Aur Resources Inc. - report to shareholders - first quarter - 1997.TORONTO--(BUSINESS WIRE)--April 21, 1997--The first quarter of 1997 was a positive one for Aur Resources Aur Resources Inc. (TSX: AUR) is a Toronto, Ontario, Canada, based, international mining company active in the acquisition, exploration, development and mining of mineral properties. Inc. (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). ,ME:AUR). The Andacollo Andacollo is a city in the Coquimbo Region, Chile. It is located at around . copper mine achieved commercial production, the Louvicourt mine continued to operate as one of Canada's lowest cost and highest grade copper-zinc-silver-gold mines, net earnings were $3.6 million, equal to $0.05 per share, and cash flow was $7.1 million. Working capital stood at $144.8 million on March 31, 1997 with long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. totalling $50.3 million. The Louvicourt Mine processed 384,919 tonnes of ore through the mill during the first quarter at an average grade of 3.16 percent Cu, 1.47 percent Zn, 0.72 oz/tonne Ag and 0.02 oz/tonne Au. Metal production was 25.8 million pounds of copper, 9.9 million pounds of 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. , 190,000 ounces of silver and 5,900 ounces of gold. Operating costs operating costs npl → gastos mpl operacionales were $37.24 per tonne tonne measure of weight or mass; 1 tonne=1000 kg. See also ton. , with Aur's costs equal to US$0.52 per pound of copper produced. The mine and mill operated at 4,277 tonnes per day in the first quarter of 1997. 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 first quarter was $21.8 million before depreciation and amortization, of which $6.7 million represents Aur's 30 percent share. The Louvicourt Mine is scheduled to produce 122 million pounds of copper, 37 million pounds of zinc, 817,000 ounces of silver and 27,900 ounces of gold in 1997 at a planned cost of US$0.51 per pound of copper equivalent. The Andacollo open pit, heap leach leach v. leached, leach·ing, leach·es v.tr. 1. To remove soluble or other constituents from by the action of a percolating liquid. 2. copper mine located at Andacollo, Chile achieved commercial production on January January: see month. 1, 1997, three months ahead of schedule. A total of 10.3 million pounds of very high quality cathode copper was produced for sale during the first quarter of 1997 and the mine is currently operating very close to the full production rate of 1,667 tonnes of copper per month which was scheduled to be achieved in June June: see month. , 1997. Aur's 70 percent share of revenue from the sale of copper was $8.1 million during the first quarter while operating costs before depreciation and amortization were US$0.55 per pound of copper produced. Copper production is expected to total 43.1 million pounds in 1997 which will contribute in a meaningful way to Aur's operating income this year. The Andacollo copper mine, which is operated and 70 percent owned by Aur, established commercial production ahead of schedule, within budget, and with no significant start-up Start-up The earliest stage of a new business venture. problems. Exploration work continued on Aur's properties in Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of , Chile and the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. during the first quarter of 1997. The underground exploration drilling program at Louvicourt continues to intersect In a relational database, to match two files and produce a third file with records that are common in both. For example, intersecting an American file and a programmer file would yield American programmers. widespread stringer string·er n. 1. One that strings: a stringer of beads. 2. Architecture a. A long heavy horizontal timber used as a support or connector. b. A stringboard. copper mineralization Mineralization The process by which the body uses minerals to build bone structure. Mentioned in: Rickets mineralization, n the bioprecipitation of an inorganic substance. which we believe will lead to the discovery of new mineable reserves. Preparation for the underground evaluation of the Lac Herbin gold deposit was initiated with joint venture partner Beaugest Resources Inc. In Manitoba Manitoba (mănĭtō`bə), province (2001 pop. 1,119,583), 250,934 sq mi (650,930 sq km), including 39,215 sq mi (101,580 sq km) of water surface, W central Canada. and Saskatchewan Saskatchewan, province, Canada Saskatchewan (səskăch`əwən, –wän', săs'–), province (2001 pop. 978,933), 251,700 sq mi (651,903 sq km), W Canada. , drilling was carried out on 4 of Aur's 46 properties during the past three months. While interesting copper-zinc-gold mineralization was intersected on three of the properties, no new significant base metal deposits were discovered. Exploration work will resume in this area following spring break-up break-up noun 1. separation, split, divorce, breakdown, ending, parting, breaking, splitting, wind-up, rift, disintegration, dissolution, termination noun 2. . In Nevada, Aur is currently drilling on the Iron Point gold property and exploration work on the Coleman Canyon gold property is scheduled to begin as soon as the winter season is over. In South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. , Aur is exploring its very large epithermal gold property in the Patagonia area of southern Chile Southern Chile is one of the five natural regions of Chile defined by the CONAMA. Southern Chile stretches from below the Río Bío-Bío at about 38° south latitude to below Isla de Chiloé at about 43.4° south latitude. and Argentina. The winter exploration work has identified new surface gold mineralization and established a number of priority drill targets which are expected to be tested in the next three months. At Andacollo, the evaluation of the primary copper deposit continued and the initial drilling program on three of four new oxide oxide, chemical compound containing oxygen and one other chemical element. Oxides are widely and abundantly distributed in nature. Water is the oxide of hydrogen. Silicon dioxide is the major component of sand and quartz. and supergene su·per·gene n. A group of closely linked genes occupying a large chromosomal segment and frequently functioning as a genetic unit. copper anomalies
Anomalies is Cephalic Carnage's 4th full-length album. It was released on Relapse Records. The group expanded their sound even more than their previous album, Lucid Interval, and gained more popularity. was completed with low-grade low-grade Of or relating to debt that has a credit rating of B or below. Low-grade debt offers an above-average yield but entails substantial risk because promised payments may not be made in a timely manner. copper being identified. We remain optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op that at least one important new discovery will be made in 1997. Aur is committed to growth through both exploration and acquisitions. The search for acquisitions which can add shareholder value is ongoing, focussing on copper and gold assets. A number of exciting opportunities have been identified and are currently being evaluated with a view to acquiring at least one new quality asset over the next few months. In February, Aur submitted bids to purchase the Mufulira copper mine and the Chambishi copper deposit located in Zambia, Africa from Zambian Consolidated Copper Mines Limited (ZCCM ZCCM Zambia Consolidated Copper Mines ). ZCCM has informed Aur that it wishes to negotiate an agreement to sell these assets to the Company. The negotiations are currently in progress, however, there remain a number of significant issues to be resolved before a purchase agreement can be expected to be finalized See finalization. and the process is expected to take several months. The Mufulira mine and the Chambishi deposits have very large 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. , moderate grade copper reserves which have the potential to increase Aur's copper production by over 200 million pounds annually over an extended period. Aur's two operating copper mines, working capital of $145 million and significant cash flow, together with an aggressive exploration and acquisition program, have established your Company as a solid, profitable international mining enterprise, with a commitment to growth and enhanced shareholder value. -0-
Consolidated Statements of Operations
For the three months ended March 31
(in thousands of Canadian dollars, except earnings per share and
number of shares)
(unaudited) 1997 1996
----------------------------------------------------------------
$ $
Revenues
Mining 24,242 13,793
Interest 1,028 348
Management fees, custom milling
and other 1,463 2,228
-------- --------
26,733 16,369
-------- --------
Expenses
Mining 14,014 8,401
Custom milling and other 1,041 918
Administration 1,271 933
Depreciation and amortization 3,325 1,398
Interest expense 1,274 -
-------- --------
20,925 11,650
-------- --------
Earnings before income taxes 5,808 4,719
-------- --------
Provision for (recovery of) income taxes
