Alta Gold Co. Reports Fourteenth 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)--Oct. 21, 1997--Alta Gold Co. (Nasdaq National Market: ALTA) Tuesday Tuesday: see week. announced financial results for the third quarter and the nine months ended Sept. 30, 1997. For the third quarter of 1997, the company reported net income of $664,000, or $0.02 per share, from revenue of $2,649,000. For the third quarter of 1996, net income totaled $887,000, or $0.03 per share, from revenue of $4,629,000. For the nine months ended Sept. 30, 1997, the company reported net income of $1,687,000, or $0.05 per share, from revenue of $8,498,000. For the nine months ended Sept. 30, 1996, net income totaled $2,595,000, or $0.09 per share, from revenue of $15 million. Net income for the first nine months of 1997 included an extraordinary gain of $784,000 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. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. in the third quarter of 1997 of $597,000 increased by more than 700% as compared with operating income of $72,000 in the second quarter of 1997. This achievement was the result of an increase in mine production at Kinsley Kinsley can refer to: People
The decrease in both net income and revenue for both the third quarter and first nine months of 1997, as compared with the third quarter and first nine months 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 operational problems experienced at Kinsley during the first half of 1997. 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: "We are pleased with our continuing profitability and are very optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about our future. Mining at Griffon griffon: see Brussels griffon; wirehaired pointing griffon. is currently underway and gold production will commence before year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. , thereby filling the gap created by the completion of production at Easy Junior in 1996. "In addition, with the recent issuance of the Draft Environmental Impact Statement on Olinghouse, we are only one step away from putting this 'flagship' property into production in the very near future." Production statistics at Kinsley were as follows for the following periods: Three Months Ended Nine Months Ended Sept. 30 Sept. 30 1997 1996 1997 1996 Total Tons Mined 1,499,632 1,514,842 4,370,319 5,387,486 Ore ore, metal-bearing mineral mass that can be profitably mined. Nearly all rock deposits contain some metallic minerals, but in many cases the concentration of metal is too low to justify mining the ore. Tons Mined 510,151 598,130 1,380,462 1,241,685 Average grade 0.0398 0.0298 0.0353 0.0344 Oz gold mined 20,329 17,835 48,663 42,675 Oz gold produced 11,001 10,697 27,844 33,364 Cash Cost per Oz $163 $199 $194 $223 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. NOTE: 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 that 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.
ALTA GOLD CO.
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
Sept. 30,
1997 1996
REVENUE $ 2,649,000 $ 4,629,000
OPERATING COSTS AND EXPENSES:
Direct mining, production, reclamation
and maintenance costs 1,636,000 3,309,000
General and administrative 323,000 344,000
Exploration 93,000 39,000
2,052,000 3,692,000
Income from operations 597,000 937,000
OTHER INCOME (EXPENSE), net:
Interest income and other 67,000 8,000
Interest expense and other -- (58,000)
67,000 (50,000)
INCOME BEFORE PROVISION FOR INCOME
TAXES 664,000 887,000
PROVISION FOR INCOME TAXES -- --
NET INCOME $ 664,000 $ 887,000
NET INCOME PER SHARE (Primary and fully
diluted) $ 0.02 $ 0.03
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING (Primary and fully diluted): 34,858,826 30,513,469
ALTA GOLD CO.
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
Nine Months Ended
Sept. 30,
1997 1996
REVENUE $ 8,498,000 $ 15,000,000
OPERATING COSTS AND EXPENSES:
Direct mining,
production and holding costs 6,492,000 11,136,000
General and administrative 1,108,000 1,094,000
Exploration 180,000 55,000
7,780,000 12,285,000
Income from operations 718,000 2,715,000
OTHER INCOME (EXPENSE), net:
Interest income and other 187,000 66,000
Interest expense and other (2,000) (186,000)
185,000 (120,000)
INCOME BEFORE PROVISION FOR INCOME
TAXES AND EXTRAORDINARY ITEM 903,000 2,595,000
PROVISION FOR INCOME TAXES -- --
INCOME BEFORE EXTRAORDINARY ITEM 903,000 2,595,000
EXTRAORDINARY ITEM:
Gain on extinguishment of debt 784,000 --
NET INCOME $ 1,687,000 $ 2,595,000
NET INCOME PER SHARE
(Primary and fully diluted):
Income before extraordinary item $ 0.03 $ 0.09
Extraordinary item 0.02 --
Net income per share $ 0.05 $ 0.09
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING
(Primary and fully diluted): 34,095,718 30,306,777
ALTA GOLD CO.
CONDENSED BALANCE SHEETS
(Unaudited)
ASSETS
Sept. 30, Dec. 31,
1997 1996
CURRENT ASSETS:
Cash and cash equivalents $ 2,685,000 $ 518,000
Inventories 7,562,000 4,568,000
Prepaid expenses and other 614,000 133,000
Total current assets 10,861,000 5,219,000
PROPERTY AND EQUIPMENT, net
Mining properties and claims 20,567,000 20,500,000
Buildings and equipment 17,054,000 13,851,000
37,621,000 34,351,000
Less -- accumulated depreciation (11,257,000) (10,237,000)
Total property and equipment, net 26,364,000 24,114,000
DEFERRED MINE DEVELOPMENT
COSTS, net 21,838,000 16,037,000
OTHER ASSETS 1,094,000 1,251,000
Total Assets $ 60,157,000 $ 46,621,000
ALTA GOLD CO.
CONDENSED BALANCE SHEETS (continued)
(Unaudited)
LIABILITIES AND STOCKHOLDERS' EQUITY
Sept. 30, Dec. 31,
1997 1996
CURRENT LIABILITIES:
Accounts payable $ 602,000 $ 1,378,000
Accrued liabilities 887,000 1,058,000
Current portion of long-term debt 5,744,000 5,417,000
Total current liabilities 7,233,000 7,853,000
LONG-TERM DEBT,
net of current portion 11,565,000 1,993,000
DEFERRED INCOME TAXES 662,000 662,000
OTHER LONG-TERM LIABILITIES 1,494,000 509,000
Total liabilities 20,954,000 11,017,000
STOCKHOLDERS' EQUITY:
Common stock, $.001
par value; authorized
60,000,000 shares,
issued 30,039,660 and
29,022,371 shares, respectively 30,000 29,000
Additional capital 46,239,000 44,328,000
Accumulated deficit (7,066,000) (8,753,000)
Total stockholders' equity 39,203,000 35,604,000
Total liabilities
and stockholders' equity $ 60,157,000 $46,621,000
CONTACT: Alta Gold Co. 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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