Apollo Gold Reports Third Quarter 2005 Results.DENVER Denver, city (1990 pop. 467,610), alt. 5,280 ft (1,609 m), state capital, coextensive with Denver co., N central Colo., on a plateau at the foot of the Front Range of the Rocky Mts., along the South Platte River where Cherry Creek meets it; inc. 1861. -- Apollo Apollo (əpŏl`ō), in Greek religion and mythology, one of the most important Olympian gods, concerned especially with prophecy, medicine, music and poetry, archery, and various bucolic arts, particularly the care of flocks and herds. Gold Corporation ("Apollo" or the "Company") (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension : APG APG Assists Per Game (basketball) APG Assists Per Game (hockey statistic) APG Aberdeen Proving Ground APG Automated Password Generator APG Asia Pacific Group on Money Laundering ) (AMEX AMEX See: American Stock Exchange : AGT AGT antiglobulin test. ) announced today a net loss of $7.2 million, or $0.07 per share, for the third quarter 2005 compared to a net loss of $11.2 million, or $0.14 per share, for the third quarter 2004. The net loss for the nine months ended September September: see month. 30, 2005, was $18.0 million ($0.18 per share) compared to a net loss for the same period 2004 of $25.3 million ($0.32 per share). All dollars are reported in U.S. currency. On May 30, 2005, the Company adopted a plan to dispose of To determine the fate of; to exercise the power of control over; to fix the condition, application, employment, etc. of; to direct or assign for a use. See also: Dispose its 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). assets (the "Nevada Assets"), which consist of the Florida Florida, state, United States Florida (flôr`ĭdə, flŏr`–), state in the extreme SE United States. A long, low peninsula between the Atlantic Ocean (E) and the Gulf of Mexico (W), Florida is bordered by Georgia and Canyon canyon Very narrow, deep valley cut by a river through resistant rock and having steep, almost vertical sides. Canyons occur most often in arid or semiarid regions. Some canyons (e.g., the Grand Canyon) are spectacular natural features. See also submarine canyon. Mine, Standard Mine and four Nevada exploration properties. The Nevada Assets are classified as "assets held for sale" and have been separated from the other assets other assets Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. within the Consolidated Balance Sheets 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. . Also, the Nevada Assets only appear as a single line within the Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: Statements of Operations called "Loss from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. ." The Company's total operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. for the three and nine months ended September 30, 2005, are as follows:
Three months ended Nine months ended
------------------- -----------------
September 30, September 30,
------------------- -----------------
2005 2004 2005 2004
$ 000's $ 000's $ 000's $ 000's
---------- -------- -------- --------
Loss from continuing operations (3,614) (8,476) (12,006) (22,745)
Loss from discontinued
operations (3,599) (2,753) (5,954) (2,521)
---------- -------- -------- --------
Net loss for the period (7,213) (11,229) (17,960) (25,266)
Loss from Continuing Operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the -- The Company had a net loss from continuing operations of $3.6 million, or $0.04 per share, for the three months ended September 30, 2005, compared to a net loss of $8.5 million, or $0.11 per share, for the same period 2004. The net loss from continuing operations for the nine months ended September 30, 2005, was $12.0 million, or $0.12 per share, compared to a net loss of $22.7 million, or $0.29 per share, for the same period 2004. The net loss from continuing operations includes the Montana Montana (mŏntăn`ə), Rocky Mt. state in the NW United States. It is bounded by North Dakota and South Dakota (E), Wyoming (S), Idaho (W), and the Canadian provinces of British Columbia, Alberta, and Saskatchewan (N). Tunnels The following are lists of tunnels:
Loss from Discontinued operations -- In the three months ended September 30, 2005, the Company recorded an impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. of $3.9 million related to the sale of the Nevada Assets. This component when added to the results from the discontinued operations means that the total loss for discontinued operations for the three months ended September 30, 2005, was $3.6 million, or $0.03 per share, as compared to $2.8 million, or $0.3 per share, for the three months ended September 30, 2004. Nevada Asset Sales -- On October October: see month. 