Recovery of mining duties related to
closed operations - (2,508)
Deferred income taxes 2,120 1,880
Federal large corporations tax 41 42
-------- --------
2,161 (586)
-------- --------
Earnings before equity in loss of
associated company 3,647 5,305
Equity in loss of associated company - 73
-------- --------
Net earnings for the period 3,647 5,232
--------------------------------------------------------------
Earnings per share 0.05 0.09
--------------------------------------------------------------
Weighted average number of shares for
the period 76,650,503 60,270,569
Number of shares outstanding
- end of period 76,692,493 60,554,198
--------------------------------------------------------------
Consolidated Statements of Retained Earnings (Deficit)
For the three months ended March 31
(in thousands of Canadian dollars)
(unaudited) 1997 1996
--------------------------------------------------------------
$ $
Retained earnings (deficit)
- beginning of period 7,645 (4,788)
Earnings for the period 3,647 5,232
-------- --------
Retained earnings - end of period 11,292 444
--------------------------------------------------------------
Consolidated Balance Sheets
As at
(in thousands of Canadian dollars) March 31 December 31
(unaudited) 1997 1996
---------------------------------------------------------------
$ $
Assets
Current assets
Cash and short-term investments 134,677 127,616
Accounts receivable 20,356 18,231
Marketable securities (quoted market
value $506; 1996 - $581) 442 442
Inventories and prepaid expenses 4,048 6,112
-------- --------
159,523 152,401
Investments 3,089 2,367
Capital assets 177,896 176,839
Deferred taxes and charges 4,022 5,640
-------- --------
344,530 337,247
---------------------------------------------------------------
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable and accrued liabilities 12,460 12,961
Current portion of long-term debt 2,302 -
-------- --------
14,762 12,961
Long-term liabilities
Bank debt 50,261 48,931
Obligation on acquisition of Andacollo 2,029 2,029
Future removal and site restoration
liabilities 534 487
-------- --------
67,586 64,408
---------------------------------------------------------------
Minority interest 4,650 4,650
---------------------------------------------------------------
Shareholders' equity
Share capital and contributed surplus 261,002 260,544
Retained earnings 11,292 7,645
-------- --------
272,294 268,189
---------------------------------------------------------------
344,530 337,247
---------------------------------------------------------------
Consolidated Statements of Changes in Financial Position
For the three months ended March 31
(in thousands of Canadian dollars)
(unaudited) 1997 1996
--------------------------------------------------------------
$ $
Operating activities
Net earnings for the period 3,647 5,232
Non-cash items -
Depreciation and amortization 3,325 1,398
Deferred income taxes 2,120 1,880
Deferred charges (502) -
Equity in loss of associated company - 73
Future removal and site restoration 46 24
Gain on sale of marketable securities - (573)
Gain (loss) on disposal of capital assets - (23)
------- -------
8,636 8,011
Net change in non-cash working capital
items, exclusive of financing and
investing activities 1,741 6,711
------- -------
10,377 14,722
--------------------------------------------------------------
Financing activities
Common shares issued for cash 458 1,709
Deferred revenue - 863
Bank debt 1,330 -
------- -------
1,788 2,572
--------------------------------------------------------------
Investing activities
Loan to associated company - 11,000
Investment in associated company - (7,546)
Acquisition of investments (722) (1,000)
Major development costs (2,123) -
Mineral property and exploration costs (2,203) (1,362)
Corporate capital asset acquisitions (56) (698)
Proceeds on sale of marketable securities - 849
Proceeds on disposal of capital assets - 25
------- -------
(5,104) 1,268
--------------------------------------------------------------
Increase in cash and short-term
investments for the period 7,061 18,562
Cash and short-term investments -
beginning of period 127,616 15,335
------- -------
Cash and short-term investments -
end of period 134,677 33,897
--------------------------------------------------------------
CONTACT: Aur Resources Inc. Dr. James W. Gill gill, in weights and measures gill, in weights and measures: see English units of measurement. , 416/ 362-2614 or Aur Resources Inc. Mr. Ronald P. Gagel, 416/ 362-2614 |
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