Cambior Inc.

Cambior reported earnings of $0.01 per share reflecting a major contribution from the new Rosebel mine in Suriname, which came on stream of February of this year. Cambior produced 193,000 ounces in total with Gross Rosebel producing 74,100 ounces at a cash cost of $160. Significantly, Cambior also reduced its hedges by 281,000 ounces in the second quarter leaving a balance of only 207,000 ounces or 5 percent of reserves. Cambior is expected to continue to reduce its hedges. Cambior is consolidating its assets and excess cash flow will likely be directed towards smaller acquisitions. While acquisition of the balance of Aurizon makes sense, Cambior does not appear to want to do that and in fact may sell its holding. We view Cambior as a hold at this time.

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Cambior Stock Up As Output, Dilution Fears Calmed
Wed April 13, 2005 1:06 PM GMT-04:00
By Nicole Mordant
VANCOUVER, British Columbia (Reuters) - Shares in Cambior Inc. surged as much as 11 percent on Wednesday after the Canadian gold producer released output figures that met expectations and also assuaged market fears that it might issue a whack of new stock to fund an acquisition.
Cambior said its gold production rose 10 percent in the first quarter to 166,500 ounces, in line with both market and company forecasts, giving its shares a much-needed lift after their 26 percent slide in the past month.

"This news has provided relief to Cambior's dramatic share price underperformance over (the) last few weeks," said Steven Butler, gold analyst at Canaccord Capital.

Cambior's stock surged as high as C$2.53 on the Toronto Stock Exchange on Wednesday in brisk dealings. By early afternoon the stock was just off its peak at C$2.50, a 23 Canadian cent gain, and was strongly outperforming its peers.

Cambior, which is Canada's fifth-largest gold producer and operates mines in Quebec and South America, said it expects to meet its full-year output forecast. Earlier this year it predicted 2005 output of 621,000 ounces.

"We are not aware of any negative factors that would preclude us from meeting or exceeding our remaining objectives," Louis Gignac, Cambior's chief executive, said in a statement.

Sprott Securities analyst David Stein said Gignac's comment that the Quebec-headquartered firm had "reduced (its) efforts toward acquisitions", while sharpening its focus on its own operations and exploration projects, was a relief to the market, which had worried about a dilutive share issue.

"I think that's probably been plaguing the company a little bit in that the market has been expecting them to do a dilutive acquisition. The company is basically saying that at this share price we are not going to do that," Stein said.

Cambior credited its new Rosebel mine in Suriname for the bump-up in first quarter production. Rosebel, which poured its first gold last year, more than tripled its output year-over-year to 87,950 ounces from 27,300 ounces.This more than made up for less gold produced from the aging Omai mine in neighboring Guyana, where output was 34,260 ounces, less than half that of the year-before quarter.
(Additional reporting by Cameron French in Toronto)

Cambior Inc. (TSX:CBJ - News; AMEX:CBJ - News) is pleased to announce an increase of 11% in its gold reserves at the Rosebel mine identified during the first semester of 2005.

Some 25,200 metres of development drilling have been carried out in the first five months of 2005 on the Royal Hill deposit. The analysis of the results and the mining experience gained at Royal Hill have resulted in an addition of 265,000 contained ounces.

The Rosebel mine is located in Suriname and commenced operation on February 11, 2004. The mine consists of six deposits identified to date located within a mining concession of 170 sq. km.