Battle Mountain Gold posts loss for quarter/year; receives final Crown Jewel EIS; sees lower 1997 costs.HOUSTON--(BUSINESS WIRE)--Feb. 3, 1997--Battle Mountain Gold Co. (NYSE NYSE See: New York Stock Exchange :BMG/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. ) Monday Monday: see week. announced a fourth quarter 1996 consolidated net loss of $39.5 million, or 17 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. , attributable to common shareholders. The fourth quarter 1996 loss compares with a net loss of $0.2 million in the same period last year. For the year 1996, the consolidated net loss was $81.8 million, or 36 cents per share, compared with net income of $22.2 million, or 10 cents per share, in the same period in 1995. 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 Chairman Karl E. Elers, noting that 1996 represented a transition year involving the merger with Hemlo Gold, said the company was negatively impacted by increased income tax charges; previously announced property, plant and equipment write-offs and merger expenses; higher mine cash operating costs operating costs npl → gastos mpl operacionales ; higher exploration expenditures; and increased depreciation, depletion depletion n. when a natural resource (particularly oil) is being used up. The annual amount of depletion may, ironically, provide a tax deduction for the company exploiting the resource because if the resource they are exploiting runs out, they will no longer be able and amortization charges. Elers said the fourth quarter loss was primarily the result of unusually high income tax charges totaling $25 million; $6.4 million of costs related to the accelerated completion of mining at 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. ; $2.7 million of additional merger expenses related to the election of certain executive officers to leave the company; $2 million of 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). costs related to 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]. ); and $1.4 million of asset write downs related to the Red Dome dome, a roof circular or (rarely) elliptical in plan and usually hemispherical in form, placed over a circular, square, oblong, or polygonal space. Domes have been built with a wide variety of outlines and of various materials. milling operations. The income tax charges of $25 million arise even though a pre-tax loss of $11 million was incurred during the quarter. This relates principally to the company's revised foreign dividend repatriation Repatriation The process of converting a foreign currency into the currency of one's own country. Notes: If you are American, converting British Pounds back to U.S. dollars is an example of repatriation. strategy whereby retained and current earnings of the company's 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. operations are now expected to be repatriated 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. . This decision gave rise to the need to provide Canadian withholding taxes The amount legally deducted from an employee's wages or salary by the employer, who uses it to prepay the charges imposed by the government on the employee's yearly earnings. on such retained earnings Retained Earnings The percentage of net earnings not paid out in dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders equity on the balance sheet. and to provide a valuation allowance for certain previously recognized U.S. Federal income tax benefits which are no longer likely to be realized due to foreign tax credits. To a lesser extent, current quarter income tax provisions were necessary in Canada ($3.5 million) where taxes will be paid for which there is no consolidated benefit and for Bolivian mining taxes ($1.4 million). Cash flows from operating activities decreased to $57 million in 1996, compared with $74 million in 1995, primarily as a result of merger expenses paid by the company. BMG's year end cash position was $103 million. Capital expenditures were reduced to $58 million in 1996, compared with $145 million in 1995 when funds were utilized in the construction of Holloway and to provide funding for the Lihir project. Attributable gold production for the fourth quarter was approximately 218,000 ounces, compared with 193,000 ounces in the same period a year earlier. For the year 1996, gold production totaled 916,000 attributable ounces, compared with 843,000 ounces during 1995. Cash production costs averaged $230 per ounce ounce, in zoology ounce, in zoology: see leopard. ounce, unit of measurement ounce: see English units of measurement. sold for the fourth quarter and $219 for the year 1996, compared with $212 and $195 per ounce sold, respectively, for the same periods in 1995. The higher operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. for 1996 primarily reflects increased operating costs at Kori Kollo and normal operations Generally and collectively, the broad functions that a combatant commander undertakes when assigned responsibility for a given geographic or functional area. Except as otherwise qualified in certain unified command plan paragraphs that relate to particular commands, "normal operations" of at the Golden Giant. Elers emphasized that three new, lower cost mines -- Holloway, Vera/Nancy and Lihir -- are coming into full production this year and are expected to help lower aggregate cash production costs per ounce. The new mines will replace three of the company's smaller, higher cost mines -- San Luis, Silidor and Red Dome -- all of which will have been phased out of operation by the second half of this year, as reserves are depleted de·plete tr.v. de·plet·ed, de·plet·ing, de·pletes To decrease the fullness of; use up or empty out. [Latin d . Kori Kollo Reserve Reduction and Cost Savings A review of the reserves at the Kori Kollo mine in 1996 has resulted in a downward adjustment of 320,000 attributable ounces, or approximately 10 percent of the year end 1995 Kori Kollo ore reserves. The reserve reduction is a result of refinements to the block model incorporating data collected from the past four years mining, and inclusion of results from 18 new diamond drill holes which has indicated that the earlier reverse circulation drilling and block model had overstated o·ver·state tr.v. o·ver·stat·ed, o·ver·stat·ing, o·ver·states To state in exaggerated terms. See Synonyms at exaggerate. o the reserves. Elers said he expects no further adjustments to the Kori Kollo ore model. BMG expects to cut production costs by approximately $11 million at Kori Kollo in 1997, compared with 1996. It has budgeted production of 284,000 attributable ounces at cash operating costs of $186 per gold ounce sold this year, compared with 270,000 ounces and $225 per ounce sold in 1996. Operating Outlook Highlights Looking at the company's growth profile, Elers and BMG President Ian Bayer said that BMG's overall strategy calls for growth to come from both exploration and value-added acquisition. The targets on both counts are 1 million ounce plus reserves, with cash costs in the $200 per ounce or less range. While growth in ounces is important, the primary objective is to maximize shareholder value and cash flow, they said. BMG's current reserve position is well diversified diversified (di·verˑ·s , with almost two-thirds of its ounces located in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . Based on current development projects, by the end of the decade, some 70 percent of the company's production is also expected to come from North America, compared with about 59 percent today. For 1997, aggregate cash production costs are expected to average about $200 per gold ounce sold, down some 10 percent compared with 1996. Total aggregate operating costs are expected to be approximately $290 per gold ounce sold. Total attributable gold production is expected to be approximately 920,000 ounces this year. Operations at the Golden Giant continue on target in regard to production and costs. Annual gold production there in 1997 is expected to be about 360,000 ounces, with cash costs near $140 per ounce sold. BMG has an 84.7 percent interest in the Holloway mine in northeastern Ontario Northeastern Ontario is the region within the Canadian province of Ontario which lies north and east of Lakes Superior and Huron. Northeastern Ontario consists of Algoma District, Sudbury District, Cochrane District, Timiskaming District, Nipissing District, Manitoulin , which experienced a slower than anticipated start-up Start-up The earliest stage of a new business venture. in the fourth quarter of 1996. Attributable gold production was 11,000 ounces at a cash operating cost of $393 per gold ounce sold. For 1997, production is expected to be about 80,000 attributable ounces, with targeted cash operating costs per gold ounce sold of $223 and total operating costs of $337. Exploration potential in the Matheson area around the Holloway property is excellent, as well as at the mine site itself where drilling last year identified significant potential at depth below the main Holloway ore body. That drilling intersected the Lightning Zone, some 600 meters below the deepest previous hole, where it returned assays of 11.6 grams of gold over a 2.9 meter interval. This intersection intersection /in·ter·sec·tion/ (-sek´shun) a site at which one structure crosses another. intersection a site at which one structure crosses another. confirms the excellent potential to increase reserves at Holloway at depth. Some additional surface drilling will be conducted this year, but the main focus at Holloway will be on getting the new mine operating smoothly and on budget. 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 state, the Environmental Impact Statement (EIS (1) (Executive Information System) An information system that consolidates and summarizes ongoing transactions within the organization. It provides top management with all the information it requires at all times from internal and external sources. ) has been finalized See finalization. , a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. Record of Decision issued, and the document is in the process of being distributed. Work is now underway to obtain the various development and operating permits. Historically, there can be appeals associated with both the EIS and the permitting process, and it is difficult to predict their duration. Construction will begin once the process is completed. Production at Crown Jewel is anticipated to be in the 130,000 ounce range attributable to BMG from its 54 percent interest in the project. Cash operating costs per gold ounce sold are expected to average about $165 over the life of the mine. At the Battle Mountain Complex, the Phoenix permitting process is moving ahead, and the company continues to look at alternatives to enhance the economics of the project. Annual production is expected to be in the 200,000 ounce per year range by the end of this decade. At the Vera/Nancy property 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, over 1 million contained ounces of 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. have been identified to date. BMG has a 50 percent interest in this property together with Normandy Mining Ltd, which will be the operating partner. Initial production will utilize the Pajingo mill which has been expanded to 800 tons per day capacity. Mining of the small Vera open pit is now complete and ore has been stockpiled. Full production from underground is anticipated in the second half of the year at the total annual rate of approximately 100,000 ounces. The mineralization is still open at depth below 1,300 feet and over portions of its strike length. Additional exploration will be carried out as the underground mining progresses. Because of the existing infrastructure, development costs and DD&A will be relatively low. By 1998, BMG's share of production there is targeted at about 50,000 ounces, with cash costs expected to decline to about $150 per gold ounce sold, and total costs of some $185 per ounce, yielding excellent cash flow. At Lihir in Papua New Guinea Papua New Guinea (păp`  ə, –y , work is progressing well with a
projected mid year start up of mining of the 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 end of
the fourth quarter of 1996, engineering for the project was 99 percent
complete and total construction was 67 percent complete. Construction
for the oxide ore facilities was 72 percent complete.According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the operator, RTZ RTZ Rio Tinto Zinc RTZ Return To Zero RTZ Return to Zork (game) RTZ Retail Trade Zone , production in 1997 is expected to total about 18,000 ounces attributable to BMG from its net 8.6 percent interest through its 50.5 percent owned Niugini Mining (NML) subsidiary. Processing of sulphide sulphide: see sulfide. ore could begin as early as October 1997. By 1998, the company expects to realize over 50,000 attributable ounces from Lihir and close to 70,000 attributable ounces in 1999 and 2000. Cash costs there over the next few years are anticipated to average near $200 per ounce sold. Exploration Priorities BMG expects to spend about $35 million in 1997 exploring properties which range in activity from early reconnaissance  This article or section needs copy editing for grammar, style, cohesion, tone and/or spelling.You can assist by [ editing it] now. to advanced drilling. High priority targets include El Cairo, Volta Grande Volta Grande is a Brazilian city in the state of Minas Gerais. As of 2004 its population is estimated to be 5,118. , Pajingo, and Dunkwa, as well as BMG's extensive land holdings around the company's current operations. At the Vera/Nancy property, ongoing exploration work is continuing to return positive results. Drilling to the north of the Vera/Nancy resource appears to be outlining additional 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. lenses, with some of the better diamond drill holes returning assays of: 22 g/t Au over 19 meters, 44.7 g/t over 6 meters, 21.7 g/t over 9 meters and 14 g/t over 10 meters. Battle Mountain and Normandy are continuing to test a number of other targets comprising deep regions of known veins and related geophysical ge·o·phys·ics n. (used with a sing. verb) The physics of the earth and its environment, including the physics of fields such as meteorology, oceanography, and seismology. anomalies
Anomalies is Cephalic Carnage's 4th full-length album. It was released on Relapse Records. The group expanded their sound even more than their previous album, Lucid Interval, and gained more popularity. . Chances for additional discovery are rated high. BMG has an excellent land position in Mexico with a number of quality targets. Among these is El Cairo, where the company expects to resume drilling in February. During 1996, extensive surface geochem and trenching work, together with 8 reverse circulation holes, identified a target with potential for large 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. , bulk mineable, leachable gold deposit. Of the eight holes drilled, seven encountered significant widths of anomalous a·nom·a·lous adj. 1. Deviating from the normal or common order, form, or rule. 2. Equivocal, as in classification or nature. gold mineralization, with the best assays being: 1.05 g/t Au over 100 meters, with the hole ending in mineralization. Very encouraging results were reported in 1996 from the Dunkwa property located within the Ashanti gold belt in Ghana. A total of 14 holes drilled on the Mampon prospect have outlined a 400 meter long, shallow plunging plunge v. plunged, plung·ing, plung·es v.tr. 1. To thrust or throw forcefully into a substance or place: zone of mineralization. The zone is open along strike and down dip and will be further tested by drilling, possibly later this quarter. Strong persistent gold-arsenic-antimony soil anomalies have been outlined elsewhere on the Dunkwa property, which range from one to five kilometers in strike length. Testing will begin on these targets in February. In Brazil, Volta Grande, located in Para para (par´ah) a woman who has produced one or more viable offspring, regardless of whether the child or children were living at birth. State, comprises a 150 square kilometer kilometer one thousand (103) meters; 3280.83 feet; five-eighths of a mile; abbreviated km. concession underlain un·der·lain v. Past participle of underlie. by Archean greenstone green·stone n. Any of various altered basic igneous rocks colored green by chlorite, hornblende, or epidote. greenstone Noun NZ a type of green jade used for Maori carvings and ornaments and granite-gneiss terrain. Some twenty centers of garimpeiro workings occur along a 12 by 8 kilometer belt within the area. Multiple drill targets have been identified by BMG's JV partner, TVX TVx Target Vertex TVX Transmission Valid Timer (FDDI) TVX Valid Transmission , with a current drilling program focused on a 1.8 kilometer by 200 meter, strong surface gold 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. . Results from the current program continue to be highly encouraging, with multiple individual zones of mineralization ranging from 4 to 36 meters in thickness at grades ranging from 0.6 g/t to 6 g/t Au. Officer Changes As previously announced, during January 1997, three senior officers of the company announced their intentions to voluntarily resign from BMG under terms of change-of-control severance agreements Noun 1. severance agreement - an agreement on the terms on which an employee will leave agreement, understanding - the statement (oral or written) of an exchange of promises; "they had an agreement that they would not interfere in each other's business"; "there was triggered by the merger with Hemlo Gold. The company is pleased to announce the appointment of Joseph Baylis as Senior Vice President -- Corporate Development. Baylis will also retain his position as President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Niugini Mining Limited. In addition, Jeffrey Powers has been named Vice President -- Controller, and Anne Baldrige has been named Vice President -- Environmental and Governmental Affairs. Baylis had previously served as Vice President -- Investor Relations Investor relations The process by which the corporation communicates with its investors. and General Counsel for Hemlo Gold. Powers most recently was Controller for Battle Mountain and Baldrige served BMG as Director of Environmental and Governmental Affairs. Outlook In summary, the results for 1996 should not be considered indicative of future performance, Elers said. Managements focus is squarely square·ly adv. 1. Mathematics At right angles: sawed the beam squarely. 2. In a square shape. 3. on improving the performance of the company's assets and on growth for the future. BMG is well positioned to maintain a strong financial core. New project financing Project financing A form of asset-based financing in which a firm finances a discrete set of assets on a stand-alone basis. will be largely internal from strong cash flow. BMG has production growth in the pipeline, low cash production costs, a well capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. balance sheet, diversified and well funded exploration and M&A programs, and the critical mass to respond to opportunities that may arise. -0- Note: The United States 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-Q Form 10-Q See 10-Q. for the most recent quarter. -0-
Battle Mountain Gold Co.
Condensed Consolidated Statement of Income
(unaudited)
(in thousands, except per-share data)
Three months ended Year ended
Dec. 31, Dec. 31,
1996 1995 1996 1995
Sales $107,665 $106,425 $423,980 $401,189
Costs and expenses
Production costs 74,124 67,386 257,164 228,439
Depreciation, depletion
and amortization 27,778 26,598 94,187 86,547
Exploration, evaluation and
other lease costs 11,475 8,663 33,532 26,019
Merger expense 2,705 -- 22,703 --
Asset write-downs 1,426 -- 39,877 2,222
General and administrative
expenses 6,069 4,094 19,019 16,339
Total costs and expenses 123,577 106,741 466,482 359,566
Operating income (15,912) (316) (42,502) 41,623
Investment income 2,945 2,091 9,876 11,325
Interest (expense) (2,019) (2,183) (6,885) (7,644)
Other income (expense), net 263 844 (1,665) 2,692
Income before income taxes and
minority interest (14,723) 436 (41,176) 47,996
Income tax benefit (expense) (24,986) 1,914 (37,470) (7,489)
Mining taxes (1,964) 1,674 (11,653) (4,656)
Minority interest in net
(income) loss 4,060 (2,388) 15,959 (6,156)
Net income (loss) (37,613) 1,636 (74,340) 29,695
Preferred dividends 1,869 1,869 7,475 7,476
Net income (loss) to common
shares $(39,482) $ (233) $(81,815)$ 22,219
Income (loss) per common
share (17 cents) -- (36 cents) 10 cents
Dividends per common share -- -- 5 cents 5 cents
Average common shares
outstanding for income-
per-share purposes 229,693 229,074 229,561 233,385
-0-
Battle Mountain Gold Co.
Condensed Consolidated Balance Sheet
(unaudited)
(in thousands)
Dec. 31,
1996 1995
Assets
Current assets
Cash and cash equivalents $ 103,004 $ 142,202
Accounts and notes receivable 48,741 30,591
Inventories 10,440 6,286
Materials and supplies, at
average cost 28,939 31,695
Other current assets 12,688 13,031
Total current assets 203,812 223,805
Investments 246,146 244,352
Property, plant and
equipment, net 574,478 640,764
Other assets 21,553 36,063
Total assets $1,045,989 $1,144,984
Liabilities and Stockholders' Equity
Current liabilities
Short-term borrowings $ 21,800 $ 14,835
Current maturities of
long-term debt 13,595 13,427
Accounts payable and
accrued liabilities 44,664 34,869
Income and mining taxes
payable 18,103 10,358
Other current liabilities 6,119 5,049
Total current liabilities 104,281 78,538
Long-term debt 139,206 169,175
Deferred income and mining taxes 116,012 109,754
Other liabilities 40,996 34,536
Total liabilities 400,495 392,003
Minority interest 107,214 123,569
Shareholders' equity 538,280 629,412
Total liabilities and
shareholders' equity $1,045,989 $1,144,984
-0-
Battle Mountain Gold Co.
Condensed Consolidated Statement of Cash Flows
(unaudited)
(in thousands)
Year ended Dec. 31,
1996 1995
Cash flows from operating activities:
Net income (loss) $(74,340) $ 29,695
Adjustments to reconcile net
income (loss) to cash flows
from operating activities:
Depreciation, depletion and
amortization 94,187 86,547
Gain on sale of assets (205) (5,153)
Asset write-downs 39,877 2,222
Deferred income tax
expense (benefit) 12,247 (1,278)
Change in current assets and
liabilities (5,790) (44,159)
Other changes, net (9,402) 5,988
Total adjustments 130,914 44,167
Net cash flows from operating
activities 56,574 73,862
Cash flows used in investing activities:
Proceeds from sale of assets 891 5,636
Capital expenditures (58,460) (144,590)
Other, net 2,373 (6,076)
Net cash flows used in
investing activities (55,196) (145,030)
Cash flows used in financing activities:
Cash proceeds from stock
issuances 2,530 19,884
Cash proceeds from borrowings 18,717 73,949
Cash dividend payments (22,569) (26,055)
Increase (decrease) in short-
term borrowings 8,821 --
Debt repayments (50,376) (77,023)
Other, net 74 (88)
Net cash flows used in
financing activities (42,803) (9,333)
Effect of exchange rate changes
on cash and cash equivalents 2,227 4,387
Net decrease in cash and cash
equivalents (39,198) (76,114)
Cash and cash equivalents at
beginning of period 142,202 218,316
Cash and cash equivalents at
end of period $ 103,004 $ 142,202
-0-
Supplemental Information
Battle Mountain Gold Co.
Operating Data /a
(unaudited)
(all sales and production numbers reflect
BMG-attributable interests)
Three months ended 12 months ended
Dec. 31, Dec. 31,
1996 1995/b 1996 1995/b
Golden Giant
Gold recovered (000s oz)/c 86 36 371 234
Silver recovered (000s oz) 6 1 18 13
Gold sold (000s oz) 86 36 371 234
Silver sold (000s oz) 6 1 18 13
Cost per gold ounce sold/c
Cash production costs $156 $174 $137 $128
Depreciation, depletion and
amortization 65 78 62 57
Reclamation and mine-closure
costs 4 3 3 2
Total production costs $225 $255 $202 $187
Kori Kollo (88 percent interest)
Gold recovered (000s oz) 67 76 270 298
Silver recovered (000s oz) 171 315 801 1,153
Gold sold (000s oz) 66 74 274 297
Silver sold (000s oz) 168 307 816 1,154
Cost per gold ounce sold/c
Cash production costs $221 $186 $225 $178
Depreciation, depletion and
amortization 111 88 106 88
Reclamation and mine-closure
costs 9 3 5 3
Total production costs $341 $277 $336 $269
Holloway Joint Venture (84.7 percent interest)
Gold recovered (000s oz) 11 -- 11 --
Silver recovered (000s oz) -- -- -- --
Gold sold (000s oz) 4 -- 4 --
Silver sold (000s oz) -- -- -- --
Cost per gold ounce sold
Cash production costs $393 $ -- $393 $ --
Depreciation, depletion and
amortization 174 -- 174 --
Reclamation and mine-closure
costs 2 -- 2 --
Total production costs $569 $ -- $569 $ --
Battle Mountain Complex
Gold recovered (000s oz) 20 18 73 75
Silver recovered (000s oz) 30 54 201 207
Gold sold (000s oz) 22 18 73 75
Silver sold (000s oz) 34 54 201 207
Cost per gold ounce sold/c
Cash production costs $262 $399 $307 $328
Depreciation, depletion and
amortization 33 78 59 63
Reclamation and mine-closure
costs 40 4 34 4
Total production costs $335 $481 $400 $395
San Luis/d
Gold recovered (000s oz) 5 17 54 72
Silver recovered (000s oz) 4 8 32 32
Gold sold (000s oz) 6 17 54 72
Silver sold (000s oz) 4 8 32 32
Cost per gold ounce sold
Cash production costs $ -- $272 $316 $261
Depreciation, depletion and
amortization -- 86 163 96
Reclamation and mine-closure
costs -- -- 81 6
Total production costs $ -- $358 $560 $363
Pajingo/d
Gold recovered (000s oz) 1 11 28 36
Silver recovered (000s oz) 4 6 28 44
Gold sold (000s oz) 1 11 28 37
Silver sold (000s oz) 4 6 28 48
Cost per gold ounce sold
Cash production costs $ -- $222 $226 $182
Depreciation, depletion and
amortization -- 64 81 93
Reclamation and mine-closure
costs -- 2 2 4
Total production costs $ -- $288 $309 $279
San Cristobal (50.5 percent interest)
Gold recovered (000s oz) 9 9 39 41
Silver recovered (000s oz) 19 24 93 97
Gold sold (000s oz) 10 9 39 41
Silver sold (000s oz) 20 25 93 97
Cost per gold ounce sold/c
Cash production costs $382 $318 $362 $307
Depreciation, depletion and
amortization 44 116 86 96
Reclamation and mine-closure
costs -- -- -- --
Total production costs $426 $434 $448 $403
Red Dome (50.5 percent interest)
Gold recovered (000s oz) 11 17 43 57
Silver recovered (000s oz) 66 78 278 320
Copper recovered (000s lb) 1,116 1,288 4,618 5,514
Gold sold (000s oz) 21 27 44 56
Silver sold (000s oz) 153 151 306 305
Copper sold (000s lb) 2,615 2,708 4,895 5,411
Cost per gold ounce sold/c
Cash production costs $247 $138 $240 $144
Depreciation, depletion and
amortization 159 169 145 155
Reclamation and mine-closure
costs 9 8 10 2
Total production costs $415 $315 $395 $301
Silidor Joint Venture (55 percent interest)
Gold recovered (000s oz) 7 9 26 31
Silver recovered (000s oz) -- -- -- --
Gold sold (000s oz) 7 9 26 31
Silver sold (000s oz) -- -- -- --
Cost per gold ounce sold
Cash production costs $297 $303 $333 $327
Depreciation, depletion and
amortization 90 120 75 82
Reclamation and mine-closure
costs 7 4 4 7
Total production costs $394 $427 $412 $416
Aggregate data
Gold recovered BMG share
(000s oz) 218 193 916 843
Gold sold BMG share (000s oz) 223 203 914 843
Gold recovered (000s oz) 247 230 1,034 978
Gold sold (000s oz) 263 249 1,034 978
Average price per oz realized $381 $387 $391 $384
Silver recovered BMG share
(000s oz) 300 486 1,451 1,866
Silver sold BMG share (000s oz) 389 553 1,495 1,857
Silver recovered (000s oz) 407 630 1,924 2,427
Silver sold (000s oz) 583 768 1,998 2,403
Average price per oz realized $4.56 $5.41 $5.08 $5.26
Weighted average cost per gold ounce sold/c
Cash production costs $230 $212 $219 $195
Depreciation, depletion and
amortization 105 105 91 87
Reclamation and mine-closure
costs 22 4 10 3
Total production costs $357 $321 $320 $285
/a -- Effective in the second quarter of 1996, BMG began reporting its
operating costs on the basis adopted earlier this year by The Gold
Institute. As a result, in addition to mining, milling and plant
level G&A 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 new North American standard
also provides for reporting on a cost-per-gold-ounce basis, rather
than cost-per-equivalent-gold-ounce.
/b -- Restated to conform with new operating cost reporting standard.
/c -- Excludes asset write-downs in 1996 and 1995 and ounces produced
and costs incurred at the Golden Giant mine during the 1995
strike.
/d -- Production ceased at the operations during the fourth quarter
of 1996 rendering cost per ounce information meaningless.
CONTACT: Battle Mountain Gold Co., Houston Les Van Dyke Van Dyke (or van/Van Dijk or Dyk etc) is a surname of Dutch origin. It refers to:
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