Cambior Returns to Profitability.Business Editors LONGUEUIL Longueuil, city (1991 pop. 129,874), S Que., Canada, on the St. Lawrence River opposite Montreal. It is a residential and industrial suburb of Montreal. It annexed Montreal South in 1961, and merged with the city of Jacques-Cartier in 1969. , Quebec--(BUSINESS WIRE)--Feb. 18, 2004 Cambior Cambior Inc. was a Canadian based international gold producer with operations, development projects and exploration activities in the Americas. Cambior’s shares traded on the Toronto (TSX) and American (AMEX) stock exchanges under the symbol “CBJ”. Inc. (AMEX AMEX See: American Stock Exchange : CBJ CBJ Columbus Blue Jackets (NHL team) CBJ Central Bank of Jordan CBJ Conflict-Directed Backjumping CBJ Circuit Board Jack CBJ Code-Breakers Journal CBJ Class Broker for Java CBJ Color Bubble Jet ) (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.
Cambior is pleased to report profits of $4.4 million in the fourth
quarter of 2003 and $0.6 million for the year.
FOURTH QUARTER HIGHLIGHTS
- Gold production of 143,100 ounces
- Revenues of $59.7 million
- Net earnings of $4.4 million (2 cents per share)
- 39% increase in cash flow from operating activities to $17.4
million
- Increase in cash and short-term investments to $95.2 million
- 42% reduction of the hedge book
- Successful completion of the Ariane merger
- Substantial increase in mineral resources and renewal of
reserves
- Successful exercise of the Series B warrants for $30.8
million
For the fourth quarter ended December December: see month. 31, 2003, revenues totalled $59.7 million as compared to $53.4 million for the same period last year. Cambior realized net earnings of $4.4 million (2 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. ) compared to net earnings of $1.5 million (1 cents per share) for the corresponding quarter in 2002. Cash flow from operating activities for the quarter increased by 39% to $17.4 million, compared to $12.5 million for the same period in 2002. Adjusted cash flow (1) from operating activities was $20.5 million, up 32% from $15.5 million for the fourth quarter last year. Higher gold sales and lower unit mine operating costs operating costs npl → gastos mpl operacionales contributed to the increases in revenues and cash flow from operating activities in the fourth quarter of 2003. FULL YEAR 2003 For the full year 2003, revenues totalled $195.7 million as compared to $204.2 million last year. Cambior realized net earnings of $0.6 million compared to a loss of $8.1 million (6 cents per share) for 2002. Cash flow from operating activities was $24.2 million compared to $30.8 million in 2002. Adjusted cash flow (1) was $36.4 million compared to $43.0 million in 2002. Revenues and cash flow from operating activities were slightly lower than last year due to a planned decrease in Omai gold production, higher unit operating costs attributable to the stronger 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 , higher fuel costs and an increase in exploration and business development expenses. STRENGTHENING THE BALANCE SHEET In August 2003, the Company successfully completed an underwritten public offering for $72.2 million (Cdn $100 million). In addition, CBJ.WT warrants expiring ex·pire v. ex·pired, ex·pir·ing, ex·pires v.intr. 1. To come to an end; terminate: My membership in the club has expired. 2. on February February: see month. 27, 2003 and Series B warrants (CBJ.WT.B) expiring on November November: see month. 24, 2003 were both exercised, for total proceeds of $42.9 million to the Company. As a result of this substantial influx of cash in addition to 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 , the Company had $95.2 million in cash and short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments at the end of 2003. Capital expenditures totalled $110.4 million in 2003 compared to $30.2 million in 2002. Investments were principally for the development and construction of the Rosebel project ($86.8 million) and for sustaining capital and exploration and development drilling at Cambior's Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. operations ($16.8 million). At year end, Cambior's financial obligations (2) stood at $88.6 million, up from $64.7 million a year earlier due to full drawdown Drawdown The peak to trough decline during a specific record period of an investment or fund. It is usually quoted as the percentage between the peak to the trough. Notes: of the term loan facility for the Rosebel construction and the inclusion of Ariane Ariane is a feminine name. It is a French translation of the Greek name Ariadne. Ariane is also an historical region in Asia (see Ariana, Aria).
GOLD HEDGING PROGRAM Continued Reduction in Hedging Program Cambior reduced its hedging commitments by 42% or 540,500 ounces in 2003, through the delivery of gold production against existing hedging positions and the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of positions. As at December 31, 2003, the Company had total commitments of 746,000 ounces at an average price of $306 per ounce ounce, in zoology ounce, in zoology: see leopard. ounce, unit of measurement ounce: see English units of measurement. , including 103,800 ounces of call options sold at an average price of $301 per ounce. The Company's total commitments for its gold hedging program at the end of 2003 represented 18% of mineral reserves. PRODUCTION HIGHLIGHTS Cambior produced 521,500 ounces of gold at a mine operating cost of $241 per ounce in 2003, compared to 568,000 ounces at $223 per ounce last year. The decline in production reflected a planned reduction at the Omai mine arising from 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 ore mill feed and reduced 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. . Unit costs were higher in 2003 mainly as a consequence of the stronger Canadian dollar and higher energy costs. For the fourth quarter of 2003, gold production totalled 143,100 ounces at a mine operating cost of $231 per ounce compared to 133,000 ounces at a mine operating cost of $240 per ounce for the corresponding quarter in 2002. Decreased unit costs despite the stronger Canadian dollar are attributable to higher head grades at all of the Company's operations. Operations The Omai mine produced 271,000 ounces of gold in 2003 at a mine operating cost of $220 per ounce. For the fourth quarter alone, the mine yielded 77,200 ounces at a mine operating cost of $199 per ounce, compared to 74,000 ounces at a unit cost of $236 for the same quarter a year earlier. This performance was achieved due to a higher head grade, and despite the lower mill throughput. For 2003, the Doyon Division produced 217,200 ounces at a mine operating cost of $267 per ounce, which compares to 216,200 ounces at $228 per ounce in 2002. The milled grade of ore from the underground mines was 6.2 g Au/t, 11% higher than the grade from underground last year. The rise in operating cost was due to production slowdowns and repair costs, both arising from a hoist hoist: see winch. failure at the Doyon mine in the second quarter of 2003, as well as the stronger Canadian dollar. Fourth quarter production for this year was 55,900 ounces of gold at a mine operating cost of $273 per ounce, up from 50,900 ounces at $246 per ounce last year. The higher unit operating costs were mainly due to the stronger Canadian dollar. The milled grade from the underground mines was also higher (+13%) as compared to the corresponding quarter in 2002. Cambior's share of production from the Sleeping Giant Sleeping Giant may refer to: In geology:
Cambior's share of niobium niobium (nīō`bēəm), metallic chemical element; symbol Nb; at. no. 41; at. wt. 92.9064; m.p. about 2,468°C;; b.p. 4,742°C;; sp. gr. 8.57 at 20°C;; valence +2, +3, +4, or +5. sales from the Niobec mine declined slightly in 2003 to $22.2 million, due to a difficult steel market 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. in 2003 and a lower niobium price on world markets. 2004 PRODUCTION TARGETS Cambior's gold production target for 2004 is 705,000 ounces at an estimated mine operating cost of $221 per ounce. The higher target for 2004 reflects the start-up Start-up The earliest stage of a new business venture. of the Rosebel mine in the first quarter of 2004, which will more than offset the planned production decrease at Omai and the temporary 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 of the Mouska mine due to the 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 of the internal 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. from January January: see month. to October October: see month. 2004. Total capital expenditures for 2004 are estimated at $49.1 million, including sustaining capital of $39.6 million for the operating gold mines.
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2004 TARGETS
---------------------------------------------------------------------
Capital
Mine expenditures
Production operating (millions
Gold mine (ounces) cost ($/oz) of $)
---------------------------------------------------------------------
Omai 234,000 222 -
---------------------------------------------------------------------
Doyon Division (1) 192,000 263 17.8
---------------------------------------------------------------------
Sleeping Giant (50%) 34,000 255 3.0
---------------------------------------------------------------------
Rosebel Project (2) 245,000 184 18.8(2)
---------------------------------------------------------------------
TOTAL 705,000 221 39.6
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(1) Includes the Doyon and Mouska mines. The Mouska mine will be shut
down for 10 months in 2004 to allow for the deepening of the
internal shaft from January to October.
(2) Commercial production to begin in the first quarter of 2004.
Includes $6 million to complete construction in the first quarter
of 2004.
MINERAL RESOURCES Noun 1. mineral resources - natural resources in the form of minerals natural resource, natural resources - resources (actual and potential) supplied by nature AND RESERVES Mineral Resource Increased Significantly and Reserves Renewed At December 31, 2003, proven and probable reserves stood at 4.1 million ounces of gold contained, essentially unchanged from 2002. All mineral reserves and resources as at December 31, 2003, are based on a gold price of $350 per ounce. Reserves and resources, along with the identification of the qualified persons who prepared these calculations in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with definitions adopted by the Canadian Institute of Mining, Metallurgy and Petroleum The Canadian Institute of Mining, Metallurgy and Petroleum (CIM) is a technical society of professionals in the Canadian minerals, metals, materials and energy industries. It was founded in 1898. In 2006, the organization had 12,000 national members. on August 20, 2000, are summarized in the 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 and explanatory ex·plan·a·to·ry adj. Serving or intended to explain: an explanatory paragraph. ex·plan notes thereto there·to adv. 1. To that, this, or it. 2. Archaic In addition to that; furthermore. thereto Adverb Formal 1. to that or it 2. . Mine site exploration and development drilling at the Canadian operations added 157,100 ounces of mineral reserves, replacing 60% of production. The largest increases for the Canadian operations were at the Mouska and Sleeping Giant mines. Rosebel showed a gain of 239,000 ounces in its mineral reserves due to a $25 increase in the gold price used for the mineral reserve calculation. Substantial gains were seen in all categories of resources. A 52% increase in measured and indicated resources was primarily attributable to the acquisition of 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. deposit in November 2003. A sensitivity analysis using a gold price of $325 per ounce indicates that mineral reserves would fall 5% to 3.9 million ounces of gold contained. Mineral reserves increase by 1% when calculated at a gold price of $375 per ounce. At year end, Cambior's share of proven and probable reserves at Niobec totalled 11.3 million tonnes at a grade of 0.65 % Nb2O5, which corresponds to at least 17 years of production at the current mining rate. The Niobec mine has had an excellent history of mineral reserve renewal since it first opened 27 years ago. EXPLORATION AND BUSINESS DEVELOPMENT In 2003, Cambior's exploration activities targeted the Company's mine sites, where the probability of finding extensions to existing deposits or new 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 is considered very high. Exploration expenditures amounted to $14.9 million, including $7.6 million for offsite exploration. The success of the exploration program has led to the recently-completed mine deepening program at Sleeping Giant and the current deepening of the Mouska internal shaft to access the extensions to the mineralized zones at depth. It also brought encouraging results at depth on the Westwood Westwood. 1 Residential town (1990 pop. 12,557), Norfolk co., E Mass., in the greater Boston area; settled 1640, inc. 1897. It has several early 18th-century buildings. 2 Residential borough (1990 pop. 10,446), Bergen co., NE N.J. property two kilometres east of Doyon. In early 2004, the Company reported promising drilling results on the Gemini-Turgeon project (under option), located in the Abitibi region. Thirteen holes totalling 5,400 meters were drilled and the results show excellent gold and polymetallic potential for the entire area and the possible extension of Zone 51. The exploration program will continue with 3,000 meters of drilling in the first quarter of 2004 to test the extensions of the mineralized intersections and other interesting targets. For 2004, exploration will remain focused on or near the Company's mine sites and advanced projects. Given Cambior's improved financial condition and the favourable gold market, the 2004 exploration budget has been increased to $25 million, of which approximately $16.4 million will be capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. . On the Westwood property, Cambior will continue drilling to test the Westwood area at depth from surface. The Company will also drive a 2.6-km exploration drift drift, deposit of mixed clay, gravel, sand, and boulders transported and laid down by glaciers. Stratified, or glaciofluvial, drift is carried by waters flowing from the melting ice of a glacier. from the 14th level to the eastern edge of the Doyon property to reach the Westwood area by the end of 2006, carrying out underground exploration drilling as the drift progresses. Cambior will continue exploring the Abitibi area, the Huamachuco region of Peru near the Alto alto, singing voice the range of which is lower than the soprano by the interval of a fifth. More generally, the term refers to the register in which this voice sings, i.e. Chicama gold discovery and its exploration properties in French Guiana French Guiana (gēăn`ə, –än`–), Fr. La Guyane française, officially Department of Guiana, French overseas department (2005 est. pop. and Guyana, and will initiate exploration programs on the properties adjacent to the Rosebel concession. Ariane Gold Corporation (Camp Caiman) Acquired on November 29, 2003, through the merger with Ariane Gold Corporation, the Camp Caiman property contains measured and indicated resources of 1.2 million ounces of gold. The Company is confident that the property has the potential for the discovery of additional mineral resources. For 2004, the Company has budgeted $5.2 million in capital expenditures to increase these 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 by year end. SUCCESSFUL MILL STARTUP AT THE ROSEBEL PROJECT On February 11th, 2004, the Rosebel mine, located in Suriname, initiated the processing of ore on a sustained basis. Over the next month, mill throughput will increase to reach design capacity. Commercial production is expected to begin in the first quarter of 2004. The mine currently has a 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. of approximately 750,000 tonnes of ore available for processing. Cambior began the $95 million construction and development of the Rosebel project in January 2003. As of the end of January 2004, approximately $93.6 million had been spent on the project. The project schedule and capital expenditures are in line with the original plan. From February to December 2004, Rosebel is expected to process 4.6 million tonnes of ore at an average grade of 1.8 g Au/t and a gold process recovery of 92 % to produce 245,000 ounces of gold. There is no plan to mill hard rock material in 2004. The primary source of mill feed will be the Pay Caro and East Pay Caro deposits, located in the north limb of the Rosebel property, and the Royal Hill deposit, located in the south limb. The mine operating cost for 2004 is estimated at $184 per ounce. "The mill startup is in accordance with our plans, and is the culmination of the efforts of our construction and development team, suppliers and contractors as well as the Government of Suriname and the local communities," stated Louis P. Gignac, Cambior's President and Chief Executive Officer. "We extend our appreciation to all stakeholders Stakeholders All parties that have an interest, financial or otherwise, in a firm-stockholders, creditors, bondholders, employees, customers, management, the community, and the government. for their efforts in ensuring a successful startup, and we look forward to a continued positive relationship with them." 2004 OUTLOOK "We are pleased to have regained profitability and to have thus 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. the objective set at the beginning of 2003," Mr. Gignac added. "Our operations met their yearly production targets in spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite some upsets at certain locations. Mine personnel were also successful in partially containing strong cost pressures caused by a strengthening Canadian dollar, high energy prices and the resulting prices hikes for many consumables. Our greatest appreciation goes to our employees and contractors that contributed to the successful construction of the Rosebel project. The challenging schedule and budget were met through hard, long labor under difficult conditions considering the location of the project. This success is the result of their expertise and dedication. We are anticipating a record year in 2004, with gold production of 705,000 ounces at a mine operating cost of $221 per ounce. We are starting the year strong, with a $25 million exploration budget aimed at increasing our reserve and resource base. We are also searching for new deposits on our properties or through acquisitions in order to increase our production profile". Appointment The Company is pleased to announce that Mr. Francois Viens has rejoined "Rejoined" is an episode of , the sixth episode of the fourth season. Quick Overview: Jadzia Dax is reunited with the mate of a former host and the two struggle with their feelings for one another. Cambior as Vice President, Business Development and Exploration. Mr. Viens is a geological ge·ol·o·gy n. pl. ge·ol·o·gies 1. The scientific study of the origin, history, and structure of the earth. 2. The structure of a specific region of the earth's crust. 3. A book on geology. engineer from Ecole Polytechnique in Montreal. He has over 25 years of experience in the exploration, evaluation and development of multi-million ounce gold deposits in Canada and 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. (Guyana, Suriname and French Guiana). Consolidated Financial Statements The consolidated financial statements and explanatory notes for the fourth quarter and for the year ended December 31, 2003 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/cbja04q4.pdf. Reminder for the Year-end 2003 Financial Results Conference Call Cambior will host a conference call on February 18, 2004 at 4:00 p.m., local time, to discuss its fourth quarter results and year-end audited 2003 financial results. Financial analysts are invited to participate in the call by dialing 1-800-428-5596 in North America. Outside of North America, please dial (416) 620-2414. 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 #21181241. 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.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, reduction of hedging, future commercial production, sales and financial results, production targets and timetables, evolution of mineral reserves, 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 and 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, risks associated with foreign operations, environmental risks and hazards, uncertainty as to calculation of mineral reserves, requirement of additional financing or additional permits, authorizations or licences, risks of hedging strategies, risks of delays in construction and production, 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 Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. 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. .
(1) Adjusted cash flow is the cash flow from operating activities
presented without the impact of deferred revenue from the
delivery of gold on prepaid forward sales.
(2) Financial obligations consist of long-term debt and gold delivery
obligations under the prepaid gold forward sales agreement
(deferred revenue).
CAMBIOR INC.
HIGHLIGHTS
---------------------------------------------------------------------
(unaudited) Fourth Quarter Year
All amounts in ended December ended December
US dollars 31, 2003 31, 2002 31, 2003 31, 2002
---------------------------------------------------------------------
RESULTS (in millions of $)
Revenues 59.7 53.4 195.7 204.2
Cash flow from operating
activities 17.4 12.5 24.2 30.8
Adjusted cash flow from
operating activities(1) 20.5 15.5 36.4 43.0
Earnings before the undernoted
items 5.4 4.0 0.0 9.2
Non-hedge derivative gain
(loss) and loss on foreign
exchange from reduction in
net investment (1.0) (2.5) 0.6 (17.3)
---------------------------------------------------------------------
Net earnings (loss) 4.4 1.5 0.6 (8.1)
---------------------------------------------------------------------
PER SHARE ($)
Earnings before the undernoted
items 0.02 0.03 0.00 0.17
Non-hedge derivative gain
(loss) and loss on foreign
exchange from reduction in net
investment 0.00 (0.02) 0.00 (0.13)
---------------------------------------------------------------------
Net earnings (loss) 0.02 0.01 0.00 (0.06)
Basic weighted average number
of common shares
outstanding (in millions) 222.9 156.7 188.0 140.1
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GOLD
Number of ounces produced (000) 143 133 522 569
Number of ounces sold (000) 145 141 517 579
Accounting realized price
($per ounce) 349 320 320 308
Average market price ($per ounce) 391 322 363 310
Mine operating costs ($per ounce) 231 240 241 223
---------------------------------------------------------------------
FINANCIAL POSITION (in
millions of $) December 31, 2003 December 31, 2002
---------------------------------------------------------------------
Cash and short-term investments 95 43
Total assets 493 279
Total debt 64 28
Deferred revenue 24 37
Shareholders' equity 336 163
---------------------------------------------------------------------
MINERAL RESERVES AND RESOURCES (2) December December
GOLD (ounces contained) 31, 2003 31, 2002
---------------------------------------------------------------------
Proven and Probable Reserves 4,078,800 4,216,000
---------------------------------------------------------------------
Measured and Indicated Resources 2,804,500 1,842,300
---------------------------------------------------------------------
Inferred Resources 2,581,650 2,018,600
---------------------------------------------------------------------
(1) Cash flow from operating activities presented without the impact
of deferred revenue.
(2) Mineral reserves and resources were estimated using a long-term
gold price assumption of $350/oz in 2003 and $325/oz in 2002.
---------------------------------------------------------------------
Fourth Quarter Year
GOLD PRODUCTION ended December ended December
STATISTICS (unaudited) 31, 2003 31, 2002 31, 2003 31, 2002
---------------------------------------------------------------------
Omai (100%)
Production (ounces) 77,200 74,000 271,000 319,600
Tonnage milled (t) 1,408,300 1,936,300 5,748,400 7,727,300
Grade milled (g Au/t) 1.85 1.33 1.61 1.40
Recovery (%) 93 90 92 92
Mine operating costs
($per tonne milled) 11 9 10 9
Mine operating costs
($per ounce) 199 236 220 221
Depreciation, depletion and
amortization ($per ounce) 37 36 36 39
---------------------------------------------------------------------
Doyon Division (1)
Production (ounces) 55,900 50,900 217,200 216,200
Tonnage milled (t)
Underground mines 299,800 306,800 1,122,700 1,248,100
Low grade stockpile 10,800 - 155,600 38,500
---------------------------------------------------------------------
Total 310,600 306,800 1,278,300 1,286,600
Grade milled (g Au/t)
Underground mines 6.1 5.4 6.2 5.6
Low grade stockpile 1.0 - 1.0 1.0
---------------------------------------------------------------------
Average 5.9 5.4 5.6 5.5
Recovery (%) 95 96 95 96
Mine operating costs
($per tonne milled) 49 41 45 38
Mine operating costs
($per ounce) 273 246 267 228
Depreciation, depletion and
amortization ($per ounce) 70 60 71 63
---------------------------------------------------------------------
Sleeping Giant (50%)
Production (ounces) 10,000 8,100 33,300 33,000
Tonnage milled (t) 24,900 24,100 88,200 101,400
Grade milled (g Au/t) 12.8 10.8 12.1 10.5
Recovery (%) 97 97 97 97
Mine operating costs
($per tonne milled) 96 82 93 72
Mine operating costs
($per ounce) 239 244 246 220
Depreciation, depletion and
amortization ($per ounce) 59 44 53 46
---------------------------------------------------------------------
TOTAL GOLD PRODUCTION
(ounces) 143,100 133,000 521,500 568,800
MINE OPERATING COSTS
($per ounce) 231 240 241 223
---------------------------------------------------------------------
CONSOLIDATED GOLD PRODUCTION
COSTS ($per ounce)
---------------------------------------------------------------------
Direct mining costs 215 234 232 226
Deferred stripping
costs 15 6 9 (3)
Refining and
transportation 3 1 2 2
By-product credits (2) (1) (2) (2)
---------------------------------------------------------------------
Mine operating costs 231 240 241 223
Royalties 11 10 10 10
---------------------------------------------------------------------
Total operating costs 242 250 251 233
Depreciation, depletion and
amortization 51 46 51 48
Restoration 4 3 4 3
---------------------------------------------------------------------
Total production costs 297 299 306 284
---------------------------------------------------------------------
(1) Includes the Doyon and Mouska mines
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