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AMAX GOLD ANNOUNCES SECOND QUARTER/HALF YEAR RESULTS; GOLD IS POURED AT HAYDEN HILL

 AMAX GOLD ANNOUNCES SECOND QUARTER/HALF YEAR RESULTS;
 GOLD IS POURED AT HAYDEN HILL
 GOLDEN, Colo., July 17 /PRNewswire/ -- Amax Gold Inc. (NYSE: AU; Toronto: AXG) announced 1992 second quarter net earnings of $11.7 million, 16 cents per share, compared to $7.5 million, 13 cents per share, for the second quarter of 1991. Sales for the second quarter were $22.7 million contrasted with sales of $36.1 million for the 1991 second quarter. Net earnings for the first six months of 1992 were $15.7 million, 22 cents per share, on sales of $49.9 million. This compares to net earnings of $15.5 million, 26 cents per share, on sales of $69.3 million for the 1991 first half.
 Key factors affecting earnings for the second quarter were:
 In line with previous projections, production at the Sleeper Mine
 declined, and production from the Wind Mountain Mine was lower as
 a result of cessation of mining in the first quarter.
 Exploration expenses of $11.2 million were capitalized and
 restored to earnings due to the acquisition of interests in the
 Guanaco and Haile projects. This resulted in higher earnings for
 the 1992 second quarter.
 In addition, Amax Gold recorded a higher provision for income tax,
 the majority of which was deferred.
 The first gold was poured at Amax Gold's Hayden Hill Mine, north of Susanville, Calif., on June 15, 1992. Hayden Hill is the fourth mine Amax Gold has brought into production and is expected to produce about 145,000 ounces of gold on an annualized basis. Production for the second quarter was 1,344 ounces of gold.
 In discussing the second quarter results, Timothy J. Haddon, president and chief executive officer, said, "Our second quarter results were gratifying. Production costs at Sleeper have been lowered significantly, and Wind Mountain, though winding down, is still generating significant cash flow. Hayden Hill has come into production as scheduled, and we expect to see the impact of that production in the second half of the year. With the acquisition of the Guanaco and Haile projects in the second quarter, our development program has accelerated rapidly. The Fort Knox Project is on schedule with permitting, engineering and drilling all proceeding according to plan."
 Production for the second quarter was 57,733 ounces of gold compared to 87,727 ounces for the second quarter of 1991. During the first six months of 1992, Amax Gold produced 123,019 ounces of gold compared to 165,266 ounces for the first six months of the prior year. The Sleeper Mine continues to increase productivity levels and reduce total operating expenditures compared to the quarter a year ago. Cost reduction activities at Sleeper have resulted in cash production costs $21 per ounce lower than the first quarter of this year -- $198 versus $219. At Wind Mountain, the forecast for the year has been revised upward to between 35,000 to 45,000 ounces of gold production. Cash costs at Wind Mountain of $99 per ounce for the second quarter of 1992 were less than half the costs of the 1991 second quarter.
 While the market price of gold remained sluggish during the first six months of 1992, Amax Gold continued its efforts to boost earnings through effective operating and marketing activities. At the Sleeper Mine, tonnages continue to increase while costs are being reduced. Sleeper has cut its operating costs by $2.7 million for the first six months of 1992 compared to the like period in 1991. Market transactions for 1992 have resulted in an average realized price per ounce of gold sold of $403, $58 higher than the average COMEX price.
 Amax Gold produces and explores for gold in North and South America and New Zealand and is listed on the New York and Toronto stock exchanges. Amax Gold warrants trade on the American Stock Exchange under the symbol AUWT and on the Toronto Stock Exchange under the symbol AXGWT.
 AMAX GOLD INC.
 CONSOLIDATED STATEMENTS OF EARNINGS
 UNAUDITED
 (in thousands except per share amounts)
 Three Months Ended Six Months Ended
 June 30, June 30,
 1992 1991 1992 1991
 Sales $22,700 $36,100 $49,900 $69,300
 Costs and operating
 expenses:
 Costs applicable
 to sales 10,100 14,500 23,000 29,100
 Depreciation and
 depletion 4,200 6,700 9,400 12,800
 Selling, general
 and administrative
 expenses 2,000 2,600 3,900 4,400
 Total costs and
 operating expenses 16,300 23,800 36,300 46,300
 Gross operating margin 6,400 12,300 13,600 23,000
 Exploration
 expenses, net 9,100 (3,200) 5,700 (4,700)
 Earnings from
 operations 15,500 9,100 19,300 18,300
 Interest income, net 300 300 800 700
 Earnings before
 income taxes 15,800 9,400 20,100 19,000
 Income taxes,
 (1991-net of
 benefit from
 tax sharing
 agreement) (4,100) (1,900) (4,400) (3,500)
 Net earnings $11,700 $ 7,500 $15,700 $15,500
 Net earnings per
 common share $ .16 $ .13 $ .22 $ .26
 Weighted average
 common shares
 outstanding 73,846 59,995 73,023 59,995
 KEY OPERATING FACTORS
 UNAUDITED
 Three Months Ended Six Months Ended
 June 30, June 30,
 1992 1991 1992 1991
 Sleeper Mine:
 Ounces of gold
 produced(1) 36,596 57,835 76,285 106,560
 Average cost
 per ounce produced:
 Cash production
 cost(2) $ 198 $ 153 $ 209 $ 165
 Depreciation and
 depletion 98 64 97 66
 Total production
 cost $ 296 $ 217 $ 306 $ 231
 Wind Mountain Mine:
 Ounces of gold
 produced 13,320 22,483 32,230 45,385
 Average cost
 per ounce produced:
 Cash production
 cost(2) $ 99 $ 212 $ 128 $ 205
 Depreciation
 and depletion --- 110 46 107
 Total production
 cost $ 99 $ 322 $ 174 $ 312
 Waihi Mine:
 Ounces of gold
 produced(1)(3) 6,473 7,409 13,160 13,321
 Average cost
 per ounce produced:
 Cash production
 cost(2) $ 218 $ 181 $ 218 $ 180
 Depreciation and
 depletion 67 67 66 67
 Total production
 cost $ 285 $ 248 $ 284 $ 247
 Total:
 Ounces of gold
 produced(1)(4) 57,733 87,727 123,019 165,266
 Ounces of gold sold 56,828 85,915 123,870 164,885
 Average price per
 ounce sold $ 401 $ 419 $ 403 $ 420
 Average cost per ounce
 produced: (4)(5)
 Cash production
 cost(2) $ 180 $ 170 $ 188 $ 177
 Depreciation and
 depletion 73 76 80 78
 Total production
 cost $ 253 $ 246 $ 268 $ 255
 (1) Gold production for the six months ended June 30, 1992
 reflects increased production of 4,733 ounces at the
 Sleeper Mine and 542 ounces at the Waihi Mine relating
 to the cumulative effect of a change in accounting to
 include production in the mill carbon circuit,
 effective Jan. 1, 1992.
 (2) Cash production costs include all operating costs at
 the mine sites, including overhead, and, where appli-
 cable, Nevada net proceeds tax, royalties and credits
 for silver by-products.
 (3) Represents the company's share, which increased from
 28.35 percent to 33.53 percent on April 1, 1991.
 (4) The company's total production and average costs per
 ounce produced for the 1992 periods include start-up
 production from the Hayden Hill Mine of 1,344 gold
 ounces at an average cash production cost of $285 per
 ounce and an average depreciation and depletion cost
 of $115 per ounce.
 (5) Average costs weighted by ounces of gold produced at
 each mine.
 CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL POSITION
 (Dollars in thousands except par value of stock)
 June 30, Dec. 31,
 1992 1991
 (Unaudited)
 ASSETS
 Cash and equivalents (including
 restricted cash of
 $8,700 in 1992 and
 $6,100 in 1991) $14,400 $ 9,500
 Demand note receivable
 from Amax 18,400 15,400
 Inventories 9,200 9,900
 Prepaid expenses and
 other assets 5,200 6,900
 Current assets 47,200 41,700
 Property, plant and
 equipment, net 404,500 146,100
 Acquisition costs --- 7,600
 Other assets 200 2,900
 Total assets $451,900 $198,300
 LIABILITIES AND
 SHAREHOLDERS' EQUITY
 Accounts payable, trade $ 8,100 $ 9,600
 Accounts payable,
 affiliates 600 1,700
 Accrued and other current
 liabilities 15,900 14,400
 Debt, current portion 4,700 2,500
 Current liabilities 29,300 28,200
 Long-term debt 100,700 22,500
 Unearned revenue,
 noncurrent portion 1,600 1,600
 Other noncurrent
 liabilities 4,800 4,000
 Total liabilities 136,400 56,300
 Deferred taxes 52,700 5,700
 Shareholders' equity:
 Preferred stock, par value $1
 per share, authorized
 10,000,000 shares,
 issued and
 outstanding, none --- ---
 Common stock, par value
 $.01 per share, authorized
 200,000,000 shares, issued and
 outstanding 74,266,249
 shares in 1992 and
 59,999,982 shares in 1991 700 600
 Paid-in capital 123,400 9,900
 Retained earnings 139,400 126,600
 Cumulative translation
 adjustment (600) (700)
 Common stock in treasury, at
 cost (4,500 shares in
 1992 and 1991) (100) (100)
 Total shareholders' equity 262,800 136,300
 Total liabilities and
 shareholders' equity $451,900 $198,300
 CONSOLIDATED STATEMENTS OF CASH FLOWS
 UNAUDITED
 (Dollars in thousands)
 Six Months Ended
 June 30,
 1992 1991
 Cash Flows from
 Operating Activities
 Net Earnings $ 15,700 $ 15,500
 Adjustments to reconcile net
 earnings to net cash provided
 by operating activities:
 Depreciation and depletion 9,400 12,800
 Increase in deferred taxes 2,900 200
 Other, net 1,100 300
 Capitalization of prior
 period exploration costs (8,900) ---
 Amortization of prepaid royalty --- 600
 Decrease (increase) in working
 capital, net of effect of investing
 activities:
 Prepaid expenses and other assets 1,500 (1,600)
 Accrued and other current liabilities 1,300 3,400
 Inventories 700 (1,000)
 Accounts payable, trade (2,300) (900)
 Accounts payable, affiliates (1,100) (1,400)
 Net cash provided by operating activities 20,300 27,900
 Investing Activities
 Cash acquired, net of acquisition costs 900 ---
 Capital expenditures for property,
 plant and equipment (91,500) (18,400)
 Repayments from and (advances to) Amax (3,000) 4,000
 Net cash used by investing activities (93,600) (14,400)
 Financing Activities
 Proceeds from financings 80,400 ---
 Dividends (1,900) (2,400)
 Other (300) (100)
 Decrease in unearned
 revenue from repayments under
 precious metal financngs --- (7,900)
 Net cash provided (used)
 by financing activities 78,200 (10,400)
 Net increase in cash
 and equivalents 4,900 3,100
 Cash and equivalents at Jan. 1 9,500 500
 Cash and equivalents at June 30
 (including restricted cash
 of $8,700 in 1992) $ 14,400 $ 3,600
 -0- 7/17/92
 /CONTACT: Gina Wilson of Amax Gold, 303-273-0623/
 (AU) CO: Amax Gold Inc. ST: Colorado IN: MNG SU: ERN


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