Aur Resources Reports Solid Production in First Quarter and Declares a Dividend of 5 Cents Per Share.TORONTO--(BUSINESS WIRE)--April 30, 1998-- Low cost producer profitable despite 44 percent reduction in copper price 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). :AUR.) (ME:AUR.) announced today its results for the first quarter of 1998. Financial Highlights The first quarter of 1998 has been another solid one for Aur Resources Inc. from a production 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 and despite continued low metal prices, cash flow and earnings remained positive. The Andacollo Andacollo is a city in the Coquimbo Region, Chile. It is located at around . and Louvicourt mines continued their steady performance, the 1998 exploration program was initiated and our acquisition program was in high gear with several opportunities under active consideration. Gross revenues were $21.4 million, compared to $26.7 million for the same period a year ago. The decline in revenues is largely a result of the significant decline in copper prices. Net earnings for the three months ended March 31, 1998 were $0.4 million equal to $0.01 per share, compared to $3.6 million equal to $0.05 per share in the same period in 1997. Earnings in the first quarter were materially impacted by lower copper prices which averaged US$0.77/lb. for the period compared to US$1.10/lb. for the first quarter of 1997. 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 $3.6 million, compared to $10.4 million in the first quarter of 1997. Working capital increased $4.5 million to $92.8 million during the first quarter of this year. Aur's metal production for the first quarter of 1998 was 16 million pounds of copper, 2.3 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. , 49,000 ounces of silver and 2,000 ounces of gold. Copper production increased one million pounds over 1997. Metal production in each of the second, third and fourth quarters of the year is expected to exceed those of the first quarter and, assuming US$0.85 per pound for copper, the company expects cash flow to be between $20-25 million, and 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. from mining operations to be $29.3 million, with net earnings of $4.4 million. Copper prices have a significant impact on Aur's financial performance as a US$0.10 change in the price of copper results in a $10.4 million change in cash flow and a $8.5 million change in earnings. Louvicourt Mine The Louvicourt 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 operating costs npl → gastos mpl operacionales in the first quarter at $38.58 per tonne tonne measure of weight or mass; 1 tonne=1000 kg. See also ton. 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. milled. The mine met or exceeded 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, recoveries and cash operating costs. However, the mine was slightly below budget with respect to grade due to stope stope n. An excavation in the form of steps made by the mining of ore from steeply inclined or vertical veins. tr.v. stoped, stop·ing, stopes To remove (ore) from or mine by means of a stope. scheduling changes. Louvicourt produced 26.7 million pounds of copper and 7.5 million pounds of zinc during the first quarter. Production for the year is expected to be 119 million pounds of copper, 41 million pounds of zinc, 31,000 ounces of gold and 875,000 ounces of silver. Andacollo Mine The Andacollo Mine continues to demonstrate its ability to meet or exceed its production targets. The open-pit, heap-leach copper mine produced 11.4 million pounds of high quality cathode copper at a total operating costs, including transportation and marketing, of US$0.58 per pound in the first quarter of 1998. The total 1998 production is expected to be 45 million pounds. Work continued on the pre-feasibility study for the large primary copper deposit which underlies the oxide/supergene deposit currently being mined. This hypogene hy·po·gene adj. Formed or situated below the earth's surface. Used of rocks. deposit has the potential to become Aur's next long-life long-life Adjective (of milk, batteries, etc.) lasting longer than the regular kind Adj. 1. long-life - (of perishable goods) treated to stay fresh longer than usual; "long-life milk" mine. The results of the pre-feasibility study are expected in the fourth quarter of this year. Exploration The $10.7 million 1998 exploration program was initiated during the first quarter of 1998. Property evaluations and compilations were carried out in Quebec Quebec, city, Canada Quebec, Fr. Québec, city (1991 pop. 167,517), provincial capital, S Que., Canada, at the confluence of the St. Lawrence and St. Charles rivers. , 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. , 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). and in Chile Chile (chĭl`ē, Span. chē`lā), officially Republic of Chile, republic (2005 est. pop. 15,981,000), 292,256 sq mi (756,945 sq km), S South America, west of the continental divide of the Andes Mts. in preparation for the summer work programs and drilling was initiated on the Lew a. 1. Lukewarm; tepid. base metal property in Manitoba and on the Bonnefond gold property in Quebec. Encouraging 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. was intersected on the Lew property as well as a new, narrow, high-grade High-grade Credit quality of AAA or AA. high-grade Of, relating to, or being a bond with little risk of default on the part of the issuer. High-grade is usually reserved for bonds rated AAA or AA by the rating services. gold zone. At Bonnefond, the first of four deep drill holes was completed and confirmed the continuity of the gold-bearing Adj. 1. gold-bearing - containing gold; "auriferous quartz veins" auriferous metal, metallic - containing or made of or resembling or characteristic of a metal; "a metallic compound"; "metallic luster"; "the strange metallic note of the meadow lark, shear shear: see strength of materials. Shear A straining action wherein applied forces produce a sliding or skewing type of deformation. zones as well as the adjacent mineralized min·er·al·ize v. min·er·al·ized, min·er·al·iz·ing, min·er·al·iz·es v.tr. 1. To convert to a mineral substance; petrify. 2. To transform a metal into a mineral by oxidation. 3. intrusive in·tru·sive adj. 1. Intruding or tending to intrude. 2. Geology Of or relating to igneous rock that is forced while molten into cracks or between other layers of rock. 3. Linguistics Epenthetic. body. Exploration work will continue to evaluate our properties in 1998. Dividend Announcement Aur also announced today, at its annual meeting of shareholders, that its board of directors has declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. a dividend of $0.05 per common share payable on June June: see month. 30, 1998. This dividend will be payable to shareholders of record at the close of business on June 15, 1998. The declaration of this dividend reflects the ongoing development of Aur as a financially strong, profitable mining company. It is envisaged that a similar dividend will be declared and paid annually by Aur on June 30 of each year. About Aur Resources The acquisition of development stage projects and producing mines is a key component of Aur's growth strategy. A number of base metal and gold acquisition opportunities have been identified by Aur's teams in North and 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. which are currently under consideration. Aur has established itself as an efficient, low cost mine operator with sustainable cash flow. A strong focus on growth through exploration and acquisitions will now build additional shareholder value for the long term. -0-
PRODUCTION STATISTICS
For the three months ended
March 31, 1998 March 31, 1997
-------------- --------------
Aur's Share
Copper (pounds) 15,978,000 14,927,000
Zinc (pounds) 2,247,000 2,978,000
Silver (ounces) 49,000 7,000
Gold (ounces) 2,000 1,700
Louvicourt Mine Andacollo Mine
(100 percent) (100 percent)
--------------- --------------
March 31, March 31, March 31, March 31,
1998 1997 1998 1997
Ore Processed
(tonnes) 390,000 385,000 726,000 538,000
Grade Cu ( percent) 3.2 3.2 0.91 0.81
Grade Zn ( percent) 1.1 1.5 - -
Grade Au (oz/t) 0.02 0.02 - -
Grade Ag (oz/t) 0.61 0.72 - -
Operating Cost per
pound of
copper sold (x) US$0.57 US$0.55 US$0.58 US$0.55
(x) Costs include settlement adjustments, provisional pricing and are
net of by-product credits.
AUR RESOURCES INC.
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) 1998 1997
-----------------------
$ $
Revenues
Mining 19,684 24,242
Interest 1,210 1,028
Management fees, custom milling and other 500 1,463
-----------------------
21,394 26,733
-----------------------
Expenses
Mining 15,096 14,014
Custom milling and other 568 1,041
Administration 980 1,119
Capital and business taxes 373 152
Depreciation and amortization 3,626 3,325
Interest - 1,274
-----------------------
20,643 20,925
-----------------------
Earnings before income taxes 751 5,808
Provision for taxes 374 2,161
-----------------------
Net earnings for the period 377 3,647
-----------------------
-----------------------
Earnings per share 0.01 0.05
-----------------------
-----------------------
Weighted number of shares
for the period 75,297,702 76,650,503
Number of shares outstanding
- end of period 75,374,638 76,692,493
-----------------------
-----------------------
Consolidated Statements of Retained Earnings
For the three months ended March 31
(in thousands of Canadian dollars)
(unaudited) 1998 1997
-----------------------
$ $
Retained earnings - beginning of period 10,685 7,645
Earnings for the period 377 3,647
-----------------------
Retained earnings - end of period 11,062 11,292
-----------------------
-----------------------
AUR RESOURCES INC.
Consolidated Balance Sheets
As at
(in thousands of Canadian dollars) March 31 December 31
(unaudited) 1998 1997
-----------------------
$ $
Assets
Current
Cash 126,273 74,720
Smelter settlements receivable 10,585 12,250
Other receivables 2,747 1,943
Due from joint venture partner 3,993 3,219
Marketable securities (quoted market
value $2,160; 1997 - $2,135) 2,160 2,135
Inventories and prepaid expenses 3,510 3,435
-----------------------
149,268 97,702
Due from joint venture partner 15,247 16,093
Investments 3,573 3,089
Capital assets 167,050 166,245
-----------------------
335,138 283,129
-----------------------
-----------------------
Liabilities and Shareholders' Equity
Current
Accounts payable and accrued liabilities 8,168 9,382
Bank debt 48,273 -
-----------------------
56,441 9,382
Long-term liabilities
Obligation on acquisition of Andacollo 1,885 1,920
Future removal and site
restoration liabilities 693 643
Deferred taxes 1,470 1,163
Minority interest 4,650 4,650
-----------------------
65,139 17,758
-----------------------
Shareholders' equity
Share capital 251,419 250,323
Contributed surplus 4,340 4,363
Cumulative translation adjustment 3,178 -
Retained earnings 11,062 10,685
-----------------------
269,999 265,371
-----------------------
335,138 283,129
-----------------------
-----------------------
AUR RESOURCES INC.
Consolidated Statements of Changes in Financial Position
For the three months ended March 31
(in thousands of Canadian dollars)
(unaudited) 1998 1997
-----------------------
$ $
Operating activities
Net earnings for the period 377 3,647
Non-cash items -
Depreciation and amortization 3,626 3,325
Deferred income taxes 307 2,120
Future removal and site restoration 50 46
Provision for marketable securities 435 -
Loss on disposal of capital assets 20 -
-----------------------
4,815 9,138
Net change in non-cash working
capital items, exclusive of
financing and investing activities (1,242) 1,239
-----------------------
3,573 10,377
-----------------------
Financing activities
Bank debt 48,273 1,330
Common shares purchased and cancelled (191) -
Common shares issued for cash 1,264 458
-----------------------
49,346 1,788
-----------------------
Investing activities
Acquisition of investments (484) (722)
Due from joint venture partner 847 -
Mineral property and exploration costs (815) (2,203)
Cumulative translation adjustment 3,178 -
Mine development and
fixed asset acquisitions (3,534) (2,123)
Other capital assets acquisitions (97) (56)
Acquisition of marketable securities (461) -
-----------------------
(1,366) (5,104)
-----------------------
Increase in cash for the period 51,553 7,061
Cash - beginning of period 74,720 127,616
-----------------------
Cash - end of period 126,273 134,677
-----------------------
-----------------------
AUR RESOURCES INC.
Segmented Information
For the three months ended March 31
(in thousands of Canadian dollars)
(unaudited)
1998 Louvicourt Andacollo Exploration
-------------------------------------------------------------
$ $ $
Revenues
External 11,160 8,621 -
--------------------------------------
Expenses
Depreciation
and amortization 1,246 2,274 86
Interest expense - - -
Other expenses 8,827 6,354 81
--------------------------------------
10,073 8,628 167
--------------------------------------
Earnings (loss) before taxes 1,087 (7) (167)
Tax expense (benefit) 416 (1) (44)
--------------------------------------
Net earnings (loss) 671 (6) (123)
--------------------------------------
--------------------------------------
Capital assets 30,752 86,526 (x) 47,277
--------------------------------------
--------------------------------------
Capital expenditures 291 3,243 (x) 815
--------------------------------------
--------------------------------------
1998 Corporate Other Total
-------------------------------------------------------------
$ $ $
Revenues
External 1,613 - 21,394
--------------------------------------
Expenses
Depreciation
and amortization 20 - 3,626
Interest expense - - -
Other expenses 1,583 172 17,017
--------------------------------------
1,603 172 20,643
--------------------------------------
Earnings (loss) before taxes 10 (172) 751
Tax expense (benefit) 69 (66) 374
--------------------------------------
Net earnings (loss) (59) (106) 377
--------------------------------------
--------------------------------------
Capital assets 360 2,135 167,050
--------------------------------------
--------------------------------------
Capital expenditures 97 - 4,446
--------------------------------------
--------------------------------------
(x) Includes a $3.2 million cumulative translation adjustment as the
Andacollo mine became self-sustaining effective January 1, 1998.
1997 Louvicourt Andacollo Exploration
-------------------------------------------------------------
$ $ $
Revenues
External 16,150 8,178 -
--------------------------------------
Expenses
Depreciation
and amortization 1,565 1,635 80
Interest expense - 1,274 -
Other expenses 9,467 4,548 25
--------------------------------------
11,032 7,457 105
--------------------------------------
Earnings (loss) before taxes 5,118 721 (105)
Tax expense (benefit) 1,989 95 -
--------------------------------------
Net earnings (loss) 3,129 626 (105)
--------------------------------------
--------------------------------------
Capital assets 35,445 90,628 47,845
--------------------------------------
--------------------------------------
Capital expenditures 284 1,919 2,123
--------------------------------------
--------------------------------------
1997 Corporate Other Total
-------------------------------------------------------------
$ $ $
Revenues
External 1,398 1,007 26,733
--------------------------------------
Expenses
Depreciation
and amortization 45 - 3,325
Interest expense - - 1,274
Other expenses 1,284 1,002 16,326
--------------------------------------
1,329 1,002 20,925
--------------------------------------
Earnings (loss) before taxes 69 5 5,808
Tax expense (benefit) 77 - 2,161
--------------------------------------
Net earnings (loss) (8) 5 3,647
--------------------------------------
--------------------------------------
Capital assets 278 3,700 177,896
--------------------------------------
--------------------------------------
Capital expenditures 56 - 4,382
--------------------------------------
--------------------------------------
Geographic Distribution of Capital Assets and Revenues
(in thousands of Canadian dollars)
(unaudited)
As at March 31 1998 1997
---------------------- ----------------------
Capital Capital
Revenues Assets Revenues Assets
----------------------------------------------
----------------------------------------------
$ $ $ $
Canada 12,773 59,634 18,555 63,547
United States - 1,694 - 4,034
Chile 8,621 105,722 8,178 110,315
---------------------------------------------
21,394 167,050 26,733 177,896
---------------------------------------------
---------------------------------------------
CONTACT: Aur Resources Inc. Dr. James James, person in the Bible James, in the Gospel of St. Luke, kinsman of St. Jude. The original does not specify the relationship. James, rivers, United States 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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