Anvil Range Announces Third Quarter 1997 Results.TORONTO--(BUSINESS WIRE)--Nov. 24, 1997--Anvil Range Mining C(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 today announced results for the third quarter and nine months ended September September: see month. 30, 1997. In 1996, Anvil Range changed its fiscal year end from October October: see month. to December December: see month. . Accordingly, results for the third quarter of 1997 are compared to the three month period ending October 31, 1996. In the third quarter of 1997, Anvil Range recorded a loss of $0.36 per common share, compared to a loss of $2.11 per common share in the quarter ended October 31, 1996. For the respective nine month periods, losses were $0.61 in 1997 and $1.57 in 1996. Cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses in the third quarter was $0.3 million in 1997 ($12.7 million year to date), which compares to $10.9 million and $11.6 million, respectively, for 1996. During July July: see month. , 1997, the operations of Anvil Range were maintained on a stand-by Stand´-by` n. 1. One who, or that which, stands by one in need; something upon which one relies for constant use or in an emergency. basis, pending the completion of the financing that was necessary to restart To resume computer operation after a planned or unplanned termination. See boot, warm boot and checkpoint/restart. . On August 7, 1997 Anvil Range announced that it had secured a $15 million loan from Cominco Ltd., the proceeds of which would be used to carry out a stripping program at the mine. Stripping was under way by the middle of August, and a small quantity of 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. was moved in September. Cash Flow and Liquidity The Company's cash balance increased by $9.7 million in the third quarter of 1997, which compares to a reduction of total cash in 1996 of $18.4 million. In September,1996, Anvil Range paid back loans of $20.6 million to Hyundai Corporation Hyundai Corporation is a South Korean company founded in 1976, as a part of the Hyundai Group. It is composed of four divisions: Machinery & Plant, Steel, Information & Communication, and Natural Resources; these are supported by two departments: Financial Management and Corporate . For the first nine months of 1997, Anvil Range's cash balance increased by $28.5 million, which compares to a use of cash in the comparable 1996 period of $26.9 million. The previously announced loan from Cominco Ltd. of $15.0 million was received in two tranches Tranches A piece, portion or slice of a deal or structured financing. This portion is one of several related securities that are offered at the same time but have different risks, rewards and/or maturities. "Tranche" is the French word for "slice". . The first tranche Tranche One of several related securities offered at the same time. Tranches from the same offering usually have different risk, reward, and/or maturity characteristics. tranche A class of bonds. of $10.0 million was received on August 6, 1997 and Anvil Range issued 3.3 million warrants exercisable at $3 per common share on the receipt of this tranche. The second tranche of $5.0 million, and the issue of an additional 1.7 million warrants carrying identical terms, was completed on September 17, 1997 when the required shareholder approval was received. Short term financing On November November: see month. 20, 1997, Anvil Range announced that it had arranged for sufficient short term working capital funding from Cominco Ltd. and the Glencore Glencore International AG (formerly called Marc Rich & Co AG) is one of the world's largest suppliers of commodities and raw materials, and is also among the world's largest privately held companies. As of 2006, it was Europe's sixth-largest company in terms of turnover. Group to enable it to resume production of lead and zinc concentrates 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. at its Faro Faro, town, Portugal Faro (fä`rō), town (1991 pop. 31,966), capital of Faro dist. and of Algarve, S Portugal. The southernmost town in Portugal, it is a seaport from which fish, fruit (especially dried figs), wine, and cork are operations for the period from November 20, 1997 to March, 1998. Cominco has advanced $5 million which becomes callable Callable Applies mainly to convertible securities. Redeemable by the issuer before the scheduled maturity under specific conditions and at a stated price, which usually begins at a premium to par and declines annually. on demand on or after March 15, 1998. This loan is secured in the same manner as the existing $15 million loan which was arranged on August 6, 1997 and bears the same 8.5% interest rate. The new $5 million loan has a maturity value of $7 million and the additional $2 million is subject to the repayment Repayment The act of paying back a debt. Notes: Everyone has to repay their debts eventually. See also: Debt, Defeasance, Loan terms of the existing loan. The second part of the funding is pursuant to an agreement with the Glencore Group which will become the exclusive buyer of the Company's zinc zinc, metallic chemical element; symbol Zn; at. no. 30; at. wt. 65.38; m.p. 419.58°C;; b.p. 907°C;; sp. gr. 7.133 at 25°C;; valence +2. Zinc is a lustrous bluish-white metal. It is found in Group 12 of the periodic table. and lead concentrates for the period ending March, 1998. If the mine continues in production beyond March, 1998 Glencore has an option to continue this arrangement for the balance of the year. As part of this agreement, which may continue for the life of the Grum a. 1. Morose; severe of countenance; sour; surly; glum; grim. 2. Low; deep in the throat; guttural; rumbling; as, a grum voice s>. mine, Glencore will buy the concentrates immediately after production. An advance payment will be made to Anvil Range when concentrates are delivered to the port of Skagway Skagway (skăg`wā'), city (1990 pop. 692), Skagway-Yakutat census div., SE Alaska, in the Panhandle, at the head of Lynn Canal; founded 1897. . These arrangements will provide the Company with its immediate working capital needs. The Company's technical consultants Strathcona Strathcona can refer to a number of things including:
Long-term financing using either debt or equity. permanent financing The long-term financing that supports a long-term asset. . -0-
ANVIL RANGE MINING CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS AND DEFICIT
(Unaudited)
3 Months 3 Months 9 Months 9 Months
Ended Ended Ended Ended
Sept 30, Oct 31, Sept 30, Oct 31,
1997 1996 1997 1996
--------- ------------ ----------- -----------
(in thousands except per share data)
Revenue $468 $42,447 $31,239 $150,954
Freight and
delivery (56) (4,463) (3,534) (14,603)
--------- ------------ ----------- -----------
412 37,984 27,705 136,351
Operating and
property
maintenance
costs 4,468 33,482 28,057 105,911
Exploration - 612 143 1,194
Corporate
administration 614 1,125 2,480 4,231
Amortization of
capital and
other assets 1,357 5,583 5,094 16,203
Writedown of
mining
property - 31,000 - 31,000
--------- ------------ ----------- -----------
Loss from
operations (6,027) (33,818) (8,069) (22,188)
Other income
(expenses)
Interest
income 268 270 424 1,239
Interest on
long term
debt (1,012) (1,159) (2,752) (4,180)
Interest
expense
- other (4) (118) (342) (763)
Foreign exchange
gain (loss) (26) 463 (602) 684
--------- ------------ ----------- -----------
(774) (544) (3,272) (3,020)
--------- ------------ ----------- -----------
Loss before
large
corporation
and production
taxes (6,801) (34,362) (11,341) (25,208)
Provision for
large corporation
and production
taxes 75 300 225 590
--------- ------------ ----------- -----------
Loss for the
period (6,876) (34,662) (11,566) (25,798)
(Deficit)
retained
earnings,
beginning
of period (43,221) 6,467 (38,531) (2,397)
--------- ------------ ----------- -----------
Deficit, end
of period $(50,097) $(28,195) $(50,097) $(28,195)
--------- ------------ ----------- -----------
--------- ------------ ----------- -----------
Loss per
common share $(0.36) $(2.11) $(0.61) $(1.57)
--------- ------------ ----------- -----------
--------- ------------ ----------- -----------
Weighted average
number of
common shares
outstanding 19,107 16,449 19,107 16,449
