Black Hawk Mining Inc. Reports Increased Earnings and Increased Cash Flow for the First Quarter of 2001.Business Editors TORONTO--(BUSINESS WIRE)--May 15, 2001 BLACK HAWK Black Hawk (born 1767, Sauk Sautenuk, Va.—died Oct. 3, 1838, village on the Des Moines River, Iowa, U.S.) Sauk Indian leader. Long antagonistic to whites, Black Hawk was driven into Iowa from Illinois in 1831. MINING INC inc - /ink/ increment, i.e. increase by one. Especially used by assembly programmers, as many assembly languages have an "inc" mnemonic. Antonym: dec. . (TSE-BHK) today reported significantly higher earnings and cash flow for the three month period ended March 31, 2001. In addition, subsequent to the end of the quarter the Company retired all of its bank debt and CDN (Content Delivery Network) A system of distributed content on a large intranet or the public Internet in which copies of content are replicated and cached throughout the network. $2 million of the CDN$4 million outstanding convertible debentures Convertible Debenture Any type of debenture that can be converted into some other security. Notes: For example, a convertible bond can be converted into stock. . HIGHLIGHTS FOR FIRST QUARTER 2001
-- Net income of $1.0 million (CDN$1.6 million) or $0.01 (CDN$0.01) per share.
-- Cash flow from operations of $1.6 million (CDN$2.5 million) or $0.01
(CDN$0.02) per share.
-- The El Limon Mine produced 21,441 ounces of gold, a 15% increase compared to
the first quarter of 2000.
-- Cash operating costs of $156 per ounce were 24% lower than for the same
period in 2000.
Three Months
Ended March 31
2001 2000
------------------------------------------------------------
Revenue (000's) $5,672 $7,739
Realized gold price per ounce $265 $287
Net income (000's) $998 $283
Net income per share $0.01 $0.00
Cash flow from operating activities before
working capital changes (000's) $1,610 $1,276
Cash flow per common share from operating
activities before working capital changes $0.01 $0.01
Gold Production (ounces)
El Limon Mine (ounces) 21,441 18,611
Keystone Gold Mine (ounces) - 8,381
Total (ounces) 21,441 26,992
Cash Operating Cost per Ounce
El Limon Mine $156 $197
Keystone Gold Mine - $226
Weighed average $156 $206
------------------------------------------------------------
RESULTS FOR THE FIRST QUARTER OF 2000 Net income in the first quarter of 2001 was $1.0 million (CDN $1.6 million) or $0.01 per share (CDN$0.01) as compared with net income of $0.3 million (CDN$0.4million) or $0.00 per share (CDN$0.00) for the same period in 2000. Cash flow from operating activities, before working capital changes for the first quarter of 2001 was $1.6 million (CDN$2.5million) or $0.01(CDN$0.02) per share compared to cash flow of $1.3 million (CDN$1.9 million) or $0.01 (CDN$0.01) per share for the same period in 2000. In the first quarter of 2001 gold production was 21,441 ounces at a cash operating cost of $156 per ounce ounce, in zoology ounce, in zoology: see leopard. ounce, unit of measurement ounce: see English units of measurement. . The average realized gold price was $265 per ounce. In the first quarter of 2000, the Company produced 26,992 ounces of gold at a cash operating cost of $206 per ounce. The average realized gold price in the 2000 first quarter was $287 per ounce. Despite lower gold production and a lower realized gold price in the first quarter of 2001 as compared with the same period in 2000, net income and cash flow increased by 253% and 26% respectively. The increase in earnings and cash flow was due to a 24% decrease in unit operating costs operating costs npl → gastos mpl operacionales and reduced administration and exploration expenses. OPERATIONS SUMMARY EL LIMON Li·món , José Arcadio 1908-1972. Mexican-born American dancer and choreographer. He was artistic director of the American Dance Theater (1964). MINE During the first quarter of 2001 the El Limon mine produced 21,441 ounces of gold at a cash operating cost of $156 per ounce. Mill throughput The speed with which a computer processes data. It is a combination of internal processing speed, peripheral speeds (I/O) and the efficiency of the operating system and other system software all working together. 1. was 91,741 tonnes at a grade of 7.8 grams of gold per tonne tonne measure of weight or mass; 1 tonne=1000 kg. See also ton. and gold recovery was 87.4%. Gold production for the first quarter of 2001 increased by 15% compared to the same period in 2000. This increase was achieved through increased mill throughput and higher gold recovery. Improvements in metallurgical met·al·lur·gy n. 1. The science that deals with procedures used in extracting metals from their ores, purifying and alloying metals, and creating useful objects from metals. 2. performance were achieved through circuit modifications and operating improvements. Cash operating cost per ounce for the first quarter 2001 decreased by 21% compared to the same period in 2000. This was a result of the decreased cash operating costs per tonne and increased gold production.
El Limon Mine, Production Summary
Three Months
Ended March 31
2001 2000
------------------------------------------------------------
Ore Milled (tonnes) 91,741 85,033
Average Grade (grams of gold/tonne) 7.8 7.8
Recovery (%) 87.4 83.7
Gold Production (ounces) 21,441 18,611
Cash Operating Cost per Ounce $156 $197
Cash Operating Costs per Tonne Milled $36.56 $43.03
------------------------------------------------------------
KEYSTONE key·stone n. 1. Architecture The central wedge-shaped stone of an arch that locks its parts together. Also called headstone. 2. The central supporting element of a whole. GOLD MINE Mining operations at the Farley Farley may refer to:
v. ac·cu·mu·lat·ed, ac·cu·mu·lat·ing, ac·cu·mu·lates v.tr. To gather or pile up; amass. See Synonyms at gather. v.intr. To mount up; increase. low-grade low-grade Of or relating to debt that has a credit rating of B or below. Low-grade debt offers an above-average yield but entails substantial risk because promised payments may not be made in a timely manner. stockpile stock·pile n. A supply stored for future use, usually carefully accrued and maintained. tr.v. stock·piled, stock·pil·ing, stock·piles To accumulate and maintain a supply of for future use. . The Keystone Gold Mine produced a total of 8,381 ounces of gold during the first quarter of 2000 at a cash operating cost of $226 per ounce. REPAYMENT OF DEBT AND FINANCIAL POSITION On April 11, 2001 the Company sold its put options on 81,000 ounces of gold for proceeds of $664,000. The proceeds were used to reduce short-term debt Short-term debt Debt obligations, recorded as current liabilities, requiring payment within the year. to zero. Also, subsequent to the end of the quarter, the Company redeemed re·deem tr.v. re·deemed, re·deem·ing, re·deems 1. To recover ownership of by paying a specified sum. 2. To pay off (a promissory note, for example). 3. CDN $2 million of the CDN $4 million outstanding convertible debentures. The maturity date on the balance has been extended from July July: see month. 15, 2001 to December December: see month. 31, 2001. As of March 31, 2001 the Company had a working capital of $4.0 million (CDN $6.2 million) and no long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. . HEDGE PROGRAM Black Hawk's hedge program, as at March 31, 2001 is summarized as follows:
2001 2002 2003 Total
------------------------------------------------------------
Call Options Sold
-----------------
Ounces 37,440 49,920 4,160 91,520
Price per ounce 270 270 270 270
Ounces 4,200 - - 4,200
Price per ounce 320 - - 320
Put Options Bought
------------------
Ounces 37,503 38,997 - 76,500
Price per ounce 260 260 - 260
Ounces 4,500 - - 4,500
Price per ounce 275 - - 275
------------------------------------------------------------
Subsequent to the end of the quarter, the Company sold its put options and used the proceeds to repay debt. The Company no longer has any put options. EXPLORATION Drilling during the quarter on the Talavera Talavera may refer to the following places:
n. Geology 1. The mass of rock underlying a mineral deposit in a mine. 2. The underlying block of a fault having an inclined fault plane. zones successfully upgraded inferred resources to indicated resources. This change is reflected in the resources in the press release of March 12, 2001. A new gold bearing zone has been identified which is located less than 30 metres south of mining activities on the Ligia structure. To the end of April, a total of five drill holes tested the new zone over a strike length of approximately 80 metres with the following results.
Drill Hole From (m) To (m) Interval Gold Core
(m) (g/t) Recovery
-------------------------------------------------------------
2682 19.82 34.45 14.63 2.4 70%
2686 22.26 57.62 35.36 2.0 84%
includes 24.39 27.44 3.05 8.8 84%
2688 31.71 57.32 25.61 5.9 68%
Includes 34.12 39.63 5.51 10.1 75%
Includes 44.21 47.26 3.05 10.9 70%
Includes 50.91 53.66 2.75 8.0 51%
2714 217.84 247.67 29.83 3.4 99%
Includes 231.78 239.12 7.34 9.3 100%
2715 35.78 44.95 9.17 10.6 98%
Includes 40.96 43.29 2.31 28.4 100%
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The drill results are from fire assaying of split drill core at the company's mine site laboratory that is regularly checked with quality control samples sent to Acme (company, jargon) ACME - /ak'mee/ 1. A Company that Makes Everything. The canonical imaginary business. Possibly also derived from the word "acme" meaning "highest point". 2. A program for MS-DOS. Analytical analytical, analytic pertaining to or emanating from analysis. analytical control control of confounding by analysis of the results of a trial or test. Laboratories Ltd. of 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. . M. Gareau The Gareau was a Canadian automobile manufactured only in 1910. Only three 35 hp worm-drive fours were completed before the firm, based in Montreal, folded for lack of working capital. Reference David Burgess Wise, The New Illustrated Encyclopedia of Automobiles , P.Geol, supervised su·per·vise tr.v. su·per·vised, su·per·vis·ing, su·per·vis·es To have the charge and direction of; superintend. [Middle English *supervisen, from Medieval Latin the exploration program. Mr. Gareau, an employee of the company, is the Qualified Person under National Instrument 43-101. Exploration at the Manantial Espejo property in southern Argentina Argentina (ärjəntē`nə, Span. ärhāntē`nä), officially Argentine Republic, republic (2005 est. pop. 39,538,000), 1,072,157 sq mi (2,776,889 sq km), S South America. focussed on surface prospecting of previously under explored areas of the concession. A number of newly identified areas with alteration Modification; changing a thing without obliterating it. An alteration is a variation made in the language or terms of a legal document that affects the rights and obligations of the parties to it. , quartz quartz, one of the commonest of all rock-forming minerals and one of the most important constituents of the earth's crust. Chemically, it is silicon dioxide, SiO2. veining vein·ing n. Distribution or arrangement of veins or veinlike markings. and associated 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 and silver values in rock samples will be followed up in more detail. OUTLOOK The El Limon mine is on a target to produce 75,000 ounces of gold at a cash cost of less than $170 per ounce in 2001. GENERAL The Annual and Special Meeting of the Shareholders of Black Hawk Mining Inc., will be held on Monday Monday: see week. , June June: see month. 18, 2001 at 4:30 p.m. at the Board of Trade, 1 First Canadian Place First Canadian Place is a skyscraper in Toronto, Ontario, Canada. At 298 metres, or 978 feet (355 metres with antenna included), it is Canada's tallest skyscraper and the eleventh tallest building in North America. 4th Floor, Toronto Toronto (tərŏn`tō), city (1998 est pop. 2,400,000), provincial capital, S Ont., Canada, on Lake Ontario. Toronto is the largest city in Canada and since the 1970s has been one of the fastest-changing cities in North America, experiencing . For further information please contact: Mr. Garth garth n. 1. A grassy quadrangle surrounded by cloisters. 2. Archaic A yard, garden, or paddock. [Middle English, enclosed yard, from Old Norse gardhr; see MacRae President and Chief Executive Officer Tel: (416) 365-5657 Mr. Paul Paul, 1901–64, king of the Hellenes (1947–64), brother and successor of George II. He married (1938) Princess Frederika of Brunswick. During Paul's reign Greece followed a pro-Western policy, and the Cyprus question was temporarily resolved. Caldwell Controller and Secretary Tel. (416) 363-6526 Email: info@bhkmining.com Website: www.bhkmining.com
Black Hawk Mining Inc.
