Battle Mountain Gold Posts Third Quarter Loss, Continues Strong Operating Performance.HOUSTON--(BUSINESS WIRE)--Oct. 26, 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 third quarter consolidated net loss of $14 million, or 6 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. , compared with a net loss of $9.6 million, or 4 cents per share, in the same period last year. For the first nine months of 1999, the Company reported consolidated net losses of $45 million, or 20 cents per share, compared with $24.2 million, or 11 cents per share, in the same period last year. 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:
tr.v. character·ized, character·iz·ing, character·iz·es 1. To describe the qualities or peculiarities of: characterized the warden as ruthless. 2. by the following factors:
-- operating cash flow $11 million higher than the first half of
1999,
-- an $18 per ounce reduction in cash costs over the second quarter,
-- a 6% increase in production over the second quarter,
-- a 1.5 million ounce reserve increase at the Phoenix project, as
previously reported,
-- a strengthening of the Company's financial position, and
-- a $9.5 million non-cash environmental remediation charge for the
San Luis property, offset by a $6.6 million partial restoration
of previous non-cash write-downs of Niugini Mining Ltd. (NML).
Keyes noted that the Company produced 198,000 ounces of gold at an average cash production cost of $152 per ounce ounce, in zoology ounce, in zoology: see leopard. ounce, unit of measurement ounce: see English units of measurement. during the third quarter. Gold production for the first nine months was 561,000 ounces at an average cash cost of $164 per ounce. The Company expects to exceed its production target for the year of 725,000 ounces and improve on its cash cost forecast of $172 per ounce. Keyes said that 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 improved significantly during the nine-month period to $13.6 million, compared with $2.6 million for the first six months of 1999. He emphasized that the Company has made significant strides during the year to lower costs, as reflected by sharply diminishing di·min·ish v. di·min·ished, di·min·ish·ing, di·min·ish·es v.tr. 1. a. To make smaller or less or to cause to appear so. b. operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. , even at lower gold prices. These improvements are expected to be clearly reflected in the Company's fourth quarter performance, assuming recent gains in gold prices to above $300 per ounce are sustained over the period. Keyes added that the Company's financial position was strengthened by the completion of 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). of its $104 million loan facility; the prospect of greatly improved liquidity in the Company's interest in Lihir through the pending merger of 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]. with 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 the implementation of a limited hedging program. The Company's cash position was $79.2 million at the end of the first nine months, including $40 million in restricted cash related to the Company's recently restructured loan agreement which greatly improves the Company's repayment schedule over the next 4 years. BMG's cash flow position going forward is expected to be enhanced by improving gold prices, and will also be supported by the Company's limited hedging program. The hedge program is designed with three objectives in mind: to help protect the next five years' cash flow from any potential price deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. ; to help ensure that the Company is able to execute its operating and development plans while meeting its financial obligations; and to maintain exposure to upside Upside The potential dollar amount by which the market or a stock could rise. Notes: This is basically an educated guess on how high a stock could go in the near future. See also: Bull, Downside moves in the gold price. -0-
Hedge Position (as of 10/26/99)
Type Ounces Period Covered Pricing
Collar 100,000 1Qtr. '00 - 4Qtr. '03 Put @ $290-Call @ $335
Collar 100,000 1Qtr. '00 - 4Qtr. '03 Put @ $280-Call @ $340
Collar 100,000 1Qtr. '00 - 4Qtr. '03 Put @ $320-Call @ $370
To date, BMG has taken advantage of the rising market to hedge a total of 300,000 ounces of production for delivery over the next four years, or about 19,000 ounces per quarter. In addition, as part of its 90-day gold sales program, the Company could be required to deliver 15,000 ounces of gold in the fourth quarter of 1999 at $320 per ounce. BMG currently produces about 190,000 ounces per quarter. There is no lease rate or margin call risk on the Company's current hedge book. So far, the Company has employed a cash-neutral strategy, utilizing matched puts and calls. The puts create floors ranging from $280 to $320 per ounce, and the calls range from $335 to $370 per ounce on the upside. BMG expects to continue to build that position in a gradual manner over the next few years, as appropriate. The Board will continue to regularly monitor the implementation of the Company's hedging program, and these activities will be updated as part of BMG's normal quarterly reporting. The loss for the quarter included a 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 charge for 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. property of $9.5 million, which was offset by a $6.6 million partial restoration of the previous 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 NML. The San Luis remediation charge is based upon the Company's best estimate of the cost to address 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. water-quality issues at the shut down San Luis property. These issues are technical in nature, and the water quality does not pose a risk to human health or the environment. The Niugini Mining gain, which is in keeping with current accounting standards and practices, reflects an increase of 10% in the market value of NML's interest in LGL. As previously reported, NML has agreed to be acquired by Lihir Gold Limited. The transaction is subject to necessary 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. and shareholder approvals. The loss for the nine month period ended September September: see month. 30 includes the environmental remediation charge of $9.5 million, offset by foreign currency gains of $6.9 million. The losses were significantly impacted by the $34 per ounce decline in average realized gold prices to $272 per ounce, compared with the same period last year. Operations/Development For 1999, BMG continues to enjoy a position as one of the industry's lower cost producers. Cash operating costs operating costs npl → gastos mpl operacionales for 1999 are targeted to average less than $170 per ounce, with total production now expected to be approximately 750,000 attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk ounces of gold. Keyes emphasized the significant progress that is being made at the Phoenix project, noting that it is a sound project with rapidly rising rates of return at gold prices of $280 per ounce and above. Assuming a $300 gold price, the Company currently hopes to add approximately 400,000 ounces at year end. Additional 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 still remains both within the current interim pit design, which could help to further lower the overall strip ratio and improve project economics, and elsewhere on the Complex property. Permitting for Phoenix is moving ahead, and the Company currently hopes to have a draft environmental impact statement early next year. 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 , 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 higher than anticipated production and lower costs. 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 performance and is essentially on target for the year. 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 for the quarter were on plan, partially offset by slightly lower recoveries and 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 continues to indicate recovery rates in the 70% range are feasible (algorithm) feasible - A description of an algorithm that takes polynomial time (that is, for a problem set of size N, the resources required to solve the problem can be expressed as some polynomial involving N). . BMG expects to make a decision to proceed with detailed drilling of the deposit this quarter and to reach a production decision late in 2000. The Company's current model shows that it has a minimum of 850,000 ounces of resources at Llallagua at $280 gold, with good upside potential. The project is expected to have low capital development costs, because the Company expects to be able to utilize the existing Kori Kollo infrastructure. The 84.65% owned Holloway Holloway may refer to: Place names:
