Aur Resources Inc. Third Quarter Report - 1997.TORONTO--(BUSINESS WIRE)--Nov. 4, 1997--Aur Resources Inc.(TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :AUR AUR Acute Urinary Retention AUR Association of University Radiologists AUR Automated Underreporter AUR Available Upon Request AUR All Up Round AUR Access Usage Record AUR Asociación Uruguaya de Radioprotección AUR Average Unit Revenue AUR Asset Utilization Ratio .) (ME:AUR.) 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. had an excellent third quarter of 1997 from both a mining operations and an exploration standpoint The Standpoint is a newspaper published in the British Virgin Islands. It was originally published under the name Pennysaver, largely as a shopping-coupon promotional newspaper, but since emerged as one of the most influential sources of journalism in the , however, a significant drop in the copper price resulted in net income below expectations. The Louvicourt and Andacollo Andacollo is a city in the Coquimbo Region, Chile. It is located at around . mines continued to meet or exceed their targets in all operational areas while encouraging results on the Bonnefond gold property and the Lew a. 1. Lukewarm; tepid. base metal and gold property highlighted the overall progress made on the exploration front. Aur accelerated its gold and copper acquisition effort in the Americas A·mer·i·cas , the See America. during the third quarter following its withdrawal from the Zambian privatization privatization: see nationalization. privatization Transfer of government services or assets to the private sector. State-owned assets may be sold to private owners, or statutory restrictions on competition between privately and publicly owned process and, given the current negative sentiment in the financial markets for mineral resource companies, this program is expected to be successful in the months ahead. Net earnings for the three months ended September September: see month. 30, 1997 were $1.3 million equal to $0.02 per share, approximately equal to those in the same period 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 for the period was $6.3 million, compared to $5.3 million in the third quarter of 1996. Earnings in the third quarter were materially impacted by lower copper prices which averaged US$1.03/lb. for the period compared to US$1.14/lb. for the second quarter of 1997, and by negative price adjustments of $3.4 million which recognize the final pricing for copper sold in the second quarter but priced in the third quarter. Aur's share of copper production at 16.1 million pounds was approximately 750,000 pounds above the plan for the third quarter of fiscal 1997. Net earnings for the nine months ended September 30, 1997 were $12.2 million, equal to $0.16 per share, compared to $9.8 million or $0.16 per share for the same period in 1996. Cash flow from operations was $25.2 million for the nine month period with working capital at $155.4 million and 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. at $45.3 million at September 30, 1997. The Louvicourt Mine produced 28.7 million pounds of copper and 12.8 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. during the third quarter and met or exceeded the plan with respect to 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. milled, grade, recoveries and cash operating costs operating costs npl → gastos mpl operacionales . This mine continues to be one of the most efficient underground mines 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 with total operating costs in the third quarter at US$0.42 per pound of copper produced including all zinc, gold and silver credits. Production for the year is expected to be essentially as budgeted at 123 million pounds of copper, 39 million pounds of zinc, 29,700 ounces of gold and 816,000 ounces of silver. In 1998, production will be essentially the same as 1997. 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 produced 10.7 million pounds of high quality cathode copper at a total operating cost, including transportation and marketing, of US$0.57 per pound in the third quarter of 1997. Heavy rainfall in August required changes to the mining sequence which resulted in the recoverable copper grade for the quarter being 0.79 percent copper, 11 percent below the scheduled grade. Despite the lower grade, operating costs were 3.4 percent below budget and Aur's 70 percent share of operating profits Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. was $3.5 million. Copper production for the first nine months of 1997 totalled 32.3 million pounds with total 1997 production expected to be essentially as planned at 43 million pounds. Revenue from 75 percent of scheduled copper production for the balance of 1997 has been fixed at approximately US$1.02 per pound through hedging contracts put in place earlier this year. The Andacollo mine has attained at·tain v. at·tained, at·tain·ing, at·tains v.tr. 1. To gain as an objective; achieve: attain a diploma by hard work. 2. full production in 1997 and despite adverse weather conditions has demonstrated its ability to meet its production targets. In 1998, efforts will be made to improve operating efficiency and to conduct a pre-feasibility study on the large primary copper deposit which underlies the oxide/supergene deposit currently being mined. Aur's exploration program for 1997 continued to evaluate gold and base metal properties in Quebec, Manitoba, Saskatchewan, Nevada and Chile during the third quarter of 1997. The highlights of this work included positive drilling results on the Bonnefond gold property at Val d'Or Val d'Or (väl dôr), town (1991 pop. 23,842), SW Que., Canada, SE of Rouyn-Noranda. It is a mining center. Gold was discovered in the region in 1909; copper, zinc, lead, and molybdenum are also mined. , Quebec and on the Lew base metal property in Manitoba. At Bonnefond a large tonnage, moderate grade gold deposit hosted in tonalitic intrusive rocks (Geol.) rocks which have been forced, while in a plastic or melted state, into the cavities or between the cracks or layers of other rocks. The term is sometimes used as equivalent to plutonic rocks ltname>. It is then contrasted with effusive or volcanic rocks. See also: Intrusive amenable AMENABLE. Responsible; subject to answer in a court of justice liable to punishment. to bulk mining methods is being defined with the best results to date being 3.38 g/t Au over 9.4 metres within a 72.2 metre metre In poetry, the rhythmic pattern of a poetic line. Various principles have been devised to organize poetic lines into rhythmic units. Quantitative verse, the metre of Classical Greek and Latin poetry, measures the length of time required to pronounce syllables, interval which averaged 1.0 g/t Au; 1.0 g/t Au over 40.5 metres (cut to 34.2 g/t Au); and 2.1 g/t Au over 9.7 metres within a 51.9 metre interval which averaged 0.84 g/t Au. Numerous gold bearing shear shear: see strength of materials. Shear A straining action wherein applied forces produce a sliding or skewing type of deformation. zones containing quartz quartz, one of the commonest of all rock-forming minerals and one of the most important constituents of the earth's crust. Chemically, it is silicon dioxide, SiO2. tourmaline tourmaline (t  r`məlĭn, –lēn), complex borosilicate mineral with varying amounts of aluminum, iron, magnesium, sodium, lithium, potassium, and sometimes other elements, veins
with significant visible gold have also been intersected outside the
tonalite Tonalite is an igneous, plutonic (intrusive) rock, of felsic composition, with phaneritic texture. Feldspar is present as plagioclase (typically oligoclase or andesine) with 10% or less alkali feldspar. Quartz is present as more than 20% of the rock. . The best intersections in these shear zones include 57.7 g/t
Au over 3.1 metres (7.4 g/t Au cut to 34.2 g/t Au); 6.5 g/t Au over 3.1
metres; and 16.4 g/t Au over 3.8 metres (14.3 g/t Au cut to 34.2 g/t
Au). These intersections indicate the potential for high grade gold
mineralization MineralizationThe process by which the body uses minerals to build bone structure. Mentioned in: Rickets mineralization, n the bioprecipitation of an inorganic substance. to complement the bulk mineable resource within the tonalite. The Bonnefond gold deposit has been significantly enhanced by the summer drill program. Drilling is continuing in an effort to define the overall resource potential of this gold deposit which is owned 55 percent by Aur and 45 percent by Novicourt Inc. On the Lew property, a seven hole drilling program was completed during the third quarter which resulted in the discovery of a new gold zone and extended the high grade copper-zinc mineralization previously discovered. Hole 97-LW-1 intersected 9.2 g/t Au over a core length of 15.0 feet at a depth of 750 feet and hosted in sheared sheared adj. Shaped or finished by shearing, especially cut or trimmed to a uniform length: a sheared fur coat. Adj. 1. , strongly altered felsic fel·sic adj. Containing a group of light-colored silicate minerals that occur in igneous rocks. [fel(dspar) + s(ilica) + -ic. volcanic rocks rocks which have been produced from the discharges of volcanic matter, as the various kinds of basalt, trachyte, scoria, obsidian, etc., whether