Alta Gold Co. Announces Third-Quarter 1999 Results.LAS VEGAS--(BUSINESS WIRE)--Nov. 11, 1999-- Alta ALTA Alberta (Canada) ALTA AltaVista (stock symbol) ALTA American Land Title Association ALTA American Literary Translators Association ALTA Atlanta Lawn Tennis Association Gold Co. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :ALTAQ) announced results for the third quarter ended Sept. 30, 1999. For the third quarter of 1999, the company reported a net loss of $5,491,000 ($0.16/share) from revenue of $3,000,000, as compared with a net income of $696,000 ($0.02/share) from revenue of $5,237,000 for the third quarter of 1998. For the nine months ended Sept. 30, 1999, the company reported a net loss of $7,610,000 ($0.23/share) from revenue of $16,730,000, as compared with a net income of $1,176,000 ($0.03/share) from revenue of $12,082,000 for the nine months ended Sept. 30, 1998. Revenue fell during the third quarter of 1999 due to the company's decision to suspend mining, crushing crushing deaths of newborn animals, especially those in litters, caused by the mother lying on them accidentally. Contributed to by weakness of the neonate or awkward accommodation. A problem in piglets and puppies. Called also overlying. and milling operations at Olinghouse in order to maintain short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. liquidity, as well as to an unanticipated and precipitous deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. in the gold recovery rate at Griffon griffon: see Brussels griffon; wirehaired pointing griffon. , which further necessitated the recording of a non-cash $2,168,000 write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. in the third quarter of 1999. The downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. in the company's profitability is the result of multiple factors, including: (1) the Griffon write-down, (2) interest and associated costs incurred on the company's debt, (3) lower than expected gold production and higher than expected unit costs at Olinghouse, (4) the precipitous decrease in gold production at Griffon, (5) the comparative deterioration in the price of gold and (6) costs incurred in regard to the company's bankruptcy proceedings bankruptcy proceedings n. the bankruptcy procedure is: a) filing a petition (voluntary or involuntary) to declare a debtor person or business bankrupt, or, under Chapter 11 or 13, to allow reorganization or refinancing under a plan to meet the debts of the party . On April 14, 1999, the company filed a voluntary petition petition Written instrument directed to an individual, government official, legislative body, or court in order to seek redress of grievances or to request a favour. for relief under the provisions of Chapter 11 of the Bankruptcy Code Bankruptcy Code may refer to:
No assurance can be given that either the company or the sales agent will be able to complete the necessary transactions to allow the company to continue to operate. In the event such transactions are not consummated con·sum·mate tr.v. con·sum·mat·ed, con·sum·mat·ing, con·sum·mates 1. a. To bring to completion or fruition; conclude: consummate a business transaction. b. within a very short period of time, the company is not expected to be able to continue as a going concern. Alta Gold is engaged in the exploration, development, mining and production of gold on properties in Nevada Nevada (nəvăd`ə, –vä–), far western state of the United States. It is bordered by Utah (E), Arizona (SE), California (SW, W), and Oregon and Idaho (N). . The company also has three base metals properties in the Western United States Noun 1. western United States - the region of the United States lying to the west of the Mississippi River West Santa Fe Trail - a trail that extends from Missouri to New Mexico; an important route for settlers moving west in the 19th century that are in various stages of development. This news release contains statements that may be considered forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995, such as management's expectations regarding its ability to emerge successfully from Chapter 11 bankruptcy proceedings, to remain a debtor-in-possession, to consummate To carry into completion; to fulfill; to accomplish. A Common-Law Marriage is consummated when the parties live in a manner intended to bring about public recognition of their relationship as Husband and Wife. the sale of its assets, or to continue its limited business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets . Such forward-looking statements are inherently uncertain, and the actual results may differ from management's expectations. Further information on potential factors that could affect the financial condition and results of operations of Alta are included in the filings of Alta with the Securities and Exchange Commission, including, but not limited to, Alta's annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended Dec. 31, 1998, and its quarterly reports on Form 10-Q Form 10-Q See 10-Q. for the quarters ended March 31, 1999, June June: see month. 30, 1999 and Sept. 30, 1999. -0-
ALTA GOLD CO.
