Bema Gold Corporation: 2004 First Quarter Results.Business Editors VANCOUVER Vancouver, city, Canada Vancouver, city (1991 pop. 471,844), SW British Columbia, Canada, on Burrard Inlet of the Strait of Georgia, opposite Vancouver Island and just N of the Wash. border. , British Columbia--(BUSINESS WIRE)--May 14, 2004 Bema Gold Bema Gold Corporation is a Vancouver, British Columbia based intermediate gold producer with operating mines and development projects in Russia, South Africa, Chile and Canada. Corporation (AMEX AMEX See: American Stock Exchange :BGO BGO Bismuth Germanate BGO Baguio City (Philippines) BGO Blinding Glimpse of the Obvious BGO Bergen, Norway - Flesland (Airport Code) BGO Blue and Gold Officer (United States Naval Academy) ) (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :BGO) (AIM:BAU BAU Business As Usual BAU Bangladesh Agricultural University BAU Beirut Arab University (Lebanon) BAU Behavioral Analysis Unit (FBI NCAVC) BAU Al-Balqa' Applied University (Jordan) ) reports the results from its operations for the first quarter ended March 31, 2004. All dollar figures are in 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. dollars (USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. ) unless otherwise indicated. Gold Revenue Gold revenue in the first quarter of 2004 totaled $19.7 million on sales of 49,989 ounces at an average realized price of $393 per ounce ounce, in zoology ounce, in zoology: see leopard. ounce, unit of measurement ounce: see English units of measurement. . The Julietta Mine accounted for $6.4 million from the sale of 17,099 ounces of gold at an average price of $371 per ounce, while $13.3 million was contributed by the Petrex Mines from 32,890 ounces sold at an average price of $405 per ounce. Gold revenue increased by 71% over the first quarter of 2003 mainly due to the higher spot gold price and the acquisition of the Petrex Mines in February February: see month. 2003. In the first quarter of 2003 gold revenue totaled $11.5 million on sales of 35,100 ounces at an average realized price of $329 per ounce. The Julietta Mine contributed $5.8 million from 18,586 ounces sold at an average price of $313 per ounce while $5.7 million was contributed by the Petrex Mines from 16,514 ounces sold at an average price of $346 per ounce. Financial Results The Company reported a net loss of $14.2 million ($0.04 per share) on revenue of $19.7 million for the first quarter. The loss during the quarter was due mainly to a non operating write down of $8.5 million in the carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of the Yarnell property located in Yavapai County, Arizona Yavapai County is located in the center of the U.S. state of Arizona. As of 2000 its population was 167,517. The county seat is Prescott. History Yavapai County was the one of four original Arizona Counties created by the territorial government on November 9th, 1864. . On April 30, 2004, Bema entered into a letter of intent to sell its 100% interest in the Yarnell gold property for cash and a net smelter royalty Compensation for the use of property, usually copyrighted works, patented inventions, or natural resources, expressed as a percentage of receipts from using the property or as a payment for each unit produced. with a total value of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $2.2 million. The loss for the quarter was also a result of the warehouse fire at the Julietta Mine (see "Julietta Mine" section) and the high operating costs operating costs npl → gastos mpl operacionales incurred at the Petrex Mines in South Africa South Africa, Afrikaans Suid-Afrika, officially Republic of South Africa, republic (2005 est. pop. 44,344,000), 471,442 sq mi (1,221,037 sq km), S Africa. (see "Petrex Mines" section). In the first quarter of 2003, Bema reported restated net income of $8.1 million ($0.029 per share) on revenue of $11.5 million. Operations Bema's consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: gold production for the quarter was 52,497 ounces with an operating cash cost of $331 per ounce and a total cash cost of $346 per ounce. Applying a cash gain realized during the quarter of $1.3 million from the exercise of South African rand “ZAR” redirects here. For the former republic, see South African Republic. The rand is the currency of South Africa. It takes its name from the Witwatersrand (White-waters-ridge denominated gold put options (see "Gold Forward and Options Contracts" section) would reduce the operating cost by $24 per ounce to a net total cash cost of $322 per ounce. For the same period in 2003, Bema reported consolidated production of 42,946 ounces with an operating cash cost of $255 per ounce and a total cash cost of $279 per ounce. Liquidity and Capital Resources The Company ended the quarter with $70.2 million in cash and cash equivalents compared to $30.8 million at December December: see month. 31, 2003. The increase in cash is from a convertible bond issue, completed during the quarter, for gross proceeds of $70 million. The Company's working capital at quarter end was $30.6 million compared to a working capital deficiency A shortage or insufficiency. The amount by which federal Income Tax due exceeds the amount reported by the taxpayer on his or her return; also, the amount owed by a taxpayer who has not filed a return. of $9.3 million at the end of December 2003. Julietta Mine, Russia Russia, officially the Russian Federation, Rus. Rossiya, republic (2005 est. pop. 143,420,000), 6,591,100 sq mi (17,070,949 sq km). (Bema 79%) In the first quarter 37,171 tonnes of ore ore, metal-bearing mineral mass that can be profitably mined. Nearly all rock deposits contain some metallic minerals, but in many cases the concentration of metal is too low to justify mining the ore. were milled at Julietta at an average grade of 19.5 grams per tonne tonne measure of weight or mass; 1 tonne=1000 kg. See also ton. gold producing 20,314 ounces at an operating cash cost of $184 per ounce and a total cast cost of $224 per ounce. The number of ounces produced during the quarter was lower and the operating costs higher than budgeted due to a warehouse fire in February. The fire destroyed the majority of spare parts Spare parts, also referred to as Service Parts is a term used to indicate extra parts available and in proximity to the mechanical item, such as a automobile, boat, engine, for which they might be used. Spare parts are also called “spares. inventory which resulted in mining and milling rates at Julietta being temporarily reduced while the spare parts were replaced. The majority of the spare parts were replaced by mid-March n. 1. the middle part of March. Noun 1. mid-March - the middle part of March period, period of time, time period - an amount of time; "a time period of 30 years"; "hastened the period of time of his recovery"; "Picasso's blue period" , after which the mine ramped back up to full production. Despite the slow down, Julietta reported operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. of approximately $746,000 for the quarter. The production 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. during the first quarter of 2004 is expected to be made up over the remainder of the year. Subsequent to the quarter end, Julietta has exceeded budget by 2000 ounces having produced 9,343 ounces of gold at an estimated operating cash costs of $121 per ounce and a total cash cost of $168 per ounce during the month of April. The Julietta Mine reached economic completion during the first quarter, which reduces the interest rate on the project debt by 1.5%. Based on current projections, management expects that the remaining $12.7 million of the original $35 million project loan will be repaid by the end of 2004. Petrex Mines, South Africa (Bema 100%) Petrex produced 32,183 ounces of gold during the quarter at a total cash cost of $424 per ounce from 466,435 tonnes of ore milled at an average grade of 2.3 grams per tonne. Adjusting for the rand gold put option gains would reduce the total cash cost by $40 to $384 per ounce. The high cash cost and lower production levels resulted in an operating loss 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. of $2.8 million for the period. The main reasons for the higher than budgeted costs during the quarter were the strength of the South African rand versus the USD and certain operational shortfalls that are being addressed. While the Rand retains its strength versus the USD, the operating costs at Petrex will remain high. For example, Bema's production budget assumed an exchange rate of 8 rand to 1 USD while the actual rate averaged 6.74 to 1 resulting in a $62 increase in the total cash cost for the period. Bema has commenced an operations review to optimize optimize - optimisation production from the mines. Areas of improvement that have been identified include additional delineation drilling and better pit planning from the open pit operations and an improvement of the underground mining procedures in order to deliver higher grade ore to the mill. Management expects that production from Petrex during the second quarter will be in line with the first, however anticipates improvements during the second half of the year. At the end of the second quarter Bema will provide an updated production projection projection, in psychology: see defense mechanism. See rear-projection TV, front-projection TV and LCD panel. (theory) projection - In domain theory, a function, f, which is (a) idempotent, i.e. and budget for the remainder of the year. Development Projects(i) During the first quarter Bema continued to advance the Refugio Mine, the Kupol Project and the Cerro Casale Casale, Italian for a house (or group of houses) in the countryside, may refer to:
n. 1. A commencement made anew. Noun 1. recommencement - beginning again resumption of mining by the end of 2004. The 2004 exploration and development program at Kupol is underway with production expected in 2008. Furthermore, joint venture partner Placer Dome Placer Dome was a large mining company specializing in gold and other precious metals, with corporate headquarters in Vancouver, British Columbia, Canada. Barrick has acquired 100% of the Placer Dome shares on January 20, 2006, and has integrated the company into its own. is pursuing financing options for Cerro Casale. (i) For more details on Bema's development projects please refer the news release dated March 25, 2004 or the company's website www.bema.com. For an updated summary of Bema's Reserve and Resource estimates please see the attached table on page five of this news release. Refugio Mine, Chile Chile (chĭl`ē, Span. chē`lā), officially Republic of Chile, republic (2005 est. pop. 15,981,000), 292,256 sq mi (756,945 sq km), S South America, west of the continental divide of the Andes Mts. (Bema 50%) Bema and joint venture partner Kinross Gold Kinross Gold Corporation (TSX: K, NYSE: KGC) is a Canadian gold mining company. It is the seventh largest primary gold producer in the world.[1] See also
1. ^ Kinross Gold. Corporation are completing a major upgrade at Refugio which will result in the recommencement of gold mining by the end of 2004. The mine is expected to operate at 40,000 tonnes per day with annual gold production ranging between 225,000 and 260,000 ounces at a total cash cost averaging approximately $225 per ounce over a ten year mine life. Bema will fund its $35 million share of the capital expenditure for the upgrade using a portion of the proceeds from the convertible note offering completed during the quarter (see "Liquidity and Capital Resources" section) and by way of a capital equipment lease for a new mining fleet. As a result, Bema's share of production from Refugio will have no project debt. Kupol Deposit, Russia (Bema 75%) In the first quarter, Bema announced a preliminary Indicated Mineral Resource at Kupol of 2.5 million tonnes containing 1.8 million ounces of gold and 19 million ounces of silver at an average grade of 22.3 grams per tonne (g/t) gold and 232 g/t silver and an additional 7.1 million tonnes containing 4.2 million ounces of gold and 55.9 million ounces of silver at an average grade of 18.4 g/t gold and 243 g/t silver in the Inferred category. A major exploration and development program has begun at Kupol that will include 57,000 metres of drilling, scheduled to begin by the end of May. Management believes that the ultimate target for Kupol is up to, or in excess of, 16 million tonnes with similar gold and silver grades to those stated in the preliminary mineral resource.(ii) Bema and its independent consultants are currently completing a Preliminary Economic Assessment on Kupol and expects to release the results before the end of May. The current development plan contemplates production commencing in 2008 (subject to final feasibility fea·si·ble adj. 1. Capable of being accomplished or brought about; possible: a feasible plan. See Synonyms at possible. 2. and financing). (ii) The potential quantity and grade is conceptual con·cep·tu·al adj. Relating to concepts or the the formation of concepts. in nature and there has been insufficient in·suf·fi·cient adj. 1. Not sufficient. 2. Incapable of proper functioning. exploration to define this target at this time and it is uncertain that further exploration will result in further discoveries on the property. The target referred to is based on follow up to currently untested, known strike length and down dip dip, in agriculture, method of treating animals (chiefly livestock) infested with skin parasites such as mites, ticks, and warbles. The animal is dipped into or forced to swim through a tank filled with an insecticide solution. potential. Cerro Casale, Chile (Bema 24%) The Cerro Casale Project was significantly advanced during the quarter. Placer Dome released the results of an updated cost analysis that revealed no material changes to the project economics from the original feasibility study The analysis of a problem to determine if it can be solved effectively. The operational (will it work?), economical (costs and benefits) and technical (can it be built?) aspects are part of the study. Results of the study determine whether the solution should be implemented. . Placer has also begun pursuing a range of financing options for the project and investigating possible key commercial contracts and 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. marketing off-take arrangements. The Compania Minera Minera (Welsh: Mwynglawdd) is a small village in the county borough of Wrexham in north-east Wales. It borders Coedpoeth to the east and Bwlchgwyn to the west. Casale (Placer Dome 51%, Bema 24%, Arizona Arizona (âr'əzō`nə), state in the southwestern United States. It is bordered by Utah (N), New Mexico (E), Mexico (S), and, across the Colorado R., Nevada and California (W). Star 25%) shareholders agreement requires Placer to deliver a quarterly certificate stating whether or not the project is "financiable" under the terms of the agreement. Bema and affiliate Affiliate Relationship between two companies when one company owns substantial interest, but less than a majority of the voting stock of another company, or when two companies are both subsidiaries of a third company. See: Subsidiaries, parent company. company, Arizona Star agreed to defer de·fer 1 v. de·ferred, de·fer·ring, de·fers v.tr. 1. To put off; postpone. 2. To postpone the induction of (one eligible for the military draft). v.intr. the delivery of the certificate at the end of the first quarter due to Placer's positive discussions with potential lenders. Placer is now required to deliver the certificate on June June: see month. 30, 2004. Gold Forward and Option Contracts In the first quarter Bema closed out 20,750 ounces of gold forward and contingent Fortuitous; dependent upon the possible occurrence of a future event, the existence of which is not assured. The word contingent denotes that there is no present interest or right but only a conditional one which will become effective upon the happening of the forward contracts. The intention is to deliver into all of the outstanding Julietta forward contracts on the designated maturity dates. Bema will be applying hedge accounting Why is hedge accounting necessary? Many financial institutions and corporate businesses (entities) use derivative financial instruments to hedge their exposure to different risks (eg interest rate risk, foreign exchange risk, commodity risk, etc). to all Julietta forward contracts currently outstanding based on the recently changed delivery dates. In 2003, the Julietta forward contracts were treated as non-hedge derivative derivative: see calculus. derivative In mathematics, a fundamental concept of differential calculus representing the instantaneous rate of change of a function. contracts and were marked to market. In the fourth quarter, Bema restructured part of its hedge book relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Julietta forward contracts rolling out a portion of these contracts to 2006. Also during the first quarter, the Company purchased put option contracts for the Refugio project at strike prices of $390 to $422 per ounce. The purchase price of the put options was offset through the sale of a similar amount of call options (see table below) at strike prices of $450 to $475 per ounce representing approximately 8% of Refugio's reserves. These derivative gold contracts qualify for hedge accounting and will therefore be accounted for as such by the Company. Bema's entire forward contract represents 2.3% of the Company's reserves and resources.
2004 2005 2006 2007-2012
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Forward contracts (ounces) 39,325 33,550 43,350 -
Average price per ounce $ 319 $ 329 $ 319 $ -
Dollar denominated -
Put options purchased
$290 strike price (ounces) 21,642 26,364 23,790 59,988
$390 to $422 strike price
(ounces) - 40,000 40,000 60,000
Rand ("ZAR") denominated -
Put options purchased
(ounces) 109,215 136,806 125,316 225,888
Average price per ounce (ZAR) 3,050 3,100 3,150 3,225
Call options sold (ounces) 25,000 40,000 40,000 60,000
Average price per ounce $ 468 $ 455 $ 455 $ 455
Contingent forwards (maximum)
$320 strike price (ounces) 15,000 10,000 - -
$350 strike price (ounces) 24,750 34,500 36,000 168,000
The rand denominated put options, as shown in the table above, provide the Company with some protection against a strong South African rand, without limiting the Company's leverage to a rising gold price or a declining rand. For example, at the current conversion rate of 6.75 rand to 1 USD, the Company will receive $452 per ounce of gold on its rand denominated put options in 2004. The rand denominated put options and all contingent forward contracts are treated as non-hedge transactions and marked to market on a quarterly basis with the resulting unrealized derivative gain or loss reflected in the statement of operations See Income statement. .
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Bema Metal Proven and
Property by Metal Interest Price Probable Reserves
% per oz.
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Tonnes Grade Contained oz.
(000s) (g/t) (000s)
GOLD
Julietta(1) 79%(1a) $375 537 22.9 395
Petrex
(Underground)(2) 100% $350(2a) 7,531 3.6 875
Petrex (Open Pit)(2) $350(2a) 1,054 1.9 65
Refugio(3)(3a) 50% $350 62,027 0.9 1,717
Cerro Casale(4) 24% $350
Kupol Project(5) 75% NA
Monument Bay(6) 70% NA
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Gold Total 3,052
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SILVER
Julietta(1) 79% $4.20 537 313.33 5,408
Kupol Project(5) 75% NA
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Silver Total 5,408
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Metal
Price
per lb.
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COPPER
Cerro Casale Deposit(4) 24% $0.95
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Copper Total
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Bema Metal
Property by Metal Interest Price Measured and
% per oz. Indicated Resources
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Tonnes Grade Contained oz.
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(000s) (g/t) (000s)
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GOLD
Julietta(1) 79%(1a) $375 156 22.1 110
Petrex
(Underground)(2) 100% $350(2a) 45,614 2.8 4,034
Petrex (Open Pit)(2) $350(2a) 1,310 2.7 115
Refugio(3)(3a) 50% $350 8,962 1.1 325
Cerro Casale(4) 24% $350 267,265 0.7 6,101
Kupol Project(5) 75% NA 1,913 22.3 1,370
Monument Bay(6) 70% NA
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Gold Total 12,055
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SILVER
Julietta(1) 79% $4.20 156 292.0 1,460
Kupol Project(5) 75% NA 1,913 232.0 14,298
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Silver Total 15,758
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Metal
Price Tonnes Grade Contained lbs.
per lb. (000s) (%) (000,000s)
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COPPER
Cerro Casale
Deposit(4) 24% $0.95 267,265 0.26 1,531
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Copper Total 1,531
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Bema Metal
Property by Metal Interest Price
% per oz. Inferred Resources
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Tonnes Grade Contained oz.
(000s) (g/t) (000s)
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GOLD
Julietta(1) 79%(1a) $375 231 18.7 139
Petrex
(Underground)(2) 100% $350(2a) 36,760 2.9 3,475
Petrex (Open Pit)(2) $350(2a)
Refugio(3)(3a) 50% $350 98,485 0.6 1,965
Cerro Casale(4) 24% $350 41,087 0.6 819
Kupol Project(5) 75% NA 5,344 18.4 3,165
Monument Bay(6) 70% NA 448 20.4 293
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Gold Total 9,856
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SILVER
Julietta(1) 79% $4.20 231 293.6 2,182
Kupol Project(5) 75% NA 5,344 243.4 41,821
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Silver Total 44,003
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Metal
Price Tonnes Grade Contained lbs.
per lb. (000s) (%) (000,000s)
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COPPER
Cerro Casale
Deposit(4) 24% $0.95 41,087 0.12 108.6
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Copper Total 108.6
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Rounding differences may occur Reserves and resources are classified 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. 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. Institute of Mining (CIM (1) (Computer-Integrated Manufacturing) Integrating office/accounting functions with automated factory systems. Point of sale, billing, machine tool scheduling and supply ordering are part of CIM. ) Standards on Mineral Resources Noun 1. mineral resources - natural resources in the form of minerals natural resource, natural resources - resources (actual and potential) supplied by nature and Reserves except where noted, see 3a and NA. Resources exclude reserves. Resources do not have demonstrated economic viability. Tom Garagan - P. Geologist, Vice President Exploration, is the Qualified Person responsible for Bema's exploration projects / reserve and resource estimates. (1) Julietta reserve and resource were calculated as of Jan 1, 2004 (1a) Julietta reserves and resources are stated as 100% until Julietta project loan is fully repaid (2) Petrex reserve and resource were calculated as of December 31, 2003 (2a) Based on a 8 rand to 1USD conversion rate (3) Refugio reserve and resource were calculated as of December 31, 2003 (3a) Refugio/Pancho inferred resource is calculated with a 0.4 g/t cut-off cut-off Anesthesiology The point at which elongation of the carbon chain of the 1-alkanol family of anesthetics results in a precipitous drop in the anesthetic potential of these agents–eg, at > 12 carbons in length, there is little anesthetic activity, and is a global resource not based on economics (4) Cerro Casale resource was calculated in 1999, and then re-evaluated as of December 31, 2003 (5) Kupol Project resource estimate was calculated as of February 2004 (6) Monument Anything by which the memory of a person, thing, idea, art, science or event is preserved or perpetuated. A tomb where a dead body has been deposited. In real-property Bay resource estimate was calculated as of August 2003 NA equals Resources were based on preliminary geologic ge·ol·o·gy n. pl. ge·ol·o·gies 1. The scientific study of the origin, history, and structure of the earth. 2. The structure of a specific region of the earth's crust. 3. A book on geology. resource estimates which are not based on economic parameters Outlook The remainder of 2004 will be an active and important time for Bema on a number of fronts. At existing operations, the focus will be on optimizing production at the Petrex Mines and continuing to increase reserves at the Julietta Mine. The Company's three major development projects, Refuio, Kupol and Cerro Casale will be significantly advanced over the remainder of the year. The Company's goal is to increase annual gold production to over 1,000,000 ounces from the development of these existing assets. Conference Call Details Bema will host a conference call and webcast to discuss first quarter results on Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , May 14, 2004 at 5:30 am PST PST Paroxysmal supraventricular tachycardia, see there / 8:30 am EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT . You may access the call by calling the operator at 416-695-5261 or toll free 1-877-461-2816 prior to the scheduled start time. A playback Playback could mean:
CCBN Charles County Business Network and can be accessed from Bema Gold's web site at www.bema.com. On Behalf of BEMA GOLD CORPORATION Clive CLIVE Computer-aided Learning in Veterinary Education. A consortium of six veterinary schools in the United Kingdom providing computer based learning in veterinary undergraduates courses. T. Johnson, Chairman, C.E.O., & President Bema Gold Corporation trades on The Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. and the American Stock Exchange American Stock Exchange (AMEX) Stock exchange in the U.S. Originally known as “the Curb,” it began as an outdoor marketplace in New York City c. 1850. It moved indoors to its present location in the Wall Street area in 1921. . Symbol: BGO. Some of the statements contained in this release are "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. " within the meaning of Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to differ materially from the anticipated results, performance or achievements expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by such forward-looking statements. Forward-looking statements in this release include statements regarding: the Company's projections regarding annual gold production in future periods. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties such as: risks relating to estimates of reserves, mineral deposits and production costs; mining and development risks; the risk of commodity price fluctuations; political and 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. risks; and other risks and uncertainties detailed in the Company's Form 40-F Annual Report for the year ended December 31, 2002, which has been filed with the Securities and Exchange Commission, and the Company's Renewal Annual Information Form for the year ended December 31, 2002, which is an exhibit to the Company's Form 40-F and is available under the Company's name at www.sedar.com. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
BEMA GOLD CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
For the three months ended March 31
(Unaudited)
(in thousands of United States dollars, except shares
and per share amounts)
2004 2003
---- ----
(Restated)
GOLD REVENUE $ 19,686 $ 11,537
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EXPENSES (INCOME)
Operating costs 17,669 10,379
Depreciation and depletion 3,558 2,677
Other 632 288
---------- --------
21,859 13,344
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OPERATING LOSS (2,173) (1,807)
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OTHER EXPENSES (INCOME)
General and administrative 1,887 1,004
Interest and financing costs 1,805 1,375
General exploration 211 75
Stock-based compensation 628 -
Foreign exchange losses (gains) 1,145 (1,362)
Other 881 (61)
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6,557 1,031
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LOSS BEFORE THE UNDERNOTED ITEMS (8,730) (2,838)
Write-down of Yarnell mineral property (8,527) -
Realized derivative gains (losses) 417 (317)
Unrealized derivative gains 2,339 16,103
Equity in losses of associated companies (44) (7)
Investment gains (losses) 384 (58)
---------- --------
EARNINGS (LOSS) BEFORE INCOME TAXES (14,161) 12,883
Current income taxes - (48)
Future income taxes - (4,757)
---------- --------
NET EARNINGS (LOSS) FOR THE PERIOD $ (14,161) $ 8,078
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NET EARNINGS (LOSS) PER COMMON SHARE - basic $ (0.040) $ 0.029
---------- --------
---------- --------
NET EARNINGS (LOSS) PER COMMON SHARE
- diluted $ (0.040) $ 0.028
---------- --------
---------- --------
Weighted average number of common shares
outstanding (in thousands) - basic 355,743 284,184
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BEMA GOLD CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three months ended March 31
(Unaudited)
(in thousands of United States dollars)
2004 2003
---- ----
(Restated)
OPERATING ACTIVITIES
Net earnings (loss) for the period $ (14,161) $ 8,078
Non-cash charges (credits)
Depreciation and depletion 3,558 2,677
Amortization of deferred financing costs 465 427
Equity in losses of associated companies 44 7
Derivative instruments (2,513) (15,329)
Investment (gains) losses (384) 58
Future income tax expense - 4,757
Stock-based compensation 628 -
Write-down of Yarnell mineral property 8,527 -
Other (1,637) (327)
Change in non-cash working capital 921 1,364
---------- --------
(4,552) 1,712
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FINANCING ACTIVITIES
Convertible loan, net of issue costs 66,874 -
Common shares issued, net of issue costs 110 223
Julietta project loan repayment (5,583) (5,583)
Petrex loan repayment (1,500) (5,000)
Other - (21)
---------- --------
59,901 (10,381)
---------- --------
INVESTING ACTIVITIES
Julietta Mine (962) (559)
Petrex Mines (2,138) (788)
Refugio exploration and construction (737) (1,323)
Kupol exploration and development (10,240) (2,937)
Acquisition, exploration and development (1,997) (1,419)
Acquisition of EAGC Ventures Corp.,
net cash acquired - 6,742
Sale of EAGC special warrants - 16,935
Other 73 (191)
---------- --------
(16,001) 16,460
---------- --------
Effect of exchange rate changes on cash
and cash equivalents 127 446
---------- --------
Increase in cash and cash equivalents 39,475 8,237
Cash and cash equivalents, beginning of period 30,773 16,658
---------- --------
Cash and cash equivalents, end of period $ 70,248 $ 24,895
---------- --------
---------- --------
BEMA GOLD CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands of United States dollars)
As at As at
March 31 December 31
2004 2003
ASSETS
Current
Cash and cash equivalents $ 70,248 $ 30,773
Accounts receivable 8,849 5,754
Marketable securities, at cost
(Market value - $14.4 million;
December 31, 2003 - $12.1 million) 3,567 3,567
Inventories 15,763 14,932
Other 6,763 4,845
---------- --------
105,190 59,871
Investments 2,733 2,706
Property, plant and equipment 291,888 290,822
Goodwill 27,344 27,344
Unrealized fair value of derivatives 23,254 20,792
Deferred losses 3,245 3,965
Other assets 22,793 14,206
---------- --------
$ 476,447 $419,706
---------- --------
---------- --------
LIABILITIES
Current
Accounts payable $ 29,860 $ 23,292
Current portion of long-term debt 44,744 45,864
---------- --------
74,604 69,156
Unrealized fair value of derivatives 47,611 48,382
Long-term debt 52,041 7,084
Future income tax liabilities 2,098 2,098
Asset retirement obligations 15,749 15,380
Other liabilities 3,599 3,465
Non-controlling interest 1,028 830
---------- --------
196,730 146,395
---------- --------
SHAREHOLDERS' EQUITY
Capital stock
Issued - 355,862,998 common
shares (December 31, 2003 - 355,688,190) 441,419 441,309
Share purchase warrants and stock options 15,442 14,814
Convertible debt 19,829 -
Deficit (196,973) (182,812)
---------- --------
279,717 273,311
---------- --------
$ 476,447 $419,706
---------- --------
---------- --------
Approved by the Directors
Clive T. Johnson Robert J. Gayton
The Toronto Stock Exchange neither approves nor disapproves the information contained in this News Release. |
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