ontario.Forecast prices used for the next five years arelisted in note 1 of the notes to the financial statements.The significance to the financial statements of th

143、e estimate of depletion of natural gas properties is that ithistorically accounts for twenty percent of total expenses before income taxes.The sensitivity of this estimate is suchthat an error of ten percent in its calculation would therefore affect total pre-tax expenses by two percent.The company

144、performs an impairment test annually to determine the recoverability of capitalized costsassociated with reserves of natural gas.Should the amount of the capitalized costs exceed the amount of thereserves,the resulting impairment loss will be recognized in earnings.The amount of the impairment loss

145、isdetermined by making assumptions about future reserves,the price of natural gas and future costs all of which aresubject to uncertainty.By their nature,these estimates are subject to measurement uncertainty and changes to theseestimates may have a material impact on the financial statements of fut

146、ure years.For example the table of futureestimated gas prices reported in note 2 to the financial statements for 2009 are approximately double the market pricecurrently prevailing.The Company has no control over the continental market price of natural gas.ii.Mining Property CostsAcquisition and expl

147、oration costs are capitalized.Disposals of mining property and equipment are offsetagainst the acquisition costs.If exploration activities are followed by production,capitalized costs will be amortizedusing the unit of production method based on the estimated reserves in the area.Mining properties a

148、re assessedannually of as economic events dictate,for potential write down.If exploration activities are unsuccessful includingand the area is abandoned,all capitalized costs are written off,as has been the case for some properties this year 2009.The significance to the financial statements of accou

149、nting for mining properties is limited to the balance sheet.There is currently no production from the properties and for this reason no estimates for depletion are necessary.Thesensitivity of the balance sheet data to carrying an abandoned asset depends on the historical cost of the asset.Therisks i

150、nvolved in exploration for minerals have been discussed already in an earlier paragraph.1Note:Contractual Obligations are estimates based upon expected gas production.Contractual Obligations1Report for the upcoming five yearsShareholder Dividend PolicyIn the year 2000,Metalore introduced a policy to

151、 pay annual dividends to shareholders(subject to applicablelaw).On December 15,2008 the Company paid its ninth consecutive annual dividend to Shareholders of record onNovember 30,2008;this payment was for$0.07 per share.The dividend is converted to US currency for a significant percentage of shareho

152、lders registered with United Statespostal addresses.Outstanding Share DataThe Company has 1,775,035 common shares issued(1,780,035 fully diluted,see Notes 7 and 8 to thefinancial statements).Regulation ComplianceMetalore has complied with all filing requirements pursuant to National Instrument 51-10

153、1(Standards forDisclosure for Oil and Gas Activities)by filing forms 51-101 F1,F2 and F3 with SEDAR.P F 297,263 765,329 This was a The expenditures were mainly comprised of natural gas development.It is managements opinion that the Company is not exposed to abnormal interest,c Management expects to

154、adequately meet i Contractual Obligations Less than 1 year 1-3 years 4-5 years Total Natural Gas Leases$10,000$68,000$68,000$146,000 Natural Gas Royalties1$200,000$400,000$800,000$1,400,000 Mining Commitments$200,000$203,078$206,156$609,234 Total Contractual Obligations$410,000$671,078$1,074,156$2,1

155、55,234 On December 15,2008 the Company paid its ninth consecutive annual dividend to S 1 14METALORE RESOURCES LIMITEDMD&A(contd)iii.Future Income TaxesIncome taxes are calculated using the liability method of tax allocation.Temporary differences arising fromthe difference the tax basis of an asset o

156、r liability and its carrying amount on the balance sheet are used to calculatefuture income tax liabilities or assets.Future income tax liabilities or assets are calculated using the substantivelyenacted tax rates and laws that are expected to be in effect in the periods that the temporary differenc

157、es are expectedto reverse.The effect of changes in rates is included in earnings in the period which includes the substantiveenactment.The significance of the calculation of future income taxes to the financial statements is that it can be as muchas thirty percent of pre-tax net income.Differences i

158、n the estimate of future income taxes can have a significant effecton the calculation of net income after taxes,as was the case in 2007 and 2008.On the balance sheet,future incometaxes account for approximately seventeen per cent of total liabilities and equity.The sensitivity of this estimate is sm

159、all because historically the Company has paid only Federal corporateminimum taxes.The Income Tax Act of Canada provides for deductions of exploration and development expensesthat can be applied against current income before income tax becomes applicable.The Company has accumulatedsufficient deductio

160、ns of exploration and development expenses to delay payment of future income taxes until manyyears into the future.Every year that wells are drilled and developed and/or mining exploration is conducted,thistimeline is pushed still further into the future.It should be noted that the“real time”net pro

161、fit per share is actually higherthan systematically recorded on the financial statements because of the anachronism of“future income tax”.Transactions with Related PartiesMetalore has an on-going agreement with Southern Ontario Natural Gas Limited(SONG),a private companycontrolled by the Company Pre

162、sident,George W.Chilian,to provide highly technical services for gas well completionsand production.Details are included in note 6 of the March 31/09 Financial Statements.International Financial Reporting StandardsIn February 2008,the Canadian Accounting Standards Board confirmed that publicly accou

163、ntable enterpriseswill be required to adopt IFRS for fiscal years beginning on or after January 1,2011,with early adoption permitted.Accordingly,the conversion to IFRS will be applicable to the Companys reporting no later than in the quarter endingJune 30,2011,with restatement of comparative informa

164、tion presented.The conversion to IFRS will impact theCompanys accounting policies,information technology and data systems,internal control over financial reporting,anddisclosure controls and procedures.Disclosure Controls and ProceduresDisclosure controls and procedures have been designed to ensure

165、that information required to be disclosedby the Company is accumulated and communicated by management as appropriate to allow timely decisionsregarding required disclosure.The Companys disclosure controls and procedures provide reasonable assurance thatmaterial information related to the Company is

166、made known to current management.It should be noted that,while the Companys current Chief Executive Officer and current Chief FinancialOfficer believe that the Companys disclosure controls and procedures provide a reasonable level of assurance thatthey are effective,they do not expect that the Compa

167、nys disclosure controls and procedures or internal control overfinancial reporting will prevent all errors and fraud.A control system,no matter how well conceived or operated,canprovide only reasonable,not absolute,assurance that the objectives of the control system are met.Risk and UncertaintiesMin

168、ing exploration risksThe business of exploration for minerals involves a high degree of risk.Few properties that are explored areultimately developed into producing mines.Hydrocarbon risksThe hunt and development of conventional non-renewable hydrocarbons is vulnerable to price variations,dryholes a

169、nd ultimately depleted reservoirs.Commodity PricesEven if Metalores exploration programs are successful,factors beyond the control of the Company mayaffect the marketability of any resources discovered.Commodity prices(both natural gas and minerals)havehistorically fluctuated,and are affected by fac

170、tors beyond the control of the company.Inflation,international economicand political trends,currency fluctuations,interest rates and worldwide production levels all have a bearing oncommodity prices.The effect of these factors cannot accurately be predicted.The Company partially mitigates theprice r

171、isk factor by selling most of its gas production at least several months ahead with forward strip contracts.15Metalore Resources LimitedYearMonthHIGH:LOW:2008 May20.7116.75June20.0016.78July16.0014.00August14.0513.31September13.458.50October8.296.00November7.004.25December7.304.002009 January8.757.3

172、0February9.007.42March9.007.67April8.007.50May8.157.50June9.508.15METALORE RESOURCES LIMITEDMD&A(contd)Comparative Price Performance BenchmarkMarket for SecuritiesThe Companys common shares have been listed and traded on the Toronto Stock Exchange(TSX,tier one)for the past28 years.Metalore has the l

173、owest number of shares outstanding of any resource related company listed on the TSX.S&P/TSX 60 IDXMETALORE RESOURCE LTD.$8$4$12$16$20420 Days2008May20.7116.75June20.0016.78July16.0014.00August14.0513.31September13.458.50October8.296.00November7.004.25December7.304.002009January8.757.30February9.007.42March9.007.67April8.007.50May8.157.50June9.508.15This MD&A is dated as of June 26,2009John A.Ryan