Battle Mountain Gold Posts Losses On Low Gold Prices, But Continues Strong Operating Performance.HOUSTON--(BUSINESS WIRE)--July 25, 1999-- 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 second quarter consolidated net loss of $17.2 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. . The loss included a non-cash write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. of the company's investment in Niugini Mining Ltd. (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]. ) of $9.5 million, or 4 cents per share, and an increase in the valuation allowance for U.S. deferred income taxes of $3.8 million, or 2 cents per share, offset by foreign currency gains of $3.7 million. The Niugini write-down is due to a second quarter drop of 14% in the market value of NML' s interest in Lihir Gold Limited. The second quarter loss compares with a net loss of $11.1 million, or 5 cents per share, in the same period last year. For the first half of 1999, the consolidated net loss was $31 million, or 13 cents per share. The loss for the six-month period included non-cash write-downs of the company's investment in NML of $19.9 million, or 9 cents per share, and an increase in the valuation allowance for U.S. deferred income taxes of $3.8 million, or 2 cents per share, offset by foreign currency gains of $6.8 million, or 3 cents per share. This compares with a consolidated loss of $14.6 million, or 6 cents per share, in the same period last year. BMG President and Chief Executive Officer, Ian D. Bayer, said that excluding Lihir, the first half losses were largely related to the $31 per ounce ounce, in zoology ounce, in zoology: see leopard. ounce, unit of measurement ounce: see English units of measurement. decline in average realized gold prices to $278 per ounce, compared with the same period last year. Significantly lower gold prices, lower production, and working capital changes, including tax payments, reduced 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 to $2.6 million for the six-month period. The company's cash position was $76 million at the end of the first half. Bayer added that first half gold production of 363,000 ounces and cash costs of $171 per ounce were as planned and position the company to achieve its production and cash cost forecasts for the year. Bayer said that the company is reviewing its 1999 projects and plans and is continuing to adjust its strategy in response to the current gold market. Cost-saving programs, including workforce reductions, office closures and cuts in exploration spending have been implemented across the board and are expected to result in savings in excess of $10 million per year. Capital programs undertaken for the year are ongoing, including permitting of 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 , development activities at Phoenix and testing of the Llallagua bio-oxidation process. All of these programs are designed to add value to these projects. Construction timetables for these projects will be developed as decision points are reached. Work on the previously announced intent to dispose of To determine the fate of; to exercise the power of control over; to fix the condition, application, employment, etc. of; to direct or assign for a use. See also: Dispose BMG's interest in Niugini Mining Limited (NML) is advancing in order to help position the company for development of these projects. The 1999 exploration budget is being reduced from $25 million to $17 million, and the program is largely being refocused on projects with high potential to add materially to BMG's reserve, production and cost profile. The company is also adjusting its 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. risk management strategy to allow for limited and controlled hedging of a portion of its gold production from time to time in support of its overall cost control programs and project development activities. The policy is specifically designed toward building a position over a period of years. In addition, BMG's subsidiary Battle Mountain 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 (BMC) and Canadian Imperial Bank of Commerce The Canadian Imperial Bank of Commerce TSX: CM NYSE: CM, better known to most customers as CIBC, is one of Canada's major banks. CIBC is classified as a Domestic Chartered Bank (Schedule I). have agreed to restructure the $104 million long-term credit facility. BMC has agreed to provide security of $40 million in cash collateral and a security interest in BMC assets. An additional $30 million is due the earlier of any future disposition of NML, or in 2003. The 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). will result in a significantly reduced repayment schedule, increasing the amount due at final maturity. As a result of this transaction, no further principal payments will be required for the remainder of 1999. The company's consolidated principal repayment schedule will be $2.6 million in 2000; $9.8 million in 2001; and $14.8 million in 2002, including the final $5 million of Inti Raymi The Inti Raimi ("Festival of the Sun") was a religious ceremony of the Inca Empire in honor of the god Inti. It also marked the winter solstice and a new year in the Andes of the Southern Hemisphere. debt. Documentation is expected to be completed in the 3rd quarter. Bayer noted that the strategic actions being taken in response to the difficult gold price environment are expected to help BMG remain a solid gold company with excellent upside potential Upside potential The amount by which analysts or investors expect the price of a security may increase. upside potential The potential price or gain that may be expected in a security or in a security average, generally stated as the dollar . Its strengths include quality, low-cost operations; excellent opportunities to add value at operating properties; and promising exploration and development projects. Operations For 1999, BMG continues to enjoy a position as one of the industry's lowest cost producers. Cash operating costs operating costs npl → gastos mpl operacionales for 1999 are targeted to average less than $175 per ounce, with expected production of approximately 725,000 attributable ounces of gold. In Canada, 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. performed well during the quarter with both higher than plan 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 grades contributing to improved results. Development work on Block 5 continued to advance. The 88% owned Kori Kollo mine 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. continued to have good cost performance. Slightly lower than planned ore grade 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 was partially offset by better than planned recoveries and higher mill throughput. Work is moving ahead on schedule on the year-long 200,000-ton pilot-plant test of the near-by Llallagua 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, which is designed to establish the economics of a commercial operation. BMG's objective is to obtain enough information from the pilot test by the fourth quarter this year to make a decision to proceed with detailed drilling of the deposit and to reach a production decision late in 2000. This program, if successful, will enable BMG to unlock significant known resources in an area with well developed infrastructure as well as having implications for deposits outside of Bolivia. The 84.65% owned Holloway Holloway may refer to: Place names:
BMG's 50% joint venture interest in 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. , performed ahead of plan due to slightly higher grades and higher mill throughput. During the first half, cash production costs were $118 per ounce at this long-term low-cost asset. Total production at the Vera/Nancy mine there is targeted to double by the year 2000 to at least 200,000 ounces per year. Exploration/Development As part of the company's cost reduction program, the exploration budget is being reduced by over 50% for the second half of the year. As previously announced, the office in Accra, in Ghana Ghana, country, Africa Ghana, officially Republic of Ghana, republic (2005 est. pop. 21,030,000), 92,099 sq mi (238,536 sq km), W Africa, on the Gulf of Guinea, an arm of the Atlantic Ocean. The capital and largest city is Accra. , has been closed, and the office in Hermosillo, Mexico, is also closing. In addition, the exploration workforce has been reduced to 75 from 120 and further reductions in exploration infrastructure are under review. At the Phoenix project at the Battle Mountain Complex, approximately 120,000 of a planned 150,000 feet of development drilling had been completed at the end of the first half, with up to 12 drills active at times during the period. To date, results have been positive and as expected. Feasibility parameters established earlier this year continue to be supported. Those included target cash operating costs in the $185-$190 per ounce range; average annual gold production of approximately 300,000 ounces over at least a 12 year period; and capital expenditures in the $165 million range. A plant in the range of 20,000 tons per day is being targeted. A revised feasibility study The analysis of a problem to determine if it can be solved effectively. The operational (will it work?), economical (costs and benefits) and technical (can it be built?) aspects are part of the study. Results of the study determine whether the solution should be implemented. is expected in the second quarter of 2000. Permitting activities are continuing with the objective of having the draft Environmental Impact Statement issued in fourth quarter of 1999. Most of the work to date this year was done in the Greater Midas pit, where priority drilling has been completed. Drilling at Greater Midas focused on the west side to northern part of the pit to help convert undrilled waste zones to ore, and to help bring the West Midas resource into the ore reserve. Greater Midas area development in the second quarter included improved grade and 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. and good results in both the North Midas and Glory Hole glory hole Noun an untidy cupboard or storeroom Noun 1. glory hole - a small locker at the stern of a boat or between decks of a ship lazaretto areas. As expected, drilling at North Midas has intersected 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 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. ranging from 0.08 ounces per ton (opt) gold (Au) to 0.30 opt over 10-30 feet, within wider, low-grade low-grade Of or relating to debt that has a credit rating of B or below. Low-grade debt offers an above-average yield but entails substantial risk because promised payments may not be made in a timely manner. zones containing appreciable ap·pre·cia·ble adj. Possible to estimate, measure, or perceive: appreciable changes in temperature. See Synonyms at perceptible. silver and copper. High grade intercepts in the Glory Hole area included 0.235 opt Au/35 ft and 0.111 opt Au/40 ft. In the Phoenix/Fortitude area, drilling results indicated significant improvements in grade and tonnage along the 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. highwall and met BMG's expectations for higher-grade ore. Drilling on the north end of the Fortitude pit is defining a high-grade zone in the Virgin fault. The zone has a strike length of 500 to 800 ft. with the better intersections including 0.59 opt/30 ft (cut), 0.181 opt/75 ft, 0.206 opt/25 ft, 0.058 opt/60 ft, 0.076 opt/85 ft, and 0.059 opt/80. Drilling in the bottom of the Fortitude pit has also intersected significant mineralization including 0.321 opt/40 ft and 0.045 opt/115 ft. At Kori Kollo, BMG focused on completing an in-fill and exploration drilling program within the Kori Kollo pit. Twenty-one diamond drill holes totaling 18,500 ft have been completed to date. Once drilling is completed, a revised block model for the deposit will be developed. The exploration portion of the drilling program has further defined the footwall foot·wall n. Geology 1. The mass of rock underlying a mineral deposit in a mine. 2. The underlying block of a fault having an inclined fault plane. breccia breccia: see conglomerate. breccia Coarse sedimentary rock consisting of angular or nearly angular fragments larger than 0.08 in. (2 mm). Breccia commonly results from processes such as landslides or geologic faulting, in which rocks are fractured. zone contained in the east highwall and below the proposed final pit outline. Better intercepts include 0.065 opt Au/155 ft; .063 opt/155 ft; 0.074 opt/245 ft; 0.060 opt/205 ft; and 0.050 opt/60 ft. The zone is currently estimated to contain more than 200,000 ounces of gold down to a depth of 200 ft below the current planned final pit outline, and studies are underway to determine the feasibility of a push back and deepening deep·en tr. & intr.v. deep·ened, deep·en·ing, deep·ens To make or become deep or deeper. Noun 1. deepening - a process of becoming deeper and more profound of the current Kori Kollo final pit. At the Crown Jewel gold project, where BMG is earning a 54% interest, the project now has approximately 95% of the permits required for construction to proceed. As previously announced, Congress mandated reinstatement Reinstatement The restoration of an insurance policy after it has lapsed for nonpayment of premiums. of the Record of Decision and approval of the Plan of Operations for the project and those actions have taken place. In addition, the Clean Water Act Section 404 Permit was issued by the Army Corps of Engineers on June 28. Work on the permitting and appeals process is continuing. At the Pajingo operation, in which BMG has a 50% joint-venture interest, exploration success is continuing. Recently revised resource estimates for Vera South are 2.4 million tons at 0.350 opt, or 840,000 ounces of contained gold -- an increase of 170,000 ounces over the December 1998 estimate. That brings the overall Vera/Nancy resource to 2,085,550 ounces. Work on greenfield projects For other uses, see Greenfield (disambiguation). In software engineering jargon, a greenfield is a project which lacks any constraints imposed by prior work. The image is that of construction on greenfield land, where there is no need to remodel or demolish an existing during the quarter focused on El Cairo in Mexico, Tres Cruces cru·ces n. A plural of crux. in Peru, and the Casposo project in Argentina. During the quarter, BMG's exploration in Argentina focused on Casposo, BMG's core project in the low-lying Cordillera cor·dil·le·ra n. An extensive chain of mountains or mountain ranges, especially the principal mountain system of a continent. [Spanish, from cordilla, diminutive of cuerda, cord Frontal area frontal area n. See frontal cortex. . Diamond drilling Diamond Drilling is a highly specialized industry used for mineral exploration around the world. Most commonly using wireline and core bits with diamond encrusted matrix. To drill holes to max depths of twelve thousand feet, for the recovery of core used in verifying mineral was started in mid-May and, to date, 11 of 12 planned shallow drill holes have been completed to test a surface prospect which returned assays of 0.147 opt/215 ft from surface channel sampling. These holes have been drilled over a nominal strike length of 3,280 ft and test both the Kamila and Mercado For the hispanic surname "Mercado", please see de Mercado. Mercado first originated in Spain. In English it means 'market'. Is the last name of the 'Great' Fifa Soccer player Eswold. zones, which have generally returned encouraging results. Complete assays have been returned for the first eight holes, and five have significant assays. They include: 1.39 opt Au and 4.66 opt silver (Ag)/17 ft; 0.136 opt Au and 1.42 opt Ag/68 ft; 0.073 opt Au and 0.852 opt Ag/34 ft; 0.157 opt Au and 6.47 opt Ag/340 ft; and 0.123 opt Au and 0.867 opt Ag/65 ft. The initial program was designed to evaluate this logistically well-located Pajingo-type system. To date, only a small portion of the prospective geology geology, science of the earth's history, composition, and structure, and the associated processes. It draws upon chemistry, biology, physics, astronomy, and mathematics (notably statistics) for support of its formulations. has been tested. Results are encouraging, and further work is planned for the third quarter. At Tres Cruces, where Battle Mountain Gold has acquired an option to purchase a 100% interest, work centered on the newly discovered south extension zone, which is an apparent mirror image of the south zone. Eighteen drill holes have now traced mineralization over a strike length of 1,960 ft with the zone still being open along strike to the south. Some of the better assay results along the south extension zone include 0.099 opt/78 ft; 0.103 opt/54 ft; 0.058 opt/98 ft; 0.061 opt/98 ft; 0.150 opt/34 ft; 0.076 opt/211 ft; 0.057 opt/116 ft; 0.053 opt/68 ft; 0.056 opt/64 ft; 0.064 opt/79 ft; 0.070 opt/34 ft; and 0.148 opt/44 ft. An updated resource estimate is being prepared. In the meantime Adv. 1. in the meantime - during the intervening time; "meanwhile I will not think about the problem"; "meantime he was attentive to his other interests"; "in the meantime the police were notified" meantime, meanwhile , a property-wide RC drilling program of other exploration targets in the larger Tres Cruces exploration area is being initiated. The new resource estimate will incorporate all BMG drill holes completed to date and will cover the four currently known areas of mineralization, the north, south, southwest, and new south extension zones. While still ongoing, 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 is beginning to show results, indicating that the refractory refractory Material that is not deformed or damaged by high temperatures, used to make crucibles, incinerators, insulation, and furnaces, particularly metallurgical furnaces. Tres Cruces 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. mineralization is amenable AMENABLE. Responsible; subject to answer in a court of justice liable to punishment. to bio-oxidation. At El Cairo, 18 reverse circulation (RC) holes and 5 diamond core holes were drilled on the El Castillo El Castillo ("the castle" in Spanish) may refer to:
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, 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 COMPANY
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
Three months ended Six months ended
June 30 June 30
US$ millions, except
per share amounts 1999 1998 1999 1998
Sales $ 53.4 $ 68.3 $ 107.2 $ 147.2
Costs and expenses
Production costs 36.3 39.7 72.9 83.4
Depreciation, depletion
and amortization 15.8 19.6 30.2 42.5
Exploration, evaluation
& other lease costs, net 5.3 7.5 9.2 12.8
General and administrative
expenses 3.7 3.7 7.0 7.4
Asset write-downs 9.5 -- 19.9 --
Total costs
and expenses 70.6 70.5 139.2 146.1
Operating income (loss) (17.2) (2.2) (32.0) 1.1
Interest expense (3.8) (4.6) (7.5) (9.4)
Interest income 1.4 3.4 2.4 6.0
Foreign currency exchange
gain (loss), net 3.7 (5.9) 6.8 (5.4)
Minority interest in
net loss (income) 0.4 (1.0) 0.6 (1.3)
Equity in losses of Lihir -- (1.3) -- (2.7)
Other income, net 0.1 0.3 0.5 0.4
Loss before income taxes (15.4) (11.3) (29.2) (11.3)
Income tax benefit 0.1 3.4 2.2 3.6
Mining tax expense (0.1) (1.4) (0.3) (3.2)
Net loss (15.4) (9.3) (27.3) (10.9)
Preferred dividends 1.8 1.8 3.7 3.7
Net loss to common shares $ (17.2) $ (11.1)$ (31.0) $ (14.6)
Loss per common share --
basic and diluted $ (.07) $ (.05)$ (.13) $ (.06)
Dividends per common share $ -- $ -- $ -- $ .025
Average common shares
outstanding for loss per
share purposes --
basic and diluted 229.8 229.8 229.9 229.8
BATTLE MOUNTAIN GOLD COMPANY
CONDENSED CONSOLIDATED BALANCE SHEET
June 30, December 31,
1999 1998
US$ millions (Unaudited)
Assets
Current assets
Cash and cash equivalents $ 75.6 $ 147.6
Restricted cash 7.1 7.7
Accounts and notes receivable 11.7 13.8
Product inventories 8.5 8.9
Materials and supplies, at
average cost 25.8 23.4
Assets held for sale 88.4 108.3
Other current assets 4.2 2.7
Total current assets 221.3 312.4
Investments 20.7 19.4
Property, plant and equipment, net 342.3 341.9
Other assets 17.0 20.4
Total assets $ 601.3 $ 694.1
Liabilities and Shareholders' Equity
Current liabilities
Short-term borrowings $ -- $ 14.9
Current maturities of long-term debt 30.0 37.0
Accounts payable 18.8 14.3
Income and mining taxes payable 13.9 23.9
Other current liabilities 9.9 12.9
Total current liabilities 72.6 103.0
Long-term debt 186.2 203.6
Deferred income and mining taxes 69.3 72.0
Other liabilities 51.3 50.1
Total liabilities 379.4 428.7
Minority interest 7.0 17.7
Shareholders' equity 214.9 247.7
Total liabilities and shareholders' equity $ 601.3 $ 694.1
BATTLE MOUNTAIN GOLD COMPANY
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
Six months ended
June 30
US$ millions 1999 1998
Cash flows from operating activities
Net loss $ (27.3) $ (10.9)
Adjustments to reconcile net loss to
cash flows from operating activities:
Depreciation, depletion and amortization 30.2 42.5
Deferred income taxes (5.4) (10.5)
Foreign currency exchange loss (gain), net (6.8) 5.4
Asset write-downs 19.9 --
Equity in losses of Lihir -- 2.7
Change in working capital accounts, net (5.7) 6.4
Other, net (2.3) 5.3
Net cash flows provided by operating activities 2.6 40.9
Cash flows from investing activities
Capital expenditures (22.9) (28.3)
Crown Butte liquidating dividend to
minority shareholders (11.0) --
Investment in Lihir Gold Limited -- (11.5)
Other, net (0.2) 1.9
Net cash flows used in investing activities (34.1) (37.9)
Cash flows from financing activities
Debt repayments (24.4) (24.2)
Decrease in short-term borrowings (14.9) (4.4)
Cash dividend payments (3.7) (9.5)
Decrease (increase) in restricted cash 0.6 (4.3)
Other, net 0.3 0.2
Net cash flows used in financing activities (42.1) (42.2)
Effect of exchange rate changes on cash and
cash equivalents 1.6 0.4
Net decrease in cash and cash equivalents (72.0) (38.8)
Cash and cash equivalents at beginning of period 147.6 185.0
Cash and cash equivalents at end of period $ 75.6 $ 146.2
BATTLE MOUNTAIN GOLD COMPANY
SUPPLEMENTAL INFORMATION -- OPERATING DATA (Unaudited) (1)
(Production data reflects BMG attributable interests)
(US$, ounces in thousands)
Three months ended Six months ended
June 30 June 30
1999 1998 1999 1998
GOLDEN GIANT
Gold ounces recovered 86 87 164 190
Silver ounces recovered 4 9 7 17
Cost per Gold Ounce Produced
Cash production costs $151 $129 $158 $121
Depreciation, depletion
and amortization 68 68 66 68
Reclamation and mine closure costs 4 4 4 4
Total production costs $223 $201 $228 $193
KORI KOLLO (88% Interest)
Gold ounces recovered 62 71 126 148
Silver ounces recovered 165 209 366 445
Cost per Gold Ounce Produced (2)
Cash production costs $195 $183 $189 $175
Depreciation, depletion
and amortization 89 130 87 132
Reclamation and mine closure costs 11 11 11 10
Total production costs $295 $324 $287 $317
HOLLOWAY (84.65% Interest)
Gold ounces recovered 23 21 43 39
Cost per Gold Ounce Produced
Cash production costs $204 $220 $205 $236
Depreciation, depletion
and amortization 133 112 130 116
Reclamation and mine closure costs 3 2 2 2
Total production costs $340 $334 $337 $354
VERA/NANCY (50% Interest)
Gold ounces recovered 16 13 30 25
Silver ounces recovered 12 10 24 20
Cost per Gold Ounce Produced
Cash production costs $119 $127 $118 $132
Depreciation, depletion
and amortization 36 29 34 28
Reclamation and mine closure costs 1 1 1 1
Total production costs $156 $157 $153 $161
OTHER (3)
Gold ounces recovered 24 59
Silver ounces recovered 32 68
Cost per Gold Ounce Produced
Cash production costs $233 $222
Depreciation, depletion
and amortization 89 94
Total production costs $322 $316
BATTLE MOUNTAIN GOLD COMPANY
SUPPLEMENTAL INFORMATION -- OPERATING DATA (Unaudited) (1)
(Production data reflects BMG attributable interests)
(US$, ounces in thousands)
Three months Six months
ended ended
June 30 June 30
1999 1998 1999 1998
AGGREGATE DATA
Gold ounces recovered -- BMG share 187 216 363 461
Gold ounces sold -- BMG share 186 215 363 459
Gold ounces recovered 195 240 380 516
Gold ounces sold 194 240 380 514
Average price per gold ounce realized $271 $314 $278 $309
Silver ounces recovered -- BMG share 181 260 397 550
Silver ounces sold -- BMG share 180 259 397 547
Silver ounces recovered 203 298 447 634
Silver ounces sold 202 298 447 630
Average price per silver ounce realized $5.08 $5.62 $5.19 $5.98
Weighted Average Cost per Gold Ounce Produced
Cash production costs $170 $167 $171 $162
Depreciation, depletion and amortization 80 93 79 94
Reclamation and mine closure costs 6 5 6 5
Total production costs $256 $265 $256 $261
(1) Effective Jan. 1, 1999, current and prior period production costs
are presented on an ounces-produced basis, versus an ounces-sold
basis as previously reported.
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 calculations and are
therefore not included in these cost calculations.
(3) Includes Battle Mountain Complex, Lihir and San Cristobal.
Production data is not presented for 1999 as the Battle Mountain
Complex Reona mine has been placed on care and maintenance
effective Jan. 1, 1999. Results of Lihir Gold Limited and San
Cristobal are not consolidated in 1999 as the company has
classified its investment in Niugini Mining Limited as an asset
held for sale as of Dec. 31, 1998.
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion