Alta Gold Co. Reports 13th Consecutive Profitable Quarter.HENDERSON Henderson. 1 City (1990 pop. 25,945), seat of Henderson co., NW Ky., on the Ohio River, in an oil, coal, tobacco, corn, and livestock area; founded 1797, inc. as a city 1867. , Nev.--(BUSINESS WIRE)--Aug. 6, 1997--Alta Gold Co. (Nasdaq/NM:ALTA) Wednesday Wednesday: see week. announced financial results for the second quarter and the six months ended June June: see month. 30, 1997. For the second quarter of 1997, the company reported net income of $944,000, or $0.03 per share, from revenue of $2,991,000. For the second quarter of 1996, net income totaled $975,000, or $0.04 per share, from revenue of $5,186,000. Net income for the second quarter of 1997 included an extraordinary gain of $784,000, or $0.02 per share, from a gain on extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. of debt. For the six months ended June 30, 1997, the company reported net income of $1,023,000, or $0.03 per share, from revenue of $5,849,000. For the six months ended June 30, 1996, net income totaled $1,708,000, or $0.06 per share, from revenue of $10,371,000. Net income for the first six months of 1997 also included an extraordinary gain of $784,000 from a gain on extinguishment of debt. The decrease in both net income and revenue for both the second quarter and the first half of 1997, as compared with the second quarter and the first half of 1996, is attributed to the drop in the price of gold, the completion of gold production at Easy Junior in the fourth quarter of 1996, and slower gold recoveries at Kinsley Kinsley can refer to: People
v. leached, leach·ing, leach·es v.tr. 1. To remove soluble or other constituents from by the action of a percolating liquid. 2. pad. Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. N. Pratt, president and chief executive officer of Alta Gold, stated: "I find it impressive that the company is able to continue to generate profits during a period of depressed Depressed A description of a market, security, or product that is experiencing weak demand and lowering prices. Notes: A depressed market, security, or product implies that prices and volume are low. There are many reasons for a depressed market, security, or product. gold prices and temporary production constraints CONSTRAINTS - A language for solving constraints using value inference. ["CONSTRAINTS: A Language for Expressing Almost-Hierarchical Descriptions", G.J. Sussman et al, Artif Intell 14(1):1-39 (Aug 1980)]. . In regard to the price of gold, we have in place hedges which guarantee us a minimum gold price of $335/oz through the end of 1998. "In regard to the recent decline in production, we have not only built a new leach pad at Kinsley, which is expected to help increase production in the second half of 1997, but have also begun construction at Griffon griffon: see Brussels griffon; wirehaired pointing griffon. , which is expected to increase production even further in 1998. The fact that we have been able to generate profits in spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite low gold prices and reduced production is a good indicator Indicator Anything used to predict future financial or economic trends. Notes: In the context of technical analysis, an indicator is a mathematical calculation based on a securities price and/or volume. The result is used to predict future prices. of what the company can really do as production increases and when gold prices improve." Production statistics at Kinsley were as follows for the following periods:
Three Months Ended Six Months Ended
June 30 June 30
1997 1996 1997 1996
Total Tons Mined 1,647,263 2,128,278 2,870,687 3,872,644
Ore Tons Mined 453,245 381,072 870,311 643,555
Average grade 0.0337 0.0401 0.0326 0.0387
Oz gold mined 15,283 15,294 28,334 24,930
Oz gold refined 8,751 11,575 16,843 22,667
Cash Cost per Oz $207 $225 $214 $234
The company 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 which 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 THE PLANNED DATES FOR COMMENCEMENT OF GOLD PRODUCTION AT THE COMPANY'S MINING PROPERTIES AND THE SCOPE OF ANTICIPATED DRILLING PROGRAMS. SUCH FORWARD-LOOKING STATEMENTS ARE INHERENTLY UNCERTAIN, AND THE ACTUAL RESULTS MAY DIFFER FROM MANAGEMENT'S EXPECTATIONS. FURTHER INFORMATION ON POTENTIAL FACTORS WHICH COULD AFFECT THE FINANCIAL CONDITION AND RESULTS OF OPERATIONS OF THE COMPANY ARE INCLUDED IN THE FILINGS OF THE COMPANY WITH THE SECURITIES AND EXCHANGE COMMISSION, INCLUDING, BUT NOT LIMITED TO, THE COMPANY'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, 1996. -0-
ALTA GOLD CO.
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended June 30,
1997 1996
REVENUE $2,991,000 $5,186,000
OPERATING COSTS AND EXPENSES:
Direct mining, production,
reclamation and maintenance
costs 2,472,000 3,793,000
General and administrative 386,000 377,000
Exploration 61,000 14,000
2,919,000 4,184,000
Income from operations 72,000 1,002,000
OTHER INCOME (EXPENSE), net:
Interest income and other 90,000 30,000
Interest expense and other (2,000) (57,000)
88,000 (27,000)
INCOME BEFORE PROVISION FOR INCOME
TAXES AND EXTRAORDINARY ITEM 160,000 975,000
PROVISION FOR INCOME TAXES - -
INCOME BEFORE EXTRAORDINARY ITEM 160,000 975,000
EXTRAORDINARY ITEM:
Gain on extinguishment of debt 784,000 -
NET INCOME $ 944,000 $ 975,000
NET INCOME PER SHARE
(Primary and fully diluted):
Income before extraordinary item $ 0.01 $ 0.04
Extraordinary item 0.02 -
Net income per share $ 0.03 $ 0.04
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING
(Primary and fully diluted): 34,868,975 31,319,906
-0-
ALTA GOLD CO.
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
Six Months Ended June 30,
1997 1996
REVENUE $ 5,849,000 $10,371,000
OPERATING COSTS AND EXPENSES:
Direct mining, production,
reclamation and
maintenance costs 4,856,000 7,827,000
General and administrative 785,000 750,000
Exploration 87,000 16,000
5,728,000 8,593,000
Income from operations 121,000 1,778,000
OTHER INCOME (EXPENSE), net:
Interest income and other 120,000 58,000
Interest expense and other (2,000) (128,000)
118,000 (70,000)
INCOME BEFORE PROVISION FOR INCOME
TAXES AND EXTRAORDINARY ITEM 239,000 1,708,000
PROVISION FOR INCOME TAXES - -
INCOME BEFORE EXTRAORDINARY ITEM 239,000 1,708,000
EXTRAORDINARY ITEM:
Gain on extinguishment of debt 784,000 -
NET INCOME $1,023,000 $1,708,000
NET INCOME PER SHARE (Primary and
fully diluted):
Income before extraordinary item $0.01 $0.06
Extraordinary item 0.02 -
Net income per share $0.03 $0.06
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING (Primary and fully
diluted): 34,782,969 30,240,811
-0-
ALTA GOLD CO.
CONDENSED BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
1997 1996
CURRENT ASSETS:
Cash and cash equivalents $ 6,713,000 $ 518,000
Inventories 5,778,000 4,568,000
Prepaid expenses and other 571,000 133,000
Total current assets 13,062,000 5,219,000
PROPERTY AND EQUIPMENT, net
Mining properties and claims 20,567,000 20,500,000
Buildings and equipment 15,202,000 13,851,000
35,769,000 34,351,000
Less - accumulated depreciation (10,916,000) (10,237,000)
Total property and equipment, net 24,853,000 24,114,000
DEFERRED MINE DEVELOPMENT
COSTS, net 20,103,000 16,037,000
OTHER ASSETS 1,272,000 1,251,000
Total Assets $59,290,000 $46,621,000
-0-
ALTA GOLD CO.
CONDENSED BALANCE SHEETS (continued)
(Unaudited)
LIABILITIES AND STOCKHOLDERS' EQUITY
June 30, December 31,
1997 1996
CURRENT LIABILITIES:
Accounts payable $ 590,000 $ 1,378,000
Accrued liabilities 832,000 1,058,000
Current portion of
long-term debt 4,513,000 5,417,000
Total current liabilities 5,935,000 7,853,000
LONG-TERM DEBT, net of current portion 14,233,000 1,993,000
DEFERRED INCOME TAXES 662,000 662,000
OTHER LONG-TERM LIABILITIES 1,648,000 509,000
Total liabilities 22,478,000 11,017,000
STOCKHOLDERS' EQUITY:
Common stock, $.001 par value;
authorized 60,000,000 shares,
issued 29,204,092 and
29,022,371 shares, respectively 29,000 29,000
Additional capital 44,513,000 44,328,000
Accumulated deficit (7,730,000) (8,753,000)
Total stockholders' equity 36,812,000 35,604,000
Total liabilities and
stockholders' equity $59,290,000 $46,621,000
CONTACT: Alta Gold Co., Henderson Margo margo /mar·go/ (mahr´go) pl. mar´gines margin. margo pl. margines [L.] border; margin. See also margin. Bergeson, 702/433-8525 |
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