Cambior announces its second quarter results and the startup of the Omai Mill expansion (PART II OF II).MONTREAL--(BUSINESS WIRE)--Aug. 9, 1996-- -0-
CAMBIOR INC.
______________________________________________________________
CONSOLIDATED EARNINGS
(in thousands of US dollars except
per common share data)
(UNAUDITED)
Second Quarter First six months
ended June 30, ended June 30,
1996 1995 1996 1995
$ $ $ $
______________________________________________________________
REVENUES
Mining operations 71,916 74,753 131,333 141,001
Investments 2,049 1,667 3,333 3,396
______________________________________________________________
73,965 76,420 134,666 144,397
______________________________________________________________
EXPENSES
Mining operations 41,637 41,956 74,671 83,655
Smelting, refining
and transportation 11,398 6,823 21,396 12,695
Depreciation, depletion
and amortization 12,812 9,945 21,943 20,085
Royalties 1,281 1,700 1,949 3,300
Exploration 1,998 5,034 3,854 8,000
Administration 1,698 1,651 3,166 3,002
Capital tax 443 489 831 807
Interest 1,937 1,942 4,277 3,503
Loss (Gain) on translation
of foreign exchange (643) 208 (1,128) (2,477)
______________________________________________________________
72,561 69,748 130,959 132,570
______________________________________________________________
Earnings before the
undernoted items 1,404 6,672 3,707 11,827
Income taxes and
mining duties 325 3,207 1,591 4,611
______________________________________________________________
1,079 3,465 2,116 7,216
______________________________________________________________
Minority interests - 1,550 - 1,476
______________________________________________________________
Net earnings 1,079 1,915 2,116 5,740
______________________________________________________________
Earnings per share 0.02 0.04 0.04 0.12
______________________________________________________________
Weighted average number of
common shares outstanding
(in thousands) 60,077 49,092 57,469 49,052
______________________________________________________________
CAMBIOR INC. ______________________________________________________________ CONSOLIDATED CHANGES IN Second Quarter First six months CASH RESOURCES ended June 30, ended June 30, (in thousands of US dollars except per common share data) 1996 1995 1996 1995 (UNAUDITED) $ $ $ $ ______________________________________________________________ OPERATING ACTIVITIES Net earnings 1,079 1,915 2,116 5,740 Non-cash items Depreciation, depletion and amortization 12,812 9,945 21,943 20,085 Income tax benefit and mining duties 171 3,090 1,208 4,376 Minority interests -- 1,550 -- 1,476 Other (82) 3,587 297 4,043 ______________________________________________________________ Cash flow from operations 13,980 20,087 25,564 35,720 Changes in working capital items (604) 244 (11,506) (8,093) ______________________________________________________________ Cash provided by operating activities 13,376 20,331 14,058 27,627 ______________________________________________________________ INVESTMENT ACTIVITIES Investments 543 (60) 593 83 Property, plant and equipment (27,219) (39,654) (53,759) (77,880) Accrued liabilities - Construction in progress (3,791) (2,661) (13,514) (5,193) ______________________________________________________________ Cash used in investment activities (30,467) (42,375) (66,680) (82,990) ______________________________________________________________ FINANCING ACTIVITIES Long-term debt Borrowings (355) 9,550 29,404 50,599 Repayments (9,595) -- (10,827) (1,349) Minority interests -- (999) -- (861) Capital stock 610 29,194 117,301 29,243 Dividends (3,126) (2,525) (3,126) (2,525) ______________________________________________________________ Cash provided by (used in) financing activities (12,466) 35,220 132,752 75,107 ______________________________________________________________ Increase (Decrease) in cash (29,557) 13,176 80,130 19,744 Cash, beginning of period 172,224 104,619 62,537 98,051 ______________________________________________________________ Cash, end of period 142,667 117,795 142,667 117,795 ______________________________________________________________ Cash flow from operations per share 0.23 0.41 0.44 0.73 ______________________________________________________________ Weighted average number of common shares outstanding (in thousands) 60,077 49,092 57,469 49,052 ______________________________________________________________
CAMBIOR INC.
______________________________________________________________
CONSOLIDATED BALANCE SHEETS June 30, 1996 December 31,1995
(in thousands of US dollars) $ $
(unaudited) (audited)
______________________________________________________________
ASSETS
Current assets
Cash 142,667 62,537
Settlements receivable 21,766 17,509
Other account receivable 8,716 11,121
Supplies inventory 28,925 27,071
Prepaid expenses 6,045 5,184
______________________________________________________________
208,119 123,422
Investments 1,063 1,710
Property, plant and equipment 603,589 574,089
Deferred charge - Gold loan - 946
Income tax benefit 9,946 10,458
______________________________________________________________
822,717 710,625
______________________________________________________________
LIABILITIES
Current liabilities
Accounts payable and
accrued liabilities 34,597 55,050
Current portion of
long-term debt 14,280 23,773
______________________________________________________________
48,877 78,823
Long-term debt 203,623 179,314
Unrealized gain - Gold loan 2,815 -
Provision for environmental
obligations 3,201 3,288
Deferred mining duties 12,815 13,041
Minority interests 1,659 1,659
______________________________________________________________
272,990 276,125
______________________________________________________________
SHAREHOLDERS' EQUITY
Capital stock 176,173 152,609
Contributed surplus 335,641 238,146
Retained earnings 37,245 41,440
Cumulative translation adjustment 668 2,305
______________________________________________________________
549,727 434,500
______________________________________________________________
822,717 710,625
______________________________________________________________
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, 1995. Modification - Reporting Currency _________________________________ As a result of its increasing international activities, Cambior has adopted the US dollar as its reporting currency commencing January 1, 1996. Accordingly, the Canadian operations will be treated as a self-sustaining establishment. The prior year's financial statements have been converted at the December 31, 1995 exchange rate of Cdn $1.364 for US $1. Prior statements restated in US dollar are available upon request. 2. INVESTMENT
Second Quarter First six months
1996 1996
$000 $000
______________________________________________________________
Construction in progress:
Grevet 1,393 15,337
Omai 7,313 10,890
______________________________________________________________
8,706 26,227
Mining projects (1) 12,077 21,198
Ongoing operations 9,684 19,255
______________________________________________________________
30,467 66,680
(1) As at June 30, 1996, the total amount of capitalized expenses on mining projects was $114 million. 3. INCOME TAXES AND MINING DUTIES
Second Quarter First six months
1996 1996
$000 $000
______________________________________________________________
Income taxes 347 1,465
Mining duties (22) 126
______________________________________________________________
Total 325 1,591
______________________________________________________________
4. ISSUANCE OF COMMON SHARES
Second Quarter First six months
1996 1996
Number Amount Number Amount
of shares of shares
(000) $000 (000) $000
_______________________________________________________________
Shares outstanding,
beginning of period 60,055 52,040
Shares issued: Public offering February 29, 1996 - - 8,000 116,571 Other 68 610 83 730 _______________________________________________________________ Total 68 610 8,083 117,301 _______________________________________________________________ Shares outstanding, end of period 60,123 60,123 _______________________________________________________________ 5. GOLD HEDGING PROGRAM
Second Quarter First six months
1996 1995 1996 1995
_______________________________________________________________
Cambior's selling price 428 417 432 410
Market price 390 388 395 383 Cambior's premium 38 29 37 27 _______________________________________________________________ As at June 30, 1996, the Company held the following gold hedging positions excluding gold loans for the years indicated:
1996 1997 1998
(six months)
_______________________________________________________________
Ounces of gold 178,600 203,000 60,000
Minimum price 423 448 463
_______________________________________________________________
6. EXCHANGE RATES The average exchange rate for second quarter 1996 was 1.3646 and the closing rate of June 30, 1996 was 1.3637. 7. SEGMENTED INFORMATION ______________________________________________________________ Second Quarter 1996 Gold Metals Total
$000 $000 $000
______________________________________________________________
Gross Revenues 50,334 23,631 73,965
Less: Smelting and Refining 542 10,856 11,398
___ ______ ______
Net Revenues 49,792 80 12,775 20 62,567
p.cent p.cent
Mining Expenses 31,763 9,874 41,637
Exploration 1,631 367 1,998
Administration & Other 4,749 203 4,952
_____ ___ _____
38,143 10,444 48,587
______ ______ ______
Cash flow from operations 11,649 83 2,331 17 13,980
p.cent p.cent
Per share ($) 0.19 0.04 0.23
Investment 17,644 12,823 30,467
______________________________________________________________
______________________________________________________________ First six months 1996 Gold Metals Total
$000 $000 $000
______________________________________________________________
Gross Revenues 91,203 43,463 134,666
Less: Smelting and Refining 992 20,404 21,396
___ ______ ______
Net Revenues 90,211 80 23,059 20 113,270
p.cent p.cent
Mining Expenses 56,656 18,015 74,671
Exploration 3,040 814 3,854
Administration & Other 8,706 475 9,181
_____ ___ _____
68,402 19,304 87,706
______ ______ ______
Cash flow from operations 21,809 85 3,755 15 25,564
p.cent p.cent
Per share ($) 0.38 0.06 0.44
Investment 36,188 30,492 66,680
Property, plant and equipment 357,427 246,162 603,589
______________________________________________________________
CAMBIOR INC.
GOLD PRODUCTION STATISTICS(1)
______________________________________________________________
Second Quarter First six months
ended June 30, ended June 30,
1996 1995 1996 1995
______________________________________________________________
Omai (100 p.cent)
(ounces) (2) 57,987 70,005 85,191 134,440
Tonnes milled 1,160,413 1,215,994 1,885,616 2,385,537
Grade milled (g Au/t) 1.8 2.0 1.7 1.9
Recovery (p.cent) 89 91 88 91
Direct mining costs/tonne 14.07 12.64 12.90 12.76
Direct mining costs/oz 282 220 286 227
Depreciation/depletion/
amortization/oz 66 55 70 64
______________________________________________________________
Doyon (50 p.cent)
(ounces) (3) 20,579 29,146 51,222 55,140
Tonnes milled 116,609 148,205 274,513 296,708
Grade milled (g Au/t) 5.7 6.4 6.1 6.0
Recovery (p.cent) 96 96 95 96
Direct mining costs/tonne 36 38 37 37
Direct mining costs/oz 202 196 199 202
Depreciation/depletion/
amortization/oz 60 49 53 49
______________________________________________________________
Rouyn-Noranda Division
(ounces) 10,624 11,843 23,019 17,591
Direct mining costs/oz 348 307 342 311
Depreciation/depletion/
amortization/oz 129 125 127 135
______________________________________________________________
Chimo (ounces)(4) 9,397 6,292 15,295 13,989
Direct mining costs/oz 263 501 327 438
Depreciation/depletion/
amortization/oz 293 148 239 147
______________________________________________________________
Sleeping Giant (50 p.cent)
(ounces) 6,617 7,585 13,652 13,046
Direct mining costs/oz 218 145 203 175
Depreciation/depletion/
amortization/oz 69 74 71 80
______________________________________________________________
Valdez Creek Placer (ounces) - 7,203 - 19,940
Direct mining costs/oz - 766 - 647
______________________________________________________________
Bouchard-Hebert/Langlois(5)
(ounces) 6,561 8,491 13,573 12,872
Direct mining costs/oz
(pro rata) 318 177 317 193
______________________________________________________________
TOTAL GOLD PRODUCTION
(ounces) 111,765 140,565 201,952 267,018
Direct mining costs/oz 270 256 270 265 Depreciation/depletion/ amortization/oz 90 62 85 65 ______________________________________________________________
CAMBIOR INC.
CONSOLIDATED GOLD PRODUCTION COSTS PER OUNCE
______________________________________________________________
Second Quarter First six months
ended June 30, ended June 30,
1996 1995 1996 1995
______________________________________________________________
Direct mining costs 270 256 270 265
Smelting, refining and
transportation 5 3 5 3
By-product credits (1) (1) (1) (1)
______________________________________________________________
Cash operating cost 274 258 274 267
Royalties 11 12 9 12
______________________________________________________________
Total cash cost 285 270 283 279
Depreciation and
amortization 90 62 85 65
Reclamation 5 2 5 2
______________________________________________________________
Total production cost 380 334 373 346
______________________________________________________________
METAL PRODUCTION DATA ______________________________________________________________ Bouchard-Hebert Tonnes milled 185,599 171,873 377,223 295,815 Zinc (tonnes) in concentrate 4,597 7,733 9,890 14,407 Copper (tonnes) in concentrate 1,400 995 2,662 1,743 NSR Revenue ($ per tonne) 33 51 33 51 Direct mining costs ($ per tonne) 25 23 26 26 ______________________________________________________________ Langlois (6) Tonnes milled 139,886 - 288,491 - Zinc (tonnes) in concentrate 9,663 - 17,209 - Copper (tonnes) in concentrate 538 - 877 - NSR Revenue ($ per tonne) 36 - 32 - Direct mining costs ($ per tonne) 36 - 31 - ______________________________________________________________ Niobec (50 p.cent) Ferroniobium (kg Nb) 272,325 274,158 566,715 522,174 ______________________________________________________________ (1) Effective as of the second quarter 1996, Cambior will be reporting its gold production cost in accordance with the recently published Gold Institute Production Gold Standard. (2) Omai resumed operations on February 4, 1996. (3) The Doyon mine was affected by a 8-week strike in second quarter 1996. (4) As expected, mining activities at the Chimo mine will cease in the last quarter of 1996. (5) Gold and silver produced at Bouchard-Hebert and Langlois are reported in gold equivalent and cost are reported on a pro-rata of Net Smelter Revenues basis. (6) The Langlois mine (formerly known as Grevet) started its commercial production in the first quarter of 1996. CONTACT: 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. Henry A. Roy Roy, city (1990 pop. 24,603), Weber co., N Utah, near Great Salt Lake; settled by Mormons 1877, inc. 1937. Computer equipment is manufactured, and many residents work at nearby Hill Air Force Base. , 514/878-3461, 514/878-4608 (fax) INTERNET: http://www.cambior.com, or Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. LaValliere Noun 1. lavalliere - jeweled pendant worn on a chain around the neck lavalier, lavaliere pendant, pendent - an adornment that hangs from a piece of jewelry (necklace or earring) , 514/878-1282, 514/878-3324 (fax) INTERNET: http://www.cambior.com or Victoria Putnam Put·nam , Israel 1718-1790. American soldier active in the French and Indian War and the Revolutionary War. During the Battle of Bunker Hill (June 17, 1775), he supposedly issued the order, "Don't one of you shoot until you see the whites of their , 514/878-3166, 514/878-0635 (fax) INTERNET: http://www.cambior.com |
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