Consolidated Balance Sheets
(U.S. dollars)
as at as at
March 31, December 31,
2001 2000
-------------------------------------------------------------
(Unaudited)
Assets
Current Assets:
Cash and cash equivalents $1,494,231 $1,973,999
Bullion settlements receivable 3,203,204 2,990,613
Other accounts receivable 1,710,344 2,069,373
Inventories 4,587,705 4,698,709
-------------------------------------------------------------
10,995,484 11,732,694
Mineral properties and fixed assets 12,926,923 13,066,197
Notes receivable 269,450 283,305
Deferred foreign exchange loss 20,796 5,579
-------------------------------------------------------------
$24,212,653 $25,087,775
-------------------------------------------------------------
Liabilities and Shareholders' Equity
Current Liabilities:
Short-term debt $675,000 $1,400,000
Accounts payable and accrued
liabilities 2,979,380 3,986,909
Current portion of long-term debt 2,536,000 2,666,400
Current portion of accrual for
reclamation costs 812,748 904,116
Deferred foreign exchange gain 79,558 -
-------------------------------------------------------------
7,082,686 8,957,425
Reserve for reclamation costs 936,921 936,921
Future mining taxes 400,000 400,000
-------------------------------------------------------------
8,419,607 10,294,346
-------------------------------------------------------------
Shareholders' Equity:
Capital stock 33,474,131 33,472,416
Contributed surplus 3,756,704 3,756,704
Deficit (21,437,789) (22,435,691)
-------------------------------------------------------------
15,793,046 14,793,429
-------------------------------------------------------------
$24,212,653 $25,087,775
-------------------------------------------------------------
Black Hawk Mining Inc.
Consolidated Statements of Operations and Deficit
For the three months ended March 31,
(U.S. dollars)
(Unaudited)
2001 2000
-------------------------------------------------------------
Revenue:
Gold Bullion $5,671,808 $7,739,394
Direct Costs:
Mining and milling 3,353,935 5,550,788
Royalties and reclamation 248,517 368,610
Amortization 684,316 948,252
-------------------------------------------------------------
4,286,768 6,867,650
-------------------------------------------------------------
Income from mining operations 1,385,040 871,744
-------------------------------------------------------------
Other operating expenses:
Administration 185,312 327,219
Exploration 174,486 237,681
-------------------------------------------------------------
359,798 564,900
-------------------------------------------------------------
Income before the undernoted 1,025,242 306,844
-------------------------------------------------------------
Other (income) and expenses:
Interest and other income (18,449) (9,903)
Gain on disposal of assets (19,883) -
Foreign exchange (gain) loss (26,913) (65,968)
Interest expense 74,976 91,285
-------------------------------------------------------------
9,731 15,414
-------------------------------------------------------------
Income before income and mining
taxes 1,015,511 291,430
Income and mining taxes 17,609 8,432
------------------------------------------------------------
Net income for the period 997,902 282,998
Deficit - beginning of period (22,435,691) (24,848,690)
------------------------------------------------------------
Deficit - end of period $(21,437,789)$(24,565,692)
------------------------------------------------------------
Net income per share - basic $0.01 $0.00
------------------------------------------------------------
Net income per share - diluted $0.01 $0.00
------------------------------------------------------------
Weighted average number of
common shares outstanding 141,237,053 129,575,551
------------------------------------------------------------
Black Hawk Mining Inc.
Consolidated Statements of Cash Flows
For the three months ended March 31,
(U.S. dollars)
(Unaudited)
2001 2000
------------------------------------------------------------
Cash flows provided by (used in) operating activities:
Net income for the period $997,902 $282,998
Adjustments for:
Reclamation - 44,188
Amortization 684,316 948,252
Amortization of deferred foreign
exchange gains and losses (52,203) 1,025
Gain on disposal of assets (19,883) -
------------------------------------------------------------
Cash flows provided by operations
before working capital changes 1,610,132 1,276,463
Changes in non-cash working capital (750,088) (493,688)
------------------------------------------------------------
Cash flows provided by operating
activities 860,044 782,775
------------------------------------------------------------
Cash flows provided by (used in) financing activities:
Short-term debt (725,000) -
Long-term debt - (50,797)
Issuance of common shares 1,715 15,932
------------------------------------------------------------
Cash flows (used in) financing
activities (723,285) (34,865)
------------------------------------------------------------
Cash flows provided by (used in) investing activities:
Proceeds from disposal of assets 19,883 -
Mineral properties and fixed assets (545,042) (839,816)
Reclamation costs (91,368) (74,967)
Cash flows (used in) investing
activities (616,527) (914,783)
------------------------------------------------------------
Net decrease in cash and cash
equivalents (479,768) (166,873)
Cash and cash equivalents:
Balance - beginning of the period 1,973,999 982,291
------------------------------------------------------------
Balance - end of the period $1,494,231 $815,418
------------------------------------------------------------
Cash flows per common share from operating activities before
working capital changes $0.01 $0.01
------------------------------------------------------------
Cash interest paid $28,646 $136,711
------------------------------------------------------------
Cash income and mining taxes paid $17,609 $-
------------------------------------------------------------
All dollar amounts are stated in US dollars, unless indicated otherwise. |
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