Cambior Reports First Quarter 1999 Financial Results.MONTREAL--(BUSINESS WIRE)--April 28, 1999-- 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 inc - /ink/ increment, i.e. increase by one. Especially used by assembly programmers, as many assembly languages have an "inc" mnemonic. Antonym: dec. .(ME: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.) (AMEX AMEX See: American Stock Exchange :CBJ) Cambior Inc. reports strong operating performance and profitable financial results for the quarter ended March 31, 1999, despite the weakness in the gold markets. Gold production increased to 164,200 ounces during the first quarter of 1999, an 11 percent increase over the ounces produced in the same period of 1998. The direct mining cost for gold production continued to decline, averaging $217 per ounce ounce, in zoology ounce, in zoology: see leopard. ounce, unit of measurement ounce: see English units of measurement. for the first quarter, a 13 percent reduction over the same period in the previous year. Revenue totaled $86 million and 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 $15.4 million (22 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. ) for the quarter. Net earnings for the first quarter of 1999 were $1.0 million (1 cent per share). The successful gold 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. program generated an average realized price of $364 per ounce. FINANCIAL RESULTS Revenues for the first quarter of 1999 amounted to $86 million, as compared to $92 million for the same period in the previous year. Cash flow from operations (before changes in working capital items) totaled $15.4 million (22 cents per share) compared to $27.4 million (41 cents per share) for the first quarter of 1998. Net earnings for the first quarter of 1999 amounted to $1.0 million (1 cents per share) compared to $9.6 million (14 cents per share) in the previous year. Cambior's successful hedging program continued to attenuate To reduce the force or severity; to lessen a relationship or connection between two objects. In Criminal Procedure, the relationship between an illegal search and a confession may be sufficiently attenuated as to remove the confession from the protection afforded by the the negative impact of the weak gold markets. Realized gold prices for the first quarter attained at·tain v. at·tained, at·tain·ing, at·tains v.tr. 1. To gain as an objective; achieve: attain a diploma by hard work. 2. $364 per ounce, a $77 per ounce premium over the average spot price. Nevertheless, financial results were negatively affected as the realized gold price of $364 per ounce was lower than the $469 per ounce realized in the first quarter of 1998. The impact of these weak market conditions was partially offset by an increase in gold production of 11 percent, as compared to the corresponding period of 1998. More importantly, gold production costs were reduced by 13 percent to $217 per ounce for the first quarter of 1999. Further to newly issued accounting guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. , the reporting of cash flow from operations has been adjusted to account for gold hedging gains in the period in which they were realized, instead of amortizing these deferred gains over the period for which they had originally been put in place. For the first quarter of 1999, the application of these guidelines reduced cash flow from operations by $4.6 million or 6 cents per share as compared to the previous method of accounting. These changes will also effect a reclassification Reclassification The process of changing the class of mutual funds once certain requirements have been met. These requirements are generally placed on load mutual funds. Reclassification is not considered to be a taxable event. for the prior periods of 1997 and 1998, as the realized hedging gains would have increased the previously reported cash flow from operations. MARKETS AND HEDGING PROGRAM During the first quarter of 1999, gold markets traded mostly within the range of $280 to $294 per ounce, with prices averaging $287 per ounce for the quarter. Cambior's active hedging program continued to protect and enhance revenues by generating an average realized price, for the first quarter, of $364 per ounce of gold for a premium of $77 per ounce over the average market price. As of April 1, 1999, the gold hedging program had a net position ensuring an average price of $355 per ounce on 607,000 ounces of gold over the next two years, including full coverage of the remaining gold production for 1999 at $362 per ounce. This realized price will be achieved with the benefit of the hedge positions on the forward sale of gold production and the amortization of deferred earnings generated by the conversion of gold loan hedge positions. The call option position was reduced to 2.4 million ounces from the 4 million ounces outstanding at year- end 1998. These ounces are subject to call options sold at an average price of $340 per ounce over a period of four years. If exercised, these options can be rolled over and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. converted into spot deferred contracts. Zinc markets improved during the first quarter averaging 45 cents/lb as compared to 43 cents/lb during the previous quarter. The hedging program assured a realized price of 47 cents/lb for the quarter and will provide a minimum price of 48 cents/lb for the remaining exposure for the year. Copper markets weakened weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. during the quarter while
