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AMAX GOLD RECORDS FIRST QUARTER LOSS

 GOLDEN, Colo., April 22 /PRNewswire/ -- Amax Gold Inc. (NYSE: AU; Toronto: AXG) reported a net loss of $5.2 million, 7 cents per share, on sales of $18.4 million for the first quarter of 1993. This compares to net earnings for the first quarter of 1992 of $2.3 million, 3 cents per share, on sales of $27.2 million.
 "Operating results at Hayden Hill have been extremely disappointing," commented Timothy J. Haddon, president and chief executive officer. "During the first quarter, Hayden Hill continued to experience excessive dilution of the ore grade being fed to the mill, compounded by extreme weather conditions. A complete engineering analysis to correct the problems and ensure the future profitability of the mine is expected to be completed in July 1993. In the interim, steps are being taken to reduce costs and minimize grade dilution."
 Sales decreased for the first quarter of 1993 compared to the first quarter of 1992 predominately due to lower production. Results for the quarter were also impacted by an increase in operating costs, primarily attributable to the Hayden Hill Mine which was not in operation in the first quarter of 1992. Although unit costs at Sleeper were higher due to lower production caused by a lower mill head grade, total operating costs declined compared to the quarter a year ago.
 Other factors contributing to Amax Gold's loss were lower production from the Wind Mountain Mine as a result of the cessation of mining in the first quarter of 1992 and higher interest expense compared to the quarter a year ago. As a result of the acquisition of the Refugio Project in January 1993, prior period exploration expenses of $.8 million were capitalized in the first quarter. In addition, a $2.6 million deferred tax benefit was recognized under Statement of Financial Accounting Standards No. 109, which was adopted in 1992.
 "We expect our results for 1993 to be adversely impacted by current conditions at Hayden Hill," said Haddon. "In addition, the Guanaco Mine, which commenced production in April, will have higher costs associated with the start-up phase of heap leach production." He went on to say, "While in the short term results will be unsatisfactory, operating issues are being addressed aggressively, and we're optimistic about the longer term prospects for Amax Gold. Progress is being made in advancing our development projects. The Fort Knox feasibility study has been completed, and permitting of this project is moving forward. In addition, financing activities in association with Bema Gold Corporation, 50 percent owner of the Refugio Project, are progressing, and activities to advance the Haile Project are continuing."
 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 OPERATIONS
 UNAUDITED
 (in thousands except per share amounts)
 Three Months Ended
 March 31,
 1993 1992
 Sales $18,400 $ 27,200
 Costs and operating
 expenses:
 Costs applicable to sales 17,100 13,000
 Depreciation and depletion 5,900 5,200
 Selling, general and
 administrative expenses 2,000 2,000
 Total costs and operating expenses 25,000 20,200
 Gross operating margin (loss) (6,600) 7,000
 Exploration expenses, net 300 (3,400)
 Earnings (loss) from operations (6,300) 3,600
 Interest expense and other (1,700) (100)
 Interest income 200 600
 Earnings (loss) before income
 taxes and cumulative effect of
 accounting change (7,800) 4,100
 Income tax (provision) benefit 2,600 (300)
 Earnings (loss) before
 cumulative effect of
 accounting change (5,200) 3,800
 Cumulative effect of
 accounting change, net
 of income tax benefit of $900 --- (1,500)
 Net earnings (loss) $(5,200) $ 2,300
 Per common share:
 Earnings (loss) before
 cumulative effect of
 accounting change $ (.07) $ .05
 Cumulative effect of
 accounting change --- (.02)
 Net earnings (loss) $ (.07) $ .03
 Weighted average common shares
 outstanding 77,202 72,199
 Note: Statement of Operations for the first quarter of 1992
 restated for the Jan. 1, 1992 adoption of Statement of
 Financial Accounting Standards No. 106 "Employers' Accounting
 for Postretirement Benefits Other than Pensions."
 AMAX GOLD INC.
 KEY OPERATING FACTORS
 UNAUDITED
 Three Months Ended
 March 31,
 1993 1992
 Sleeper Mine:
 Ounces of gold produced 23,096 39,689
 Average cost per ounce produced:
 Cash production cost(A) $ 318 $ 219
 Depreciation and depletion 137 95
 Total production cost $ 455 $ 314
 Wind Mountain Mine:
 Ounces of gold produced 6,273 18,910
 Average cost per ounce produced:
 Cash production cost(A) $ 129 $ 149
 Depreciation and depletion --- 78
 Total production cost $ 129 $ 227
 Hayden Hill Mine:
 Ounces of gold produced(B) 12,063 ---
 Average cost per ounce produced:
 Cash production cost(A) $ 653 $ ---
 Depreciation and depletion 199 ---
 Total production cost $ 852 $ ---
 Waihi Mine:
 Ounces of gold produced(C) 6,053 6,687
 Average cost per ounce produced:
 Cash production cost(A) $ 224 $ 218
 Depreciation and depletion 57 66
 Total production cost $ 281 $ 284
 Total:
 Ounces of gold produced 47,485 65,286
 Ounces of gold sold 46,996 67,042
 Average price per ounce sold $ 391 $ 405
 Average cost per ounce produced:(D)
 Cash production cost(A) $ 366 $ 197
 Depreciation and depletion 125 87
 Total production cost $ 491 $ 284
 (A) Cash production costs include all operating costs at the mine
 sites, including overhead, and, where applicable, Nevada net
 proceeds tax, royalties and credits for silver by-products.
 (B) Production commenced at the Hayden Hill Mine in June 1992.
 (C) Represents the company's 33.53 percent share.
 (D) Average costs weighted by ounces of gold produced at each mine.
 AMAX GOLD INC.
 CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL POSITION
 (Dollars in thousands except par value of stock)
 March 31, Dec. 31,
 1993 1992
 (Unaudited)
 ASSETS
 Cash and equivalents $ 11,900 $23,700
 Demand note receivable from Amax 10,500 ---
 Inventories 14,700 15,100
 Other assets 9,700 8,300
 Current assets 46,800 47,100
 Property, plant and
 equipment, net 432,900 429,800
 Refugio equity investment 23,300 ---
 Deferred acquisition costs --- 400
 Other assets 200 300
 Total assets $503,200 $477,600
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Accounts payable, trade $ 6,500 $ 6,700
 Accounts payable, affiliates 400 1,000
 Accrued and other current
 liabilities 13,700 16,300
 Reclamation reserve,
 current portion 2,000 2,000
 Short-term debt 10,100 10,000
 Current maturities of
 long-term debt 12,400 10,900
 Current liabilities 45,100 46,900
 Long-term debt and unearned
 revenue, noncurrent portion 116,600 103,100
 Reclamation reserve,
 noncurrent portion 2,800 2,300
 Other noncurrent liabilities 8,800 8,000
 Total liabilities 173,300 160,300
 Deferred taxes 57,200 60,100
 Shareholders' equity:
 Preferred stock, par value $1.00
 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
 77,775,602 shares in 1993 and
 74,503,819 shares in 1992 800 700
 Paid-in capital 147,500 125,500
 Retained earnings 125,500 132,200
 Cumulative translation adjustment (1,000) (1,100)
 Common stock in treasury, at
 cost (4,500 shares in 1993 and 1992) (100) (100)
 Total shareholders' equity 272,700 257,200
 Total liabilities and
 shareholders' equity $503,200 $477,600
 AMAX GOLD INC.
 CONSOLIDATED STATEMENTS OF CASH FLOWS
 UNAUDITED
 (Dollars in thousands)
 Three Months Ended
 March 31,
 1993 1992
 Cash Flows from Operating Activities
 Net earnings (loss) $ (5,200) $ 2,300
 Adjustments to reconcile net
 earnings to net cash provided
 by operating activities:
 Depreciation and depletion 5,900 5,200
 Increase in reclamation reserves 500 500
 Other, net 100 ---
 Increase (decrease)
 in deferred taxes (2,900) (100)
 Capitalization of prior period
 exploration costs (800) ---
 Cumulative effect of
 accounting change --- 1,500
 Decrease (increase) in working
 capital, net of effect of
 investing and financing activities:
 Inventories 400 1,000
 Other assets (1,400) 800
 Accrued and other
 current liabilities (1,000) 200
 Accounts payable, affiliates (600) (1,100)
 Accounts payable, trade (200) (4,100)
 Net cash provided (used) by
 operating activities (5,200) 6,200
 Investing Activities
 Advances to Amax (10,500) (800)
 Capital and cash acquisition
 expenditures for property,
 plant and equipment (8,900) (23,500)
 Refugio cash acquisition
 and investment costs (1,000) ---
 Fort Knox acquisition
 costs, net of cash acquired --- 1,200
 Net cash used by
 investing activities (20,400) (23,100)
 Financing Activities
 Proceeds from financings 15,100 35,000
 Other (800) ---
 Cash dividends paid (500) (1,500)
 Net cash provided by
 financing activities 13,800 33,500
 Effect of exchange rate
 changes on cash and equivalents --- 100
 Net increase (decrease)
 in cash and equivalents (11,800) 16,700
 Cash and equivalents at Jan. 1 23,700 9,500
 Cash and equivalents at March 31
 (including restricted cash of
 $20,500 in 1992) $ 11,900 $ 26,200
 Note: Statement of Cash Flows for the first quarter of 1992
 restated for the Jan. 1, 1992 adoption of Statement of
 Financial Accounting Standards No. 106 "Employers' Accounting
 for Postretirement Benefits Other than Pensions."
 -0- 4/22/93
 /CONTACT: Gina Wilson of Amax Gold, 303-273-0623/
 (AU)


CO: Amax Gold Inc. ST: Colorado IN: MNG SU: ERN

MC -- DV002 -- 9246 04/22/93 09:38 EDT
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Date:Apr 22, 1993
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