Battle Mountain Gold reports second-quarter/first-half income on pro forma basis.HOUSTON--(BUSINESS WIRE)--July 31, 1996--Battle Mountain Gold Co. (NYSE NYSE See: New York Stock Exchange :BMG BMG Bundesministerium für Gesundheit (Germand: Federal Ministry for Health) BMG Be My Girl BMG Blue Man Group BMG Bertelsmann Music Group BMG Be My Guest BMG Browning Machine Gun BMG Bulk Metallic Glass ) Wednesday Wednesday: see week. reported second-quarter and first-half results on a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis, to take into account the recently completed merger with Hemlo Gold Mines Inc. and on a stand-alone (jargon) stand-alone - Capable of operating without other programs, libraries, computers, hardware, networks, etc. Exactly what is absent is presumed to be obvious from context. "We only run Windows on stand-alone PCs because it's too dangerous to run it on networked ones." basis. The merger will result in a restatement Restatement A revision in a company's earlier financial statements. Notes: The need for restating financial figures can result from fraud, misrepresentation, or a simple clerical error. of the combined firms' financials. Pro Forma Financial Results On a pro forma basis, second-quarter 1996 consolidated net income was $5.2 million, which, after consideration for quarterly dividends to preferred shareholders, resulted in income of $3.4 million, or 1 cent per share attributable to common shareholders. The second-quarter 1996 income compares with net income of $12.9 million, or 5 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, in the same period last year. For the first half of 1996, consolidated net income was $10.4 million, which, after consideration for quarterly dividends to preferred shareholders, resulted in income of $6.7 million, or 3 cents per share. This compares with income of 10 cents per share in the same period in 1995. For the first half of 1996, 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 amounted to $58 million, compared with $44 million a year earlier. Attributable gold production for the second quarter was approximately 237,000 ounces, compared with 241,000 ounces in the same period a year earlier. For the first half of 1996, gold production totaled 483,000 attributable ounces, compared with 482,000 ounces during the first half of 1995. Cash production costs averaged $211 per ounce ounce, in zoology ounce, in zoology: see leopard. ounce, unit of measurement ounce: see English units of measurement. sold for both the second quarter and the first half of 1996, compared with $179 and $183 per ounce sold, respectively, for the same periods in 1995. Production costs increased primarily because of the milling of lower-grade ores at both the Kori Kollo and Red Dome mines Dome Mine is situated in the City of Timmins, Ontario, Canada; now known as part of Porcupine Joint Venture. The original Dome Mine (Tisdale Township) was still operating as of July 2007, its life is slowly coming to an end as the ore is dwindling and quickly becoming 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. and 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. , respectively. Stand-Alone Financial Results On a stand-alone basis, BMG reported a second-quarter 1996 consolidated net loss of $4.1 million, which, after consideration for quarterly dividends to preferred shareholders, resulted in a loss of $5.9 million, or 7 cents per share attributable to common shareholders. The second-quarter 1996 loss compares with $5.8 million, or 7 cents per share attributable to common shareholders, in the same period last year. For the first half of 1996, BMG's consolidated net loss was $8.1 million, which, after consideration for quarterly dividends to preferred shareholders, resulted in a loss of $11.8 million, or 15 cents per share. This compares with consolidated net income of $6.4 million, or 7 cents per share, during the same period in 1995. BMG Chairman Karl Karl. For German and Swedish kings thus named, use Charles. E. Elers said that second-quarter and first- half 1996 results were impacted by lower average realized prices, lower-than-anticipated head grades and production, resulting in higher costs at the Kori Kollo mine in Bolivia; increased costs at the Red Dome mine due to milling of lower-grade ore; and reduced gold sales resulting largely from an inability to ship all of the production from the Red Dome mine in Australia. 