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. markets remained stable.OPERATIONS Gold production for the first quarter of 1999 was 164,000 ounces, an 11 percent increase over the first quarter of 1998 when the Company produced 148,000 ounces. The increase in gold production was primarily due to the production increases achieved at the Doyon Division as a result of the implementation of the Cambior improvement program begun in early 1998. Direct mining costs improved to $217 per ounce, a 13 percent reduction as coand a further reduction from the fourth quarter 1998 performance. These costs reductions were achieved primarily at Doyon but important reductions were also achieved at Omai, Sleeping Giant Sleeping Giant may refer to: In geology:
Zinc production was 16,900 tonnes for the first quarter of 1999, as compared to 15,300 tonnes in the corresponding quarter in 1998 due to the increased head grades at the Bouchard-Hebert and Langlois Langlois is a surname, and may refer to:
DOYON The Doyon division contributed 61,900 ounces of gold for the quarter, a 25 percent improvement as compared to 49,400 ounces for the same period last year. The production level was generally on target despite a 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. 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. mined during the holiday season. For the quarter, the division processed 332,000 tonnes at a grade of 6.1 g Au/t, which included 23,000 tonnes from the low- grade 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. at a grade of 1 g Au/t. Direct mining costs for the Doyon division for the quarter were $212 per ounce of gold, a 16 percent reduction from the first quarter of 1998 and a 5 percent reduction from the previous quarter. In late March, a reorganization The process of carrying out, through agreements and legal proceedings, a business plan for winding up the affairs of, or foreclosing a mortgage upon, the property of a corporation that has become insolvent. of work schedules was implemented which resulted in a 10 percent reduction in the workforce. This reorganization will likely result in temporary production disruption disruption /dis·rup·tion/ (dis-rup´shun) a morphologic defect resulting from the extrinsic breakdown of, or interference with, a developmental process. in the second quarter but will generate enhanced profitability. OMAI The Omai mine produced 80,700 ounces of gold during the first quarter, a level similar to the first quarter of 1998. The mill averaged 20,500 tonnes per day and processed 72 percent hard rock. The direct mining cost per tonne tonne measure of weight or mass; 1 tonne=1000 kg. See also ton. was $10.13 for the first quarter of 1999 compared to $10.45 for the first quarter of 1998. The average grade milled during the first quarter was 1.47 g Au/t, higher than anticipated. The average direct mining cost was $231 per ounce of gold as compared to $244 per ounce in the first quarter of 1998 benefiting from lower fuel costs and improving efficiencies in pit operations and general services. SLEEPING GIANT Cambior's share of production from the Sleeping Giant mine for the quarter amounted to 10,500 ounces of gold, a 50 percent improvement over the first quarter of 1998 due to increased 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. and grade. The average direct mining cost was $171 per ounce of gold, a 21 percent reduction from the first quarter of 1998 when the average direct mining cost was $216 per ounce. BOUCHARD-HEBERT The Bouchard-Hebert mine produced 9,300 tonnes of zinc in concentrate and 2,000 tonnes of copper in concentrate during the first quarter of 1999 compared to zinc and copper production of 8,400 tonnes and 1,700 tonnes, respectively during the first quarter of 1998. The gold equivalent contained in the copper concentrate totaled 10,500 ounces. The Net Smelter Return (NSR NSR abbr. normal sinus rhythm NSR Normal sinus rhythm, see there ) improved to $34 per tonne as higher head grades yielded increased zinc production. Operating costs operating costs npl → gastos mpl operacionales were $22 per tonne for the quarter an important reduction from the $24 per tonne experienced in the corresponding period of 1998. LANGLOIS The Langlois mine produced 7,600 tonnes of zinc in concentrate and 250 tonnes of copper in concentrate during the first quarter of 1999 as compared to 6,900 tonnes of zinc in concentrate and 290 tonnes of copper in concentrate during the first quarter of 1998. The increase in zinc production is attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to a significant increase in grade from 6.4 percent Zn in the first quarter of 1998, to 8.2 percent Zn in the first quarter of 1999. Consequently, the NSR per tonne improved from $27 per tonne in the first quarter of last year to $41 per tonne in the first quarter of 1999. NIOBEC Cambior's share of production from the Niobec mine during the first quarter of 1999 totaled 294 tonnes of niobium as compared to 273 tonnes of niobium in the first quarter of 1998. INVESTMENTS Investments during the first quarter of 1999 totaled $20 million, and were principally focused on sustaining and improving operations at Doyon ($5.3 million) and Omai ($4.4 million). The funding of advanced international development projects focused on the low-cost heap leach leach v. leached, leach·ing, leach·es v.tr. 1. To remove soluble or other constituents from by the action of a percolating liquid. 2. projects of Cerro San Pedro Pedro. For Spanish and Portuguese rulers thus named, use Peter. Pedro in marrying former mistress of enemy. [Ger. Opera: d’Albert, Tief land, Westerman, 371–374] See : Innocence ($2.4 million) and Huamachuco ($3.2 million). FINANCING Cambior continues to maintain a sound financial position wused debt capacity of $76 million for total liquidity of $95 million at March 31, 1999. The total debt position at March 31, 1999, was $176 million and the net debt was $157 million, which represents a net debt-to-capital ratio of 22 percent. Under the new $250 million extendible five-year Revolving Credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. Facility the first scheduled repayments for $44 million are due only in 2001. CORPORATE OVERVIEW Cambior President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , 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:
adj. 1. Wise in handling practical matters; exercising good judgment or common sense. 2. Careful in regard to one's own interests; provident. 3. Careful about one's conduct; circumspect. our investment and development commitments. Cambior enjoys a sound financial position supported by operating mines with the potential to improve production performance. We are managing Cambior successfully through these difficult market conditions and are well positioned to take advantage of opportunities". Cambior Inc. is an international diversified diversified (di·verˑ·s gold producer with operations, development projects and exploration activities throughout the Americas A·mer·i·cas , the See America. . Cambior is the first gold mining company to receive ISO (1) See ISO speed. (2) (International Organization for Standardization, Geneva, Switzerland, www.iso.ch) An organization that sets international standards, founded in 1946. The U.S. member body is ANSI. 14001 certification of its environmental management system. 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 , Montreal Montreal (mŏn'trēôl`), Fr. Montréal (môNrāäl`), city (1991 pop. 1,017,666), S Que., Canada, on Montreal island, surrounded by St. Lawrence River and Rivière des Prairies. 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 Annual Information Form (AIF AIF Annual Information Form AIF Apoptosis-Inducing Factor AIF Agence Intergouvernementale de la Francophonie (French: Intergovernmental Agency for Francophony) AIF Australian Imperial Force ) filed with the Ontario Securities Commission The Ontario Securities Commission (OSC) is a regulatory agency which administers and enforces securities legislation in the Canadian province of Ontario. The OSC is an Ontario Crown corporation which reports to the Ontario legislature through the Minister of Finance. , the Quebec Quebec, city, Canada Quebec, Fr. Québec, city (1991 pop. 167,517), provincial capital, S Que., Canada, at the confluence of the St. Lawrence and St. Charles rivers. Securities Commission, the United States Securities and Exchange Commission (Form 40-F) and other regulatory authorities Noun 1. regulatory authority - a governmental agency that regulates businesses in the public interest regulatory agency administrative body, administrative unit - a unit with administrative responsibilities , and Golden Star Resources' 10-K, 10-Q and other Securities Exchange Commission filings. -0-
CAMBIOR
HIGHLIGHTS
_______________________________________________________________
All amounts in US dollars
First Quarter First Quarter
ended ended
March 31, March 31,
1999 1998
_______________________________________________________________
RESULTS (in millions $)
Total revenues 85.6 92.5
Net earnings 1.0 9.6
Cash flows from operations(i) 15.4 27.4(iii)
_______________________________________________________________
PER COMMON SHARE ($)
Earnings 0.01 0.14
Cash flows from operations(i) 0.22 0.41(iii)
Weighted average number of shares
(in millions)(ii) 70.6 66.8
_______________________________________________________________
GOLD PRODUCTION
Number of ounces (000) 164 148
Direct mining costs ($ per ounce) 217 250
Cambior's selling price
($ per ounce) 364 469
Market price ($ per ounce) 287 294
_______________________________________________________________
ZINC PRODUCTION
Number of pounds (in millions) 37 34
Number of tonnes 16,937 15,316
Realized market price (cents/lb) 47 46
_______________________________________________________________
FINANCIAL POSITION
(in millions $) March 31, 1999 December 31, 1998
Cash and short-term investments 19 22
Liquidities 95 108
Total assets 822 809
Total debt 176 166
Net debt 157 144
Shareholders' equity 556 550
Net debt-to-equity ratio (p.cent) 22 20
_______________________________________________________________
(i) Before changes in non cash working capital items.
(ii) As at March 31, 1999, Cambior had a total of 70.6 million
common shares outstanding.
(iii) The comparative data has been reclassified to conform as per
the requirements of the accounting standard in place since the
beginning of 1999 effecting the cash flow statements.
CAMBIOR INC.
_______________________________________________________________
CONSOLIDATED EARNINGS
(in thousands of US dollars)
First Quarter First Quarter
ended ended
March 31, 1999 March 31, 1998
(unaudited) $ $
_______________________________________________________________
REVENUES
Mining operations 85,216 91,906
Investments 361 594
_______________________________________________________________
85,577 92,500
_______________________________________________________________
EXPENSES
Mining operations 46,357 46,279
Smelting, refining
and transportation 12,112 11,952
Depreciation, depletion
and amortization 17,085 15,584
Royalties 1,235 1,210
Exploration 1,320 1,699
Gain on disposal of
an exploration property - (4,232)
Administration 1,870 1,810
Capital tax 516 548
Financial expenses 2,568 2,740
Loss (Gain) on foreign exchange (33) 600
_______________________________________________________________
83,030 78,190
_______________________________________________________________
Earnings before the undernoted
items 2,547 14,310
Income taxes and mining duties 1,135 3,678
_______________________________________________________________
1,412 10,632
Minority interests 412 1,027
_______________________________________________________________
Net earnings 1,000 9,605
_______________________________________________________________
Per common share (in dollars) 0.01 0.14
_______________________________________________________________
Weighted average number of common
shares outstanding (in thousands) 70,563 66,769
_______________________________________________________________
CAMBIOR INC.
_______________________________________________________________
CONSOLIDATED CASH FLOW
(in thousands of US dollars)
First Quarter First Quarter
ended ended
March 31, 1999 March 31, 1998
(unaudited) $ $
_______________________________________________________________
OPERATING ACTIVITIES
Net earnings 1,000 9,605
Adjustments for:
Depreciation, depletion and
amortization 17,085 15,584
Deferred gain (4,460) (3,045)
Income tax benefit, deferred
income taxes and deferred
mining duties 858 3,392
Minority interests 412 1,027
Other 465 852
_______________________________________________________________
Cash flows from operations 15,360 27,415
Changes in non cash working
capital items (8,097) (6,290)
_______________________________________________________________
Cash flows from operating
activities 7,263 21,125
_______________________________________________________________
INVESTMENT ACTIVITIES
Investments 298 (3,463)
Property, plant and equipment (20,312) (21,464)
Acquisition of a Joint Venture - (53,253)
_______________________________________________________________
Cash flows used in investment
activities (20,014) (78,180)
_______________________________________________________________
FINANCING ACTIVITIES
Long-term debt
Borrowings 10,000 77,367
Repayments (147) (77,436)
Minority interests - (1,027)
Common share issue - 51,939
_______________________________________________________________
Cash flows from financing
activities 9,853 50,843
_______________________________________________________________
Foreign exchange gain (loss)
on cash held in foreign
currency (307) 97
_______________________________________________________________
Net decrease in cash
and cash equivalents (3,205) (6,115)
Cash and cash equivalents,
beginning of period 22,018 51,214
_______________________________________________________________
Cash and cash equivalents,
end of period 18,813 45,099
_______________________________________________________________
Cash flows from operations
per share (in dollars) 0.22 0.41
_______________________________________________________________
Cash flows from operating
activities per share (in dollars) 0.10 0.32
_______________________________________________________________
Weighted average number of common
shares outstanding (in thousands) 70,563 66,769
_______________________________________________________________
CAMBIOR INC.
_______________________________________________________________
CONSOLIDATED BALANCE SHEETS
(in thousands of US dollars) March 31, 1999 December 31, 1998
$ $
(unaudited) (audited)
_______________________________________________________________
ASSETS
Current assets
Cash and short-term investments 18,813 22,018
Settlements receivable and other
receivables 29,805 25,511
Supplies inventory 28,111 26,176
Prepaid expenses 4,291 2,491
_______________________________________________________________
81,020 76,196
Investments 4,793 5,353
Property, plant and equipment 735,675 726,927
Income tax benefit 270 412
_______________________________________________________________
821,758 808,888
_______________________________________________________________
LIABILITIES
Current liabilities
Accounts payable and
accrued liabilities 35,333 35,553
Current portion of long-term debt 612 572
_______________________________________________________________
35,945 36,125
Long-term debt 175,734 165,895
Deferred gain 33,096 37,556
Provision for environmental
obligations 7,898 7,343
Deferred mining duties
and deferred income taxes 11,494 10,775
Minority interests 1,659 1,659
_______________________________________________________________
265,826 259,353
_______________________________________________________________
SHAREHOLDERS' EQUITY
Capital stock 204,961 204,961
Contributed surplus 361,542 361,542
Retained earnings 22,112 21,112
Cumulative translation adjustment (32,683) (38,080)
_______________________________________________________________
555,932 549,535
_______________________________________________________________
821,758 808,888
_______________________________________________________________
NOTES AND COMMENTS TO FINANCIAL STATEMENTS 1. GENERAL The accompanying ac·com·pa·ny v. ac·com·pa·nied, ac·com·pa·ny·ing, ac·com·pa·nies v.tr. 1. To be or go with as a companion. 2. unaudited 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 do not include all the disclosure required by generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting for annual statements and should be read in conjunction conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with the notes to the Company's audited consolidated financial statements for the year ended December December: see month. 31, 1998. 2. EXCHANGE RATE The average exchange rate for first quarter of 1999 was 1.5113 and the closing rate on March 31, 1999 was 1.5087. These rates were 1.4303 and 1.4198 respectively in 1998. 3. CASH FLOWS FROM OPERATIONS Further the newly issued accounting policies, the reporting of cash flows from operations has been adjusted and the comparative data has been reclassified to conform to Verb 1. conform to - satisfy a condition or restriction; "Does this paper meet the requirements for the degree?" fit, meet coordinate - be co-ordinated; "These activities coordinate well" the requirements. 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. the new method, the total gains realized are presented as an adjustment to cash flows from operations in the period in which they are realized and the amortization is excluded from cash flows from operations as it is included in the earnings statement. The following table shows the data according to the two methods:
First Quarter Twelve months
1999 1998 1998 1997
$000 $000 $000 $000
_______________________________________________________________
(unaudited)
Cash flow from operations
on previous method 19,949 30,516 84,183 68,328
Adjustments
Gains realized from the
conversion of the gold
loans into dollar loans - - 17,825 39,639
Amortization of
deferred gain (4,460) (3,045) (13,028) (6,880)
Other (129) (56) 856 318
_________________________ with the new requirements 15,360 27,415
89,836 101,405
_______________________________________________________________
_______________________________________________________________
Per share - previous method 0.28 0.46 1.21 1.14
_______________________________________________________________
_______________________________________________________________
- current method 0.22 0.41 1.29 1.69
_______________________________________________________________
_______________________________________________________________
4.GOLD HEDGING PROGRAM
First Quarter First Quarter
1999 1998
$ $
_______________________________________________________________
Cambior's selling price 364 469
Market price 287 294
Cambior's premium 77 175
_______________________________________________________________
As at March 31, 1999, the Company held the following gold hedging
positions:
1999 2000 Total
_______________________________________________________________
Forward position (ounces of gold) 472,049 135,103 607,152
Average price ($/oz) 334 309 328
Deferred gain ($/oz)(i) 28 22 27
___________________________
Total ($/oz) 362 331 355
_______________________________________________________________
(i) Gains were realized by the conversion of the gold loans into dollar loans during 1997 and 1998. An amount of $4.5 million has been recorded in the earnings of 1999 first quarter and the balance of $33.1 million will be included in the earnings as follows: $13.3 million for the last nine months of 1999, $14.1 million in 2000 and $5.7 million in 2001. For the year 2000, the table reflects the average deferred gain amortized over the forecasted ounces. Consequently, the deferred gains of $11.1 million in 2000 and $5.7 million in 2001 remain available. At year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. 1998, Cambior had sold call options on gold for a total of 4.0 millions ounces; this position was reduced to 2.4 million ounces as of April 1, 1999 at the expiry dates expiry date expire n → date f d'expiration; (on label) → à utiliser avant ... expiry date expire n → Ablauftermin m and average strike prices reported below:
1999 2000 2001 2002 Total
_______________________________________________________________
Call options sold (000) 1,280 185 587 387 2,439
Average price ($/oz) 328 370 351 349 340
_______________________________________________________________
The mark to market of these contracts on April 1, 1999, was estimated at negative $9 million. The counterparts to these contracts are international financial institutions, none of which held in excess of 20 percent of the aggregate call position. If exercised, these options can be rolled over and/or converted into spot deferred contracts. The estimated mark to market of the above hedging position as of April 1, 1999, represents the following:
$ M
____
Deferred hedging gain 33.1
Forward position 27.2
____
Total gains 60.3
Call options (9.2)
____
Total hedge position 51.1
____
____
5. INCOME TAXES AND MINING DUTIES
First Quarter
1999
$000
_______________________________________________________________
Income taxes 1,120
Mining duties 15
_______________________________________________________________
Total 1,135
_______________________________________________________________
6.INVESTMENT
First Quarter
1999
$000
_______________________________________________________________
Operations
Doyon 5,266
Omai 4,408
Bouchard-Hebert 917
Langlois 1,562
Niobec 730
Spleeping Giant 503
Other 318
_______________________________________________________________
13,704
_______________________________________________________________
Mining projects(i) 6,608
Investments (298)
_______________________________________________________________
20,014
_______________________________________________________________
(i) Mining projects First Quarter Cumulative to
March 31, March 31, 1999
$000 $000
_______________________________________________________________
Cerro San Pedro 2,357 17,237
Huamachuco 3,184 9,841
Gross Rosebel 81 17,214
Yaou Dorlin 191 13,577
Carlota 352 61,015
El Pachon 80 20,235
La Granja 363 54,134
_______________________________________________________________
Total of mining projects 6,608 193,253
_______________________________________________________________
7. SEGMENTED INFORMATION
A) Segmented information by sector of activity is as follows:
First Quarter ended
March 31, 1999
_______________________________________________________________
Canadian Guyana Other
Shield Shield Sectors Total
$000 $000 $000 $000
_______________________________________________________________
Revenues
Mining
operations 53,575 31,641 - 85,216
Investments - 67 294 361
_______________________________________________________________
53,575 31,708 294 85,577
_______________________________________________________________
Expenses
Mining operations
and other 39,400 20,155 2,502 62,057
Depreciation,
depletion and
amortization 9,041 7,789 255 17,085
Exploration 151 109 1,060 1,320
Gain on disposal of
an exploration
property - - - -
Financial expenses - 2,964 (396) 2,568
Income taxes and
mining duties 1,460 142 (467) 1,135
Minority interests - 412 - 412
_______________________________________________________________
50,052 31,571 2,954 84,577
_______________________________________________________________
Net earnings (loss) 3,523 137 (2,660) 1,000
_______________________________________________________________
Adjustments for:
Depreciation,
depletion and
amortization 9,041 7,789 255 17,085
Deferred gain (536) (3,924) - (4,460)
Income tax
benefit, deferred
income taxes and
deferred mining
duties 1,460 142 (744) 858
Minority interests - 412 - 412
Other 538 (14) (59) 465
_______________________________________________________________
Cash flows from
(used in)
operations 14,026 4,542 (3,208) 15,360
_______________________________________________________________
Cash flows used in
investment
activities (8,970) (4,681) (6,363) (20,014)
_______________________________________________________________
Property, plant and
equipment(i) 354,020 212,696 168,959 735,675
_______________________________________________________________
Total assets(ii) 378,657 242,445 200,656 821,758
_______________________________________________________________
First Quarter ended
March 31, 1998
_______________________________________________________________
Canadian Guyana Other
Shield Shield Sectors Total
$000 $000 $000 $000
_______________________________________________________________
Revenues
Mining operations 53,314 38,592 - 91,906
Investments 22 14 558 594
_______________________________________________________________
53,336 38,606 558 92,500
_______________________________________________________________
Expenses
Mining operations
and other 38,593 21,137 2,669 62,399
Depreciation,
depletion and
amortization 7,751 7,704 129 15,584
Exploration 184 173 1,342 1,699
Gain on disposal of
an exploration
property (4,232) - - (4,232)
Financial expenses - 3,612 (872) 2,740
Income taxes and
mining duties 1,785 1,971 (78) 3,678
Minority interests - 1,027 - 1,027
______________________________________________________________
44,081 35,624 3,190 82,895
______________________________________________________________
Net earnings
(loss) 9,255 2,982 (2,632) 9,605
______________________________________________________________
Adjustments for:
Depreciation,
depletion and
amortization 7,751 7,704 129 15,584
Deferred gain (228) (2,817) - (3,045)
Income tax
benefit, deferred
income taxes and
deferred mining
duties 1,687 1,971 (266) 3,392
Minority
interests - 1,027 - 1,027
Other 809 43 - 852
______________________________________________________________
Cash flows from
(used in)
operations 19,274 10,910 (2,769) 27,415
______________________________________________________________
Cash flows used in
investment
activities (64,406) (4,287) (9,487) (78,180)
______________________________________________________________
Property, plant and
equipment(i) 376,006 220,912 161,866 758,784
______________________________________________________________
Total assets(ii) 402,115 248,834 224,827 875,776
______________________________________________________________
As at March 31, 1999 As at March 31, 1998
$000 $000
______________________________________________________________
(i) Property, plant and
equipment for the
other sectors
Northern Cordillera 78,421 79,820
Andes 85,669 78,343
Corporate 4,869 3,703
______________________________________________________________
168,959 161,866
______________________________________________________________
(ii)Total assets for the
other sectors
Northern Cordillera 82,564 89,390
Andes 85,750 78,179
Corporate 32,342 57,258
______________________________________________________________
200,656 224,827
7.SEGMENTED INFORMATION (continued)
B) Additional information by category of metals is as follows:
First Quarter 1999 Gold(i) Metals(ii) Total
$000 $000 $000
______________________________________________________________
Gross revenues 60,356 25,221 85,577
Less : Smelting, refining
and transportation 652 11,460 12,112
______________________________________________________________
Net revenues 59,704 81 13,761 19 73,465
p.cent p.cent
Mining operations 36,462 9,895 46,357
______________________________________________________________
Mine cash flow 23,242 86 3,866 14 27,108
p.cent p.cent
Expenses net
of adjustments 11,193 555 11,748
______________________________________________________________
Cash flows
from operations 12,049 78 3,311 22 15,360
p.cent p.cent
per share ($) 0.17 0.05 0.22
Investment 16,273 3,741 20,014
Property, plant and equipment
Productive assets 394,604 147,818 542,422
Projects 57,869 135,384 193,253
______________________________________________________________
452,473 283,202 735,675
______________________________________________________________
(i) Gold includes silver converted to gold equivalent (3,437 ounces
or 2.1 percent).
(ii) Metals include zinc (58 percent NSR), copper (12 percent NSR)
and ferroniobium (30 percent NSR). For the Bouchard-Hebert and
Langlois mines, the revenues and mining expenses are calculated on
a pro rata of Net Smelter Return basis (NSR).
CAMBIOR INC.
______________________________________________________________
GOLD PRODUCTION STATISTICS
First Quarter First Quarter
ended ended
March 31, March 31,
1999 1998
______________________________________________________________
Omai (100 p.cent) (ounces) 80,694 80,620
Tonnage milled (t) 1,843,326 1,880,506
Tonnes per day (tpd) 20,482 20,895
Grade milled (g Au/t) 1.47 1.45
Recovery (p.cent) 92 92
Hard Rock (p.cent) 72 68
Direct mining costs
($ per tonne milled) 10.13 10.45
Direct mining costs ($ per ounce) 231 244
Depreciation ($ per ounce) 100 99
______________________________________________________________
Doyon (100 p.cent) (ounces) 61,895 49,449
Tonnage milled (t) 331,922 317,526
Tonnes per day (tpd) 3,688 3,528
Grade milled (g Au/t) 6.1 5.1
Recovery (p.cent) 96 95
Direct mining costs
($ per tonne milled) 40 39
Direct mining costs ($ per ounce) 212 252
Depreciation ($ per ounce) 81 81
______________________________________________________________
Sleeping Giant (50 p.ent) (ounces)10,482 6,999
Direct mining costs ($ per ounce) 171 216
Depreciation ($ per ounce) 35 51
______________________________________________________________
Bouchard-Hebert/Langlois
(ounces)(i) 11,121 10,757
Direct mining costs ($ per ounce) 181 306
______________________________________________________________
TOTAL GOLD PRODUCTION (ounces) 164,192 147,825
DIRECT MINING COSTS ($ per ounce) 217 250
______________________________________________________________
(i) Gold and silver produced at Bouchard-Hebert and Langlois mines
are reported in gold equivalent.
CAMBIOR INC.
CONSOLIDATED GOLD PRODUCTION COSTS PER OUNCE
($ per ounce)
First Quarter First Quarter
ended ended
March 31, March 31,
1999 1998
______________________________________________________________
Direct mining costs 217 250
Smelting, refining
and transportation 4 4
By-products credits (1) (1)
______________________________________________________________
Cash operating cost 220(iii) 253
Royalties 7 8
______________________________________________________________
Total cash cost 227(iii) 261
Depreciation 86 89
Reclamation 2 3
______________________________________________________________
Total production cost 315 353
______________________________________________________________
(iii) The mine cash flow for the base metals provided $3.9 M in the
first quarter representing $24 per ounce produced. Net of this
credit, the cash operating cost represents $196 per ounce and the
total cash cost represents $203 per ounce.
______________________________________________________________
METAL PRODUCTION DATA
______________________________________________________________
Bouchard-Hebert
Tonnage milled (t) 266,728 257,862
Tonnes per day (tpd) 2,964 2,863
Grade - Zinc (p.cent) 4.26 3.93
Zinc (tonnes) in concentrate 9,344 8,402
Copper (tonnes) in concentrate 1,977 1,650
NSR Revenue ($ per tonne) 34 33
_____________________________________________________________
Direct mining costs
($ per tonne) 22 24
Depreciation ($ per tonne) 8 5
_____________________________________________________________
Total production costs 30 29
_____________________________________________________________
Langlois
Tonnage milled (t) 101,131 117,305
Tonnes per day (tpd) 2,054 1,892
Grade - Zinc (p.cent) 8.15 6.38
Zinc (tonnes) in concentrate 7,593 6,914
Copper (tonnes) in concentrate 250 289
NSR Revenue ($ per tonne) 41 27
_____________________________________________________________
Direct mining costs
($ per tonne) 34 30
Depreciation ($ per tonne) 14 12
_____________________________________________________________
Total production costs 48 42
_____________________________________________________________
Niobec (50 p.cent)
Ferroniobium (kg Nb) 293,792 273,101
_____________________________________________________________
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