Cambior Reports its Third Quarter 1998 Results -- Part 3 of 3 - Financial Tables --.MONTREAL--(BUSINESS WIRE)--Oct. 28, 1998--CAMBIOR (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) -0-
NOTES AND COMMENTS TO FINANCIAL STATEMENTS
1. GENERAL
The accompanying unaudited consolidated financial statements do
not include all the disclosure required by generally accepted
accounting principles for annual statements and should be read in
conjunction with the notes to the Company's audited consolidated
financial statements for the year ended December 31, 1997.
2. EXCHANGE RATE
The average exchange rate for third quarter of 1998 was 1.5147
and the closing rate on September 30, 1998, was 1.5312. These rates
were 1.3846 and 1.3811 respectively in 1997.
3. GOLD HEDGING PROGRAM
Third Quarter First nine months
1998 1997 1998 1997
$ $ $ $
------------------------ ----- -------- --------- ----------
Cambior's selling price 360 407 405 430
Market price 289 324 294 339
Cambior's premium 71 83 111 91
------------------------ ----- -------- --------- ----------
As at September 30, 1998, the Company held the following gold
hedging positions:
1998 1999 2000 2001 Total
------------------- ------- ------- ------- ------ ----------
Forward position
(ounces of gold) 151,498 602,974 472,171 19,428 1,246,071
Average price ($/oz) 327 319 314 321 318
Deferred gain ($/oz) 23 29 30 35 33
------- ------- ------- ------- ---------
Total ($/oz) 350 348 344 356 351
------------------- ------- ------- ------- ------ ---------
Gains were realized by the conversion of the gold loans into
dollar loans during 1997 and 1998. An amount of $3.4 million has been
recorded in the results of 1998 third quarter and the balance of $41.1
million will be included in the results as follows: $3.5 million for
the fourth quarter of 1998, $17.9 million in 1999, $14.0 million in
2000 and $5.7 million in 2001.
In addition, a total of 4.1 million ounces were subject to calls
option sold at an average price of $347/oz over a period of five
years. If exercised, these options can be rolled over and/or converted
into spot deferred contracts.
4. INCOME TAXES AND MINING DUTIES
Third Quarter First nine months
1998 1998
$000 $000
---------------- ------------------------- -------------------
Income taxes 950 6,795
Mining duties 35 (137)
---------------- ------------------------- -------------------
Total 985 6,658
---------------- ------------------------- -------------------
5. INVESTMENT
Third Quarter First nine months
1998 1998
$000 $000
----------------- ----------------------- --------------------
Operations
Doyon 6,921 20,865
Omai 5,366 15,534
Bouchard-Hebert 1,080 3,716
Langlois 815 3,207
Niobec 843 2,329
Other 1,671 2,391
----------------- ----------------------- --------------------
16,699 48,042
----------------- ----------------------- --------------------
Acquisition - Doyon
(see note 7) 466 99,061
Mining projects\a 4,054 19,263
Acquisition -
Metallica Resources Inc. -- 3,463
------------------------- --------------- --------------------
21,219 169,829
------------------------- --------------- --------------------
\a Mining projects Third First nine Cumulative to
Quarter Months September 30,
1998 1998 1998
$000 $000 $000
--------------------------- --------- ------------ -------------
Cerro San Pedro 2,530 10,431 12,773
La Arena 541 3,616 6,396
Gross Rosebel 142 504 16,963
Yaou Dorlin 121 929 13,037
Carlota 251 1,228 61,477
El Pachon 100 437 20,053
La Granja 287 1,919 53,370
Metates and other 82 199 13,866
--------------------------- ---------- ----------- -------------
Total of mining projects 4,054 19,263 197,935
--------------------------- ---------- ----------- -------------
6. SEGMENTED INFORMATION
Third Quarter 1998 Gold\b Metals\c Total
$000 $000 $000
--------------------------- --------- ------------ -------------
Gross revenues 57,089 25,505 82,594
Less: Smelting, refining
and transportation 439 11,436 11,875
------ ------ ------
Net revenues 56,650 80 14,069 20 70,719
p.cent p.cent
Mining expenses 35,458 9,653 45,111
------ ------ ------
Mine cash flow 21,192 83 4,416 17 25,608
p.cent p.cent
Expenses net of non-cash
items 7,056 937 7,993
------ ------ ------
Cash flow from operations 14,136 80 3,479 21 17,615
p.cent p.cent
per share ($) 0.20 0.05 0.25
Investment 17,510 3,709 21,219
-------------------------- ---------- ----------- ------------
First nine months 1998 Gold\b Metals\c Total
$000 $000 $000
-------------------------- ---------- ----------- ------------
Gross revenues 191,636 75,072 266,708
Less: Smelting, refining
and transportation 1,606 35,371 36,977
------- ------ -------
Net revenues 190,030 83 39,701 17 229,731
p.cent p.cent
Mining expenses 112,807 28,201 141,008
------- ------ -------
Mine cash flow 77,223 87 11,500 13 88,723
p.cent p.cent
Expenses net of non-cash
items 16,544 2,257 18,801
------- ------ -------
Cash flow from operations 60,679 87 9,243 13 69,922
p.cent p.cent
per share ($) 0.88 0.13 1.01
Investment 157,441\d 12,388 169,829
Property, plant and equipment
Productive assets 397,685 147,375 545,060
Projects 63,035 134,900 197,935
------- ------- -------
460,720 282,275 742,995
------------------------- ---------- ----------- -------------
\b Gold includes silver converted to gold equivalent (7,701 ounces
or 1.6 percent - year to date - YTD).
\c Metals include zinc (62 percent NSR - YTD), copper (8 percent NSR
- YTD) and ferroniobium (30 percent NSR - YTD). For the
Bouchard-Hebert and Langlois mines, the revenues and mining
expenses are calculated on a pro rata of Net Smelter Return basis
(NSR).
\d Includes the acquisition of the 50 percent interest of the Doyon
mine for $99.1 million.
7. ACQUISITION OF THE 50 PERCENT INTEREST IN THE DOYON MINE
The Company has bought effective on January 1st, 1998, the
remaining interest in the Doyon Mine. The acquisition cost is as
follows:
In millions of $ ($ M)
---------------------------------- -----------------------------
Cash consideration and purchase
price balance\e 95.0
El Coco property transfer 4.2
Net working capital (0.1)
---------------------------------- -----------------------------
99.1
---------------------------------- -----------------------------
\e A public issue of 10.2 million common shares at a price of $5.17
per share (Cdn $7.50) for a net consideration of approximately
$50 M was used to pay the cash portion at the closing of the
acquisition. An amount of $25 M was paid on June 30, 1998, and
the balance of $20 M is payable in cash on December 31, 1998.
CAMBIOR INC.
GOLD PRODUCTION
STATISTICS
Third Quarter First nine
ended months ended
September 30, September 30,
1998 1997 1998 1997
------------------------ --------- --------- --------- ---------
Omai (100 p.cent) (ounces) 75,058 80,660 238,421 255,430
Tonnage milled (t) 1,918,248 1,880,684 5,694,551 5,491,390
Tons per day (tpd) 20,850 20,442 20,859 20,115
Grade milled (g Au/t) 1.32 1.44 1.41 1.55
Recovery (p.cent) 92 93 93 94
Hard Rock (p.cent) 75 62 72 63
Direct mining costs
($ per ton milled) 9.65 11.05 10.21 11.52
Direct mining costs
($ per ounce) 247 258 244 248
Depreciation ($ per ounce)\f 106 85 102 82
------------------------ --------- --------- --------- ---------
Doyon (100 p.cent)
(ounces)\g 65,113 23,652 178,140 71,334
Tonnage milled (t) 340,527 162,442 985,744 502,508
Grade milled (g Au/t) 6.2 4.7 5.9 4.6
Recovery (p.cent) 96 95 96 96
Direct mining costs
($ per ton milled) 37 38 41 45
Direct mining costs
($ per ounce) 196 260 227 320
Depreciation ($ per ounce) 73 67 77 70
------------------------ --------- --------- --------- ---------
Sleeping Giant (50 p.cent)
(ounces) 9,579 5,927 24,909 16,593
Direct mining costs
($ per ounce) 174 240 192 269
Depreciation ($ per ounce) 45 45 45 55
------------------------ --------- --------- --------- ---------
Bouchard-Hebert
/Langlois (ounces)\h 7,178 9,527 26,764 23,063
Direct mining costs
($ per ounce) 258 204 268 224
------------------------ --------- --------- --------- ----------
Chimo and Silidor
(ounces)\i -- 1,700 -- 9,776
------------------------ --------- --------- --------- ---------
TOTAL GOLD PRODUCTION
(ounces) 156,928 121,466 468,234 376,196
DIRECT MINING COSTS
($ per ounce) 222 258 236 264
------------------------ --------- --------- --------- ---------
\f Depreciation per ounce was higher in the third quarter and the
first nine months of 1998 as the grade milled was lower that the
mine plan.
\g Includes the acquisition of the interest of Barrick in the Doyon
Mine for 1998 and the consolidation of the Mouska mine
operations.
\h Gold and silver produced at Bouchard-Hebert and Langlois mines
are reported in gold equivalent.
\i The Chimo and Silidor mines ceased activities in 1997.
CAMBIOR INC.
CONSOLIDATED GOLD
PRODUCTION COSTS PER OUNCE
Third Quarter First nine months
ended ended
September 30, September 30,
1998 1997 1998 1997
------------------------ ------------ ------ ------- ---------
Direct mining costs ($) 222 258 236 264
Smelting, refining and
transportation ($) 3 5 4 5
By-products credits ($) (2) (1) (1) (1)
------------------------- ----------- ------ ------- ---------
Cash operating cost ($) 223\j 262 239 268
Royalties ($) 7 11 8 12
------------------------- ----------- ------ ------- ---------
Total cash cost ($) 230(5) 273 247 280
Depreciation ($) 87 77 88 78
Reclamation ($) 2 3 2 3
------------------------- ----------- ------ ------- ---------
Total production cost ($) 319 353 337 361
------------------------- ----------- ------ ------- ---------
\j The mine cash flow for the base metals provided $4.4 M in the
third quarter representing $28 per ounce produced. Net of this
credit, the cash operating cost represents $195 per ounce and the
total cash cost represents $202 per ounce.
---------------------------
METAL PRODUCTION DATA
---------------------------
Bouchard-Hebert
Tonnage milled (t) 255,042 246,648 763,564 744,070
Tons per day (tpd) 2,774 2,681 2,797 2,726
Grade - Zinc (p.cent) 4.31 4.04 4.28 3.75
Zinc (tonnes) in
concentrate 9,568 8,390 28,060 23,004
Copper (tons)
in concentrate 1,157 1,662 4,429 5,879
NSR Revenue ($ per ton) 30 44 32 41
-------------------------- -------- -------- -------- -------
Direct mining costs
($ per ton) 22 23 23 23
Depreciation ($ per ton) 5 5 5 5
-------------------------- -------- -------- -------- -------
Total production costs 27 28 28 28
-------------------------- -------- -------- -------- -------
Langlois\k
Tonnage milled (t) 117,632 131,478 364,150 131,478
Tons per day (tpd) 1,867 2,054 1,927 2,054
Grade - Zinc (p.cent) 6.60 6.00 6.62 6.00
Zinc (tons) in concentrate 7,351 7,261 22,569 7,261
Copper (ton) in concentrate 264 337 894 337
NSR Revenue ($ per ton) 42 44 36 44
-------------------------- -------- -------- -------- -------
Direct mining costs
($ per ton) 31 27 30 27
Depreciation ($ per ton) 12 11 12 11
-------------------------- -------- -------- -------- -------
Total production costs 43 38 42 38
-------------------------- -------- -------- -------- -------
Niobec (50 p.cent)
Ferroniobium (kg Nb) 283,030 272,880 825,834 829,842
-------------------------- -------- -------- -------- -------
\k The production of the Langlois mine was suspended in December
1996 due to the necessity of modifying the underground mining
method in certain sectors of the deposit and the weakness of the
zinc market. Production restarted as scheduled on July 1, 1997.
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