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. shortfall Shortfall The amount by which the capital required to fulfill a financial obligation exceeds available capital. Notes: Shortfall risk is often combated with an efficient hedging strategy created by a fund, group, institution, or individual. remained in inventory and is expected to be shipped in the fourth quarter of this year. These factors were somewhat offset by improved production at the Golden Giant and 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. mines compared with the first quarter of 1996. Attributable gold production for the second quarter was approximately 134,000 ounces, compared with 148,000 ounces in the same period a year earlier. For the first half of 1996, gold production totaled 269,000 attributable ounces, compared with 281,000 ounces during the first half of 1995. Cash production costs averaged $252 per ounce sold for the second quarter of 1996 and $259 per ounce sold for the first half, compared with $198 and $209 per ounce, respectively, in the same periods in 1995. Elers noted that BMG has begun reporting its operating costs operating costs npl → gastos mpl operacionales on the basis adopted earlier this year by The Gold Institute. This new North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. standard calls for reporting on a cost-per-gold- ounce basis, rather than per equivalent ounce. As a result, in addition to mining, milling and plant level G&A expenses, cash production costs now include royalties, freight, smelting smelting, in metallurgy, any process of melting or fusion, especially to extract a metal from its ore. Smelting processes vary in detail depending on the nature of the ore and the metal involved, but they are typified in the use of the blast furnace. costs and allowances, and production taxes. By-product by·prod·uct or by-prod·uct n. 1. Something produced in the making of something else. 2. A secondary result; a side effect. by-product Noun 1. credits for silver and copper are offset against these cash production costs. Operations At the Battle Mountain Complex, permitting and engineering is moving ahead on the 200,000-ounce-per-year Phoenix milling project, with start-up Start-up The earliest stage of a new business venture. targeted for 1998, assuming a reasonable permitting process. Reona operations are about 2,000 ounces behind budget. The San Luis mine in Colorado Colorado, state, United States Colorado (kŏlərăd`ə, –răd`ō, –rä`dō), state, W central United States, one of the Rocky Mt. states. is making up production lost earlier this year and should approach its target of 72,000 ounces for 1996. At the Vera/Nancy discovery, near the Pajingo mine in Australia, preliminary estimates of a potential combined open-pit and underground resource have now been raised to approximately 1 million contained ounces of 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. . A feasibility study "A Feasibility Study" is an episode of the original The Outer Limits television show. It first aired on 13 April, 1964, during the first season. It was remade in 1997 as part of the revived The Outer Limits series with a minor title change. is now under way toward determination of reserves and development of the project. PosGold Operations Pty Ltd PTY LTD Propriety Limited (company structure in Australia) . has a 50 percent interest in this Battle Mountain discovery. PosGold, which will be the operating partner, has indicated that the joint venture could be a 100,000- ounce-per-year mine within nine months. Drill assays in the second quarter include 36ft at 0.93 oz/t Au and 72ft at 0.32 oz/t Au at Nancy, and 67ft at 1.1 oz/t Au at Vera. More recently, hole JMRD 2215, on the western edge of Nancy, returned 58.6ft at 0.42 oz/t Au from a depth of 1,280-1,338 ft; and 29ft at 0.73 oz/t Au from 1,280-1,309 ft. Another hole, JMRD 2214, on the top margin of Vera North, intersected 11.2ft at 0.45 oz/t gold. These drill results indicate that the prospect is still open to the west and at depth. At the Kori Kollo mine in Bolivia, after experiencing higher- than-expected head grades since the inception of operations in 1993, lower-than-expected head grades have been encountered since early 1996. This has resulted in lower attributable gold production of approximately 67,000 ounces for the quarter and 136,000 for the first half of 1996, compared with targets of 77,000 and 152,000 gold ounces, respectively. Grades are continuing to average 0.62 oz/t for the second quarter, compared with a target of 0.68 oz/t. The lower grades were the primary factor in the increased second-quarter cash production costs at Kori Kollo of $230 per ounce sold. Since the end of the first quarter of 1996, the company has been conducting additional drilling and other studies, on factors such as ore-control procedures, in an attempt to determine the reasons for the lower-than-expected head grades and any potential impact this may have on, among other things, operating costs and estimated reserves at Kori Kollo. Total 1996 gold production at Kori Kollo is expected to be approximately 310,000 ounces, with BMG's attributable share about 273,000 ounces. At Niugini Mining's Red Dome 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, in which BMG holds a 50.5 percent interest, reduced sales amounted to approximately 6,500 ounces, with the gold expected to be shipped in the fourth quarter. Feasibility work is continuing on evaluation of a potential underground operation adjacent to the existing pit, and on the nearby Mungana gold and base-metal mineralization to test the underground potential at that property. Niugini Mining's San Cristobal San Cris·tó·bal A city of extreme western Venezuela in a mountainous region near the Colombian border south-southwest of Maracaibo. Founded in 1561, it was severely damaged by an earthquake in 1875. Population: 298,000. heap-leach mine, in the Atacama desert Atacama Desert (ätäkä`mä), arid region, c.600 mi (970 km) long, N Chile, extending south from the border of Peru. The desert itself, c. of Chile, is operating near design, with total gold production targeted at about 88,000 ounces in 1996. 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]. is also evaluating two nearby areas of mineralization, the Toyita and Norita Norita was a Japanese manufacturer of medium-format single-lens reflex cameras. Their only model was the Norita 66, which had its origins in the Rittreck 6x6 camera. The 66 was distributed in the United States by Graflex, makers of large-format press cameras. prospects, to determine their minability. The Crown Jewel Crown jewel A particularly profitable or otherwise particularly valuable corporate unit or asset of a firm. Often used in risk arbitrage. The most desirable entities within a diversified corporation as measured by asset value, earning power, and business prospects; in takeover project in Washington Washington, town, England Washington, town (1991 pop. 48,856), Sunderland metropolitan district, NE England. Washington was designated one of the new towns in 1964 to alleviate overpopulation in the Tyneside-Wearside area. state, where BMG is earning a 54 percent interest, continues to advance through the permitting process. The final Environmental Impact Statement is anticipated to be issued in October October: see month. . Assuming timely permit issuance and now significant appeals, construction is expected to begin in the spring of 1997, with start-up of the 180,000-ounce-per-year project in the first half of 1998. At the Lihir property, in Papua New Guinea Papua New Guinea (păp`  ə, –y , in which BMG has an
8.5 percent indirect interest, construction remains on schedule for a
start-up of gold production from 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 in mid- mid-pref. Middle: midbrain. 1997. At the Golden Giant mine The Golden Giant Mine was an underground gold mine in the Hemlo mining camp in Canada, located north of Lake Superior, midway between Sault Ste. Marie and Thunder Bay, Ontario near the town of Marathon. in Ontario Ontario, city, United States Ontario, city (1990 pop. 133,179), San Bernardino co., S Calif., near Los Angeles, in a region of vineyards; inc. 1891. , gold sales were 97,000 ounces for the second quarter and 201,000 ounces for the first six months, compared with 86,000 and 187,000 a year earlier, respectively. Cash production costs per gold ounce sold were $127 in the second quarter of 1996 and $124 for the six months, compared with $122 in each period a year earlier. At the Silidor joint venture, gold sales were 6,000 and 13,000 ounces in the second quarter and first six months of 1996, respectively, compared with 7,000 and 14,000 in 1995. Cash production costs were up slightly from year-earlier periods. The new 85-percent-owned Holloway Holloway may refer to: Place names:
Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. basis. The results of the Golden Giant and Silidor mines are not included in the historic Battle Mountain results but are included in the pro forma results. Exploration In addition to progress on the Vera/Nancy discovery, BMG recently announced a new gold discovery in Honduras Honduras (hŏnd  r`əs, –dyr`–; Span., ōnd . BMG has an option to earn a
70 percent interest from Breakwater breakwater, offshore structure to protect a harbor from wave energy or deflect currents. When it also serves as a pier, it is called a quay; when covered by a roadway it is called a mole. Resources Ltd. in the Cacamuya
project, two exploration permits totaling 4,741 hectares. Drilling,
managed there by BMG geologists A geologist is a contributor to the science of geology. Geologists are also known as earth scientists or geoscientists.The following is a list of famous or notable geologists. , has returned the following intercepts:
HOLE NO. INTERVAL LENGTH GOLD SILVER % CORE
(feet) (feet) (oz/ton) (oz/ton) RECOVERY
DH6-96 230-256 26 0.04 0.33 97
475-501 26 5.46 29.69 85
528-532 4 13.27 128.48 50
DH7-96 467-481 14 0.25 8.67 18
Hole DH7-96 is located 1,837 ft from DH6-96.
Elers noted that significant additional drilling will be needed to delineate the extent of the high-grade High-grade Credit quality of AAA or AA. high-grade Of, relating to, or being a bond with little risk of default on the part of the issuer. High-grade is usually reserved for bonds rated AAA or AA by the rating services. gold and silver mineralization, particularly along strike and down dip from DH6-96. Work will resume as soon as current rainy-season conditions permit. In other exploration, Elers added that the company is encouraged by the results from the North Limb work at the Hemlo Camp, in Ontario, which has returned a number of interesting, though subeconomic, gold intercepts in 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. similar to the Golden Giant deposit. These are the first gold values in a similar geological ge·ol·o·gy n. pl. ge·ol·o·gies 1. The scientific study of the origin, history, and structure of the earth. 2. The structure of a specific region of the earth's crust. 3. A book on geology. setting to the Hemlo deposit that have been found in the Hemlo Camp outside the Hemlo orebody. In the Matheson Matheson may refer to:
pike, common name for the family Esocidae, freshwater game and food fishes of Europe, Asia, and North America. The pike, the muskellunge, and the pickerel form a small but well-known group of long, thin fishes with spineless dorsal fins, River joint venture and the 60-40 Teddy Bear teddy bear cuddly commodity named after President Theodore Roosevelt. [Am. Hist.: Frank, 46] See : Cuteness joint-venture projects have given encouraging results, with assays at Pike River of up to 0.24 oz/t Au over an interval of 35.1 ft, with the zone being open to depth. On the Teddy Bear property, immediately to the west of the Holloway project, recent drilling from a new zone of mineralization, the Middle Zone, has returned assays up to 0.23 oz/t Au over 16.4 ft. In 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. , exploration efforts are focused on the Battle Mountain trend and, to a lesser extent, regions in south- central Nevada Nevada (nəvăd`ə, –vä–), far western state of the United States. It is bordered by Utah (E), Arizona (SE), California (SW, W), and Oregon and Idaho (N). . In Mexico Mexico, city, Mexico Mexico or Mexico City, Span. Ciudad de México (Méjico), city (1990 pop. 8,236,960; 1991 met. area est. 20,899,000), central Mexico, capital and largest city of Mexico. , work is centered on potential skarn skarn In geology, a metamorphic zone developed in the contact area around igneous rock intrusions when carbonate sedimentary rocks are invaded by and replaced with chemical elements that originate from the igneous rock mass nearby. hosted gold deposits in southern Mexico and porphyry-related and Carlin-type settings in the Central Plateau plateau, elevated, level or nearly level portion of the earth's surface, larger in summit area than a mountain and bounded on at least one side by steep slopes, occurring on land or in oceans. and Sierra Madre Sierra Madre, city, United States Sierra Madre (sēĕr`ə mä`drā), residential city (1990 pop. 10,762), Los Angeles co., S Calif., at the foot of Mt. Wilson; inc. 1907. There is some light manufacturing. regions. Work is also continuing on the 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. property in Brazil Brazil (brəzĭl`), Port. Brasil, officially Federative Republic of Brazil, republic (2005 est. pop. 186,113,000), 3,286,470 sq mi (8,511,965 sq km), E South America. , where BMG has a joint venture with TVX TVx Target Vertex TVX Transmission Valid Timer (FDDI) TVX Valid Transmission . Preliminary exploration by TVX outlined three major targets, and recent drilling of one of these targets has returned assays of 0.13 oz/t Au over an interval of 84 ft. 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. , the company is earning an interest in a substantial land package on the Ashanti Ashanti (äshän`tē) or Asante (äsän`tē), historic and modern administrative region, central Ghana, W Africa. The region is the source of much of Ghana's cocoa. Gold Trend. Early drilling on the Mampon property has returned encouraging results, with the best hole being an interval of 197 ft grading 0.19 oz/t Au. Outlook Looking ahead, Elers said that the merger with Hemlo Gold, which was completed on July July: see month. 19, creates a powerful new, internationally competitive gold producer, with the critical mass of resources, assets and expertise to compete within, and profit from, the global gold-mining industry. He explained that the Houston-based company will have a well- diversified diversified (di·verˑ·s production base, with operating mines in five countries and on three continents. Attributable gold production in 1996 is expected to be approximately 1 million ounces, from eight current mines and the new Holloway mine. Some two-thirds of the current 13.3-million-ounce reserve base is 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. . The company plans to increase production by at least 30 percent over the next three years by bringing five development projects into production, assuming timely permitting and including the Holloway. Our goals include increasing reserves and production by 10 percent per year through exploration programs focused on deposits in North and South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. , the Western Pacific and West Africa West Africa A region of western Africa between the Sahara Desert and the Gulf of Guinea. It was largely controlled by colonial powers until the 20th century. West African adj. & n. , as well as through value-added val·ue-add·ed adj. Of or relating to the estimated value that is added to a product or material at each stage of its manufacture or distribution: acquisitions. New projects must generate significant 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. cash flow and produce at world competitive costs,'' he added. The company will maintain its strong financial core, with gold-price hedging playing a limited role in risk management, Elers said, also noting that there are strong synergies in the new management team, with broad and complementary underground and surface mining experience, as well as depth in the financial and exploration arenas. The U.S. 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'' 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. . Exploration data and other statements in this release 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. Corporate address and telephone: Battle Mountain Gold Co. 333 Clay St., Suite 4200 Houston, Texas “Houston” redirects here. For other uses, see Houston (disambiguation). Houston (pronounced /'hjuːstən/) is the largest city in the state of Texas and the 77002 Phone: 713/650-6400 Fax: 713/650-3636 Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the : http://www.info-mine.com/bmg/ http://www.stockprofiles.com/bmg/ Investor relations Investor relations The process by which the corporation communicates with its investors. : Questions concerning BMG's operating and financial performance should be directed to Investor Relations, 713/653-7248. Transfer agent: Questions and communications regarding dividends or stock-transfer services should be directed to: 800/524-4458 Shareholder Services Department 101 Barclay Barclay may refer to:
New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , N.Y. 10286-1258 -0-
BATTLE MOUNTAIN GOLD CO.
Consolidated Income Statement -- Unaudited
Three months ended June 30,
Pro Forma (a)
Battle Mountain Gold Co. Battle Mountain
& Hemlo Gold Mines Inc. Gold Co.
1996 1995 1996 1995
(In thousands of U.S.$)
Sales $120,361 $122,342 $ 80,148 $ 86,373
Costs and expenses
Production costs 69,119 64,692 54,407 50,554
Depreciation, depletion and
amortization 25,400 24,338 19,056 19,080
Exploration, evaluation
and other lease costs 8,622 6,803 5,538 4,211
Asset writedowns -- 2,222 -- 2,222
General and
administrative expenses 4,767 4,447 4,053 3,699
Total costs and expenses 107,908 102,502 83,054 79,766
Operating income 12,453 19,840 (2,906) 6,607
Investment income 2,314 2,482 658 786
Interest (expense) (1,558) (1,580) (1,558) (1,533)
Other income (expense),
net 2,079 5,065 (266) 5,065
Income (loss) before income
taxes, mining taxes and
minority interest 15,288 25,807 (4,072) 10,925
Income tax benefit
(expense) (6,424) (5,619) (280) (832)
Mining taxes (3,924) (2,992) -- --
Minority interest in
net (income) loss 301 (2,463) 301 (2,463)
Net income (loss) 5,241 14,733 (4,051) 7,630
Preferred dividends 1,868 1,869 1,868 1,869
Net income (loss) to
common shares $ 3,373 $ 12,864 $ (5,919) $ 5,761
Net income (loss)
per share 1 cent 5 cents (7 cents) 7 cents
Average common shares
outstanding for income 229,430 234,236 81,332 86,322
per share purposes
(a) These pro forma results do not include merger-related expenses
of approximately $18 million that will be expensed during the
third quarter of 1996.
-0-
BATTLE MOUNTAIN GOLD CO.
Consolidated Income Statement -- Unaudited
Six months ended June 30,
Pro Forma (a)
Battle Mountain Gold Co. Battle Mountain
& Hemlo Gold Mines Inc. Gold Co.
1996 1995 1996 1995
(In thousands of U.S.$)
Sales $225,358 $219,593 $140,387 $142,493
Costs and expenses
Production costs 127,208 113,864 97,267 84,752
Depreciation, depletion and
amortization 46,214 42,503 33,539 31,438
Exploration, evaluation
and other lease costs 17,989 12,004 10,377 7,433
Asset writedowns -- 2,222 -- 2,222
General and
administrative expenses 9,184 8,217 7,631 6,622
Total costs and expenses 200,595 178,810 148,814 132,467
Operating income 24,763 40,783 (8,427) 10,026
Investment income 4,711 6,185 1,466 1,733
Interest (expense) (3,245) (3,384) (3,245) (3,244)
Other income (expense),
net 568 5,715 (1,777) 5,715
Income (loss) before income
taxes, mining taxes and
minority interest 26,797 49,299 (11,983) 14,230
Income tax benefit
(expense) (10,295) (12,340) 2,265 (1,093)
Mining taxes (7,756) (7,029) -- --
Minority interest in
net (income) loss 1,664 (3,026) 1,664 (3,026)
Net income (loss) 10,410 26,904 (8,054) 10,111
Preferred dividends 3,737 3,738 3,737 3,738
Net income (loss) to
common shares $ 6,673 $ 23,166 $(11,791) $ 6,373
Net income (loss)
per share 3 cents 10 cents (15 cents) 7 cents
Average common shares
outstanding for income 229,352 233,059 81,285 86,310
per share purposes
(a) These pro forma results do not include merger-related expenses
of approximately $18 million that will be expensed during the
third quarter of 1996.
-0-
BATTLE MOUNTAIN GOLD CO.
CONSOLIDATED BALANCE SHEET -- UNAUDITED
Pro Forma (a)
Battle Mountain Gold Co. Battle Mountain
& Hemlo Gold Mines Inc. Gold Co.
June 30, Dec. 31, June 30, Dec. 31,
1996 1995 1996 1995
Assets (in thousands of US$)
Current Assets
Cash and cash
equivalents $ 141,628 $ 142,202 $ 38,649 $ 46,071
Accounts and notes
receivable 49,362 30,591 44,933 26,320
Product inventories 8,106 6,286 5,930 4,158
Materials and supplies 35,106 31,695 30,057 26,563
Other current assets 18,306 13,031 15,800 12,846
Total current assets 252,508 223,805 135,369 115,958
Investments 247,342 244,352 233,643 230,652
Property, plant and
equipment, net 625,219 640,764 346,576 360,270
Other assets 36,339 36,063 30,770 30,259
Total assets $1,161,408 $1,144,984 $ 746,358 $ 737,139
Liabilities & shareholders
equity
Current liabilities
Short-term
borrowings $ 5,230 $ 14,835 $ 5,230 $ 2,571
Current maturities
of long-term debt 15,067 13,427 15,067 13,427
Accounts payable and
accrued liabilities 36,366 34,869 26,754 25,488
Other current
liabilities 23,171 15,407 4,691 5,448
Total current
liabilities 79,834 78,538 51,742 46,934
Long-term debt 180,852 169,175 180,852 169,175
Deferred income and
mining taxes 107,609 109,754 8,288 8,840
Other liabilities 39,276 34,536 33,641 29,359
Total liabilities 407,571 392,003 274,523 254,308
Minority interest 122,778 123,569 110,983 111,773
Shareholders' equity 631,059 629,412 360,852 371,058
Total liabilities
and shareholders'
equity $1,161,408 $1,144,984 $ 746,358 $ 737,139
/a These pro forma results do not include merger-related expenses
of approximately $18 million that will be expensed during the
third quarter of 1996.
-0-
BATTLE MOUNTAIN GOLD CO.
CONSOLIDATED STATEMENT OF CASH FLOWS - UNAUDITED
SIX MONTHS ENDED JUNE 30,
(in thousands of US$)
Pro Forma (a)
Battle Mountain Battle
Gold Co. & Mountain
Hemlo Gold Mines Inc. Gold Co.
1996 1995 1996 1995
CASH FLOWS FROM OPERATING
ACTIVITIES
NET INCOME: $10,410 $26,904 $(8,054) $10,111
Adjustments to reconcile net
income to cash flows from
operating activities:
Depreciation, depletion
and amortization 46,214 42,503 33,539 31,438
Exploration and evaluation costs 15,415 9,328 7,803 4,757
Gain on sale of assets (95) (4,190) (95) (4,190)
Write-off of property, plant
and equipment -- 2,222 -- 2,222
Deferred income tax
expense (benefit) (3,849) 73 (2,265) (1,010)
Change in current assets
and liabilities (11,249) (35,515) (17,995) (7,933)
Other changes, net 1,158 2,711 923 2,193
Total Adjustments 47,594 17,132 21,910 27,477
NET CASH FLOWS FROM OPERATING
ACTIVITIES 58,004 44,036 13,856 37,588
CASH FLOWS USED IN INVESTING
ACTIVITIES:
Proceeds from sale of assets 553 524 553 524
Capital expenditures (35,893) (108,710) (25,050) (95,187)
Exploration and evaluation
expenditures (15,322) (9,250) (7,710) (4,679)
Other, net (1,013) (496) (1,013) (496)
NET CASH FLOWS USED IN
INVESTING ACTIVITIES (51,675) (117,932) (33,220) (99,838)
CASH FLOWS FROM FINANCING
ACTIVITIES:
Cash proceeds from stock issuances 1,948 2,791 1,249 2,404
Cash proceeds from borrowings 18,775 31,476 18,775 31,476
Cash dividend payments (13,098) (13,042) (5,768) (5,761)
Debt repayments (7,639) (15,556) (7,639) (6,860)
Increase (decrease) in
short-term borrowings 4,515 -- 4,515 --
Other, net 74 (51) 74 (51)
NET CASH FLOWS FROM
FINANCING ACTIVITIES 4,575 5,618 11,206 21,208
EFFECT OF EXCHANGE RATE
CHANGES ON CASH AND
CASH EQUIVALENTS 786 1,541 736 (541)
NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS 11,690 (66,737) (7,422) (41,583)
CASH AND CASH EQUIVALENTS
AT BEGINNING OF THE PERIOD 129,938 218,316 46,071 76,464
CASH AND CASH EQUIVALENTS
AT THE END OF THE PERIOD 141,628 151,579 38,649 34,881
(a) These pro forma results do not include merger-related expenses
of approximately $18 million that will be expensed during the third
quarter of 1996.
-0-
PRO FORMA BATTLE MOUNTAIN GOLD CO.
& HEMLO GOLD MINES INC.
OPERATING DATA (Unaudited)
Three months ended Six months ended
June 30, June 30,
1996 1995(b) 1996 1995(b)
GOLDEN GIANT
Gold recovered (000s oz) 97 86 201 187
Silver recovered (000s oz) 5 4 8 10
Gold sold (000s oz) 97 86 201 187
Silver sold (000s oz) 5 4 8 10
Cost per gold ounce sold
Cash production costs $127 $122 $124 $122
Depreciation, depletion
and amortization 62 56 60 55
Reclamation and mine closure costs 2 2 2 2
Total Production costs $191 $180 $186 $179
KORI KOLLO
Gold recovered BMG share (000s oz) 67 73 136 144
Silver recovered BMG share (000s oz) 212 269 426 571
Gold recovered (000s oz) 77 83 155 163
Silver recovered (000s oz) 241 305 484 648
Gold sold BMG share (000s oz) 69 75 139 144
Silver sold BMG share (000s oz) 217 280 438 577
Gold sold (000s oz) 78 85 158 164
Silver sold (000s oz) 246 318 498 655
Cost per gold ounce sold
Cash production costs $230 $176 $222 $173
Depreciation, depletion
and amortization 103 85 101 87
Reclamation and mine closure costs 3 3 3 3
Total production costs $336 $264 $326 $263
BATTLE MOUNTAIN COMPLEX
Gold recovered (000s oz) 19 22 36 38
Silver recovered (000s oz) 62 60 126 102
Gold sold (000s oz) 20 22 36 38
Silver sold (000s oz) 67 60 126 102
Cost per gold ounce sold
Cash production costs $311 $308 $319 $327
Depreciation, depletion
and amortization 70 146 72 110
Reclamation and mine closure costs 6 4 17 4
Total production costs $387 $458 $408 $441
(b) Restated.
-0-
PRO FORMA BATTLE MOUNTAIN GOLD CO.
& HEMLO GOLD MINES INC.
OPERATING DATA (Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
1996 1995/b 1996 1995/b
RED DOME
Gold recovered BMG share
(000s oz) 10 15 22 25
Silver recovered BMG share
(000s oz) 54 108 159 183
Gold recovered (000s oz) 20 28 45 49
Silver recovered (000s oz) 107 212 316 358
Copper recovered
(000s lbs) 1,636 3,761 5,161 6,303
Gold sold BMG share (000s oz) 17 21 20 22
Silver sold BMG share
(000s oz) 144 144 148 147
Gold sold (000s oz) 34 41 40 43
Silver sold (000s oz) 286 282 293 288
Copper sold (000s lbs) 4,515 5,258 4,515 5,258
Cost Per Gold Ounce Sold
Cash production costs $ 219 $ 124 $ 228 $ 142
Depreciation, depletion
and amortization 148 154 140 151
Reclamation and mine
closure costs 7 4 8 --
Total Production costs $ 374 $ 282 $ 376 $ 293
SILIDOR JOINT VENTURE (55% INTEREST)
Gold recovered (000s oz) 6 7 13 14
Silver recovered (000s oz) -- -- -- --
Gold sold (000s oz) 6 7 13 14
Silver sold (000s oz) -- -- -- --
Cost Per Gold Ounce Sold
Cash production costs $ 370 $ 368 $ 353 $ 349
Depreciation, depletion
and amortization 56 63 52 65
Reclamation and mine
closure costs -- 8 -- 8
Total Production costs $ 426 $ 439 $ 405 $ 422
AGGREGATE DATA
Gold recovered BMG share
(000s oz) 237 241 483 482
Gold sold BMG share
(000s oz) 247 249 483 479
Gold recovered (000s oz) 266 276 544 545
Gold sold (000s oz) 283 291 542 541
Average price per oz
realized $ 396 $ 382 $ 397 $ 382
Silver recovered BMG share
(000s oz) 377 489 801 959
Silver sold BMG share
(000s oz) 475 535 801 932
Silver recovered (000s oz) 485 653 1,067 1,256
Silver sold (000s oz) 672 735 1,056 1,195
Average price per oz
realized $5.34 $5.48 $5.38 $5.23
Weighted Average Cost Per
Gold Ounce Sold
Cash production costs $ 211 $ 179 $ 211 $ 183
Depreciation, depletion
and amortization 89 96 84 84
Reclamation and mine
closure costs 4 3 5 3
Total Production costs $ 304 $ 278 $ 300 $ 270
(b) Restated
-0-
PRO FORMA BATTLE MOUNTAIN GOLD CO.
& HEMLO GOLD MINES INC.
Operating Data (Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
1996 1995(b) 1996 1995(b)
SAN LUIS
Gold recovered (000 oz) 18 20 33 36
Silver recovered (000 oz) 12 9 19 15
Gold sold (000s oz) 18 20 33 37
Silver sold (000s oz) 11 9 19 15
Cost Per Gold Ounce Sold
Cash production costs $ 270 $ 236 $ 291 $ 252
Depreciation, depletion
and amortization 86 96 86 96
Reclamation and mine
closure costs 11 7 17 8
Total Production Costs $ 367 $ 339 $ 394 $ 356
PAJINGO
Gold recovered (000 oz) 9 7 20 16
Silver recovered (000 oz) 5 14 10 32
Gold sold (000s oz) 9 7 20 15
Silver sold (000s oz) 5 14 10 33
Cost Per Gold Ounce Sold
Cash production costs $ 189 $ 157 $ 262 $ 136
Depreciation, depletion
and amortization 87 242 106 146
Reclamation and mine
closure costs 2 5 3 7
Total Production Costs $ 278 $ 404 $ 371 $ 289
SAN CRISTOBAL
Gold recovered BMG share
(000s oz) 10 12 21 21
Silver recovered BMG share
(000s oz) 26 25 52 46
Gold recovered (000s oz) 20 23 41 41
Silver recovered (000s oz) 52 49 103 90
Gold sold BMG share (000s oz) 10 12 21 21
Silver sold BMG share (000s oz) 26 25 52 46
Gold sold (000s oz) 20 23 41 42
Silver sold (000s oz) 52 49 102 90
Cost Per Gold Ounce Sold
Cash production costs $ 345 $ 287 $ 349 $ 303
Depreciation, depletion
and amortization 101 94 98 89
Reclamation and mine
closure costs -- -- -- --
Total Production Costs $ 446 $ 381 $ 447 $ 392
(b) Restated.
NOTE: BMG has begun reporting its operating costs on the basis
adopted earlier this year by The Gold Institute. This new North
American standard calls for reporting on a cost-per-gold-ounce-sold
basis, rather than per ounce produced. As a result, in addition to
mining, milling and plant level G&A expenses, cash production costs
now include royalties, freight, smelting costs and allowances, and
production taxes. Credits for by-product silver and copper are
offset against these cash production costs.
-0-
BATTLE MOUNTAIN GOLD CO.
OPERATING DATA (Unaudited)
Three months ended Six months ended
June 30, June 30,
1996 1995/b 1996 1995/b
KORI KOLLO
Gold recovered BMG share (000s oz) 67 73 136 144
Silver recovered BMG share (000s oz) 212 269 426 571
Gold recovered (000s oz) 77 83 155 163
Silver recovered (000s oz) 241 305 484 648
Gold sold BMG share (000s oz) 69 75 139 144
Silver sold BMG share (000s oz) 217 280 438 577
Gold sold (000s oz) 78 85 158 164
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