Battle Mountain Gold Continues Strong Operating/Cash Flow Performance, But Posts Losses on Lower Gold Prices.HOUSTON--(BUSINESS WIRE)--Oct. 27, 1998--Battle Mountain Gold Co. (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. .) Tuesday Tuesday: see week. reported a third quarter consolidated net loss of $9.6 million, or 4 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. . The loss includes non-cash, foreign-currency-related accounting charges of $7.2 million ($5.1 million net of tax), which were primarily related to the U.S. dollar-denominated debt of its 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. subsidiary and have no effect on shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. . The third quarter loss compares with net income of $22.2 million, or 10 cents per share, in the same period last year, which included income tax benefits of $24.9 million related to the Company's restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). of the ownership of its subsidiary Niugini Mining Limited. For the first nine months of 1998, the consolidated net loss was $24.2 million, or 11 cents per share, and includes non-cash foreign-currency-related accounting charges of $8.9 million net of tax. This compares with consolidated income of $4.5 million, or 2 cents per share, in the same period last year. BMG President and Chief Executive Officer, Ian D. Bayer, noted that "the Company's strong operating performance is allowing it to generate almost $17 million more 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 than last year. This allows BMG to reinvest re·in·vest tr.v. re·in·vest·ed, re·in·vest·ing, re·in·vests To invest (capital or earnings) again, especially to invest (income from securities or funds) in additional shares. in growth opportunities such as Phoenix and El Cairo Cairo, city, Egypt Cairo (kī`rō), Arab. Al Qahirah, city (1996 pop. 6,789,479), capital of Egypt and the Cairo governorate, NE Egypt, a port on the Nile River near the head of its delta, at the boundary of ancient Upper and ." Net cash flows from operations were $62.1 million in the first nine months of 1998, compared with $45.3 million in the same period of 1997, because of lower operating costs operating costs npl → gastos mpl operacionales and higher gold production, notwithstanding a $40 per ounce ounce, in zoology ounce, in zoology: see leopard. ounce, unit of measurement ounce: see English units of measurement. reduction in average realized gold prices. Cash production costs declined by 21% during the first nine months, compared with the same period a year ago, averaging $158 per gold ounce sold. Attributable gold production was 690,000 ounces, or 51,000 ounces more than the same period last year. Bayer noted that the Company remains on target to meet its annual production objective for 1998 of approximately 875,000 attributable ounces of gold. Average cash production costs are expected to be lower than previous estimates of $175 per gold ounce sold. BMG has a strong fundamental position, with low-cost, quality reserves, good cash flows from operations, and a strong balance sheet. In addition, prospects for growth from current projects are gaining momentum, and further coordination of our exploration and corporate development efforts is enhancing our acquisition activities, he said. 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. , production for the period was almost 20,000 ounces over the same period last year largely due to higher grades. Current forecasts indicate production of approximately 370,000 ounces in 1998, a 10% increase over the original target. Cash production costs were $105 per ounce, compared with $130 per ounce in 1997, reflecting higher gold production and a weaker Canadian dollar Noun 1. Canadian dollar - the basic unit of money in Canada; "the Canadian dollar has the image of loon on one side of the coin" loonie dollar - the basic monetary unit in many countries; equal to 100 cents . At Kori Kollo in Bolivia Bolivia (bōlĭv`ēə, Span. bōlē`vyä), officially Republic of Bolivia, republic (2005 est. pop. 8,858,000), 424,162 sq mi (1,098,581 sq km), W South America. , where Battle Mountain holds an 88% interest, cash production costs were $185 per ounce, a $12 per ounce improvement over last year. Attributable gold production for the third quarter was approximately 73,000 ounces. Production was impacted by a higher proportion of refractory refractory Material that is not deformed or damaged by high temperatures, used to make crucibles, incinerators, insulation, and furnaces, particularly metallurgical furnaces. ores from the northeast portion of the Kori Kollo pit, offset by higher mill throughput The speed with which a computer processes data. It is a combination of internal processing speed, peripheral speeds (I/O) and the efficiency of the operating system and other system software all working together. 1. and the processing of Llallagua 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. ore. At the nearby Llallagua sulfide sulfide, chemical compound containing sulfur and one other element or sulfur and a radical. Sulfides may be salts or esters of hydrogen sulfide, H2S, or may be formed directly, e.g., by heating a metal with sulfur. resource, results from the bio-oxidation 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. project continue to be excellent. Recoveries from the second pilot heap-leach test also exceeded 60%, notwithstanding a higher heap, coarser and more refractory ore and a lower head grade than the initial test. At the 84.65% owned Holloway Holloway may refer to: Place names:
At the 50% owned Vera/Nancy mine in 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. , attributable gold production was 10,000 ounces during the quarter. Cash production costs for the first nine months were $137 per gold ounce sold, or $44 per ounce less than the same period a year earlier, in part due to a lower Australian dollar Noun 1. Australian dollar - the basic unit of money in Australia and Nauru dollar - the basic monetary unit in many countries; equal to 100 cents . Development of the Vera Zone was completed in July July: see month. , while the advance undertaken during August and September September: see month. was concentrated in the Nancy North Zone. Normandy Normandy (nôr`məndē), Fr. Normandie (nôrmäNdē`), region and former province, NW France, bordering on the English Channel. Mining, the Pajingo joint venture operator, is presently preparing a mine study which could result in a doubling of the mine's production capacity over the next three years. A preliminary report is expected in the fourth quarter. At the Battle Mountain Complex 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). , gold production at the residual heap leach Reona mine was 8,000 ounces during the third quarter. Cash production costs for the first nine months, including non-current mining costs of $66 per ounce, were $253 per gold ounce sold, compared with $274 a year earlier. At Lihir in Papua New Guinea Papua New Guinea (păp`  ə, –y , where BMG holds an 8.65% interest
through its 50.5% owned subsidiary Niugini Mining Limited (NML (language) nML - A specification language for instruction sets, based on attribute grammars, for back-end generators.["The nML Machine Description Formalism", M. Freericks <mfx@cs.tu-berlin.de> TR TU Berlin, FB20, Bericht 1991/15]. ), attributable production for the quarter was 11,000 ounces. Production was adversely affected by various equipment constraints CONSTRAINTS - A language for solving constraints using value inference. ["CONSTRAINTS: A Language for Expressing Almost-Hierarchical Descriptions", G.J. Sussman et al, Artif Intell 14(1):1-39 (Aug 1980)]. , principally the oxygen plant; low autoclave autoclave Vessel, usually of steel, able to withstand high temperatures and pressures. The chemical industry uses various types of autoclaves in manufacturing dyes and in other chemical reactions requiring high pressures. availabilities; and lower grades. Cash production costs were $232 per ounce. The effects of lower gold production were more than offset by lower total operating costs resulting from the decreased quantity of mined ore and waste. Lihir Gold Limited has reduced its forecast of 1998 gold production from 600,000 ounces to 530,000 ounces. Gold production for 1999 is still projected to exceed 700,000 ounces. In addition, as a result of Lihir meeting its technical and financial completion tests, NML received confirmation during the quarter that its obligations under the Completion Agreement have been terminated and NML's $14.1 million cash held in escrow escrow Instrument, such as a deed, money, or property, that constitutes evidence of obligations between two or more parties and is held by a third party. It is delivered by the third party only upon fulfillment of some condition. has been released. At the Crown Jewel Crown jewel A particularly profitable or otherwise particularly valuable corporate unit or asset of a firm. Often used in risk arbitrage. The most desirable entities within a diversified corporation as measured by asset value, earning power, and business prospects; in takeover project in Washington Washington, town, England Washington, town (1991 pop. 48,856), Sunderland metropolitan district, NE England. Washington was designated one of the new towns in 1964 to alleviate overpopulation in the Tyneside-Wearside area. state, where BMG is earning a 54% interest, the Company continues to work through the permitting and appeals process. Though the majority of permits have been obtained, several significant permits remain to be issued, and there are also a number of outstanding appeals by special interest groups which must be resolved. Additional appeals may be filed as the remaining permits are issued, and this continues to make the outcome and timing of the permitting and appeals process, as well as start-up Start-up The earliest stage of a new business venture. of construction, difficult to predict. Exploration At the Battle Mountain Complex, work is continuing on the Phoenix project which is expected to result in the completion of approximately 146,000 ft of reverse circulation (RC) and core drilling by 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. . Almost 80% of this work has been completed. Drill results from West Midas, mid-Midas and Fortitude Fortitude See also Bravery. Fratricide (See MURDER.) Asia despite torture, refuses to deny Moses. [Islam: Walsh Classical, 35] Calantha fulfills wifely and queenly duties despite losses. [Br. Lit. pits continue to be very encouraging. It now appears that the footprint The amount of geographic space covered by an object. A computer footprint is the desk or floor surface it occupies. A satellite's footprint is the earth area covered by its downlink. See form factor. 1. of the new model is going to be much larger than the original, spanning from the old Fortitude pit to the north, to the Midas deposits in the south, a distance of about 3 miles. Drilling at West Midas intersected appreciable ap·pre·cia·ble adj. Possible to estimate, measure, or perceive: appreciable changes in temperature. See Synonyms at perceptible. gold 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 remains open to the south. Adjacent intercepts also occur west to east and a series of angle holes are planned to better identify the orebody's geometry geometry [Gr.,=earth measuring], branch of mathematics concerned with the properties of and relationships between points, lines, planes, and figures and with generalizations of these concepts. . Targets beneath the eastern part of Fortitude pit in the middle Battle Formation and the Virgin fault zone also returned encouraging results. Some of the better intercepts from the Phoenix project include:
Drill hole Intercept (ft)
Pit Area no. Type From To Width
Phoenix-Fortitude 7394 RC 15 60 45
Phoenix-Fortitude 7394 RC 95 115 20
Phoenix-Fortitude 7504 RC 165 255 90
Phoenix-Fortitude 7516 RC 230 360 130
Phoenix-Fortitude 7523 RC 275 340 65
Phoenix-Fortitude 7523 RC 480 535 55
North Midas-Glory Hole 7320 RC 135 230 95
North Midas-Glory Hole 7335 RC 465 495 30
North Midas-Glory Hole 7335 RC 595 615 20
West Midas 7386 RC 560 580 20
West Midas 7555 RC/Core Total Interval 140
West Midas 7551 Core 357 400 43
West Midas 7551 Core 505 521.4 16.4
West Midas 7553 RC 465 575 110
West Midas 7560 Core 490 615 125
Pit Area Au opt Ag opt Cu%
Phoenix-Fortitude 0.135 0.87 0.02
Phoenix-Fortitude 0.145 1.31 0.02
Phoenix-Fortitude 0.295 0.16 0.04
Phoenix-Fortitude 0.124 0.26 0.05
Phoenix-Fortitude 0.182 0.40 0.01
Phoenix-Fortitude 0.166 0.20 0.12
North Midas-Glory Hole 0.320 1.68 0.34
North Midas-Glory Hole 0.145 0.34 0.34
North Midas-Glory Hole 0.380 0.20 0.08
West Midas 0.157 0.08 0.06
West Midas 0.101 0.25 0.05
West Midas 0.138 0.12 0.06
West Midas 0.209 0.19 0.05
West Midas 0.195 0.03 0.02
West Midas 0.213 0.14 0.09
Metallurgical met·al·lur·gy n. 1. The science that deals with procedures used in extracting metals from their ores, purifying and alloying metals, and creating useful objects from metals. 2. testing continued and centered on the variability of the ore. The tests have largely confirmed the positive bench scale gravity/flotation results to date. Plans for obtaining a large 160-ton sample for a pilot milling test in the first quarter of 1999 are being finalized See finalization. . At Copper Basin, about 6 miles to the northeast of Phoenix, a 5,000 to 8,000 ft drill program comprised of 8-10 holes on the eastern side of the Surprise pit is expected to begin in early November. The program will delineate the 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-silver-copper mineralization beneath the pit's eastern highwall. Work in Mexico continues to focus on the El Cairo project, where a 40,000 ft RC 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 program was initiated there in August on the El Castillo El Castillo ("the castle" in Spanish) may refer to:
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. gold deposit. Drilling is also now in progress to the north and south of El Castillo, where recent mapping and sampling of geochemical gold anomalies indicate the presence of highly altered and 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. rocks very similar to those hosting the El Castillo deposit. Both areas offer potential to expand the El Castillo resource. In the Holloway Camp, the last two holes of the Teddy Bear/Cadden surface drill program have been completed, and the 1998 surface exploration program has demonstrated the potential to extend the 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. system hosting the Holloway deposit over a large area at depth. Based on the completed drill program: Three of five drill holes along the western portion of the drill area, 1,300-2,000 ft west of the Holloway 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. , have penetrated significant grade mineralization between the -3,300 ft and -4,700 ft elevations. A preliminary 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. resource totalling approximately 1,195,000 tons at 0.19 opt (227,000 ounces) is indicated. The mineralization is open to the east below the Holloway shaft. In addition, preliminary geological resource calculations completed in September for the Middle Zone indicate approximately 1,000,000 tons grading 0.22 opt Au (220,000 ounces). In Australia, on the Pajingo joint venture where BMG holds a 50% interest, drilling has focused on Vera South and a variety of nearby targets. At Vera South, drilling has generally returned results consistent with the geologic 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. model developed for the Vera South resource block model and has highlighted potential areas of additional high-grade mineralization. During the quarter, drilling there has returned significant intercepts of 0.99 opt Au/10ft; 2.36 opt/11ft; 0.74 opt/21 ft; 0.39 opt/14 ft; 0.44 opt/6 ft and 0.74 opt/6 ft, demonstrating that the structures are mineralized and continuous. Drilling in the Vera South and nearby areas continues. A mineral resource update for the total Pajingo joint venture was received in September, which incorporates the inferred resources from Vera South totaling 1,167,000 tons at 0.44 opt Au or about 515,000 ounces of contained gold. This puts the property-wide resource total in all categories at 4,600,000 tons at 0.40 opt Au or 1,840,000 ounces of contained gold, which includes proven and probable reserves (as of 6/98) of approximately 1,113,000 tons at 0.32 opt, or about 360,000 ounces of contained gold. On the Mampon prospect on the Dunkwa joint venture, located in Ghana, where BMG can earn a 65% interest, work during the third quarter remained focused on the Mampon target. Twelve core holes have been completed on the Mampon prospect this year and mineralization was intersected in all twelve holes, demonstrating the uniformity and continuity of the structure in both strike and dip Strike and dip refer to the orientation or attitude of a geologic feature. The strike of a stratum or planar feature is a line representing the intersection of that feature with the horizontal. . However, only three of the twelve holes on the Main zone returned economic grades. Work at Dunkwa also centered on advancing several other known anomalies, primarily within the Forest Reserve, to drill target status. During the fourth quarter several of these anomalies will be tested with 65-70 RC holes (about 16,000 ft), with most anomalies and drill holes located within the Forest Reserve north and south of Mampon. A smaller number of holes are slated for the Mansi West prospect where coincident co·in·ci·dent adj. 1. Occupying the same area in space or happening at the same time: a series of coincident events. See Synonyms at contemporary. 2. high gold-arsenic soil values outline a strong linear anomaly Abnormality or deviation. Pronounced "uh-nom-uh-lee," it is a favorite word among computer people when complex systems produce output that is inexplicable. See software conflict and anomaly detection. . The results of this and other ongoing work will largely dictate TO DICTATE. To pronounce word for word what is destined to be at the same time written by another. Merlin Rep. mot Suggestion, p. 5 00; Toull. Dr. Civ. Fr. liv. 3, t. 2, c. 5, n. 410. the scope and direction of further work at Dunkwa. Other Activities In addition, the Company Tuesday announced that its Board of Directors has approved amendment of its shareholder rights plan, to extend the term of the plan for an additional 10 years, until November 10, 2008. In connection with the extension, the Board approved amending the plan so that it will not be triggered solely by the acquisition by a single person of 20% or more of BMG's shares from the Company's current 28% shareholder, Noranda Inc. or from the first person to whom Noranda has sold such a block of shares. 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. 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 1995 provides a "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. " for certain 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. . Operating, exploration and financial data, and other statements in this document, are based on information that the Company believes reasonable, but involve significant uncertainties as to future gold prices, costs, ore grades 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 , mining and processing conditions, and regulatory and permitting matters. Actual results and timetables could vary significantly from the estimates presented. Also refer to the Cautionary Statement contained in the Company's 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. and 10-Q for the most recent reporting periods. -0-
BATTLE MOUNTAIN GOLD CO.
Condensed Consolidated Statement of Operations
(Unaudited)
(US$ millions, except per-share amounts)
Three months Nine months
ended Sept. 30, ended Sept. 30,
1998 1997 1998 1997
Sales $70.0 $90.2 $217.2 $257.9
Costs and expenses:
Production costs 39.2 61.4 122.6 168.6
Depreciation, depletion and
amortization 19.9 19.7 62.4 56.0
Exploration, evaluation
& other lease costs, net 3.5 5.8 16.3 17.3
Merger expense -- -- -- 2.3
General and administrative
expenses 3.7 2.8 11.1 10.9
Total costs and expenses 66.3 89.7 212.4 255.1
Operating income 3.7 0.5 4.8 2.8
Interest expense (4.5) (3.0) (13.9) (9.0)
Interest income 2.7 0.9 8.7 4.1
Equity in losses of equity
investee (1.8) -- (4.5) --
Foreign currency exchange loss (7.2) (0.3) (12.6) (0.4)
Other income (expense), net (0.2) 2.0 0.2 5.2
Income (loss) before income
taxes and minority interest (7.3) 0.1 (17.3) 2.7
Income tax benefit (1.8) (24.9) (5.4) (17.6)
Mining taxes 2.2 0.6 5.4 4.6
Minority interest in net income -- (0.3) (1.3) (1.9)
Income (loss) before cumulative
effect of accounting change (7.7) 24.1 (18.6) 13.8
Cumulative effect of accounting
change -- -- -- (3.7)
Net income (loss) (7.7) 24.1 (18.6) 10.1
Preferred dividends 1.9 1.9 5.6 5.6
Net income (loss) to common
shares $(9.6) $22.2 $(24.2) $ 4.5
Earnings (loss) per common
share:
Basic $(.04) $ .10 $ (.11) $ .02
Diluted $(.04) $ .09 $ (.11) $ .02
Dividends per common share $.025 $.025 $ .05 $ .05
Average common shares
outstanding for earnings
(loss) per share purposes:
Basic 229.8 229.7 229.8 229.7
Diluted 229.8 245.6 229.8 245.6
BATTLE MOUNTAIN GOLD CO.
Condensed Consolidated Balance Sheet
US$ millions
Sept. 30, Dec. 31,
1998 1997
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 193.2 $ 185.0
Restricted cash 9.2 17.7
Accounts and notes receivable 25.4 33.0
Inventories 10.3 8.3
Materials and supplies,
at average cost 24.2 25.4
Assets held for sale -- 42.5
Other current assets 8.2 12.1
Total current assets 270.5 324.0
Investments 261.6 255.2
Property, plant and equipment, net 444.3 489.3
Other assets 21.2 24.7
Total assets $ 997.6 $1,093.2
Liabilities and shareholders' equity
Current liabilities:
Short-term borrowings $ -- $ 4.9
Current maturities of long-term debt 37.6 44.0
Accounts payable 14.2 24.0
Income and mining taxes payable 21.7 10.1
Other current liabilities 14.5 23.1
Total current liabilities 88.0 106.1
Long-term debt 217.1 241.0
Deferred income and mining taxes 61.8 84.1
Other liabilities 48.6 48.3
Total liabilities 415.5 479.5
Minority interest 108.1 107.7
Shareholders' equity 474.0 506.0
Total liabilities and shareholders'
equity $ 997.6 $1,093.2
BATTLE MOUNTAIN GOLD CO.
Condensed Consolidated Statement of Cash Flows
(Unaudited)
US$ millions
Nine months ended
Sept. 30,
1998 1997
Cash flows from operating activities:
Net income (loss) $ (18.6) $ 10.1
Adjustments to reconcile net income
(loss) to cash flows from operating
activities:
Depreciation, depletion and amortization 62.4 56.0
Deferred income taxes (16.8) (32.8)
Foreign currency exchange loss 12.6 0.4
Equity in losses of equity investee 4.5 --
Cumulative effect of accounting change -- 3.7
Change in working capital accounts, net 13.3 3.1
Other, net 4.7 4.8
Net cash flows provided by operating
activities 62.1 45.3
Cash flows from investing activities:
Capital expenditures (37.9) (48.2)
Investment in Lihir (11.5) --
New World settlement, net 34.9 --
Other, net 3.3 (0.5)
Net cash flows used in investing
activities (11.2) (48.7)
Cash flows from financing activities:
Cash proceeds from borrowings -- 162.8
Debt repayments (30.0) (17.9)
Decrease in short-term borrowings (4.9) (12.5)
Cash dividend payments (17.1) (17.1)
Decrease in restricted cash 8.7 0.4
Other, net 0.3 0.7
Net cash flows used in financing
activities (43.0) 116.4
Effect of exchange rate changes on
cash and cash equivalents 0.3 (5.2)
Net increase in cash and cash equivalents 8.2 107.8
Cash and cash equivalents at beginning
of period 185.0 94.0
Cash and cash equivalents at end of period $193.2 $201.8
BATTLE MOUNTAIN GOLD CO.
SUPPLEMENTAL INFORMATION
OPERATING DATA (Unaudited) (1)
(US$, all production data reflects BMG attributable interests)
Three months Nine months
ended Sept. 30, ended Sept. 30,
1998 1997 1998 1997
GOLDEN GIANT
Gold recovered (000s oz) 103 85 293 262
Silver recovered (000s oz) 6 4 23 12
Cost per Gold Ounce Sold:
Cash production costs $105 $130 $115 $140
Depreciation, depletion and
amortization 62 64 67 65
Reclamation and mine closure
costs 4 4 4 4
Total production costs $171 $198 $186 $209
KORI KOLLO (88% Interest)
Gold recovered (000s oz) 73 73 221 207
Silver recovered (000s oz) 205 180 650 561
Cost per Gold Ounce Sold (2):
Cash production costs $185 $197 $179 $196
Depreciation, depletion
and amortization 128 121 130 122
Reclamation and mine closure
costs 11 7 11 8
Total production costs $324 $325 $320 $326
HOLLOWAY (84.65% Interest)
Gold recovered (000s oz) 20 13 59 42
Cost per Gold Ounce Sold:
Cash production costs $199 $329 $228 $332
Depreciation, depletion
and amortization 108 123 114 119
Reclamation and mine closure
costs 2 2 2 2
Total production costs $309 $454 $344 $453
BATTLE MOUNTAIN COMPLEX
Gold recovered (000s oz) 8 20 32 59
Silver recovered (000s oz) 22 34 67 106
Cost per Gold Ounce Sold:
Cash production costs $279 $269 $253 $274
Depreciation, depletion
and amortization 64 41 46 37
Reclamation and mine closure
costs -- 45 -- 44
Total production costs $343 $355 $299 $355
BATTLE MOUNTAIN GOLD CO.
SUPPLEMENTAL INFORMATION
OPERATING DATA (Unaudited) (1)
(US$, all production data reflects BMG attributable interests)
Three months Nine months
ended ended
Sept. 30 Sept. 30
1998 1997 1998 1997
LIHIR (8.65%) Interest (3)
Gold recovered (000s oz) 11 34
Cost per Gold Ounce Sold:
Cash production costs $232 $204
Depreciation, depletion and amortization 145 177
Total production costs $377 $381
VERA/NANCY (50% Interest) (3)
Gold recovered (000s oz) 10 8 35 8
Silver recovered (000s oz) 9 10 29 10
Cost per Gold Ounce Sold:
Cash production costs $ 151 $181 $137 $181
Depreciation, depletion and amortization 32 29 30 29
Reclamation and mine closure costs 1 2 1 2
Total production costs $ 184 $212 $168 $212
SAN CRISTOBAL (50.5% Interest)
Gold recovered (000s oz) 4 10 16 27
Silver recovered (000s oz) 7 21 30 58
Cost per Gold Ounce Sold:
Cash production costs (4) $ 134 $433 $158 $404
Depreciation, depletion and amortization 38 68 75 54
Reclamation and mine closure costs -- 2 -- 8
Total production costs $ 172 $503 $233 $466
RED DOME (50.5% Interest) (5)
Gold recovered (000s oz) 4 24
Silver recovered (000s oz) 82 162
Copper recovered (000s lb) 2,485 3,702
Cost per Gold Ounce Sold:
Cash production costs $225 $239
Depreciation, depletion and amortization 31 20
Reclamation and mine closure costs 15 13
Total production costs $271 $272
BATTLE MOUNTAIN GOLD CO.
SUPPLEMENTAL INFORMATION
OPERATING DATA
(Unaudited(1))
(US$, all production data reflects BMG attributable interests)
Three months Nine months
ended ended
Sept. 30 Sept. 30
1998 1997 1998 1997
SILIDOR (55% Interest)(5)
Gold recovered (000s oz) 1 10
Cost Per Gold Ounce Sold:
Cash production costs $ 239 $318
Depreciation, depletion
and amortization -- 39
Reclamation and mine closure costs -- 5
Total production costs $239 $362
AGGREGATE DATA
Gold recovered BMG share (000s oz) 229 214 690 639
Gold sold BMG share (000s oz) 230 221 689 637
Gold recovered (000s oz) 253 237 769 717
Gold sold (000s oz) 254 251 768 714
Average price per oz realized $ 299 $ 332 $ 306 $ 346
Silver recovered BMG share (000s oz) 249 331 799 908
Silver sold BMG share (000s oz) 253 343 800 848
Silver recovered (000s oz) 283 456 917 1,201
Silver sold (000s oz) 290 485 920 1,087
Average price per oz realized $ 5.19 $ 4.43 $ 5.61 $ 4.75
Weighted Average Cost
per Gold Ounce Sold:
Cash production costs $ 153 $ 197 $ 158 $ 201
Depreciation, depletion
and amortization 90 80 94 82
Reclamation and mine closure costs 5 9 5 9
Total production costs $ 248 $ 286 $ 257 $ 292
(1) 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. This
standard also provides for reporting on a cost per gold ounce
basis, rather than cost per equivalent gold ounce.
(2) Royalties paid to the Bolivian government for the Kori Kollo mine
are treated as income tax for per ounce cost purposes and
therefore are not included in these cost calculations.
(3) Production started at Vera/Nancy and at Lihir during the third
and fourth quarters of 1997, respectively.
(4) Includes net deferred stripping costs of $133 and $6 per ounce
for the three and nine month periods ended Sept. 30, 1997,
respectively, and deferred stripping costs of $36 per ounce for
the nine months ended Sept. 30, 1998.
(5) Production ceased at Silidor and at Red Dome during the third and
fourth quarters of 1997, respectively.
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion