Cambior Announces Second Quarter Production Results and an Update of Its Gold Hedging Program.Business Editors MONTREAL--(BUSINESS WIRE)--July 10, 2001 All Amounts are Expressed in US Dollars Cambior Cambior Inc. was a Canadian based international gold producer with operations, development projects and exploration activities in the Americas. Cambior’s shares traded on the Toronto (TSX) and American (AMEX) stock exchanges under the symbol “CBJ”. Inc. (AMEX AMEX See: American Stock Exchange :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 ) (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :CBJ.) reports production of 153,400 ounces of gold and 355 tonnes of 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. for the second quarter of 2001. Production for the first half of 2001 totalled 305,300 ounces of gold and 720 tonnes of niobium. The Omai mine performed above expections during the second quarter, producing 86,000 ounces of gold. This improved performance was due to a higher head grade. The mill processed 1.95 million tonnes of ore (21,500 tonnes per day) at an average head grade of 1.48 g Au/t. During the first half of 2001, the Omai mine produced 174,600 ounces of gold, a 10% increase over the same period in 2000. The Doyon Division performed well, contributing 59,300 ounces of gold for the second quarter. The Division processed 308,800 tonnes at an average grade of 6.2 g Au/t from the underground mines and 17,300 tonnes at a grade of 1.0 g Au/t from the 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. . For the first half of 2001, the Doyon Division produced 114,300 ounces of gold. Cambior's share of production from the Sleeping Giant Sleeping Giant may refer to: In geology:
For the second quarter of 2001, Cambior's share of production from the Niobec mine was 355 tonnes of niobium, a 33% increase over the corresponding quarter in 2000 due to the completion of the mine expansion in the fourth quarter of 2000. For the first half of 2001, Cambior's share of production totalled 720 tonnes of niobium. MARKETS AND HEDGING hedging, in commerce, method by which traders use two counterbalancing investment strategies so as to minimize any losses caused by price fluctuations. It is generally used by traders on the commodities market. As of June June: see month. 30, 2001, Cambior's gold hedging program consisted of a total of 1.3 million ounces at an average price of $297 per ounce ounce, in zoology ounce, in zoology: see leopard. ounce, unit of measurement ounce: see English units of measurement. . These hedge positions include fixed forward contracts, spot deferred contracts, prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. gold forward sales forward sales npl → ventas fpl a término and the minimum quantity of
variable volume forward contracts. Total commitments over seven years
total 2.1 million ounces at an average price of $305 per ounce. During
the second quarter of 2001, optionalities, which include call options
and the variable portion of the variable volume forwards, declined to a
total of 802,000 ounces at an average price of $319 per ounce as
compared to 963,000 ounces at $338 per ounce at the beginning of the
year. With respect to the Mandatory Hedging Program included in its new
credit facility, the Company added to its hedge positions 606,100 ounces
at an average price of $292 per ounce during the first half of 2001.
This Program, which was required to be in place by March 31, 2001, was
subsequently amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. to allow for the required hedges to be in place by September September: see month. 30, 2001. Also, as part of the Mandatory Hedging Program, Cambior has the right to roll forward its contracts up to the final maturity date of the loan, and the hedging facility is not subject to margin calls. The estimated mark-to-market Mark-to-market Adjustment of the book value or collateral value of a security to reflect current market value. value of Cambior's total gold sales commitments as at June 30, 2001 is negative $1.1 million using a spot price of $271 per ounce and the market conditions prevailing at that date. Louis Louis, titular duke of Burgundy Louis, 1682–1712, titular duke of Burgundy; grandson of King Louis XIV of France. He became heir to the throne on the death (1711) of his father, Louis the Great Dauphin. P. Gignac Gignac is the name or part of the name of several communes in France:
The second quarter financial results and operating costs operating costs npl → gastos mpl operacionales are scheduled for release on or around July July: see month. 26, 2001. Cambior Inc. is an international gold producer with operations, development projects and exploration activities throughout the Americas A·mer·i·cas , the See America. . Cambior's shares trade on the 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 (TSE) and American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of (AMEX) stock exchanges under the symbol "CBJ". This press release contains 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. ", as defined 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. 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, that involve a number of risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Such risks and uncertainties are disclosed dis·close tr.v. dis·closed, dis·clos·ing, dis·clos·es 1. To expose to view, as by removing a cover; uncover. 2. To make known (something heretofore kept secret). under the heading "Risk Factors" in Cambior's 2000 Annual Report on Form 20-F filed as its Annual Information Form with the securities commissions of all provinces in Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of , and with the United States Securities and Exchange Commission, as well as the TSE and the Amex.
