Cambior Reports its Third Quarter 1998 Results -- Part 2 of 3 -- More Financial Tables Will Follow.MONTREAL--(BUSINESS WIRE)--Oct. 28, 1998-- 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”. (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) FINANCING Cambior continues to maintain a sound financial position with cash resources of $23 million and an unused debt capacity of up to $111 million for total liquidity of more than $134 million at September September: see month. 30, 1998. The net debt to equity ratio The debt to equity ratio (D/E) is a financial ratio indicating the relative proportion of equity and debt used to finance a company's assets. It is equal to total debt divided by shareholders' equity. was maintained at 17 percent. During the third quarter, Cambior entered into a new five year Extendible Revolving Term Credit Facility with a banking syndicate Syndicate organized crime unit throughout major cities of the United States. [Am. Hist.: NCE, 2018] See : Gangsterism jointly managed by The Chase Manhattan Bank The Chase Manhattan Bank, now part of JPMorgan Chase, was formed by the merger of the Chase National Bank and the Bank of the Manhattan Company in 1955. The bank is headquartered in New York City. and The Bank of Nova Scotia Nova Scotia (nō`və skō`shə) [Lat.,=new Scotland], province (2001 pop. 908,007), 21,425 sq mi (55,491 sq km), E Canada. Geography for up to $250 million or 750,000 ounces of gold, an increase of $25 million and 150,000 ounces from the previous facility. The facility amount will reduce by $30 million or 90,000 ounces of gold semi-annually starting on June June: see month. 30, 2000 with a final reduction of $70 million or 210,000 ounces on June 30, 2003. Based on the bank debt outstanding of $139 million as of September 30, 1998, Cambior would have a first debt repayment of only $9 million in December December: see month. 2001. The reduction schedule of the credit facility may be extended annually by one year by agreement between Cambior and the Banks. This new facility also provides for a general streamlining of administrative requirements from the lenders and less restrictive covenants Restrictive covenants Provisions that place constraints on the operations of borrowers, such as restrictions on working capital, fixed assets, future borrowing, and payment of dividends. . LAWSUIT lawsuit: see procedure; tort. DISMISSAL During the third quarter, Cambior announced that it had obtained a dismissal of 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. class action proceedings in connection with the 1995 Omai 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. dam failure, in Guyana Guyana (gīăn`ə, –än`–), officially Co-operative Republic of Guyana, republic (2005 est. pop. 765,000), 83,000 sq mi (214,969 sq km), NE South America. . In a judgment released on August 14, 1998, the Superior Court of Quebec The Court of Quebec is the Provincial Court of the Canadian province of Quebec. The Court is divided into the following areas: The Civil Division The Criminal and Penal Division The Youth Division External links
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:
ounce, in zoology: see leopard. ounce, unit of measurement ounce: see English units of measurement. in two years. Cambior enjoys a sound financial position and has put in place a hedging position to weather the current weak metal prices and protect our revenues over the near term. We are prudently advancing our low-cost heap-leach gold projects, 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 and La Arena, and reviewing investment opportunities". YEAR 2000 Cambior is aware of the potential disruption disruption /dis·rup·tion/ (dis-rup´shun) a morphologic defect resulting from the extrinsic breakdown of, or interference with, a developmental process. that might be caused by the passage to the year 2000 and other date-related problems associated with it. The primary concern has been the financial systems in use. The majority of our systems have been confirmed by our Vendors to be year-2000 compliant. They will generally be upgraded to most recent versions together with others that are not completely compliant with a targeted completion in 1998. The inventory of process control instrumentation instrumentation, in music: see orchestra and orchestration. instrumentation In technology, the development and use of precise measuring, analysis, and control equipment. has been completed at a majority of our locations and is currently being so completed at all others. Date sensitiveness and criticality is currently being established and suppliers are being contacted for compliance certification or remediation, again with targeted completion by early 1999. Costs to complete the process are not currently expected to be material. Third-party service and supply providers together with financial institutions with which Cambior transacts business will be contacted during the balance of the year and in the first quarter of 1999. Reliability of the commitments or comfort that will be expressed will then have to be evaluated and mitigation MITIGATION. To make less rigorous or penal. 2. Crimes are frequently committed under circumstances which are not justifiable nor excusable, yet they show that the offender has been greatly tempted; as, for example, when a starving man steals bread to satisfy defined where either criticality or insufficient comfort warrants it. This will be equally the case for the financial systems and instrumentation. Notwithstanding the above activities, there can be no assurance that issues related to the impending im·pend intr.v. im·pend·ed, im·pend·ing, im·pends 1. To be about to occur: Her retirement is impending. 2. arrival of year 2000 will not adversely affect Cambior generally and all or any of its operations, financial position, financial results and relations with third parties, in particular. Such adverse effects, if any, may be material. 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 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 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 . 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 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 and American (AMEX) stock exchanges under the symbol "CBJ". -0-
CAMBIOR INC
HIGHLIGHTS
------------ ----------------
First Second
Quarter Quarter Third Quarter First nine
ended ended ended months ended
March 31 June 30 Sept.30 Sept.30
1998 1998 1998 1997 1998 1997
All amounts in US dollars $ $ $ $ $ $
-------------------------- --------------------------------------
RESULTS (in millions $)
Total revenues 92.5 91.6 82.6 83.7 266.7 239.2
Net earnings 9.6 2.1 0.4 3.6 12.1 6.9
Cash flow
from operations/a 30.5 21.8 17.6 18.3 69.9 51.6
-------------------- ------ ----- ----- ----- ----- -----
PER COMMON SHARE ($)
Earnings 0.14 0.03 0.01 0.06 0.17 0.11
Cash flow
from operations/a 0.46 0.31 0.25 0.31 1.01 0.86
Weighted average
number of shares
(in millions)/b 66.8 70.6 70.6 60.2 69.3 60.1
------------------- ------- ---- ----- ----- ----- -----
GOLD PRODUCTION
Number of ounces (000) 148 163 157 122 468 376
Direct mining
costs ($ per ounce) 250 237 222 258 236 264
Cambior's selling
price ($ per ounce) 469 391 360 407 405 430
Market price
($ per ounce) 294 300 289 324 294 339
------------------ ------- ---- ---- ---- ---- -----
ZINC PRODUCTION
Number of pounds
(in millions) 34 40 38 35 112 67
Realized
market price (cents/lb) 46 47 50 72 48 68
------------------ ------ ---- ---- ---- ---- ----
FINANCIAL POSITION
(in millions $)
September 30, June 30, December 31,
1998 1998 1997
Cash 23 33 51
Total assets 830 854 765
Total debt 142 162 141
Net debt 119 129 90
Shareholders' equity 576 591 536
Liquidities 134 77 124
Net debt-to-equity
ratio (percent) 17 17 14
------------------- ---- ----- ------
/a Before changes in working capital items.
/b As at September 30, 1998, Cambior had a total of 70.6 million
common shares outstanding.
CAMBIOR INC.
------------
CONSOLIDATED EARNINGS
(in thousands of US dollars)
(unaudited)
Third Quarter First nine
ended months ended
September 30, September 30,
1998 1997 1998 1997
$ $ $ $
----------------- ---------------------------------------
REVENUES
Mining operations 82,235 82,273 265,040 234,787
Investments 359 1,449 1,668 4,419
----------------- ------- ------- -------- ---------
82,594 83,722 266,708 239,206
----------------- ------- ------- ------- ---------
EXPENSES
Mining operations 45,111 42,097 141,008 125,397
Smelting, refining
and transportation 11,875 16,754 36,977 34,827
Depreciation, depletion
and amortization 16,303 11,931 49,033 34,791
Royalties 1,184 1,336 3,789 4,507
Exploration 2,334 2,549 6,068 9,824
Disposal of an
exploration
property -- -- (4,232) --
Administration 1,439 1,696 4,759 5,551
Capital tax 483 238 1,573 1,150
Financial expenses 2,431 2,318 6,724 8,830
Loss (Gain) on foreign
exchange (46) (99) 662 (204)
----------------- -------- ------ ------- -------
81,114 78,820 246,361 224,673
----------------- -------- ------ ------- -------
Earnings before the
undernoted items 1,480 4,902 20,347 14,533
Income taxes and mining
duties 985 1,047 6,658 5,043
---------------- -------- ------ ------- ------
495 3,855 13,689 9,490
Minority interests 63 276 1,580 2,581
----------------- -------- ------ ------ ------
Net earnings 432 3,579 12,109 6,909
----------------- -------- ------ ------- ------
Per common share
(in dollars) 0.01 0.06 0.17 0.11
----------------- --------- ------ ------ -----
Weighted average number of common
shares outstanding
(in thousands) 70,563 60,156 69,312 60,148
----------------- -------- ------- -------- ------
CAMBIOR INC.
--------------
CONSOLIDATED CHANGES
IN CASH RESOURCES
(in thousands of US dollars)
Third Quarter First nine
ended months ended
September 30, September 30,
(unaudited) 1998 1997 1998 1997
$ $ $ $
--------------------- --------------------------------------
OPERATING ACTIVITIES
Net earnings 432 3,579 12,109 6,909
Non-cash items
Depreciation, depletion
and amortization 16,303 11,931 49,033 34,791
Income tax benefit,
deferred income taxes
and deferred mining duties 719 861 5,823 4,379
Minority interests 63 276 1,580 2,581
Other 98 1,732 1,377 2,976
--------------------- ---------- --------- ------- ------
Cash flow from operations 17,615 18,379 69,922 51,636
Changes in working capital
items (1,474) 8,070 (6,100) (204)
-------------------- ---------- --------- ------- ------
Cash provided by operating
activities 16,141 26,449 63,822 51,432
-------------------- ---------- --------- ----- -------
INVESTMENT ACTIVITIES
Investments -- (1,013) (3,463) (1,954)
Property, plant and
equipment (20,753) (23,788) (67,305) (73,858)
Accrued liabilities --
construction in progress -- (3,026) -- (696)
Acquisition of a
Joint Venture (466) -- (99,061) --
--------------------- ---------- -------- -------- ------
Cash used in investment
activities (21,219) (27,827) (169,829) (76,508)
--------------------- ---------- --------- -------- ------
FINANCING ACTIVITIES
Long-term debt
Borrowings 144,950 55,512 365,163 255,510
Repayments (164,643) (55,904) (364,563)(275,187)
Deferred gain 14,441 (945) 8,351 (2,836)
Minority interests (63) (276) (1,580) (2,581)
Purchase price balance -- -- 20,000 --
Common share issue 1 -- 51,984 212
Dividends -- -- (1,764) (3,128)
Other -- -- (50) (84)
------------------- ----------- -------- ------- ------
Cash provided by (used in)
financing activities (5,316) (1,613) 77,541 (28,094)
-------------------- ------------ --------- ------- ------
Decrease in cash (10,394) (2,991) (28,466) (53,170)
Cash, beginning of period 33,142 61,185 51,214 111,364
------------------- ---------- -------- ------- -------
Cash, end of period 22,748 58,194 22,748 58,194
------------------- ----------- --------- ------- ------
Cash flow from operations
per share (in dollars) 0.25 0.31 1.01 0.86
----------------------- ------- -------- ------- ------
Weighted average number
of common shares
outstanding
(in thousands) 70,563 60,156 69,312 60,148
------------------- --------- ---------- ------- ------
CAMBIOR INC.
--------------------
CONSOLIDATED BALANCE SHEETS
(in thousands of US dollars) September 30, December 31,
1998 1997
$ $
(unaudited) (audited)
---------------------- ------------------- ------------------
ASSETS
Current assets
Cash 22,748 51,214
Settlements receivable
& other receivables 24,308 24,466
Supplies inventory 28,361 28,175
Prepaid expenses 2,483 3,795
------------------------ ------------------ ------------------
77,900 107,650
Investments 9,049 5,743
Property, plant and equipment 742,995 647,674
Income tax benefit -- 3,725
------------------ --------------------- ----------------
829,944 764,792
----------------- - --------------------- ----------------
LIABILITIES
Current liabilities
Accounts payable and
accrued liabilities 30,238 36,346
Purchase price balance 20,000 --
Current portion of long-term debt 566 15,669
------------------------- ----------------- ---------------
50,804 52,015
Long-term debt 141,431 125,728
Deferred gain 41,110 32,759
Provision for environmental
obligations 6,928 4,833
Deferred mining duties and deferred
income taxes 12,335 11,519
Minority interests 1,659 1,659
------------------------- ------------------ --------------
254,267 228,513
------------------------- ----------------- --------------
SHAREHOLDERS' EQUITY
Capital stock 204,961 176,270
Contributed surplus 361,542 335,913
Retained earnings 46,431 37,536
Cumulative translation adjustment (37,257) (13,440)
------------------------- ---------------- ------------
575,677 536,279
---------------- -----------
829,944 764,792
---------------- -----------
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