Cambior Inc.: Return to Profitability in the Third Quarter of 2003.Business Editors LONGUEUIL, Quebec--(BUSINESS WIRE)--Oct. 22, 2003 Cambior 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 ) (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :CBJ): All amounts are expressed in US dollars, unless otherwise indicated. -- Gold production of 124,000 ounces -- Revenues of $48.7 million -- Net earnings of $0.7 million -- Cash flow from operating activities of $4.6 million -- Rosebel construction and development on schedule and on budget -- Successful Cdn $100 million equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. -- Elimination of the hedging covenant -- 9% (or 83,000 ounces) reduction of the hedge book -- Cash balance of $68.6 million -- Cambior and Ariane Gold announced merger to develop the Camp Caiman caiman: see alligator. caiman Any member of several species of Central and South American reptiles of the alligator family. Like the rest of the crocodile order, caimans are amphibious, lizardlike carnivores. gold project FINANCIAL RESULTS During the third quarter of 2003, Cambior realized a profit, prior to adjustments for non-hedge derivative instruments Derivative instruments Contracts such as options and futures whose price is derived from the price of an underlying financial asset. , of $3.1 million compared to a profit of $3.2 million during the third quarter of 2002. Non-cash accounting adjustments due to a non-hedge derivative derivative: see calculus. derivative In mathematics, a fundamental concept of differential calculus representing the instantaneous rate of change of a function. loss of $2.4 million (gain of $0.8 million in 2002) resulted in net earnings of $0.7 million compared to $4.0 million ($0.03 per share) for the corresponding period in 2002. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become (1) was $11.3 million compared to $13.1 million for the corresponding quarter of 2002. Lower gold sales, higher mine operating costs operating costs npl → gastos mpl operacionales and an increase in exploration and business development outlays Outlays Payments on obligations in the form of cash, checks, the issuance of bonds or notes, or the maturing of interest coupons. contributed to the EBITDA decrease in 2003. During the first nine months of 2003, Cambior incurred a loss, prior to adjustments for non-hedge derivative instruments, of $2.7 million compared to a profit of $5.3 million during the first nine months of 2002. Non-cash accounting adjustments due to a non-hedge derivative loss of $1.0 million ($14.8 million in 2002) resulted in a net loss of $3.7 million ($0.02 per share) compared to a net loss of $9.5 million ($0.07 per share) for the corresponding period in 2002. EBITDA was $22.4 million as compared to $31.5 million for the corresponding period of 2002. PRODUCTION HIGHLIGHTS For the third quarter of 2003, gold production totaled 124,000 ounces at a mine operating cost of $238 per ounce ounce, in zoology ounce, in zoology: see leopard. ounce, unit of measurement ounce: see English units of measurement. compared to 149,700 ounces at a mine operating cost of $216 per ounce for the corresponding quarter in 2002. Gold production for the first nine months of 2003 totaled 378,400 ounces at a mine operating cost of $245 per ounce compared to 435,800 ounces produced during the same period last year at a mine operating cost of $218 per ounce. The decrease in gold production for the third quarter and the nine-month period is mainly attributable to the decrease in 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 at the Omai mine due to the depletion depletion n. when a natural resource (particularly oil) is being used up. The annual amount of depletion may, ironically, provide a tax deduction for the company exploiting the resource because if the resource they are exploiting runs out, they will no longer be able of soft-rock reserves as expected in the mining plan. Higher gold mine operating costs were mainly due to the strengthening of the Canadian dollar Noun 1. Canadian dollar - the basic unit of money in Canada; "the Canadian dollar has the image of loon on one side of the coin" loonie dollar - the basic monetary unit in many countries; equal to 100 cents from Cdn $1.56/US $ in the third quarter of 2002 to Cdn $1.38/US $ in the third quarter of 2003 which added $17 per ounce to the unit cost. The Omai mine produced 62,200 ounces of gold at a mine operating cost of $213 per ounce. Lower gold production is due to lower tonnage milled as a result of the depletion of soft rock reserves. However, head grade, gold recovery and mine operating costs were similar to those of the third quarter of 2002. The new secondary crusher crusher, machine used to reduce materials such as ore, coal, stone, and slag to particle sizes that are convenient for their intended uses. Crushers operate by slowly applying a large force to the material to be reduced. installed during the second quarter of this year is now working at its planned rate. Production from the Doyon Division reached 53,000 ounces of gold for the third quarter, a slight increase compared to the corresponding quarter of 2002. The mill grade from the underground mines was 6.0 g Au/t, or nearly 10% higher than the grade from underground for the corresponding period of 2002. The lower tonnage from the underground mines is due to the unavailability of several LHD LHD abbr. Latin Litterarum Humaniorum Doctor (Doctor of Humanities; Doctor of Humane Letters) (Load Haul Dump) units at the Doyon mine in July. The increase in the mine operating cost is due in large part to the 13% increase in the value of the Canadian dollar compared to the corresponding quarter of 2002. A shaft shaft (shaft) a long slender part, such as the diaphysis of a long bone. shaft n. 1. An elongated rodlike structure, such as the midsection of a long bone. 2. 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 program at the Mouska mine, part of the Doyon Division, was approved today. The internal shaft will be deepened by 210 meters to reach a total depth of 880 meters and will allow access to high-grade mineralized min·er·al·ize v. min·er·al·ized, min·er·al·iz·ing, min·er·al·iz·es v.tr. 1. To convert to a mineral substance; petrify. 2. To transform a metal into a mineral by oxidation. 3. zones on three additional levels. Shaft deepening work, at an estimated cost of Cdn $11 million, will require a ten-month production shutdown shut·down n. A cessation of operations or activity, as at a factory. shutdown Noun the closing of a factory, shop, or other business Verb shut down at Mouska, scheduled from January to October 2004 inclusively, since current infrastructure will not allow for the simultaneous hoisting of ore in the internal shaft and the shaft deepening work. The shaft deepening will allow access to 142,000 tonnes of probable mineral reserves at a grade of 15.4 g Au/t and 173,000 tonnes of inferred mineral resources Noun 1. mineral resources - natural resources in the form of minerals natural resource, natural resources - resources (actual and potential) supplied by nature at a grade of 14.6 g Au/t. In addition, the Mouska mine announced the signing of the extension of the current collective agreement with its employees affiliated with the United Steelworkers United Steelworkers (USW) historic labour union representing workers in steel, aluminum, and other metallurgical industries for much of the 20th century. In the U.S. of America to October 17, 2007. During the quarter, Cambior's share of gold production from the Sleeping Giant Sleeping Giant may refer to: In geology:
At Niobec, sales improved over the previous two quarters, in line with increased demand. For the third quarter, 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. sales (Cambior's share) and revenues from contracting services totaled $8.5 million. FINANCIAL HIGHLIGHTS AND GOLD HEDGING Financial highlights Successful completion of the Cdn $100 million unit offering On August 12, 2003, Cambior closed a public offering, pursuant to which a syndicate Syndicate organized crime unit throughout major cities of the United States. [Am. Hist.: NCE, 2018] See : Gangsterism of underwriters purchased 40 million units on a bought deal basis, at a price of Cdn $2.50 per unit for gross proceeds to Cambior of $72.2 million (Cdn $100 million). Each unit consisted of one common share and one-half of one Series C common share purchase warrant. Each whole Series C warrant is exercisable at a price of Cdn $3.75 prior to August 12, 2008. The net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of Cdn $95 million are to be used for general corporate purposes including the development of the Rosebel project and to increase the Company's reserve base. The Company also completed a $1.4 million (Cdn $2 million) flow-through private placement by issuing 571,000 common shares in September. The proceeds are being applied to fund exploration programs in Quebec. At September 30, 2003, cash and short term investments were $68.6 million and shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. was $255.7 million or $1.21 (Cdn $1.63) per share. The Company began drawing on its new $60 million credit facility during the second quarter of 2003 and amounts drawn currently total $44.2 million. The Company intends to draw fully on its term loan facilities to fund the Rosebel project. Capital expenditures for the third quarter of 2003 were $34.8 million compared to $5.2 million in 2002. Investments were principally for the construction and development of the Rosebel project. At the end of the third quarter of 2003, the Company had 212.1 million common shares, 13.7 million listed Series B warrants and 20 million listed Series C warrants outstanding. Reduction of the hedging program continues Favourable gold market conditions continued during the quarter with the average price of gold improving by $16 per ounce to a price of $363 per ounce compared to the second quarter of 2003. Cambior realized $341 per ounce during the period as a result of the delivery of a portion of its gold production against hedge commitments and the remainder at market prices. Hedge free by year-end 2004 The Company remains focused on reducing its hedging commitments to benefit from improving gold market conditions. The Company successfully negotiated the elimination of its hedging covenant under its credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities following the closing of its Cdn $100 million equity financing in August 2003. Cambior seeks to eliminate all hedging commitments by the end of 2004, except for the residual 52,000 ounces remaining under its 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 agreement. During 2003,
the Company has reduced its commitments by 469,000 ounces or 36%
compared to December 31, 2002. As of September 30, 2003, the Company had
total commitments of 817,000 ounces at an average price of $304 per
ounce.The Board of Directors has also adopted a policy that will allow gold hedging only when required for project financing Project financing A form of asset-based financing in which a firm finances a discrete set of assets on a stand-alone basis. . ROSEBEL GOLD PROJECT - ON SCHEDULE AND ON BUDGET Construction of the Rosebel project is in line with the Company's schedule and budget. As of the end of the third quarter of 2003, approximately $64.6 million had been spent on the development and construction of the project and current commitments amount to $6.8 million. Construction activities have reached their maximum level with over 1,200 workers on site. The commissioning period is scheduled for January with commercial production in the first quarter of 2004. Work progress as at the end of the third quarter is highlighted as follows: -- Tower 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. and sub-station progress will enable the commissioning of the transmission line in November as scheduled; -- Mechanical and electrical installations and piping are progressing well in the mill area; 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 are 80% complete and piping to the tailings Tailings (also known as tailings pile, tails, leach residue, or slickens[1]) are the materials left over[2] after the process of separating the valuable fraction from the worthless fraction of an ore. area is being laid out; -- Laboratory is now operational for sample preparation and analysis; -- Pre-production mining activities have been initiated at the Pay Caro deposit; and -- Construction of tailings dams is in progress. BUSINESS DEVELOPMENT Merger with Ariane Gold Corp. On September 26, 2003, the respective Boards of Directors of Cambior and Ariane Gold Corp. unanimously approved a proposed combination of the two companies. The merger will bring Cambior's development and operating expertise to Ariane's Camp Caiman gold project, located in French Guiana French Guiana (gēăn`ə, –än`–), Fr. La Guyane française, officially Department of Guiana, French overseas department (2005 est. pop. , 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 acquisition of the Camp Caiman gold project is consistent with the Company's growth strategy and provides an excellent opportunity for Cambior to add value to the project given its 12 years of expertise in the Guiana Shield The Guiana[1] Shield (Spanish: Guayana) is one of the three cratons of the South American Plate. It is a 1.7 billion year old Precambrian geological formation in northeast South America that forms a portion of the northern coast. and the operating synergies with Omai and Rosebel. Under the agreement, Ariane shareholders will receive one Cambior share for each 2.91 Ariane shares. Upon the successful completion of the transaction, Cambior will issue approximately 16.3 million common shares to Ariane shareholders. Subject to the approval of Ariane shareholders at a special meeting to be held November 26, 2003, this merger transaction is scheduled to close before the end of the fourth quarter of 2003. Ariane's principal asset is the Camp Caiman gold project. To date, more than 90,500 meters of diamond and reverse circulation drilling has been completed. It is estimated that the property has good potential for the discovery of additional resources. The mineable resources to date have been evaluated at 1.2 million ounces and a preliminary assessment study has indicated the potential for an open-pit mining Open-pit mining, also known as opencast mining, refers to a method of extracting rock or minerals from the earth by their removal from an open pit or borrow. operation averaging 96,000 ounces of gold per year over a ten-year period. Cambior intends to continue an exploration program to increase mineral resources and prepare a final 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. and Environmental Impact Assessment (EIA (Electronic Industries Alliance, Arlington, VA, www.eia.org) A membership organization founded in 1924 as the Radio Manufacturing Association. It sets standards for consumer products and electronic components. ) within the next year. It is anticipated that the project could commence production in 2007. EXPLORATION Westwood Project On October 15, 2003, Cambior announced excellent results from the Westwood project located approximately two kilometers to the east of the Doyon mine. The second wedge from main hole 1158-02 intersected the north corridor, which contains Zones 1 and 2 of the Doyon mine, and the Westwood horizon. The north corridor was intersected between a vertical depth of 1,500 to 1,600 meters, approximately 140 meters to the east of the main hole. The second mineralized zone constitutes the Westwood horizon, which was intersected at a vertical depth of 1,720 meters, approximately 210 meters below the main hole. The most significant results include: North corridor - 3.9 g Au/t, 8.9 g Ag/t and 0.2% Cu over 4.1 meters - 12.1 g Au/t over 2.9 meters - 36.1 g Au/t over 0.6 meter - 2.5 g Au/t and 2.6 g Ag/t over 6.1 meters Westwood corridor - 5.2 g Au/t and 2.4 g Ag/t over 7.5 meter The results to date indicate the presence of mineralized zones at depth in this little explored area east of the Doyon mine. The type of 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. and 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. of the Westwood horizon is typical of the semi-massive or massive sulfide sulfide, chemical compound containing sulfur and one other element or sulfur and a radical. Sulfides may be salts or esters of hydrogen sulfide, H2S, or may be formed directly, e.g., by heating a metal with sulfur. deposits found at the Bousquet and LaRonde mines. Work is currently underway on a third wedge from the initial hole. Assay results will be available towards the end of the fourth quarter of this year. By the end of this month, the Company will initiate a new deep drill hole (2,600 meters) from the surface to test the lower extension of the current mineralization. It is also expected that a 2-kilometer long exploration drift will be driven from level 14 of the Doyon mine towards the Westwood area. This exploration drift will make it possible to establish drilling bases as the drift progresses in order to explore fully the eastern sector of the Doyon property. BOARD OF DIRECTORS The Company announces the resignation of Mr. Todd Bruce from the Board of Directors. Mr. Bruce has recently accepted a senior position in a gold mining company and the Board would like to thank him for his contribution and wish him well in his future activities. CAMBIOR INCLUDED IN THE S&P/TSX INDEX The increase in the market capitalization Market Capitalization A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap. of the Company on the Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. (TSX) following its recent share issuance combined with the excellent performance of the share price since the beginning of the year, has allowed the Company to be included in the S&P/TSX Composite Index Composite Index A grouping of equities, indexes or other factors combined in a standardized way, providing a useful statistical measure of overall market or sector performance over time. Also known simply as a "composite". and the following sub-indices: the S&P/TSX SmallCap Index, S&P/TSX Capped Materials Index and the S&P/TSX Capped Gold Index. This inclusion will be beneficial for the Company's shareholders, since it should increase the liquidity of the shares. OUTLOOK Louis P. Gignac, President and Chief Executive Officer of Cambior, stated, "we are continuing our efforts to generate shareholder value by improving our financial condition, increasing our producing assets and growing our reserve/resource base and our pipeline of mining prospects. We are focused on delivering profitable growth and are maintaining our production forecast of 522,000 ounces of gold in 2003." MD&A and Consolidated Financial Statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge Cambior's interim MD&A and unaudited Consolidated Financial Statements for the third quarter and the first nine months ended September 30, 2003 with the accompanying notes and comments are available in PDF (Portable Document Format) The de facto standard for document publishing from Adobe. On the Web, there are countless brochures, data sheets, white papers and technical manuals in the PDF format. format on our website at www.cambior.com or through the CCNMatthews website at http://www2.cdn-news.com/database/fax/2000/mdna1022.pdf Reminder for the Third Quarter 2003 Financial Results Conference Call Cambior will host a conference call on October 23, 2003 at 1:30 p.m., local time, to discuss its third quarter 2003 financial results. Financial analysts are invited to participate in the call by dialing 1-800-346-5998 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. . Outside of North America, please dial (416) 641-6656. Media and all other interested individuals are invited to listen to the live webcast on the Cambior website at www.cambior.com or through CCNMatthews at www.ccnmatthews.com/cambior. The conference call will be available for replay for a period of 48 hours by calling (416) 626-4100, reservation #21162187. The webcast will also be archived on the Company's website. Cambior Inc. is an international gold producer with operations, development projects and exploration activities throughout the Americas. Cambior's shares trade on the Toronto (TSX) and American (AMEX) stock exchanges under the symbol "CBJ". Cambior's warrants (CBJ.WT.B. and CBJ.WT.C.) trade on the TSX. Cautionary Note to U.S. Investors - 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. Securities and Exchange Commission (the "SEC") permits mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this press release, such as "mineral resources," that the SEC guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. strictly prohibit pro·hib·it tr.v. pro·hib·it·ed, pro·hib·it·ing, pro·hib·its 1. To forbid by authority: Smoking is prohibited in most theaters. See Synonyms at forbid. 2. us from including in our filings with the SEC. U.S. investors are urged to consider closely the disclosure in Cambior's Annual Report on Form 40-F. A copy of the 2002 Form 40-F is available to shareholders, free of charge, upon written request addressed to the Investor Relations Investor relations The process by which the corporation communicates with its investors. Department. Caution Concerning 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. This press release contains certain "forward-looking statements", including, but not limited to, the statements regarding the Company's strategic plans, the use of hedging and non-hedge derivative instruments, future commercial production and financial results, production targets and timetables, the evolution of mineral reserves, the negotiation and the completion of the merger with Ariane Gold Corp., mine operating costs, capital expenditures, work programs, development plans and exploration budgets. Forward-looking statements express, as at the date of this press release, the Company's plans, estimates, forecasts, projections, expectations or beliefs as to future events or results. Forward-looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. Therefore, actual results and future events could differ materially from those anticipated in such statements. Risks and uncertainties that could cause results or future events to differ materially from current expectations expressed or implied by the forward-looking statements include, but are not limited to, factors associated with fluctuations in the market price of precious metals Precious Metals Valuable metals such as gold, iridium, palladium, platinum, and silver. Notes: Investing in precious metals can be done either by purchasing the physical asset, or by purchasing futures contracts for the particular metal. , mining industry risks, uncertainties related to the obtainment of all required approvals regarding the merger with Ariane Gold Corp., risks associated with foreign operations, environmental risks and hazards, uncertainty as to calculation of mineral reserves, requirement of additional financing, risks of hedging strategies, risk related to non-hedge derivative instruments, risks of delays in construction and other risks referred to in Cambior's 2002 Annual Information Form filed with the Securities Commissions of all provinces in Canada, and with the United States Securities and Exchange Commission (under Form 40-F), as well as the Toronto Stock Exchange 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. .
CAMBIOR INC.
HIGHLIGHTS
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(unaudited) Third Quarter Nine months
All amounts in US dollars ended September 30, ended September 30,
2003 2002 2003 2002
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RESULTS (in millions of $)
Revenues 48.7 52.6 138.7 150.8
EBITDA(1) 11.3 13.1 22.4 31.5
Cash flow from
operating activities 4.6 9.0 6.8 18.3
Adjusted cash flow from
operating activities(2) 7.7 12.1 16.0 27.5
Earnings (Loss) before
the undernoted items 3.1 3.2 (2.7) 5.3
Non-hedge derivative
gain (loss) and other (2.4) 0.8 (1.0) (14.8)
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Net earnings (loss) 0.7 4.0 (3.7) (9.5)
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PER SHARE ($)
EBITDA (1) 0.06 0.08 0.13 0.23
Cash flow from
operating activities 0.02 0.06 0.04 0.14
Adjusted cash flow from
operating activities(2) 0.04 0.08 0.09 0.20
Earnings (Loss) before
the undernoted items 0.01 0.02 (0.02) 0.04
Non-hedge derivative
gain (loss) and other (0.01) 0.01 (0.00) (0.11)
--------------------------------------------
Net earnings (loss) 0.00 0.03 (0.02) (0.07)
Basic weighted average
number of common shares
outstanding (in millions) 193.1 154.7 176.2 134.5
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GOLD
Number of ounces
produced (000) 124 150 378 436
Number of ounces sold (000) 119 145 372 438
Accounting realized
price ($ per ounce) 341 315 319 305
Average market price
($ per ounce) 363 314 354 306
Mine operating costs
($ per ounce) 238 216 245 218
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FINANCIAL POSITION
(in millions of $) September 30, 2003 December 31, 2002
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Cash and short-term investments 69 43
Total assets 389 279
Total debt 49 28
Deferred revenue 27 37
Shareholders' equity 256 163
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(1) Earnings before interest, taxes, depreciation and amortization,
non-hedge derivative gain/loss and other.
(2) Cash flow from operating activities presented without the impact
of deferred revenue.
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Third Quarter ended Nine months ended
GOLD PRODUCTION STATISTICS September 30, September 30,
(unaudited) 2003 2002 2003 2002
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Omai (100%)
Production (ounces) 62,200 90,100 193,800 245,600
Tonnage milled (t) 1,341,800 1,924,600 4,340,100 5,791,000
Grade milled (g Au/t) 1.57 1.58 1.52 1.43
Recovery (%) 92 92 91 92
Mine operating costs
($ per tonne milled) 10 10 10 9
Mine operating
costs ($ per ounce) 213 210 228 216
Depreciation ($per ounce) 34 39 35 40
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Doyon Division (1)
Production (ounces) 53,000 52,100 161,300 165,300
Tonnage milled (t)
Underground mines 282,700 308,400 822,900 941,300
Low grade stockpile 52,300 18,400 144,800 38,500
Total 335,000 326,800 967,700 979,800
Grade milled (g Au/t)
Underground mines 6.0 5.5 6.2 5.7
Low grade stockpile 1.0 1.0 1.0 1.0
--------------------------------------------
Average 5.2 5.2 5.5 5.5
Recovery (%) 95 96 95 95
Mine operating costs
($ per tonne milled) 42 36 44 37
Mine operating costs
($ per ounce) 267 224 265 222
Depreciation ($ per ounce) 73 65 71 64
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Sleeping Giant (50%)
Production (ounces) 8,800 7,500 23,300 24,900
Tonnage milled (t) 25,100 22,400 63,300 77,300
Grade milled (g Au/t) 11.2 10.7 11.8 10.3
Recovery (%) 97 97 97 97
Mine operating costs
($ per tonne milled) 85 76 91 69
Mine operating costs
($ per ounce) 246 227 249 213
Depreciation ($ per ounce) 52 50 51 46
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TOTAL GOLD PRODUCTION
(ounces) 124,000 149,700 378,400 435,800
MINE OPERATING COSTS
($ per ounce) 238 216 245 218
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CONSOLIDATED GOLD PRODUCTION
COSTS ($ per ounce)
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Direct mining costs 232 212 238 223
Deferred stripping costs 7 3 7 (6)
Refining and transportation 1 2 2 2
By-product credits (2) (1) (2) (1)
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Mine operating costs 238 216 245 218
Royalties 10 10 10 10
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Total operating costs 248 226 255 228
Depreciation 52 49 51 49
Restauration 4 3 4 3
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Total production costs 304 278 310 280
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(1) Includes the Doyon and Mouska mines
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