17, 2005, the Company executed executed 1) adj. to have been completed. (Example: "it is an executed contract") 2) v. to have completed or fully performed. (Example: "he executed all the promises made in the contract") 3) v. a stock purchase agreement pursuant to which the Company has agreed to sell the Nevada Assets to Jipangu Inc., a Delaware corporation A Delaware corporation is a corporation chartered in the U.S. state of Delaware. Delaware is well known as a corporate haven, and thus, over 50% of US publicly-traded corporations and 58% of the Fortune 500 companies are incorporated in the state. and wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Jipangu International Inc., a Japanese Japanese (jăp'ənēz`), language of uncertain origin that is spoken by more than 125 million people, most of whom live in Japan. There are also many speakers of Japanese in the Ryukyu Islands, Korea, Taiwan, parts of the United States, and corporation, for $14 million. Black Fox Project -- The Company completed an additional 30 underground diamond drill holes at its Black Fox project during the third quarter 2005 bringing the total number of underground holes to 335 as at September 30, 2005, and the total number of underground and surface drill holes completed to 784. The Company expects to complete the current drilling program in November November: see month. 2005 and the Company has begun work to update its Black Fox 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. reserves which will be published during the first quarter 2006. Huizopa Project -- Work continued on the Huizopa exploration project in Mexico Mexico, city, Mexico Mexico or Mexico City, Span. Ciudad de México (Méjico), city (1990 pop. 8,236,960; 1991 met. area est. 20,899,000), central Mexico, capital and largest city of Mexico. , including: geological ge·ol·o·gy n. pl. ge·ol·o·gies 1. The scientific study of the origin, history, and structure of the earth. 2. The structure of a specific region of the earth's crust. 3. A book on geology. mapping, sampling, and geophysical ge·o·phys·ics n. (used with a sing. verb) The physics of the earth and its environment, including the physics of fields such as meteorology, oceanography, and seismology. studies. Continuing Operations -- In the three months ended September 30, 2005, Montana Tunnels produced 14,104 ounces of gold at a total cash cost of $513 per ounce ounce, in zoology ounce, in zoology: see leopard. ounce, unit of measurement ounce: see English units of measurement. compared to 4,967 ounces at a total cash cost of $1,465 per ounce in the same period 2004. For the nine months ended September 30, 2005, gold production increased 80%, to 39,073 ounces at a total cash cost of $537 per ounce compared to production in the same period 2004 of 21,653 ounces at a total cash cost of $1,057 per ounce. Discontinued Operations -- Florida Canyon gold production from continued leaching leaching, method of extraction in which a solvent is passed through a mixture to remove some desired substance from it. A simple example is the passage of boiling water through ground coffee to dissolve and carry out the chemicals necessary for producing the beverage. decreased 58% to 6,169 ounces at a total cash cost of $409 per ounce for the three months ended September 30, 2005, from 14,820 ounces of gold at a total cash cost of $406 per ounce for the three months ended September 30, 2004, primarily due to cessation cessation Vox populi The stopping of a thing. See Smoking cessation. of mining on March 1, 2005. Florida Canyon gold production decreased by 55% to 24,765 ounces at a total cash cost of $380 per ounce for the nine months ended September 30, 2005, from 55,649 ounces of gold at a total cash cost of $354 per ounce for the nine months ended September 30, 2004, primarily due to the cessation of mining on March 1, 2005. Standard Mine, which commenced commercial production on June June: see month. 1, 2005, produced 8,432 ounces of gold during the three months ended September 30, 2005, at a total cash cost of $387 per ounce. Standard Mine produced 11,241 ounces of gold during between June and September 2005 at a total cash cost of $380 per ounce.
Consolidated Financial Results Summary
(All Dollars in U.S., 000's unless otherwise stated)
Three months ended Nine months ended
------------------------- ------------------------
September 30, September 30,
------------------------- ------------------------
2005 2004 2005 2004
(1)(2)
Loss from
continuing
operations ($3,614) ($8,476) ($12,006) ($22,745)
(Loss) income from
discontinued
operations ($3,599) ($2,753) ($5,954) ($2,521)
------------- ----------- ------------ -----------
Net loss ($7,213) ($11,229) ($17,960) ($25,266)
Basic and diluted
net loss per share
from (US$):
Continuing
operations ($0.04) ($0.11) ($0.12) ($0.29)
Discontinued
operations ($0.03) ($0.03) ($0.06) ($0.03)
------------- ----------- ------------ -----------
($0.07) ($0.14) ($0.18) ($0.32)
Basic and undiluted
shares (weighted
average)
outstanding 106,556,451 79,617,391 100,106,695 77,924,423
Gold ounces sold
(continuing
operations) 14,104 4,967 39,073 21,653
Total cash costs
per ounce (US$/oz)
(3) $513 $1,465 $537 $1,057
Average realized
gold price
(US$/oz) $455 $411 $438 $398
Gold spot price per
ounce (US$/oz) (4) $439 $401 $431 $401
(1) Income numbers have been restated to reflect the change in
accounting policy for deferred stripping implemented in the second
quarter 2005.
(2) Certain of the comparative figures have been reclassified to
conform to the current period presentation. In particular, the
results of operations of the Nevada Assets for the three and nine
months ended September 30, 2005, have been classified as
discontinued operations. Also, the production statistics reflect
Montana Tunnels only.
(3) The term "total cash cost" is a non-GAAP financial measure and is
used on a per ounce of gold sold basis. Total cash cost is
equivalent to direct operating cost as found on the Consolidated
Statements of Operations and includes by-product credits for
payable silver, lead, and zinc production. We have included total
cash cost information to provide investors with information about
the cost structure of our mining operation. This information
differs from measures of performance determined in accordance with
GAAP in Canada and in the United States and should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with GAAP. This measure is not
necessarily indicative of operating profit or cash flow from
operations as determined under GAAP and may not be comparable to
similarly titled measures of other companies.
(4) Average gold price as per London PM fix.
Three Months Ended September 30, 2005, Compared to the Three Months Ended September 30, 2004 Montana Tunnels (continuing operations) -- For the three months ended September 30, 2005, gold production from Montana Tunnels increased 184% to 14,104 ounces, 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. production increased 98% to 7,400,000 lbs, and lead production increased 61% to 3,389,000 lbs from 4,967 ounces of gold, 3,738,000 lbs of zinc, and 2,110,000 lbs of lead for the three months ended September 30, 2004. Production in 2004 was significantly reduced due to a major stripping program and the processing of lower grade and below reserve grade ores. For the three months ended September 30, 2005, total cash cost per ounce of gold decreased 65% to $513 from $1,465 for the three months ended September 30, 2004, due to higher production of metals as a result of higher grades of ore and improved zinc and lead prices. However, the total cash cost per ounce remained above the selling price per ounce of gold primarily due to poor mining performance, resulting from ramp access and pit wall problems. Revenues for the three months ended September 30, 2005, increased 81% to $13.4 million from $7.4 million for the same period in 2004. Revenues from silver, zinc and lead for the three months ended September 30, 2005 increased 28% to $6.9 million from $5.4 million for the three months ended September 30, 2004. Revenue from gold sales for the three months ended September 30, 2005, were $6.4 million (48% of total revenue) compared to $2.0 million (28% of the total revenue) for the same period 2004. Revenue from zinc at $4.7 million for the three months ended September 30, 2005, accounted for 35% of total revenues. The average price received for gold per ounce for the three months ended September 30, 2005, increased 11% to $455 from $411 for the three months ended September 30, 2004. The increase in revenues is due to increased production and higher prices of zinc and lead. Total operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. , which includes direct operating costs operating costs npl → gastos mpl operacionales , increased 3% to $16.3 million for the three months ended September 30, 2005, from $15.8 million for the three months ended September 30, 2004. Direct operating costs, which includes mining costs, processing costs, and smelting smelting, in metallurgy, any process of melting or fusion, especially to extract a metal from its ore. Smelting processes vary in detail depending on the nature of the ore and the metal involved, but they are typified in the use of the blast furnace. and refining refining, any of various processes for separating impurities from crude or semifinished materials. It includes the finer processes of metallurgy, the fractional distillation of petroleum into its commercial products, and the purifying of cane, beet, and maple sugar charges, increased 13% to $14.2 million for the three months ended September 30, 2005, from $12.6 million for the same period in 2004, although there was a decrease in mined tons (Transparent Optical Networking Services) A marketing term for providing dark fiber to a customer. The customer is responsible for generating the transmission signal and interpreting it at the other end. See dark fiber. of 57% to 4,217,617 tons from 9,789,823 tons, due primarily to the lower stripping ratio required, for the three months ended September 30, 2004. The mining cost per ton for the three months ended September 30, 2005 was $1.54 compared to $0.66 for the three months ended September 30, 2004. The two primary reasons for the increase in mining costs are: (i) in 2004 the majority of the material mined was waste from the upper benches of the pit requiring shorter uphill haul distances and therefore better efficiencies when compared to 2005, where mining was mainly from the pit bottom, and (ii) the significant increases in the prices of mining consumables, such as diesel and tires, both of which have increased by over 100% since September 30, 2004. The following presents the key statistics for the Montana Tunnels operation for the three months ended September 30, 2005 and 2004, respectively:
Three months ended Three months ended
September 30 September 30
------------------ ------------------
2005 2004
------------------ ------------------
(as restated)
Tons mined....................... 4,217,617 9,789,823
Tons milled...................... 1,299,610 1,514,690
Gold grade oz/ton.............. 0.0150 0.0059
Zinc grade %................... 0.42 0.20
Strip ratio...................... 3.2:1 6.5:1
Production payable:..............
Gold ounces.................... 14,104 4,967
Silver ounces.................. 129,736 425,351
Lead pounds.................... 3,389,443 2,110,786
Zinc pounds.................... 7,401,636 3,738,427
Total cash costs per ounce....... $513 $1,465
Total production costs per ounce. $556 $1,595
Total revenue ($ millions)....... $13.4 $7.4
Capital expenditures
($ millions).................... $0.1 $1.1
Since full commercial production was recommenced at Montana Tunnels in April 2003, the mine has experienced pit wall problems and wall movement, which has in the past resulted in the Company temporarily suspending mining. During October 2005, there was increased wall activity on the eastern side of the open pit above the haul ramp. Although the pit is still accessible, the Company decided to temporarily suspend mining on October 21, 2005, to undertake, with the assistance of outside consultants, a technical review of pit access options and safety issues affecting the mine. In the meantime Adv. 1. in the meantime - during the intervening time; "meanwhile I will not think about the problem"; "meantime he was attentive to his other interests"; "in the meantime the police were notified" meantime, meanwhile , the Company plans to continue milling low grade ores from stockpile stock·pile n. A supply stored for future use, usually carefully accrued and maintained. tr.v. stock·piled, stock·pil·ing, stock·piles To accumulate and maintain a supply of for future use. material and is currently unable to predict the effect on its financial results. Nine Months Ended September 30, 2005, Compared to the Nine Months Ended September 30, 2004 Montana Tunnels (continuing operation) -- For the nine months ended September 30, 2005, gold production from Montana Tunnels increased 80% to 39,073 ounces, zinc production increased 6% to 19,800,000 lbs, and lead production increased 33% to 9,273,000 lbs from 21,653 ounces of gold, 18,753,000 lbs of zinc, and 6,978,000 lbs of lead for the nine months ended September 30, 2004. For the nine months ended September 30, 2005, total cash cost per ounce of gold from Montana Tunnels decreased 49% to $537 from $1,057 for the nine months ended September 30, 2004. The improvement in cash cost per ounce is primarily due to higher production of metals as a result of better grades of ore. However, the total cash cost per ounce still remained above the selling price per ounce of gold primarily due to poor mining performance, resulting primarily from ramp access and pit wall problems. Revenues for the nine months ended September 30, 2005, increased 42% to $36.3 million from $25.5 million for the same period in 2004. Revenues from silver, zinc and lead for the nine months ended September 30, 2005, increased 14% to $19.3 million from $16.9 million for the nine months ended September 30, 2004. Revenue from gold sales for the nine months ended September 30, 2005, were $17.0 million, (47% of total revenue) compared to $8.6 million (34% of the total revenue) for the same period 2004. Revenue from zinc at $12.3 million for the nine months ended September 30, 2005, accounted for 34% of total revenues. The average price received for gold per ounce for the nine months ended September 30, 2005, increased 9% to $435 from $398 for the nine months ended September 30, 2004. The increase in revenues is primarily due to increased production due to higher grades of ore and higher prices of zinc and lead. Total operating expenses, which includes direct operating costs, totaled approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $47.9 million for the nine months ended September 30, 2005 and 2004. Direct operating costs, which includes mining costs, processing costs and smelting and refining charges, for the nine months ended September 30, 2005, increased 1% to $40.3 million from $39.8 million for the nine months ended September 30, 2004, although there was a decrease in mined tonnage TONNAGE, mar. law. The capacity of a ship or vessel. 2. The act of congress of March 2, 1799, s. 64, 1 Story's L. U. S. 630, directs that to ascertain the tonnage of any ship or vessel, the surveyor, &c. of 51% to 13,606,591 tons from 27,578,156 tons for the nine months ended September 30, 2004. These higher than expected costs were a result of operational problems encountered in the mine and higher unit costs of operational supplies when compared to 2004. The operational problems were weather-related problems in the second quarter 2005, resulting in problems with access to the ramp and lower tons being mined. The higher unit costs of operational supplies are a result of the significant increase in the cost of consumables such as diesel and tires, both of which have increased by over 100% during the past twelve months. The following presents the key statistics for the Montana Tunnels operation for the nine months ended September 30, 2005 and 2004, respectively:
Nine months ended Nine months ended
September 30, September 30,
----------------- -----------------
2005 2004
----------------- -----------------
(as restated)
Tons mined......................... 13,606,591 27,578,156
Tons milled........................ 3,965,389 3,780,791
Production:........................
Gold grade oz/ton................ 0.014 0.009
Zinc grade %..................... 0.36 0.38
Gold ounces...................... 39,073 21,653
Silver ounces.................... 421,479 769,020
Lead pounds...................... 9,273,121 6,978,014
Zinc pounds...................... 19,800,021 18,753,013
Total cash costs per ounce......... $537 $1,057
Total production costs per ounce... $586 $1,142
Total revenue ($ millions)......... $36.3 $25.5
Capital expenditures ($ millions).. $0.2 $2.2
Liquidity and Financial Resources To date, Apollo has funded its operations primarily through issuances of debt and equity securities. At September 30, 2005, cash and cash equivalents were $0.3 million, compared to cash and cash equivalents of $6.9 million at December December: see month. 31, 2004. The decrease in cash from December 31, 2004, was primarily the result of operating cash outflows of $6.7 million, investment activities of $3.3 million plus a reduction of capital lease debt of $0.8 million. These outflows were offset by funds from proceeds on disposal of property, plant and equipment of $2.0 million and sale of common shares of $5.9 million. Investing activities used $3.3 million of cash during the nine months ended September 30, 2005, compared to $13.8 million in the same period 2004. Capital expenditures in the first nine months were $4.7 million of which $4.4 million were for the further development of the Black Fox project. In addition to this capital expenditure, $1.6 million was invested in the restricted cash account as part of the Montana Tunnels 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. liability. The Company intends to deposit $10.9 million of the $14.0 million it expects to receive in the fourth quarter from the sale of the Nevada Assets as substitute collateral collateral (kəlăt`ərəl), something of value given or pledged as security for payment of a loan. Collateral consists usually of financial instruments, such as stocks, bonds, and negotiable paper, rather than physical goods, although for its $8.73 million 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. , which are currently secured by the Nevada Assets. Subject to certain conditions the Company could replace this future cash collateral with Black Fox as security for the convertible debentures. By the end of the second quarter of 2006, the Company expects it will be able to meet those conditions, resulting in additional funds being available to the Company for further development of Black Fox, exploration at Huizopa and other general corporate purposes. The Company believes that its current funds together with the October 2005 $2.5 million cash advance on the purchase price for the Nevada Assets, the remaining $0.6 million the Company expects to receive for the sale of the Nevada Assets, net of cash used as cash collateral for the debentures, and the contemplated $3.5 million private placement investment by Jipangu will be sufficient to fund its working capital and exploration and development expenditures for the next twelve months. In addition, the Company may raise additional financing from the sale of debt or equity securities which may include Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. flow-through financing to fund a portion of its exploration expenditures at Black Fox. Exploration and development expenditures for Huizopa and Black Fox are estimated at $1.0 million for the last quarter of 2005. If the Company does not sell the Nevada Assets or successfully generate cash flow from its mines, the Company would be required to secure additional financing to enable it to continue as a going concern and undertake its expenditure programs. 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. This press release includes certain forward-looking statements as defined in 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 1955 with respect to our financial condition, results of operations, business prospects, plans, objectives, goals, strategies, future events, capital expenditure, and exploration and development efforts. Words such as "expects," "anticipates," "intends," believes," and similar expressions identify forward looking statements. These statements include comments regarding: the completion of the drilling program, publishing of reserve calculations, continued milling from stockpile material, completion of the sale of the Nevada Assets, use of funds, ability to substitute collateral for the convertible debentures and the timing thereof, availability of funds, ability to fund our working capital and exploration and development expenditures for the next twelve months, estimated exploration and development expenditures. These forward looking statements are subject to numerous risks, uncertainties and assumptions including unexpected changes in business and economic conditions; variations in ore grade Ore grade is a measure that describes the concentration of a valuable natural material (such as metals or minerals) in its surrounding ore. Ore grade is used to assess the economic feasibility of a mining operation: the cost of extracting a natural material from its ore is directly , tonnes mined, crushed or milled; the results of independent Canadian NI 43-101 reports; the outcome of assays and additional exploration sampling and drilling efforts; pit slides at our mining properties, results of current and future exploration activities; weather fluctuations; timing and availability of external financing In the theory of capital structure, External financing is the phrase used to describe funds that firms obtain from outside of the firm. It is contrasted to internal financing which consists mainly of profits retained by the firm for investment. on acceptable terms; significant increases or decreases in gold, silver, or lead prices; and other factors in our 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 year ended December 31, 2004. There can be no assurance that future developments affecting the Company will be those anticipated by management. The forecasts contained in this press release constitute management's current estimates, as of the date of this press release, with respect to the matters covered thereby. We disclaim dis·claim v. dis·claimed, dis·claim·ing, dis·claims v.tr. 1. To deny or renounce any claim to or connection with; disown. 2. To deny the validity of; repudiate. 3. any obligation to update forward-looking statements, whether as a result of new information, future events or otherwise.
CONSOLIDATED BALANCE SHEETS
(In thousands of United States Dollars)
(Unaudited)
September 30, December 31,
2005 2004
------------- -------------
(Restated -
Note 3(b))
Assets
Current
Cash and cash equivalents............... $309 $6,886
Accounts receivable..................... 3,257 2,963
Prepaids................................ 179 109
Inventories............................. 1,849 2,192
Current assets held for sale (Note 4)... 9,089 10,510
------------- -------------
Total Current Assets....................... 14,683 22,660
Property, plant and equipment.............. 39,979 37,599
Restricted certificate of deposit.......... 5,715 4,371
Deferred financing costs................... 1,145 901
Non-current assets held for sale (Note 4).. 23,074 32,104
------------- -------------
Total Assets............................ $84,596 $97,635
------------- -------------
------------- -------------
Liabilities
Current
Accounts payable........................ $6,458 $5,942
Accrued liabilities..................... 1,992 1,860
Notes payable........................... 501 789
Property and mining taxes payable....... 1,287 1,070
Current liabilities held for sale
(Note 4)............................... 3,953 8,224
------------- -------------
Total Current Liabilities.................. 14,191 17,885
Notes payable and long-term liability...... 54 423
Convertible debentures..................... 6,368 5,538
Accrued site closure costs................. 12,390 11,753
Non-current liabilities held for sale
(Note 4).................................. 15,192 14,815
------------- -------------
Total Liabilities....................... 48,195 50,414
------------- -------------
Continuing operations (Note 1)
Shareholders' Equity
Share capital (Note 5)..................... 148,079 141,795
Issuable common shares..................... 231 231
Equity component of convertible debentures. 1,809 1,815
Note warrants.............................. 781 781
Contributed surplus........................ 10,489 9,627
Deficit.................................... (124,988) (107,028)
------------- -------------
Total Shareholders' Equity.............. 36,401 47,221
------------- -------------
Total Liabilities and Shareholders'
Equity................................. $84,596 $97,635
------------- -------------
------------- -------------
The accompanying ac·com·pa·ny v. ac·com·pa·nied, ac·com·pa·ny·ing, ac·com·pa·nies v.tr. 1. To be or go with as a companion. 2. notes are an integral part of these interim consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge .
APOLLO GOLD CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands of United States Dollars, except for share and per share
amounts)
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
------------------------ ------------------------
2005 2004 2005 2004
------------ ----------- ------------ -----------
(Restated - (Restated -
Notes 3(b) Notes 3(b)
and 7) and 7)
Revenue
Revenue from sale
of minerals...... $13,351 $7,393 $36,264 $25,542
------------ ----------- ------------ -----------
Operating Expenses..