compact, scoriaceous, or vitreous. See also: Volcanic . Subsequent field work has identified this zone at surface where grab samples Noun 1. grab sample - a single sample or measurement taken at a specific time or over as short a period as feasible sample - a small part of something intended as representative of the whole assayed 12.1 g/t Au and 3.8 g/t Au. Hole 97-LW-3, located 730 metres northeast of Hole 97-LW-1, intersected massive sulphide sulphide: see sulfide. intervals which assayed 8.4 percent Cu, 6.2 g/t Ag and 0.8 g/t Au over 23.8 feet; and 17 percent Cu, 2.0 percent Zn, 76 g/t Ag and 2.0 g/t Au over 3.2 feet. Hole 97-LW-6 intersected this mineralization 125 feet down plunge The term Plunge has multiple meanings:
n the process of monitoring the progress of a patient after a period of active treatment. follow-up subsequent. follow-up plan drilling program is planned to outline gold and base metal resources on this property during the winter under the terms of a joint venture with Thunderwood Resources Inc. and Consolidated Abitibi Resources Ltd. Field work has begun on the Patagonia gold property in 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 exploration work continues on many of Aur's projects in Canada, 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. and Chile in preparation for drilling and other exploration work in 1998. Michel Michel named after Gaston Michel, a French surgeon (1875-1937). Michel clip metal skin sutures in various sizes from 8 to 16 mm long. Each clip is a 2 mm wide band of metal with a downturned sharp prong at each end. Drouin, Aur's Exploration Manager for North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , assumed the position of Vice-President, Exploration on November 1, 1997 and will be responsible for Aur's worldwide exploration effort. Aur is actively pursuing opportunities to acquire gold and base metal development stage and producing mining operations in North, South and Central America Central America, narrow, southernmost region (c.202,200 sq mi/523,698 sq km) of North America, linked to South America at Colombia. It separates the Caribbean from the Pacific. . There has been a significant increase in project submittals received by Aur in the past three months and, while most do not meet Aur's investment criteria, we remain optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op that one or more acquisitions which create real shareholder value will be successfully concluded in the near future. A strong balance sheet, sustainable cash flow from efficient mining operations and a focus on growth through exploration discoveries and acquisitions will continue to build shareholder value over the long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. . -0-
PRODUCTION STATISTICS
September 30, 1997
3 Months 9 Months
-----------------------
Aur's Share
Copper (pounds) 16,117,000 49,831,000
Zinc (pounds) 3,840,000 8,909,000
Silver (ounces) 50,000 172,000
Gold (ounces) 2,200 6,500
Louvicourt Mine Andacollo Mine
(100 percent) (100 percent)
--------------------------------------
September 30, 1997 September 30, 1997
3 Months 9 Months 3 Months 9 Months
--------------------------------------
Ore Processed (tonnes) 407,000 1,171,000 641,000 1,880,000
Grade Cu (percent) 3.3 3.6 0.79 0.83
Grade Zn (percent) 1.8 1.5 - -
Grade Au (oz/t) 0.03 0.03 - -
Grade Ag (oz/t) 0.64 0.73 - -
Operating Cost per Pound
Cu equivalent(x) US$0.42 US$0.49 US$0.57 US$0.57
(x) Costs include settlement adjustments and provisional pricing.
Consolidated Statements of Operations
(in thousands of Canadian dollars
except earnings per share and number of shares)
Three months ended Nine months ended
September 30 September 30
(unaudited) 1997 1996 1997 1996
--------------------------------------
Revenue
Mining 23,643 13,206 82,231 43,619
Interest 1,261 463 3,483 1,261
Management fees, custom
milling and other 304 2,413 2,857 7,123
-------- ------- ------- --------
25,208 16,082 88,571 52,003
-------- ------- ------- --------
Expenses
Mining 15,752 9,316 47,496 27,120
Custom milling
and other 362 1,877 2,408 4,441
Administration 1,103 1,013 3,820 3,172
Depreciation and
amortization 4,291 1,421 11,790 4,223
Interest 1,296 - 3,705 -
Mineral property and
exploration costs
written-off 253 - 253 335
-------- ------- ------- --------
23,057 13,627 69,472 39,291
-------- ------- ------- --------
Earnings before income
taxes 2,151 2,455 19,099 12,712
-------- ------- ------- --------
Provision for income
taxes
Recovery of mining
duties related to
closed operations - - - (2,508)
Deferred income taxes 900 1,030 6,850 5,090
Federal large