TABLE 1
GOLD HEDGING PROGRAM AS AT JUNE 30, 2001
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2001 2002 2003 2004
(6 months)
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FIXED FORWARDS
Quantity (000 ozs) 80 174 105 80
Average price ($/oz) 286 289 293 300
SPOT DEFERRED
Quantity (000 ozs) 10 - 140 -
Average price ($/oz) 282 - 281 -
PREPAID GOLD FORWARDS
Quantity (000 ozs) 26 52 52 52
Average price ($/oz) 235 235 235 235
VARIABLE VOLUME FORWARDS(1)
Minimum quantity (000 ozs) 19 68 68 68
Average price ($/oz) 339 332 336 338
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MINIMUM DELIVERY OBLIGATIONS(2)
Quantity (000 ozs) 135 294 365 200
Average price ($/oz) 283 289 288 296
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CALL OPTIONS(3)(4)
Quantity (000 ozs) 149 216 53 53
Average price ($/oz) 283 322 300 300
VARIABLE VOLUME FORWARDS(1)(4)
Variable quantity (000 ozs) 49 60 60 60
Average price ($/oz) 339 332 336 338
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TOTAL DELIVERY COMMITMENTS(5)
Quantity (000 ozs) 333 570 478 313
Average price ($/oz) 292 306 296 305
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2005 2006 2007 Total
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FIXED FORWARDS
Quantity (000 ozs) 62 77 34 612
Average price ($/oz) 302 328 350 300
SPOT DEFERRED
Quantity (000 ozs) - - - 150
Average price ($/oz) - - - 281
PREPAID GOLD FORWARDS
Quantity (000 ozs) 52 - - 234
Average price ($/oz) 235 - - 235
VARIABLE VOLUME FORWARDS(1)
Minimum quantity (000 ozs) 69 28 21 341
Average price ($/oz) 342 346 350 339
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MINIMUM DELIVERY OBLIGATIONS(2)
Quantity (000 ozs) 183 105 55 1,337
Average price ($/oz) 298 333 350 297
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CALL OPTIONS(3)(4)
Quantity (000 ozs) - - - 471
Average price ($/oz) - - - 305
VARIABLE VOLUME FORWARDS(1)(4)
Variable quantity (000 ozs) 58 25 19 331
Average price ($/oz) 342 346 350 339
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TOTAL DELIVERY COMMITMENTS(5)
Quantity (000 ozs) 241 130 74 2,139
Average price ($/oz) 309 335 350 305
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(1) The Variable Volume Forward (VVF) position is for a nominal
quantity of 425,000 ounces maturing at fixed delivery dates from
July 2001 to October 2007. The delivery dates and strike prices
are fixed, but the quantity to be delivered during any specific
month may vary from a minimum of 80% up to a maximum of 150% of
the nominal quantity based on a spot gold price ranging from $276
per ounce to $350 per ounce. Monthly test dates are set between
July 2001 and May 2004.
(2) The minimum delivery obligations include all fixed forward
contracts, spot deferred, the prepaid gold forward contracts and
the minimum ounces deliverable under the VVF contracts.
(3) Some 77% of the call options expire over the next 18-month period,
from July 2001 to December 2002. They have a strike price ranging
from $280 to $340 per ounce for an average price of $305 per
ounce. The Company's contingent delivery obligations under such
contracts will only take effect if the gold price is above the
strike price of the relevant contract at its maturity date.
(4) Certain call options sold, fixed forward and VVF positions,
totaling 1.0 million ounces, include a swap of the gold lease rate
for the duration of the contracts. Pursuant to the swap
agreements, the Company pays the floating rate and the counter-
parties pay a fixed rate of 1.25% to 1.75% per annum.
(5) The total delivery commitments include all fixed forward
contracts, spot deferred contracts, prepaid gold forward sales,
the maximum ounces deliverable under the VVF contracts and the
call option contracts.
TABLE 2
CAMBIOR PRODUCTION
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Cambior's share Second Quarter First Half
ended June 30, ended June 30,
Gold (ounces) 2001 2000 2001 2000
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Omai (100%)
Production (ounces) 86,000 86,200 174,600 158,600
Tonnage milled (t) 1,953,400 1,994,600 3,895,400 3,928,600
Grade milled (g Au/t) 1.48 1.44 1.51 1.34
Recovery (%) 93 94 93 94
Doyon Division (1)
Production (ounces) 59,300 61,800 114,300 117,800
Tonnage milled (t)
Underground mines 308,800 320,000 600,500 620,900
Low grade stockpile 17,300 24,800 66,100 36,800
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Total 326,100 344,800 666,600 657,700
Grade milled (g Au/t)
Underground mines 6.2 6.2 6.1 6.1
Low grade stockpile 1.0 1.4 1.0 1.3
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Average 5.9 5.8 5.6 5.8
Recovery (%) 96 96 96 96
Sleeping Giant (50%)
Production (ounces) 8,100 10,000 16,400 20,000
Tonnage milled (t) 26,400 28,300 54,000 56,000
Grade milled (g Au/t) 9.8 11.3 9.7 11.5
Recovery (%) 97 97 97 97
Bouchard-Hebert/Langlois (2)
Production (ounces) - 300 - 12,300
Total Gold Production
(ounces) 153,400 158,300 305,300 308,700
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Metal Production
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Niobec (50%)
Ferroniobium (tonnes Nb) 355 266 720 546
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(1) Includes the Doyon and Mouska mines.
(2) The Bouchard-Hebert and Langlois mines were sold as of May 1,
2000. Gold and silver produced at the Bouchard-Hebert and Langlois
mines are reported in gold equivalent.
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