--------- ------------ ----------- -----------
--------- ------------ ----------- -----------
ANVIL RANGE MINING CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
3 Months 3 Months 9 Months 9 Months
Ended Ended Ended Ended
Sept 30, Oct 31, Sept 30, Oct 31,
1997 1996 1997 1996
------ -------- -------- -------
(in thousands)
Cash provided by (used in)
operating activities:
Loss for the
period $(6,876) $(34,662) $(11,566) $(25,798)
Add: Amortization of
capital assets 1,213 5,497 4,778 15,945
Amortization of
deferred costs
associated with issue
of convertible
debentures 86 86 258 258
Amortization of
deferred revenue - (134) (179) (402)
Increase in
environmental
provision - 431 429 1,321
Debt principal
accretion 70 66 209 202
Writedown of
mining property - 31,000 - 31,000
Changes in non-cash
working capital 5,818 8,580 18,722 (10,882)
------- -------- ------- ---------
311 10,864 12,651 11,644
Cash provided by (used in)
investing activities:
Deferred
stripping costs (5,722) (3,627) (5,722) (4,695)
Additions to
capital assets (194) (2,620) (927) (8,251)
Deposits and other
non-current assets(439) (109) (245) (629)
Cash transfer to
reclamation security
trust (179) (977) (934) (1,390)
------- -------- ------- ---------
(6,534) (7,333) (7,828) (14,965)
Cash provided by (used in)
financing activities:
Term loan payable
to shareholder 15,000 - 15,000 -
Other paid in
capital 1,450 - 1,450 -
Issue of share
capital - - 9,430 -
Repayment of
capital lease
principal (432) (1,022) (1,901) (2,913)
Decrease in other
non-current
liabilities (75) (256) (275) (46)
Long term debt
repayments - (20,623) - (20,650)
------- -------- -------- ---------
15,943 (21,901) 23,704 (23,609)
Increase in cash
during period 9,720 (18,370) 28,527 (26,930)
Cash and cash
equivalents, beginning
of period 2,469 (117) (16,338) 8,443
------- -------- -------- ---------
Cash and cash
equivalents,
end of period $12,189 $(18,487) $12,189 $(18,487)
------- -------- -------- ---------
------- -------- -------- ---------
Cash and cash
equivalents
consist of:
Cash $12,189 $ - $12,189 $ -
Operating
loans - (18,487) - (18,487)
------- -------- -------- ---------
$12,189 $(18,487) $12,189 $(18,487)
------- -------- -------- ---------
------- -------- -------- ---------
ANVIL RANGE MINING CORPORATION
CONSOLIDATED BALANCE SHEET
(unaudited)
Assets
September 30, December 31,
1997 1996
------------- -------------
(in thousands)
Current assets
Cash $12,189 $3,570
Accounts receivable and
concentrates in transit - 29,705
Materials and supplies 8,128 9,737
Prepaid and other assets 4,887 4,940
------------- -------------
25,204 47,952
Capital assets 120,773 118,902
Reclamation security trust 12,516 11,582
Deposits and other non-current assets 4,040 4,053
------------- -------------
137,329 134,537
------------- -------------
$162,533 $182,489
------------- -------------
------------- -------------
Liabilities and Shareholders' Equity
Current liabilities
Operating loans $ - $19,908
Accounts payable and
accrued liabilities 12,343 24,802
Current portion of capital leases 6,970 3,854
Other 982 1,168
------------- -------------
20,295 49,732
------------- -------------
Term loan payable to shareholder 15,000 -
Convertible debentures 28,648 28,439
Long term portion of capital leases 234 5,251
Deferred revenue 1,969 2,148
Environmental provision 47,794 47,365
Other non-current liabilities 150 425
------------- -------------
93,795 83,628
------------- -------------
Shareholders' equity
Share capital 95,082 85,652
Other paid in capital 3,458 2,008
Deficit (50,097) (38,531)
------------- -------------
48,443 49,129
------------- -------------
$162,533 $182,489
------------- -------------
------------- -------------
CONTACT: Anvil Range Mining Corporation Patrick J. Mars Mars, in Roman religion and mythology Mars, in Roman religion and mythology, god of war. In early Roman times he was a god of agriculture, but in later religion (when he was identified with the Greek Ares) he was primarily associated with war. , 416/408-5232 or Anvil Range Mining Corporation Victor Wells, 416/408-5230 |
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