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 grade improved. Cash operating costs during the third quarter were $162 per ounce, compared with $190 in the same period last year. 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 quarter, cash production costs were $112 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 Keyes noted that the Company has been making good progress in its reserve replacement work, even at lower gold prices. As a result, three of BMG's four mines -- Holloway, Kori Kollo and the Vera/Nancy JV, are in a position to add reserves with very little capital required. Both Phoenix and 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 also have tremendous potential. The result is anticipated to be a net increase in the Company's year end 1999 estimated reserve position, compared with last year. At Holloway, the underground drill program this year hopes to replace mined reserves. This material is being added in the Lightning lightning, electrical discharge accompanied by thunder, commonly occurring during a thunderstorm Zone, with excellent upside potential in the Middle Zone. Three drills are currently working underground, and an additional machine is drilling from the surface. Recently, BMG has several good holes at its Blacktop property, in which it has an option to earn a 100% interest. Blacktop is only about one mile from Holloway and could be easily accessed from the Company's current underground workings. Assay ASSAY. A chemical examination of metals, by which the quantity of valuable or precious metal contained in any mineral or metallic mixture is ascertained. 2. By the acts of Congress of March 3, 1823, 3 Story's L. U. S. 1924; of June 25, 1834, 4 Shars. cont. Story's L. U. S. results returned from the first three holes in the Blacktop drill program reported significant intercepts of 0.188 ounces per ton gold (opt)/87 ft, including two higher grade intercepts of 0.37 opt/20 ft and 0.21 opt/29 ft. The other two holes had intercepts of 0.298 opt/52 ft and 0.120 opt/17 ft. Drilling to confirm and expand this satellite resource is continuing. At Kori Kollo, in Bolivia, in addition to the previously mentioned Llallagua deposit, in-pit drilling in the Kori Kollo pit is confirming additional reserves within the current pit limits. Results to date from the in-pit drilling indicate that the pit life can be extended. Both grade and ounces have improved, and the pit bottom is being redesigned to access the new material. At Vera/Nancy, in Australia, the joint venture is continuing to add resources. The latest resource calculation for Vera South is approximately 2.2 million tons at 0.41 ounces per ton. That works out to roughly 450,000 ounces to BMG's account. This brings the overall resource to approximately 4.6 million tons at 0.426 ounces per ton, or about 1,965,000 ounces. Drill intercept intercept in mathematical terms the points at which a curve cuts the two axes of a graph. highlights for the quarter include 0.511 opt/31 ft, 0.416 opt/7 ft, 0.364 opt/28 ft, and 0.108 opt/25 ft. In terms of more grass-roots grass roots pl.n. (used with a sing. or pl. verb) 1. People or society at a local level rather than at the center of major political activity. Often used with the. 2. The groundwork or source of something. efforts, the Company has continued drill testing Tres Cruces cru·ces n. A plural of crux. in Peru and Casposo in Argentina Argentina (ärjəntē`nə, Span. ärhāntē`nä), officially Argentine Republic, republic (2005 est. pop. 39,538,000), 1,072,157 sq mi (2,776,889 sq km), S South America. . At Tres Cruces, all planned drilling was completed in September. Data assessment and economic modeling will be completed to bring the project to a decision point as soon as possible. Casposo is located in the lower elevations of the Andes Andes (ăn`dēz), mountain system, more than 5,000 mi (8,000 km) long, W South America. The ranges run generally parallel to the Pacific coast and extend from Tierra del Fuego northward, across the equator, as the backbone of the entire , near San Juan, Argentina San Juan is the capital city of the Argentine province of San Juan in the Cuyo region, located in the Tulúm Valey, west of the San Juan River, and at 650 m above mean sea level, with a population of around 112,000 as per the 2001 census INDEC] (over 450,000 counting the , and is a very promising "grass roots grass roots pl.n. (used with a sing. or pl. verb) 1. People or society at a local level rather than at the center of major political activity. Often used with the. 2. The groundwork or source of something. " exploration project. Surface showings there are very similar to the Vera/Nancy deposit in Australia. In the first phase of 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 , eight of the 12 holes yielded excellent results and confirm the similarities with the Vera/Nancy property. Among the better results are: 1.39 opt gold (Au) and 4.66 opt silver (Ag)/17 ft; 0.26 opt Au and 1.26 opt Ag/25 ft; and 0.157 opt Au and 6.47 opt Ag/43 ft. In the second round of drilling, five of the 10 holes returned significant assays including: 0.665 opt Au/14 ft; 0.287 opt Au/65 ft; 0.266 opt Au/30 ft; 0.193 opt Au/22 ft; and 0.136 opt Au/75 ft. Additional work is under review. 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)
US$ millions, except per share amounts
Three months ended Nine months ended
September 30 September 30
1999 1998 1999 1998
Sales $54.6 $70.0 $161.8 $217.2
Costs and expenses
Production costs 36.1 39.2 109.0 122.6
Depreciation, depletion
and amortization 16.6 19.9 46.8 62.4
Exploration, evaluation
& other lease costs, net 3.9 3.5 13.1 16.3
General and administrative
expenses 4.3 3.7 11.3 11.1
Environmental remediation
charges 9.5 -- 9.5 --
Loss (gain) related to
assets held for sale (6.6) -- 13.3 --
Total costs and expenses 63.8 66.3 203.0 212.4
Operating income (loss) (9.2) 3.7 (41.2) 4.8
Interest expense (3.7) (4.5) (11.2) (13.9)
Interest income 0.9 2.7 3.3 8.7
Foreign currency exchange
gain (loss), net 0.1 (7.2) 6.9 (12.6)
Minority interest in
net loss (income) 0.5 -- 1.1 (1.3)
Equity in losses of Lihir -- (1.8) -- (4.5)
Other income (expense), net 0.4 (0.2) 0.9 0.2
Loss before income taxes (11.0) (7.3) (40.2) (18.6)
Income tax benefit 1.0 1.8 3.2 5.4
Mining tax expense (2.1) (2.2) (2.4) (5.4)
Net loss (12.1) (7.7) (39.4) (18.6)
Preferred dividends 1.9 1.9 5.6 5.6
Net loss to common shares $(14.0) $(9.6) $(45.0) $(24.2)
Loss per common share
- basic and diluted $(.06) $(.04) $(.20) $(.11)
Dividends per common share $ -- $.025 $ -- $.050
Average common shares
outstanding for loss
per share purposes
- basic and diluted 229.9 229.8 229.9 229.8
BATTLE MOUNTAIN GOLD COMPANY
CONDENSED CONSOLIDATED BALANCE SHEET
US$ millions
Sept. 30, Dec. 31,
1999 1998
(Unaudited)
Assets
Current assets
Cash and cash equivalents $ 38.8 $ 147.6
Restricted cash 0.4 7.7
Accounts and notes receivable 12.0 13.8
Product inventories 7.8 8.9
Materials and supplies, at average cost 25.2 23.4
Assets held for sale 95.0 108.3
Other current assets 3.2 2.7
Total current assets 182.4 312.4
Investments 10.8 19.4
Property, plant and equipment, net 339.5 341.9
Restricted cash 40.0 --
Other assets 14.9 20.4
Total assets $ 587.6 $ 694.1
Liabilities and Shareholders' Equity
Current liabilities
Short-term borrowings $ -- $ 14.9
Current maturities of long-term debt 2.7 37.0
Debt due upon disposal of
assets held for sale 30.0 --
Accounts payable 14.8 14.3
Income and mining taxes payable 13.6 23.9
Other current liabilities 14.3 12.9
Total current liabilities 75.4 103.0
Long-term debt 176.8 203.6
Deferred income and mining taxes 67.6 72.0
Other liabilities 61.5 50.1
Total liabilities 381.3 428.7
Minority interest 6.4 17.7
Shareholders' equity 199.9 247.7
Total liabilities and
shareholders' equity $ 587.6 $ 694.1
BATTLE MOUNTAIN GOLD COMPANY
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
US$ millions
Nine months ended
September 30
1999 1998
Cash flows from operating activities
Net loss $ (39.4) $(18.6)
Adjustments to reconcile net loss
to cash flows from operating activities:
Depreciation, depletion and amortization 46.8 62.4
Environmental remediation charges 9.5 --
Deferred income taxes (2.8) (16.8)
Foreign currency exchange loss (gain), net (6.9) 12.6
Loss related to assets held for sale 13.3 --
Equity in losses of Lihir -- 4.5
Change in working capital accounts, net (5.9) 13.3
Other, net (1.0) 4.7
Net cash flows provided by operating activities 13.6 62.1
Cash flows from investing activities
Capital expenditures (37.3) (37.9)
Crown Butte liquidating dividend to
minority shareholders (11.0) --
Proceeds from sale of assets 11.3 1.9
New World settlement -- 34.9
Investment in Lihir Gold Limited -- (11.5)
Other, net (2.9) 1.4
Net cash flows used in investing activities (39.9) (11.2)
Cash flows from financing activities
Debt repayments (30.8) (30.0)
Decrease in short-term borrowings (14.9) (4.9)
Cash dividend payments (5.6) (17.1)
Decrease (increase) in restricted cash (32.7) 8.7
Other, net 0.1 0.3
Net cash flows used in financing activities (83.9) (43.0)
Effect of exchange rate changes
on cash and cash equivalents 1.4 0.3
Net increase (decrease) in cash
and cash equivalents (108.8) 8.2
Cash and cash equivalents
at beginning of period 147.6 185.0
Cash and cash equivalents
at end of period $ 38.8 $193.2
BATTLE MOUNTAIN GOLD COMPANY
SUPPLEMENTAL INFORMATION - OPERATING DATA
(Unaudited)(a)
(Production data reflects BMG attributable interests)
(US$, ounces in thousands)
Three months ended Nine months ended
1999 1998 1999 1998
GOLDEN GIANT
Gold ounces recovered 94 103 258 293
Silver ounces recovered 9 6 16 23
Cost per Gold Ounce Produced
Cash production costs $126 $106 $147 $115
Depreciation, depletion
and amortization 64 62 65 67
Reclamation and mine
closure costs 3 4 3 4
Total production costs $193 $172 $215 $186
KORI KOLLO (88% Interest)
Gold ounces recovered 61 72 187 221
Silver ounces recovered 150 205 516 650
Cost per Gold Ounce Produced (b)
Cash production costs $196 $182 $191 $177
Depreciation, depletion
and amortization 92 129 89 131
Reclamation and mine
closure costs 11 11 11 11
Total production costs $299 $322 $291 $319
HOLLOWAY (84.65% Interest)
Gold ounces recovered 28 20 71 59
Cost per Gold Ounce Produced
Cash production costs $162 $190 $188 $220
Depreciation, depletion
and amortization 130 107 131 113
Reclamation and mine
closure costs 2 2 2 2
Total production costs $294 $299 $321 $335
VERA/NANCY (50% Interest)
Gold ounces recovered 15 10 45 35
Silver ounces recovered 11 9 35 29
Cost per Gold Ounce Produced
Cash production costs $112 $150 $116 $138
Depreciation, depletion
and amortization 39 35 36 30
Reclamation and mine
closure costs 2 2 1 1
Total production costs $153 $187 $153 $169
OTHER(c)
Gold ounces recovered 23 82
Silver ounces recovered 29 97
Cost per Gold Ounce Produced
Cash production costs $259 $232
Depreciation, depletion
and amortization 96 95
Total production costs $355 $327
AGGREGATE DATA
Gold ounces recovered
- BMG share 198 229 561 690
Gold ounces sold - BMG share 195 230 558 689
Gold ounces recovered 207 253 587 769
Gold ounces sold 205 254 585 768
Average price per
gold ounce realized $262 $299 $272 $306
Silver ounces recovered
- BMG share 170 249 567 799
Silver ounces sold - BMG share 165 253 562 800
Silver ounces recovered 190 283 637 917
Silver ounces sold 184 290 631 920
Average price per
silver ounce realized $5.26 $5.19 $5.20 $5.61
Weighted Average Cost
per Gold Ounce Produced
Cash production costs $152 $155 $164 $159
Depreciation, depletion
and amortization 80 90 79 93
Reclamation and mine
closure costs 5 5 6 5
Total production costs $237 $250 $249 $257
(a) Effective January 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. These
guidelines also provide for reporting on a cost per gold ounce
basis, rather than cost per equivalent gold ounce.
(b) 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.
(c) Battle Mountain Complex, Lihir and San Cristobal. Production data
for the Reona mine at the Battle Mountain Complex is not
presented for 1999 because it was placed on care and maintenance
effective January 1, 1999. Data for the Lihir and San Cristobal
mines are not included in 1999 as the Company has classified its
investment in Niugini Mining Limited as an asset held for sale as
of December 31, 1998.
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion