Battle Mountain Gold -- Third Quarter Results.Business Editors & Environmental Writers HOUSTON--(BUSINESS WIRE)--Nov. 10, 2000 Battle Mountain Gold Company (NYSE NYSE See: New York Stock Exchange :BMG BMG Bundesministerium für Gesundheit (Germand: Federal Ministry for Health) BMG Be My Girl BMG Blue Man Group BMG Bertelsmann Music Group BMG Be My Guest BMG Browning Machine Gun BMG Bulk Metallic Glass )(TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :BMC (BMC Software, Inc., Houston, TX, www.bmc.com) A leading supplier of software that supports and improves the availability, performance, and recovery of applications in complex computing environments. ) today reported a third quarter 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: net loss of $16.2 million, or 7 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , including non-cash environmental remediation Generally, remediation means providing a remedy, so environmental remediation deals with the removal of pollution or contaminants from environmental media such as soil, groundwater, sediment, or surface water for the general protection of human health and the environment or from a charges and a 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. accrual accrual, n continually recurring short-term liabilities. Examples are accrued wages, taxes, and interest. together totaling $6.7 million and non-cash foreign currency losses of $2.7 million. The third quarter loss compares with a net loss of $20 million, or 9 cents per share in the same period last year, which included a non-cash environmental remediation charge of $9.5 million. For the first nine months of 2000, the consolidated net loss was $28.9 million, or 13 cents per share, including the previously mentioned non-cash environmental remediation charges and a reclamation accrual totaling $6.7 million and, non-cash foreign currency losses of $6.6 million. This compares with a consolidated loss of $51.7 million or 22 cents per share in the same period last year which included a $26.2 million loss related to Lihir Gold Limited (LGL LGL Legal (paper) LGL Large Granular Lymphocyte LGL Lown-Ganong-Levine Syndrome LGL Bayerischen Landesamtes für Gesundheit und Lebensmittelsicherheit LGL Luxair, Luxembourg (ICAO code) ), and non-cash foreign currency gains of $6.9 million. BMG President and Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. , John A. Keyes Keyes is a common surname. It may refer to several notable people:
ounce, in zoology: see leopard. ounce, unit of measurement ounce: see English units of measurement. in the first nine months, compared with $272 in the same period of last year. 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 increased to $52.2 million for the period as a result of improved gold prices, and production and changes in working capital. The Company's cash position was $53.5 million at the end of the nine months, including $42.3 million in restricted cash, which is primarily related to the Company's loan facility. Keyes noted that in light of the current low gold price and the Company's current cash position Battle Mountain will defer de·fer 1 v. de·ferred, de·fer·ring, de·fers v.tr. 1. To put off; postpone. 2. To postpone the induction of (one eligible for the military draft). v.intr. capital projects and exploration expenditures as needed as needed prn. See prn order. to conserve cash. Production of 586,000 ounces and cash costs of $166 per ounce for the first nine months were slightly better than planned and are expected to remain on target for the balance of the year. The increased reclamation accrual and environmental remediation charges totaling $6.7 million reflect the current and projected expenditures required at the San Luis San Luis, city (1991 pop. 110,353), capital of San Luis prov., W central Argentina. The city is the commercial center of an area producing cattle, corn, and asparagus; the surrounding area has timber and mineral resources. San Luis is a popular resort. mine, which was closed in 1997. The increase is required to cover anticipated costs due to changes in the scope and timing of the remediation project caused by investigating and responding to evolving regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. issues associated with the permitting of the discharge To liberate or free; to terminate or extinguish. A discharge is the act or instrument by which a contract or agreement is ended. A mortgage is discharged if it has been carried out to the full extent originally contemplated or terminated prior to total execution. , the unanticipated redesign re·de·sign tr.v. re·de·signed, re·de·sign·ing, re·de·signs To make a revision in the appearance or function of. re of the water treatment plant, and the permitting, in-field modification A change or alteration in existing materials. Modification generally has the same meaning in the law as it does in common parlance. The term has special significance in the law of contracts and the law of sales. and construction of a stormwater Stormwater is a term used to describe water that originates during precipitation events. It may also be used to apply to water that originates with snowmelt or runoff water from overwatering that enters the stormwater system. diversion A turning aside or altering of the natural course or route of a thing. The term is chiefly applied to the unauthorized change or alteration of a water course to the prejudice of a lower riparian, or to the unauthorized use of funds. and conveyance The transfer of ownership or interest in real property from one person to another by a document, such as a deed, lease, or mortgage. conveyance n. system. BMG reports third quarter results In addition, Keyes said that the Company's previously announced merger with Newmont Mining Newmont Mining Corporation NYSE: NEM, based in Denver, Colorado, USA, is one of the world's largest producers of gold, with active mines in, Nevada, Indonesia, Australia/New Zealand, Ghana, and Peru. Some smaller operations include Bolivia, Mexico, and Canada. Corporation is expected to be completed around year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. following customary regulatory approvals and approval by Battle Mountain Gold shareholders. Noranda Noranda: see Rouyn-Noranda, Que., Canada. Inc., which owns 28 percent of Battle Mountain Gold, has agreed to vote its shares in favor of upon the side of; favorable to; for the advantage of. See also: favor the merger. Development In highlighting the third quarter, Keyes also noted that, as previously announced by the Company on Oct. 4, 2000, development drilling during the summer at the Phoenix development project in 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). continued to yield good results. A table incorporating these results is attached. These results are not included in the current reserve calculation, which now stands at 6.1 million ounces. An updated reserve calculation will be reported at year-end. Permitting activities are ongoing at Phoenix and Keyes noted that BMG expects to receive a Draft Environmental Impact Statement early in 2001. Operations At the Golden Giant mine The Golden Giant Mine was an underground gold mine in the Hemlo mining camp in Canada, located north of Lake Superior, midway between Sault Ste. Marie and Thunder Bay, Ontario near the town of Marathon. 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 , commissioning of the deepened shaft shaft (shaft) a long slender part, such as the diaphysis of a long bone. shaft n. 1. An elongated rodlike structure, such as the midsection of a long bone. 2. is expected to be completed in the first quarter of 2001. Cash costs at BMG's 50% joint venture interest in the Vera/Nancy mine at the Pajingo complex in Queensland Queensland, state (1991 pop. 2,477,152), 667,000 sq mi (1,727,200 sq km), NE Australia. Brisbane is the capital; other important cities are Gold Coast, Toowoomba, Townsville, Rockhampton, Cairns, and Ipswich. , Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. , remained below plan at $101 per ounce for the nine months. At the Holloway Holloway may refer to: Place names:
Exploration During the quarter, activity focused on surface drilling in the Holloway area in Canada, Phoenix in Nevada, Llallagua in Bolivia and at the Pajingo Complex in Australia. Near Holloway, drilling on the Golden Highway claims has discovered a new area of significant alteration Modification; changing a thing without obliterating it. An alteration is a variation made in the language or terms of a legal document that affects the rights and obligations of the parties to it. and 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. . The discovery hole returned 0.104 opt Au over 105 ft., including, 0.327 opt Au over 13 ft. Follow-up follow-up, n the process of monitoring the progress of a patient after a period of active treatment. follow-up subsequent. follow-up plan drilling is planned for the fourth quarter. At Vera/Nancy, as previously announced on Oct. 4, 2000, recent drilling has focused on extending the limits of the Vera/Nancy 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. horizon. Drilling along the northerly extension returned positive results from the Anne Anne, British princess Anne (Anne Elizabeth Alice Louise), 1950–, British princess, only daughter of Queen Elizabeth II and Prince Philip, duke of Edinburgh. She was educated at Benenden School. structure, 1,500 ft. north of the Cindy pit, including 0.34 opt Au/12.5 ft. and 0.43 opt Au/20 ft. Drilling along the southern extension has continued to expand Vera South and a significant new structure called Jandam has been identified 1,200 ft. south of Vera South. Battle Mountain believes that the results are very favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. . Recent drill holes include 1.12 opt Au/27 ft., 0.68 opt Au/48 ft. and 0.59 opt Au over 110 ft. Additionally, new drilling 2,200 ft. further south has intersected a second new zone, the Zed structure, returning 0.53 opt Au/113 ft.
BMG reports third quarter results
Selected Drill Intercepts, July 15 -- Sept. 25, 2000
----------------------------------------------------------------------
Drill hole Target Area Intercept(in feet) Au Ag Cu
----------------------------------------------------------------------
No. Type From To Width (opt) (opt) (%)
----------------------------------------------------------------------
Iron Canyon Development
9141 RC Wing Fault 225 27 45 0.119 1.81 0.14
9142 RC Wing Fault 215 235 20 0.058 1.50 0.05
----------------------------------------------------------------------
Phoenix Pit Development
----------------------------------------------------------------------
8977 RC North Fortitude 485 505 20 0.076 0.29 0.06
8980 RC North Fortitude 505 525 20 0.106 2.12 0.42
9154 RC So. Battle Formation 925 1010 85 0.062 0.18 0.14
9155 RC So. Battle Formation 295 315 20 0.659 0.19 0.01
" " So. Battle Formation 410 450 40 0.203 0.39 0.23
" " So. Battle Formation 735 785 50 0.044 0.23 0.14
" " So. Battle Formation 1095 1135 40 0.046 0.39 0.41
9156 RC So. Battle Formation 280 385 105 0.030 0.21 0.29
" " So. Battle Formation 410 460 50 0.099 0.08 0.06
" " So. Battle Formation 960 1025 65 0.062 0.51 0.50
9158 RC So. Battle Formation 750 790 40 0.097 0.23 0.08
8981 RC East Pit 140 160 20 0.003 0.37 0.65
" " East Pit 280 380 100 0.005 0.13 1.08
9163 RC East Pit 45 215 170 0.003 0.15 0.57
9164 RC East Pit 5 90 85 0.003 0.27 0.47
----------------------------------------------------------------------
Greater Midas Development
----------------------------------------------------------------------
9129 RC Tomboy-Superior Hill 485 525 40 0.051 0.18 0.16
9134 RC Tomboy-Superior Hill 180 295 115 0.045 0.20 0.09
9185 RC Tomboy-Superior Hill 200 250 50 0.080 0.12 0.07
9186 RC Tomboy-Superior Hill 0 20 20 0.138 0.23 0.14
9187 RC Tomboy-Superior Hill 205 250 45 0.054 0.01 0.04
" " Tomboy-Superior Hill 265 285 20 0.030 0.06 0.06
9188 RC Tomboy-Superior Hill 350 395 45 0.044 1.27 0.61
9189 RC Tomboy-Superior Hill 360 395 35 0.077 0.20 0.15
9190 RC Tomboy-Superior Hill 300 365 65 0.070 0.34 0.13
9399 RC Tomboy-Superior Hill 235 255 20 0.126 0.08 0.03
9130 DDH North Midas 243 275 32 0.075 1.33 0.88
9304 RC North Midas 90 190 100 0.019 0.43 0.14
" " North Midas 275 420 145 0.119 1.78 0.78
9506 RC North Midas 125 190 65 0.019 0.20 0.33
9507 RC North Midas 0 35 35 0.026 0.12 0.17
" " North Midas 70 125 55 0.060 0.87 0.11
9505 RC Box Canyon 10 45 35 0.088 1.49 0.04
" " Box Canyon 65 145 80 0.070 0.19 0.03
" " Box Canyon 185 230 45 0.046 0.11 0.02
BMG reports third quarter results
----------------------------------------------------------------------
Copper Basin Exploration
----------------------------------------------------------------------
4407 RC Empire-No. Lights 35 70 35 0.060 0.11 0.10
" " Empire-No. Lights 220 260 40 0.042 0.65 0.09
" " Empire-No. Lights 320 350 30 0.061 0.35 0.05
" " Empire-No. Lights 380 400 20 0.096 0.78 0.05
4413 RC Empire-No. Lights 40 150 110 0.045 0.29 0.23
" " Empire-No. Lights 110 320 210 0.014 0.07 0.40
4415 RC Empire-No. Lights 290 320 30 0.086 0.11 0.10
" " Empire-No. Lights 470 505 35 0.001 0.05 1.95
" " Empire-No. Lights 540 590 50 0.009 0.06 0.83
4419 RC Empire-No. Lights 310 470 160 0.055 0.08 0.10
4420 RC Empire-No. Lights 220 245 25 0.088 0.21 0.02
" " Empire-No. Lights 255 295 40 0.030 0.07 0.21
4421 RC Empire-No. Lights 160 200 40 0.005 0.10 0.23
" " Empire-No. Lights 435 490 55 0.074 0.47 0.05
4425 RC Empire-No. Lights 150 205 55 0.009 0.05 0.50
" " Empire-No. Lights 320 390 70 0.051 0.10 0.08
" " Empire-No. Lights 440 500 60 0.049 0.03 0.05
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 SAFE HARBOR Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. STATEMENT This press release includes forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. information and statements about Battle Mountain Gold Company that are intended to be covered by the safe harbor for "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. " provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts. These statements include financial projections and estimates and their underlying assumptions; statements regarding plans, objectives and expectations with respect to future operations, products and services; and statements regarding future performance. Forward-looking statements are generally identified by the words "expect," "anticipates," "believes," "intends," "estimates" and similar expressions. The forward-looking information and statements in this press release are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of Battle Mountain, that could cause actual results to differ materially from those expressed in, or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. or projected by, the forward-looking information and statements. These risks and uncertainties include those discussed or identified in the public filings with the U.S. Securities and Exchange Commission (SEC) made by Battle Mountain; risks and uncertainties with respect to the effect of gold price and foreign exchange rate fluctuations, and general economic conditions such as changes in interest rates and the performance of the financial markets, changes in domestic and foreign laws, regulations and taxes, changes in competition and pricing environments, the occurrence of significant natural disasters, civil unrest Unrest is a sociological phenomenon, for instance:
ADDITIONAL INFORMATION Information regarding the identity of the persons who may, under SEC rules, be deemed to be participants in the solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual of stockholders of Battle Mountain in connection with its proposed merger with a 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 Newmont Mining Corporation, and their interests in the solicitation, are set forth in a Schedule 14A filed by Battle Mountain on June June: see month. 21, 2000, with the SEC. Newmont and Battle Mountain will be filing a definitive proxy See proxy server. (networking) proxy - A process that accepts requests for some service and passes them on to the real server. A proxy may run on dedicated hardware or may be purely software. statement/prospectus and other relevant documents concerning the proposed transaction with the SEC. Battle Mountain filed preliminary proxy materials Proxy Materials Documents regulated by the Securities & Exchange Commission in which a public company outlines its methods and procedures. These documents are used to inform shareholders and solicit votes for corporate decisions, such as the election of directors and other with the SEC on Sept. 22, 2000. Investors are urged to read the preliminary proxy materials that are available now and any other relevant documents including the definitive proxy statement/prospectus that are filed with the SEC because they contain important information on the proposed merger transaction. Investors are able to obtain the documents free of charge at the SEC's Web site (www.sec.gov See .gov and GovNet. (networking) gov - The top-level domain for US government bodies. ). In addition, documents filed with the SEC by Newmont may be obtained free of charge by contacting Newmont Mining Corporation, 1700 Lincoln Lincoln, city and district, England Lincoln, city (1991 pop. 79,980) and district, Lincolnshire, E England, in the Parts of Kesteven, on the Witham River. Street, 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. , CO 80203, 303/863-7414. Documents filed with the SEC by Battle Mountain will be available free of charge by contacting Battle Mountain Gold Company, 333 Clay Street, 42nd Floor, Houston, Texas “Houston” redirects here. For other uses, see Houston (disambiguation). Houston (pronounced /'hjuːstən/) is the largest city in the state of Texas and the 77002, 713/650-6400. Investors should read the definitive proxy statement/prospectus carefully when it becomes available before making any voting or investment decision.
BATTLE MOUNTAIN GOLD COMPANY
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
Three months Nine months
ended ended
September 30 September 30
--------------- ---------------
US$ millions, except 2000 1999 2000 1999
per share amounts ------ ------ ------ ------
Sales $57.4 $54.6 $179.1 $161.8
------ ------ ------ ------
Costs and expenses
Production costs 37.0 35.8 112.6 107.4
Depreciation, depletion and
amortization 15.0 16.6 47.7 46.8
Exploration, evaluation &
other lease costs, net 3.2 3.9 10.6 13.1
Environmental remediation
charge 5.6 9.5 5.6 9.5
Merger expense 1.7 -- 2.4 --
General and administrative
expenses 2.8 4.5 8.7 11.9
------ ------ ------ ------
Total costs and expenses 65.3 70.3 187.6 188.7
------ ------ ------ ------
Operating Loss (7.9) (15.7) (8.5) (26.9)
Interest expense (3.7) (3.7) (11.2) (11.2)
Interest income 1.0 1.6 3.0 5.2
Equity in losses (income) &
impairment of Lihir -- 0.2 -- (26.2)
Foreign currency exchange
gain (loss), net (2.7) 0.1 (6.6) 6.9
Minority interest in net loss 0.2 -- 1.0 4.0
Other income, net 0.2 0.5 0.3 1.3
------ ------ ------ ------
Loss Before Income Taxes (12.9) (17.0) (22.0) (46.9)
Income tax benefit (expense) (0.1) 1.0 (1.1) 3.2
Mining income tax expense (1.3) (2.1) (0.2) (2.4)
------ ------ ------ ------
Net Loss (14.3) (18.1) (23.3) (46.1)
Preferred dividends 1.9 1.9 5.6 5.6
------ ------ ------ ------
Net Loss to Common Shares $(16.2) $(20.0) $(28.9) $(51.7)
====== ====== ====== ======
Loss per Common Share - Basic
and Diluted $(.07) $(.09) $(.13) $(.22)
====== ====== ====== ======
Average Common Shares Outstanding
for Basic and Diluted Loss
per Share Purposes 229.9 229.9 229.9 229.9
====== ====== ====== ======
BATTLE MOUNTAIN GOLD COMPANY
CONDENSED CONSOLIDATED BALANCE SHEET
(UNAUDITED)
Sept. 30, Dec. 31,
US$ millions 2000 1999
-------- --------
ASSETS (as restated)(a)
Current assets
Cash and cash equivalents $11.2 $67.5
Restricted cash 0.4 0.2
Accounts and notes receivable, net 10.7 36.7
Product inventories 11.4 8.7
Materials and supplies, net,
at average cost 20.4 22.4
Marketable equity securities 36.9 --
Other current assets 7.2 7.7
-------- --------
Total current assets 98.2 143.2
-------- --------
Investments
Investment in Lihir -- 68.4
Other investments 12.1 10.6
-------- --------
Total investments 12.1 79.0
-------- --------
Restricted cash 41.9 40.0
Property, plant and equipment, net 275.0 299.6
Other assets 4.1 6.7
-------- --------
Total Assets $431.3 $568.5
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Current maturities of
long-term debt $10.6 $2.6
Debt due upon disposal of Lihir 30.0 30.0
Accounts payable 16.3 16.0
Income and mining taxes payable 16.7 16.7
Other current liabilities 22.2 23.6
-------- --------
Total current liabilities 95.8 88.9
Long-term debt 155.1 176.8
Deferred income and mining taxes 55.4 64.5
Other liabilities 57.7 54.5
-------- --------
Total Liabilities 364.0 384.7
Minority interest 4.5 65.1
Shareholders' equity 62.8 118.7
-------- --------
Total Liabilities and
Shareholders' Equity $431.3 $568.5
======== ========
(a) Restated to include bullion and bullion settlements as components
of accounts and notes receivable, which is a more widely accepted
practice, as opposed to cash and cash equivalents as previously
presented.
BATTLE MOUNTAIN GOLD COMPANY
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
Nine months ended
September 30
----------------------
2000 1999
US$ millions -------- --------
(as restated)(a)
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $(23.3) $(46.1)
Adjustments to reconcile net loss
to net cash flows from
operating activities:
Depreciation, depletion and
amortization 47.7 46.8
Environmental remediation charge 5.6 9.5
Deferred income and mining taxes (5.8) (2.8)
Equity in losses and impairment
of Lihir -- 26.2
Foreign currency exchange
loss (gain), net 6.6 (6.9)
Change in working capital
accounts, net 26.3 9.1
Other, net (4.9) (5.2)
-------- --------
Net Cash Flows Provided by
Operating Activities 52.2 30.6
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (34.8) (37.3)
Crown Butte liquidating dividend to
minority shareholders -- (11.0)
Proceeds from sale of assets 1.5 11.3
Effects on cash of the Niugini
Mining and Lihir merger (54.7) --
Other, net (1.4) (2.9)
-------- --------
Net Cash Flows Used in
Investing Activities (89.4) (39.9)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES
Debt repayments (15.1) (30.8)
Decrease in short-term borrowings -- (14.9)
Cash dividend payments (5.6) (5.6)
Increase in restricted cash (2.0) (32.0)
Other, net -- 0.1
-------- --------
Net Cash Flows Used in Financing
Activities (22.7) (83.2)
-------- --------
Effect of Exchange Rate Changes
on Cash 3.6 1.4
-------- --------
Net Decrease in Cash and Cash
Equivalents (56.3) (91.1)
Cash and cash equivalents at beginning
of period, as restated 67.5 156.9
-------- --------
Cash and Cash Equivalents at End
of Period $11.2 $65.8
======== ========
(a) Restated to include bullion and bullion settlements as components
of accounts and notes receivable, which is a more widely accepted
practice, as opposed to cash and cash equivalents as previously
presented.
BATTLE MOUNTAIN GOLD COMPANY
SUPPLEMENTAL INFORMATION - (UNAUDITED) (b)
(Data reflects BMG attributable interests, except as noted)
(Ounces in thousands)
Three months Nine months
ended ended
September 30 September 30
--------------- ---------------
2000 1999 2000 1999
------ ------ ------ ------
GOLDEN GIANT
Gold ounces recovered 82 94 255 258
Silver ounces recovered 6 9 18 16
Cost per Gold Ounce Produced
Cash production costs $145 $126 $148 $147
Depreciation, depletion
and amortization 67 64 66 65
Reclamation and mine
closure costs 6 3 6 3
------ ------ ------ ------
Total production costs $218 $193 $220 $215
KORI KOLLO (88% Interest)
Gold ounces recovered 63 61 181 187
Silver ounces recovered 155 150 453 516
Cost per Gold Ounce Produced (c)
Cash production costs $191 $196 $203 $191
Depreciation, depletion
and amortization 84 92 88 89
Reclamation and mine
closure costs 7 11 6 11
------ ------ ------ ------
Total production costs $282 $299 $297 $291
HOLLOWAY (84.65% Interest)
Gold ounces recovered 20 28 64 71
Cost per Gold Ounce Produced
Cash production costs $223 $162 $216 $188
Depreciation, depletion
and amortization 134 130 134 131
Reclamation and mine
closure costs 3 2 3 2
------ ------ ------ ------
Total production costs $360 $294 $353 $321
VERA/NANCY (50% Interest)
Gold ounces recovered 26 15 86 45
Silver ounces recovered 20 11 65 35
Cost per Gold Ounce Produced
Cash production costs $108 $112 $101 $116
Depreciation, depletion
and amortization 32 39 40 36
Reclamation and mine
closure costs 2 2 2 1
------ ------ ------ ------
Total production costs $142 $153 $143 $153
AGGREGATE DATA
Gold ounces recovered 191 198 586 561
Average price per gold ounce
realized $283 $262 $287 $272
Silver ounces recovered 181 170 536 567
Average price per silver
ounce realized $4.83 $5.26 $4.79 $5.20
Weighted Average Cost per Gold
Ounce Produced
Cash production costs $164 $152 $166 $164
Depreciation, depletion
and amortization 73 80 76 79
Reclamation and mine
closure costs 6 5 5 6
------ ------ ------ ------
Total production costs $243 $237 $247 $249
BATTLE MOUNTAIN GOLD COMPANY
SUPPLEMENTAL INFORMATION - (UNAUDITED) (b)
(Data reflects BMG attributable interests, except as noted)
(Ounces in thousands)
Three months Nine months
ended ended
September 30 September 30
--------------- ---------------
2000 1999 2000 1999
------ ------ ------ ------
AGGREGATE DATA (cont.)
Gold ounces recovered - 100% 200 207 611 587
Gold ounces sold - 100% 199 205 614 585
Gold ounces sold - BMG share 190 195 589 558
Silver ounces recovered - 100% 202 190 598 637
Silver ounces sold - 100% 202 184 597 631
Silver ounces sold - BMG share 180 165 535 562
(b) Cash production costs are presented in accordance with guidelines
established by The Gold Institute. In addition to mining, milling
and plant level general and administrative expenses, cash
production costs include royalties, freight, smelting costs and
allowances, and production taxes. Credits for by-product silver
and copper are offset against these cash production costs.
(c) Royalties paid to the Bolivian government for the Kori Kollo mine
are treated as income tax for per ounce cost calculations and are
therefore not included in these cost calculations.
DERIVATIVES OUTSTANDING
At September 30, 2000
Total or
2000 2001 2002 2003 2004 Average
---- ---- ---- ---- ---- ----
Call options
Ounces 38 149 149 149 20 505
Average price per ounce $358 $358 $358 $358 $372 $359
Put options
Ounces 38 149 149 149 20 505
Average price per ounce $297 $297 $297 $297 $302 $297
Forwards
Ounces 9 38 38 38 2 125
Average price per ounce $316 $317 $317 $317 $326 $317
The put options are the minimum price Battle Mountain will
receive, while the call options, having a higher price, allow
participation in a rising gold market. All ounces sold through the
forwards will be at the stated prices. The above derivatives have no
margin requirements nor do they subject Battle Mountain to lease rate
exposure. The above ounces represent between 3% and 25% of estimated
production for each period from October 1, 2000 through March 31,
2004, with a weighted average of approximately 18% of total estimated
production for those periods combined.
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