(DEBTOR IN POSSESSION)
CONDENSED BALANCE SHEETS
ASSETS
September 30,
1999 December 31,
(Unaudited) 1998
CURRENT ASSETS:
Cash and cash equivalents $ 290,000 $ 953,000
Inventories 6,794,000 7,020,000
Prepaid expenses and other 314,000 951,000
Total current assets 7,398,000 8,924,000
PROPERTY AND EQUIPMENT, net
Mining properties and claims 17,185,000 17,185,000
Buildings and equipment 25,920,000 29,491,000
43,105,000 46,676,000
Less - accumulated depreciation (8,723,000) (9,033,000)
Total property and equipment, net 34,382,000 37,643,000
DEFERRED MINE DEVELOPMENT COSTS, net 23,100,000 24,185,000
DEFERRED FINANCING COSTS 2,034,000 2,790,000
OTHER ASSETS 638,000 950,000
Total Assets $ 67,552,000 $ 74,492,000
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 420,000 $ 4,403,000
Accrued liabilities 1,388,000 1,273,000
Current portion of long-term debt 15,435,000 4,821,000
Total current liabilities 17,243,000 10,497,000
LONG-TERM LIABILITIES:
Long-term debt, net of
current portion 9,334,000 24,381,000
Deferred Income Taxes 662,000 662,000
Other Long-term liabilities 362,000 995,000
Total long-term liabilities 10,358,000 26,038,000
LIABILITIES SUBJECT TO COMPROMISE 9,501,000 --
Total Liabilities 37,102,000 36,535,000
STOCKHOLDERS' EQUITY:
Common stock 35,000 34,000
Additional capital 53,286,000 53,184,000
Accumulated deficit (22,871,000) (15,261,000)
Total stockholders' equity 30,450,000 37,957,000
Total liabilities and
stockholders' equity $ 67,552,000 $ 74,492,000
ALTA GOLD CO.
(DEBTOR IN POSSESSION)
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
Nine Months Ended September 30,
1999 1998
REVENUE $ 16,730,000 $ 12,082,000
OPERATING COSTS AND EXPENSES:
Direct mining, production,
reclamation and maintenance
costs 18,014,000 9,549,000
General and administrative 947,000 1,035,000
Exploration 212,000 234,000
Impairment of assets 2,168,000 --
21,341,000 10,818,000
INCOME (LOSS) FROM OPERATIONS (4,611,000) 1,264,000
OTHER INCOME (EXPENSE):
Interest and other income 33,000 80,000
Loss on disposal of assets -- (168,000)
Interest expense (2,285,000) --
(2,252,000) (88,000)
INCOME (LOSS) BEFORE REORGANIZATION
ITEMS AND PROVISION FOR INCOME TAXES (6,863,000) 1,176,000
REORGANIZATION ITEMS (747,000) --
INCOME (LOSS) BEFORE PROVISION FOR
INCOME TAXES $ (7,610,000) $ 1,176,000
PROVISION FOR INCOME TAXES -- --
NET INCOME (LOSS) $ (7,610,000) $ 1,176,000
NET INCOME (LOSS) PER SHARE:
Basic $ (0.23) $ 0.04
Diluted $ (0.23) $ 0.03
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic 33,602,108 32,257,285
Diluted 33,602,108 35,738,870
Three Months Ended September 30,
1999 1998
REVENUE $ 3,000,000 $ 5,237,000
OPERATING COSTS AND EXPENSES:
Direct mining, production, reclamation
and maintenance costs 4,857,000 3,987,000
General and administrative 325,000 327,000
Exploration -- 118,000
Impairment of assets 2,168,000 --
7,350,000 4,432,000
INCOME (LOSS) FROM OPERATIONS (4,350,000) 805,000
OTHER INCOME (EXPENSE):
Interest and other income -- 18,000
Loss on disposal of assets -- (127,000)
Interest expense (737,000) --
(737,000) (109,000)
INCOME (LOSS) BEFORE REORGANIZATION
ITEMS AND PROVISION FOR INCOME TAXES (5,087,000) 696,000
REORGANIZATION ITEMS (404,000) --
INCOME (LOSS) BEFORE PROVISION FOR
INCOME TAXES $ (5,491,000) $ 696,000
PROVISION FOR INCOME TAXES -- --
NET INCOME (LOSS) $ (5,491,000) $ 696,000
NET INCOME (LOSS) PER SHARE:
Basic $ (0.16) $ 0.02
Diluted $ (0.16) $ 0.02
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic 33,850,366 32,824,085
Diluted 33,850,366 35,466,474
ALTA GOLD CO.
(DEBTOR IN POSSESSION)
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
Nine Months Ended September 30,
1999 1998
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ (7,610,000) $ 1,176,000
Adjustments to reconcile net income to
net cash provided by (used in)
operating activities:
Depreciation, depletion and amortization 5,953,000 2,734,000
Impairment of assets 2,168,000 --
Reorganization items 747,000 --
Loss on disposal of assets -- 168,000
Decrease (increase) in other assets (412,000) (2,175,000)
Increase (decrease) in other liabilities 744,000 640,000
Net cash provided by operating activities
before reorganization items 1,590,000 2,543,000
Reorganization items (82,000) --
Net cash provided by operating activities 1,508,000 2,543 000
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to property, buildings
and equipment (759,000) (12,907,000)
Additions to deferred mine
development costs (442,000) (2,568,000)
Proceeds from sale of
property and equipment 113,000 45,000
Net cash used in investing activities (1,088,000) (15,430,000)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of debt -- 21,465,000
Payments on debt (1,083,000) (9,255,000)
Financing costs -- (2,280,000)
Net cash provided by (used in)
financing activities (1,083,000) 9,930,000
NET DECREASE IN CASH AND CASH EQUIVALENTS (663,000) (2,957,000)
CASH AND CASH EQUIVALENTS,
beginning of period 953,000 3,330,000
CASH AND CASH EQUIVALENTS,
end of period $ 290,000 $ 373,000
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