CAMBIOR ANNOUNCES ITS FIRST QUARTER RESULTS.MONTREAL--(BUSINESS WIRE)--May 11, 1995-- Cambior Inc. today announced its first quarter results with revenues of $92.7 million, a 25 percent increase compared to $74.2 million for the first quarter of 1994. The increase was mainly due to the commencement of commercial production at the Mobrun Mine in January, which generated gross revenues of $16.2 million. Furthermore, Cambior's successful gold hedging program generated an average gold selling price of US $402 per ounce, US $23 per ounce above the market price for the first quarter of 1995. Net earnings for the first quarter were $5.2 million ($0.11 per share) compared to $6.9 million ($0.14 per share) for the same quarter of 1994. The decline in net earnings was attributable to higher unit operating costs operating costs npl → gastos mpl operacionales at the Doyon and other Canadian mines as well as the Valdez Creek Placer and higher exploration expenses. 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 was $21.3 million ($0.44 per share) compared to $24.6 million ($0.50 per share) for the first quarter of 1994. Gold production was slightly lower at 126,452 ounces compared to 130,369 ounces for the first quarter of 1994. This decrease resulted mainly from the suspension of production activities at the Mouska Mine to allow for shaft deepening deep·en tr. & intr.v. deep·ened, deep·en·ing, deep·ens To make or become deep or deeper. Noun 1. deepening - a process of becoming deeper and more profound work, and a lower milled grade at the Doyon Mine due to the mining sequence. Louis P. Gignac, President and Chief Executive Officer of Cambior, stated that "we are pleased with our first quarter results, particularly with the progress of the Omai Mine, which reduced operating costs by 5 percent to US $234 in the first quarter compared to an average of US $244 for the full year 1994. This reduction was principally due to a higher grade and tonnage TONNAGE, mar. law. The capacity of a ship or vessel. 2. The act of congress of March 2, 1799, s. 64, 1 Story's L. U. S. 630, directs that to ascertain the tonnage of any ship or vessel, the surveyor, &c. milled and improved mill recovery. The drilling program completed in the Wenot pit at Omai resulted in the identification of additional mining reserves of 9 million tonnes grading 1.6 g Au/t containing 446,000 ounces of gold in situ In place. When something is "in situ," it is in its original location. relative to mining reserves at December 31, 1994. The Wenot deposit remains open laterally, and the partners are very hopeful about identifying additional mining reserves on the Omai property. Meanwhile, the Mobrun polymetallic mine entered into commercial production at the beginning of the year, on time and on budget, and will be an excellent source of earnings and cash flow." The Omai mill expansion, which began in the first quarter of 1995, is progressing on schedule. Foundation work is underway for the generators and the new ore reclaim tunnel and the erection erection /erec·tion/ (e-rek´shun) the condition of being rigid and elevated, as erectile tissue when filled with blood. e·rec·tion n. 1. of the CIP (1) (Common Isochronous Packet) The packet format used in time-based (real time) FireWire transmission. See FireWire, IEC 61883 and mLAN. (2) (Common Industrial P (carbon in pulp) and leaching leaching, method of extraction in which a solvent is passed through a mixture to remove some desired substance from it. A simple example is the passage of boiling water through ground coffee to dissolve and carry out the chemicals necessary for producing the beverage. tanks is 50 percent complete. The development of the Grevet zinc project is also on schedule, and commercial production should begin in early 1996. The preliminary environmental impact study for the Carlota copper project was filed for public review in February, and we expect to receive the final permits in the second half of 1995, following which construction work will begin. Investments for the year to date total $52 million, including $9 million on advanced exploration projects. We expect to finalize fi·nal·ize tr.v. fi·nal·ized, fi·nal·iz·ing, fi·nal·iz·es To put into final form; complete or conclude: "They have jointly agreed ... prefeasibility