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Q4 2008 Breakwater Resources Ltd. Earnings Conference Call - Final.

Article Excerpt
OPERATOR: This is the chorus call conference operator. Welcome to the Breakwater Resources conference call and webcast to present the Company's year-end 2008 and fourth quarter financial and operating results to shareholders. After the presentation, there will be an opportunity to ask questions. (Operator Instructions). At this time, I would like to turn the conference over to Ann Wilkinson, Vice President of Investor Relations.

ANN WILKINSON, VP IR, BREAKWATER RESOURCES LTD.: Good morning and thank you for joining us. This analyst conference call is being webcast on a live, listen-only basis. Our news release detailing the financial and operating results was issued yesterday after the market closed and can be found on our website at www.Breakwater.ca.

Joining me are members of Breakwater's senior management team. After opening remarks and a discussion of our operating results by our President and Chief Executive Officer George Pirie, Dave Langille, Breakwater's Vice President of Finance and Chief Financial Officer, will discuss our financial results. Steve Hayes, our chief marketing officer, will then update you on zinc market conditions. Also available to answer questions are a number of other senior Breakwater officials.

We have a few housekeeping items to dispense with before starting. First, we're including news media and members of the public on this webcast on a live, listen-only basis.

Second, you will hear our executives use forward-looking language to discuss our operations. This language includes estimates and statements that describe the Company's future plans, objectives, and goals, including words that indicate management expects a stated condition or result to occur.

We have included a cautionary note on such forward-looking statements in our news release and direct our listeners to read this note in order to understand the limitations of forward-looking information.

Third and final, all dollar amounts are in Canadian currency unless otherwise stated. I will now pass the call over to George Pirie.

GEORGE PIRIE, PRESIDENT, CEO, BREAKWATER RESOURCES LTD.: Good morning, everyone. 2008 was an unprecedented year for commodities and financial markets, as the global credit markets seized, banks hemorrhaged, and capital and jobs disappeared. What made it unprecedented was the violence and psychology of the decline, causing markets to evaporate little literally overnight.

In the context of our share price, the stock market, and the prices of the metals we produce, 2008 can only be described as devastating. For the past several years, Breakwater's management has worked diligently to execute its business plan.

While the medium to long-term plan, which is to invest in capital and exploration as required to secure a long-term future for the assets that warrant that investment and grow our production profile, is still in place, we are deeply disappointed that the current economic environment requires that we layer on top of this what we hope is a short-term austerity plan.

As everyone is now well aware, the Company announced that it would temporarily suspend operations at both Langlois in Quebec, Canada, and Myra Falls in British Columbia, Canada. This decision was precipitated by the decline in commodity prices and the deterioration of the economic outlook globally, which mitigated the overall operational improvements and production and costs at both mines.

At Langlois, a temporary secession of operations took full effect by November 2, 2008. At Myra Falls, results of exploration activity caused the Company to extend the notice period, and accordingly, the operation continues to produce, albeit at a reduced scale with a smaller workforce.

The plan for 2009 includes mining higher grade and fewer tons, with the...

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