Anvil Range Announces Second Quarter Results.TORONTO--(BUSINESS WIRE)--June 4, 1996--ANVIL RANGE MINING (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :ARO) Anvil anvil Iron block on which metal is placed for shaping, originally by hand with a hammer. The blacksmith's anvil is usually of wrought iron (sometimes of cast iron), with a smooth working surface of hardened steel. Range Mining Corporation announced today that net earnings for the second quarter ended April 30, 1996 were $1.8 million or $0.11 per common share, compared to a loss of $0.7 million or $0.05 per common share for the second quarter ended April 30, 1995. Earnings for the six month period ended April 30, 1996 were $2.5 million ($0.16 per common share). The loss for the six month period ended April 30, 1995, when the mine was under development, was $0.8 million, or $0.08 per common share. As Anvil Range was deemed to have achieved commercial production in November 1995, comparisons to prior year numbers are not meaningful. Revenue for the second quarter ended April 30, 1996 was $53.6 million, and was $97.3 million for the six months ended April 30, 1996. Average prices realized during the second quarter, as well as for the six months ended April 30, 1996, were US$0.47 per pound for zinc and US$0.34 per pound for lead. The average realized price for silver was US$5.49 per ounce during the second quarter ended April 30, 1996 (US$5.47 per ounce during the six month period ended April 30, 1996). In the second quarter of 1996, Anvil Range mined 6.0 million tonnes of waste and ore. Feed for the mill was 1.0 million tonnes. Anvil Range produced 73.9 thousand tonnes of zinc concentrate Zinc concentrate is a highly hazardous product used in the production of zinc metal and zinc alloys, which is the result of a flotation process after the zinc ore has been mined and milled. and 42.4 thousand tonnes of lead concentrate during the second quarter of 1996, up from the 70.5 thousand tonnes of zinc concentrate and 38.6 thousand tonnes of lead concentrate produced in the first quarter of 1996. For the six months ended April 30, 1996, Anvil Range mined 13.9 million tonnes of ore and waste, and provided 2.1 million tonnes of feed to the mill. The average combined grade for the period was 8.23 percent zinc and lead. For the six month period, Anvil Range produced 144.4 thousand tonnes of zinc concentrate and 81.0 thousand tonnes of lead concentrate. Recovery rates for the second quarter ended April 30, 1996 were 69 percent and 76 percent for zinc and lead respectively. Additional improvements to the mill are being implemented, which have led to an improvement in recovery rates by the end of May for zinc to approximately 72 percent and for lead to approximately 78 percent. On May 8, 1996, Anvil Range completed the issue of $30.2 million of 8-1/2 percent Convertible Debentures Convertible Debenture Any type of debenture that can be converted into some other security. Notes: For example, a convertible bond can be converted into stock. . The Debentures were sold by a syndicate consisting of Puccetti Farrell Capital Partners, Midland Walwyn Capital Inc., CIBC Wood Gundy CIBC Wood Gundy was created in 1988 with the purchase of Wood Gundy Inc. by CIBC. CIBC Wood Gundy is a division of CIBC World Markets. Canadian Imperial Bank of Commerce Chief Executive Officer: Gerald T. McCaughey | FY 2006 Statistics: Net income: $2. Securities Inc. and Wallace Dewan de·wan n. Any of various government officials in India, especially a regional prime minister. [Hindi d and Partners Inc. The net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of the issue will be used to fund the 1996-97 exploration program which is now under way on the Company's properties in the Yukon, to purchase additional equipment for the mine and to strengthen working capital. On November 1, 1995, Anvil Range successfully restarted operations of the mine at Faro, Yukon Faro is a small town in the central Yukon, Canada, formerly the home of the largest open pit lead-zinc mine in the world as well as a significant producer of silver and other natural resource ventures. The mine was built by the Ralph M. , which is one of the world's largest zinc and lead mines, and one of Canada's largest silver mines. Anvil Range's properties contained proven and probable reserves totalling approximately 35 million tonnes on November 1, 1995. As only 20 percent of its properties, which cover 41,500 hectares or approximately 150 square miles A square mil is a unit of area, equal to the area of a square with sides of length one mil. A mil is one thousandth of an international inch. This unit of area is usually used in specifying the area of the cross section of a wire or cable. in total have been explored to date, an exploration program budgeted at $5.9 million is now actively under way. -0- Anvil Range Mining Corporation Consolidated Statement of Earnings (unaudited) 2nd 2nd Six Months Ended Quarter Quarter April 30 1996 1995 1996 1995 ------- ------- ------- ------- (in thousands except per share data) Revenue $53,581 $ - $97,285 $ - Freight and delivery (5,769) - (11,025) - ------- ------- ------- ------- 47,812 - 86,260 - Operating costs operating costs npl → gastos mpl operacionales 38,710 - 68,320 - Exploration 155 - 155 - Corporate administration 1,325 1,094 2,956 1,571 Amortization of capital assets capital assets n. equipment, property, and funds owned by a business. (See: capital, capital account) 4,975 - 10,230 - ------- ------- ------- ------- Earnings (loss) from operations 2,647 (1,094) 4,599 (1,571) Other income and expenses Interest income 742 397 1,028 731 Interest expense (1,605) - (2,547) - Interest on capital leases (326) - (547) - Foreign exchange gain 397 - 138 - ------- ------- ------- ------- (792) 397 (1,928) 731 ------- ------- ------- ------- Earnings (loss) before income taxes 1,855 (697) 2,671 (840) Provision for income taxes 65 - 125 - ------- ------- ------- ------- Earnings (loss) for the period $1,790 $ (697) $2,546 $ (840) ------- ------- ------- ------- ------- ------- ------- ------- Earnings per share $0.11 $(0.05) $0.16 $(0.08) Weighted average number of shares outstanding 16,418 12,822 16,418 10,588 Anvil Range Mining Corporation Consolidated Balance Sheet consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. (unaudited) Assets April 30, 1996 October 31, 1995 -------------- ---------------- (in thousands) Current assets Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. Cash $377 $513 Cash held in escrow escrow Instrument, such as a deed, money, or property, that constitutes evidence of obligations between two or more parties and is held by a third party. It is delivered by the third party only upon fulfillment of some condition. 28,837 - Accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying and concentrates in transit 28,724 15,830 Materials and supplies 8,518 6,177 Prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. and other assets other assetsAssets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. 6,550 2,135 -------- -------- 73,006 24,655 Capital assets 146,989 149,697 Reclamation Reclamation A claim for the right to return or the right to demand the return of a security that has been previously accepted as a result of bad delivery or other irregularities in the delivery and settlement process. security trust 9,905 9,389 Deposits 2,009 1,681 Other non-current assets 3,138 1,006 -------- -------- 162,041 161,773 -------- -------- $235,047 $186,428 -------- -------- -------- -------- Liabilities and Shareholders' Equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. Current liabilities Current Liabilities Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. Operating loans $14,445 $4,944 Accounts payable and accrued liabilities Accrued liabilities are liabilities which have occurred, but have not been paid or logged under accounts payable during an accounting period; in other words, obligations for goods and services provided to a company for which invoices have not yet been received. 23,693 19,629 Current portion of capital leases 3,780 2,762 Loans payable 20,422 11,250 Other 444 1,332 -------- -------- $62,784 39,917 Special notes 30,200 - Long term debt and capital leases 7,892 15,711 Environmental provision 46,203 45,333 Deferred revenue 2,506 2,685 Other long term liabilities 417 729 -------- -------- 87,218 64,458 Shareholders' equity Share capital 85,652 85,206 Deficit (607) (3,153) -------- -------- 85,045 82,053 -------- -------- $235,047 $186,428 -------- -------- -------- -------- Anvil Range Mining Corporation Consolidated Statement of Cash Flows (unaudited) 2nd 2nd Six Months Ended Quarter Quarter April 30 1996 1995 1996 1995 ------- ------- ------- ------- (in thousands) Cash provided by (used in) operating activities: Earnings (loss) for the period $1,790 $(697) 2,546 $(840) Add: Amortization 4,926 7 10,151 15 Environmental provision 434 - 870 - Changes in non-cash working capital 154 (2,742) (16,474) (1,281) -------- -------- -------- -------- 7,304 (3,432) (2,907) (2,106) Cash provided by (used in) investing activities: Additions to capital assets (2,134) (18,577) (7,522) (66,117) Deferred stripping costs 3,194 - - - Other non-current assets (407) (142) (2,560) (200) Cash transfer to reclamation security trust (316) - (516) - -------- -------- -------- -------- 337 (18,719) (10,598) (66,317) Cash provided by (used in) financing activities: Issue of special notes - - 30,200 - Equipment leases (880) - 2,730 - Debt increase (repayments) (227) 627 (359) 627 Issue of shares (127) 446 86,860 Subscriptions receivable - 14,704 - - Silver royalty unit proceeds (net) - - - 2,685 Other (208) - (312) - -------- -------- -------- -------- (1,315) 15,204 32,705 90,172 Increase (decrease) in cash during period 6,326 (6,947) 19,200 21,749 Cash and cash equivalents, beginning of period 8,443 25,754 (4,431) (2,942) -------- -------- -------- -------- Cash and cash equivalents, end of period $14,769 $18,807 $14,769 $18,807 -------- -------- -------- -------- -------- -------- -------- -------- Cash and cash equivalent consist of: Cash $377 $20,237 $377 $20,237 Cash held in escrow 28,837 - 28,837 - Operating loans (14,445) (1,430) (14,445) (1,430) -------- -------- -------- -------- $14,769 $18,807 $14,769 $18,807 -------- -------- -------- -------- -------- -------- -------- -------- -0- CONTACT: Anvil Range Mining Corporation Kurt Forgaard, 403/633-5588 (Whitehorse Office) or Anvil Range Mining Corporation Victor Wells, 416/408-5230 (Toronto Office) |
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