studies for the Metates (gold), Gross Rosebel (gold), La Granja La Granja, Spain: see San Ildefonso. (copper) and El Pachon (copper) projects by the end of 1995. Cambior's cash assets of $142.7 million as at March 31, 1995 provide the Company with an excellent base from which to vigorously pursue its growth strategy in the Americas. "With the progress achieved at the Omai Mine and a greater contribution from the Doyon Mine, we are confident that we can achieve our 1995 production target," concluded Mr. Gignac. Cambior is a major gold producer with operating and exploration activities in Canada, 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. , Guyana and various other countries of the Americas. Cambior's shares and warrants are listed on the Montreal and Toronto stock exchanges Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. and on 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. (AMEX AMEX See: American Stock Exchange ) in the United States, under the symbols CBJ CBJ Columbus Blue Jackets (NHL team) CBJ Central Bank of Jordan CBJ Conflict-Directed Backjumping CBJ Circuit Board Jack CBJ Code-Breakers Journal CBJ Class Broker for Java CBJ Color Bubble Jet , CBJ.WT and CBJ.WTA WTA Washington Trails Association WTA Women's Tennis Association WTA World Transhumanist Association WTA Willingness to Accept WTA Winner-Take-All WTA Winner Takes All WTA World Toilet Association (Singapore) . -0- CAMBIOR INC. Production (Cambior's share)
1st Quarter
1995 1994
GOLD (ounces)
Omai Mine (100 percent) 64,435 67,670
Doyon Mine (50 percent) (1) 25,994 33,101
Rouyn-Noranda Division (2) 5,748 16,347
Chimo Mine (3) 7,697 --
Sleeping Giant Mine (50 percent) 5,461 5,441
Mobrun Mine (4) 4,380 --
Valdez Creek Placer (5) 12,737 7,810
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TOTAL 126,452 130,369
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BASE METALS
Niobec Mine (50 percent) (6) Ferroniobium (kg Nb) 263,158 -- Nb2O5 (kg) in concentrates -- 448,682 Mobrun Mine (4) Zinc (tonnes) in concentrates 6,674 -- Copper (tonnes) in concentrates 748 -- Explanatory ex·plan·a·to·ry adj. Serving or intended to explain: an explanatory paragraph. ex·plan notes for differences between 1st quarter 1995 and 1st quarter 1994: (1) Lower grade milled at Doyon due to the mining sequence and hoisting delays. (2) Lower production due to the suspension of production activities at Mouska to allow for shaft deepening work. Mining will resume in the second quarter of 1995. (3) In the first quarter of 1994, production activities at Chimo had been suspended sus·pend v. sus·pend·ed, sus·pend·ing, sus·pends v.tr. 1. To bar for a period from a privilege, office, or position, usually as a punishment: suspend a student from school. to allow for shaft deepening and development work. (4) Mobrun entered into commercial production on January 1, 1995. (5) Mining activities at the Valdez Creek Placer will cease in the second half of 1995. (6) Niobec began producing ferroniobium in 1995. In 1994, the mine produced only niobium niobium (nīō`bēəm), metallic chemical element; symbol Nb; at. no. 41; at. wt. 92.9064; m.p. about 2,468°C;; b.p. 4,742°C;; sp. gr. 8.57 at 20°C;; valence +2, +3, +4, or +5. concentrate. -0- CAMBIOR INC. FINANCIAL HIGHLIGHTS For the three-month period ended 1st Quarter March 31, 1995 1994 RESULTS (Cdn $ 000) Total revenue $ 92,720 $ 74,185 Mine operating costs 56,878 42,016 Realization costs 8,009 810 Depreciation, depletion and amortization 13,831 15,046 Exploration expenses 4,045 2,058 Net earnings 5,217 6,909 Cash flow from operations 21,323 24,639 PER SHARE (Cdn $) Earnings $ 0.11 $ 0.14 Cash flow from operations $ 0.44 $ 0.50 Weighted average common shares outstanding (in thousands) 49,012 48,985 GOLD PRODUCTION Number of ounces 126,452 130,369 Mine operating costs US $/oz 275 223 Mine operating costs (excluding Valdez) US $/oz 241 218 Cambior's selling price US $/oz 402 392 Market price US $/oz 379 384
FINANCIAL POSITION (Cdn $ 000) March 31, December 31,
1995 1994
Cash $ 142,700 $ 133,741 Working capital 184,833 168,048 Total assets 921,262 863,654 Long-term debt 260,166 209,888 Shareholders' equity 568,945 567,677 CONTACT: Henry A. Roy, 514/878-1484 or Robert LaValliere, 514/878-1282 |
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