Direct operating
costs............ 14,162 12,627 40,273 39,815
Depreciation and
amortization..... 672 674 2,006 1,907
General and
administrative
expenses......... 866 1,087 3,732 4,325
Stock-based
compensation..... 171 388 525 487
Accretion expense
- accrued site
closure costs.... 242 479 636 560
Exploration and
business
development...... 173 515 731 774
------------ ----------- ------------ -----------
16,286 15,770 47,903 47,868
------------ ----------- ------------ -----------
Operating (Loss).... (2,935) (8,377) (11,639) (22,326)
Other Income
(Expenses).........
Interest income... 105 10 278 261
Interest expense.. (747) (30) (1,940) (113)
(Loss) gain on
sale of property,
plant and
equipment........ (42) - 1,323 -
Foreign exchange
gain (loss) and
other............ 5 (79) (28) (567)
------------ ----------- ------------ -----------
(Loss) from
continuing
operations......... (3,614) (8,476) (12,006) (22,745)
(Loss) from
discontinued
operations
(Note 4)............ (3,599) (2,753) (5,954) (2,521)
------------ ----------- ------------ -----------
Net (loss) for the
period............. $(7,213) $(11,229) $(17,960) $(25,266)
------------ ----------- ------------ -----------
------------ ----------- ------------ -----------
Basic and diluted
net (loss) per
share from:
Continuing
operations....... $(0.04) $(0.11) $(0.12) $(0.29)
Discontinued
operations....... (0.03) (0.03) (0.06) (0.03)
------------ ----------- ------------ -----------
$(0.07) $(0.14) $(0.18) $(0.32)
------------ ----------- ------------ -----------
------------ ----------- ------------ -----------
Weighted average
number of shares
outstanding........ 106,556,451 79,617,391 100,106,695 77,924,423
------------ ----------- ------------ -----------
------------ ----------- ------------ -----------
The accompanying notes are an integral part of these interim consolidated financial statements.
APOLLO GOLD CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands of United States Dollars)
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
------------------ -------------------
2005 2004 2005 2004
--------- -------- --------- ---------
Operating Activities
Loss from continuing
operations for the period... $(3,614) $(8,476) $(12,006) $(22,745)
Items not affecting cash
Depreciation and
amortization.............. 672 674 2,006 1,907
Amortization of deferred
financing costs........... 80 - 239 -
Stock-based compensation... 171 388 525 487
Accretion expense - accrued
site closure costs........ 242 479 636 560
Accretion expense -
convertible debentures.... 221 - 850 -
Loss (gain) on sale of
property, plant and
equipment................. 42 - (1,323) -
Net change in non-cash
operating working capital
items....................... (614) 4,059 1,025 5,491
Discontinued operations...... 872 (24) 1,358 (1,960)
--------- -------- --------- ---------
(1,928) (2,900) (6,690) (16,260)
--------- -------- --------- ---------
Investing Activities
Property, plant and equipment
expenditures................ (1,037) (4,051) (4,736) (11,346)
Short-term investments....... - 7,446 - 5,855
Proceeds from disposal of
property, plant and
equipment................... 9 - 2,000 -
Restricted certificate of
deposit and other assets.... (733) (437) (1,584) (885)
Discontinued operations...... (318) (2,586) 1,003 (7,460)
--------- -------- --------- ---------
(2,079) 372 (3,317) (13,836)
--------- -------- --------- ---------
Financing Activities
Proceeds on issuance of
shares...................... - 71 5,944 8,931
Acquisition and cancellation
of shares................... - - - (48)
Payments of notes payable.... (192) (453) (756) (1,289)
Discontinued operations...... (368) (697) (1,758) (1,945)
--------- -------- --------- ---------
(560) (1,079) 3,430 5,649
--------- -------- --------- ---------
Net (decrease) in cash......... (4,567) (3,607) (6,577) (24,447)
Cash and cash equivalents,
beginning of period........... 4,876 4,992 6,886 25,832
--------- -------- --------- ---------
Cash and cash equivalents, end
of period..................... $309 $1,385 $309 $1,385
--------- -------- --------- ---------
--------- -------- --------- ---------
Supplemental Cash Flow
Information:
Interest paid................ $298 $80 $923 $287
--------- -------- --------- ---------
--------- -------- --------- ---------
The accompanying notes are an integral part of these interim consolidated financial statements. |
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