corporations tax (8) 71 92 182
-------- ------- ------- --------
892 1,101 6,942 2,764
-------- ------- ------- --------
Earnings before equity in
loss of associated
company 1,259 1,354 12,157 9,948
Equity in loss of
associated company - 170 - 167
-------- ------- ------- --------
Net earnings for
the period 1,259 1,184 12,157 9,781
-------- ------- ------- --------
-------- ------- ------- --------
Earnings per share 0.02 0.02 0.16 0.16
-------- ------- ------- --------
-------- ------- ------- --------
Weighted number of shares
for the period (000's) 76,704 60,666 76,704 60,666
Number of shares
outstanding -
end of period (000's) 76,751 60,919 76,751 60,919
-------- ------- ------- --------
-------- ------- ------- --------
Consolidated Statements of Retained Earnings (Deficit)
(in thousands of Canadian dollars)
Three months ended Nine months ended
September 30 September 30
(unaudited) 1997 1996 1997 1996
--------------------------------------
Retained earnings
(deficit) -
beginning of period 18,543 3,809 7,645 (4,788)
Net earnings for
the period 1,259 1,184 12,157 9,781
-------- ------- ------- --------
Retained earnings -
end of period 19,802 4,993 19,802 4,993
-------- ------- ------- --------
-------- ------- ------- --------
Consolidated Balance Sheets
(in thousands of Canadian dollars)
September 30 December 31
(unaudited) 1997 1996
Assets ------------------------------
Current assets
Cash and short-term investments 145,142 127,616
Accounts receivable 20,628 18,231
Marketable securities (quoted market
value $470; 1996 - $581) 470 442
Inventories and prepaid expenses 4,998 6,112
-------- --------
171,238 152,401
Investments 3,089 2,367
Capital assets 176,995 176,839
Deferred taxes and charges 392 5,640
-------- --------
351,714 337,247
-------- --------
-------- --------
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable and accrued
liabilities 8,584 12,961
Current portion of long-term
liabilities 7,211 -
-------- --------
15,795 12,961
Long-term liabilities
Bank debt 45,317 48,931
Obligation on acquisition
of Andacollo 2,114 2,029
Future removal and site
restoration liabilities 595 487
Deferred taxes 2,165 -
-------- --------
65,986 64,408
-------- --------
Minority interest 4,650 4,650
-------- --------
Shareholders' equity
Share capital and contributed surplus 261,276 260,544
Retained earnings 19,802 7,645
-------- --------
281,078 268,189
-------- --------
351,714 337,247
-------- --------
-------- --------
Consolidated Statements of Changes in Financial Position
(in thousands of Canadian dollars)
(unaudited)
Three months ended Nine months ended
September 30 September 30
1997 1996 1997 1996
------------------------------------
Operating activities
Net earnings for
the period 1,259 1,184 12,157 9,781
Non-cash items -
Deferred income taxes 900 1,030 6,850 5,090
Depreciation and
amortization 4,291 1,421 11,790 4,223
Deferred charges (77) - (443) -
Mineral properties and
exploration costs
written-off 253 - 253 335
Equity in loss of
associated company - 170 - 167
Future removal and site
restoration 31 (115) 108 (95)
Loss (gain) on sale of
marketable securities 221 - 149 (745)
Loss (gain) on disposal
of capital assets (9) - 29 91
------- ------- ------ -------
6,869 3,690 30,893 18,847
Net change in non-cash
working capital items,
exclusive of financing
and investing
activities (575) 1,605 (5,661) 7,783
------- ------- ------ -------
6,294 5,295 25,232 26,630
------- ------- ------ -------
------- ------- ------ -------
Financing activities
Common shares issued
for cash 34 122 732 3,008
Deferred revenue - (287) - 288
Long-term liabilities 209 - 4,637 -
------- ------- ------ -------
243 (165) 5,369 3,296
------- ------- ------ -------
Investing activities
Loan to associated company - - - 11,000
Investment in associated
company - 9 - (7,522)
Investments - - (722) (1,000)
Purchase of marketable
securities - - (225) (150)
Mineral property and
exploration costs (2,117) (1,390) (5,896) (3,612)
Mining capital assets (1,133) (1,229) (6,314) (3,125)
Proceeds on sale of
marketable securities 35 - 49 1,063
Proceeds on disposal of
capital assets 14 138 33 163
------- ------- ------ -------
(3,201) (2,472) (13,075) (3,183)
------- ------- ------ -------
Increase in cash and
short-term investments
for the period 3,336 2,658 17,526 26,743
Cash and short-term deposits
- beginning of period 141,806 39,420 127,616 15,335
------- ------- ------ -------
Cash and short-term deposits
- end of period 145,142 42,078 145,142 42,078
------- ------- ------ -------
------- ------- ------ -------
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 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion