Cambior results for the first nine months and the third quarter of 1995.MONTREAL--(BUSINESS WIRE)--Nov. 3, 1995-- Cambior Inc. today announced its results for the first nine months of 1995, with revenues of $284.5 million compared to $226 million for the same period in 1994. 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 amounted to $57.9 million ($1.16 per share) compared to $56.4 million ($1.15 per share) for the first nine months of 1994. Net earnings were $1.5 million ($0.03 per share) compared to a net loss of $4.7 million ($0.10 per share) for the same period in 1994. For the third quarter, revenues were $87.5 million compared to $74.8 million for the same quarter of 1994. Cash flow from operations amounted to $9.2 million ($0.18 per share) compared to $12.1 million ($0.25 per share) for the third quarter of 1994, and the net loss totalled $6.3 million ($0.12 per share) versus a loss of $15.4 million ($0.31 per share). Revenues increased despite the interruption INTERRUPTION. The effect of some act or circumstance which stops the course of a prescription or act of limitation's. 2. Interruption of the use of a thing is natural or civil. in the Omai mine operations due to the commencement of commercial production at the Bouchard-Hebert Mine in January 1995. Furthermore, for the first nine months of 1995, the Company's gold hedging program generated an average price of US $414 per ounce ounce, in zoology ounce, in zoology: see leopard. ounce, unit of measurement ounce: see English units of measurement. , a $30 premium over the average market price. In the third quarter, the Company obtained an average price of US $424 per ounce. The poor financial results for the third quarter and the first nine months of the year were mainly due to the interruption of mining activities at the Omai Mine, an increase in surface exploration expenses, and higher operating costs operating costs npl → gastos mpl operacionales and 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 gold production at the Valdez Creek Placer. The Omai Mine incident resulted in a net cost of $2.2 million for the quarter. Excluding Valdez Creek, unit operating costs were US $244 per ounce in the third quarter and US $237 per ounce for the year to date. Cambior's total gold production for the first nine months was 378,672 ounces compared to 386,820 ounces for the same period in 1994. Third quarter gold production amounted to 111,654 ounces compared to 126,780 ounces for the same quarter of 1994. The decreases in production were mainly related to the suspension of mining activities at the Omai Mine on August 19. Valdez Creek Placer As planned, operating activities at the Valdez Creek Placer ceased on September 30. For the first nine months of 1995, Valdez produced 32,750 ounces of gold, less than its target for the year, with higher operating costs. In addition, a sum of US $2.8 million representing closure and site rehabilitation rehabilitation: see physical therapy. costs for the placer were accounted for in the financial results. Operation of the Valdez Creek Placer therefore generated a loss of some US $10.5 million for Cambior this year. Due to a provision for site reclamation Reclamation A claim for the right to return or the right to demand the return of a security that has been previously accepted as a result of bad delivery or other irregularities in the delivery and settlement process. of US $ 1.8 million at September 30, 1995, the Company's earnings should no longer be affected by the Valdez Creek Placer. Omai Mine The Omai Mine (Guyana) posted an excellent performance early in the quarter, producing 40,640 ounces of gold. The gold production rate has progressed steadily since the beginning of 1995. Unit operating costs have also improved, reaching US $215 per ounce in the third quarter. On August 19, mining activities were interrupted in·ter·rupt v. in·ter·rupt·ed, in·ter·rupt·ing, in·ter·rupts v.tr. 1. To break the continuity or uniformity of: Rain interrupted our baseball game. 2. following a break in the main 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. pond dam. Since this incident occurred, OMAI Gold Mines has been working on rehabilitating the site and cleaning up the Omai River, as well as carrying out equipment maintenance. The Company is making every effort to resume mining operations by the end of 1995. The Government of Guyana's Commission of Inquiry looking into the causes of the dam rupture rupture, in medicine: see hernia. was officially mandated on October 7 to submit a report within two months. Public hearings began on October 23, and we expect to receive shortly the authorizations required to build the second tailings pond and resume production. The suspension of mining activities at Omai will entail entail, in law, restriction of inheritance to a limited class of descendants for at least several generations. The object of entail is to preserve large estates in land from the disintegration that is caused by equal inheritance by all the heirs and by the ordinary a shortfall of about US $2.5 million in cash flow from operations for each complete month that operations are suspended sus·pend v. sus·pend·ed, sus·pend·ing, sus·pends v.tr. 1. To bar for a period from a privilege, office, or position, usually as a punishment: suspend a student from school. . In addition, the costs incurred at the Omai Mine during this period are estimated at between US $1-2 million per month. Capital expenditures related to this incident are currently estimated at US $5 million. Mill expansion work was extended by approximately two months due to events at the Omai Mine. We expect to complete the work towards the end of the first quarter of 1996 in order to increase milling capacity from 12,000 to 18,000 tonnes per day in the second quarter of 1996. Exploration and Development Projects During the third quarter, the Company announced substantial increases in mining reserves at the La Granja La Granja, Spain: see San Ildefonso. copper project (Peru) and in mineral inventories at the Metates gold project (Mexico). The results of the advanced exploration program at La Granja has yielded mining reserves that have more than tripled since we first became involved in 1994, to 600 million tonnes grading 0.73 percent copper representing 9.7 billion pounds of copper in situ In place. When something is "in situ," it is in its original location. . The development of this project has further allowed us to establish a presence in Peru and access other interesting exploration projects. The prefeasibility study planned for the first quarter of 1996 will enable us to determine the full value and potential of the project. At the Metates Project, drilling has confirmed the project's potential, generating a mineral inventory of over 14 million ounces of gold equivalent in situ. The ore is refractory refractory Material that is not deformed or damaged by high temperatures, used to make crucibles, incinerators, insulation, and furnaces, particularly metallurgical furnaces. in nature, and the Company is conducting intensive metallurgical met·al·lur·gy n. 1. The science that deals with procedures used in extracting metals from their ores, purifying and alloying metals, and creating useful objects from metals. 2. testing aimed at finding an efficient method of recovering the 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. and establishing the potential profitability of the project. A prefeasibility study will also be carried out in the first quarter of 1996. Construction and preproduction pre·pro·duc·tion adj. 1. Taking place or existing before production: preproduction planning. 2. continues on schedule at the Grevet Project (Quebec), with start-up Start-up The earliest stage of a new business venture. planned for the beginning of 1996. We also expect to obtain the environmental permits for construction of the Carlota Project (Arizona Arizona (âr'əzō`nə), state in the southwestern United States. It is bordered by Utah (N), New Mexico (E), Mexico (S), and, across the Colorado R., Nevada and California (W). ) in the first quarter of 1996, and plan to prepare prefeasibility studies on the Gross Rosebel gold project (Suriname) and the El Pachon copper project (Argentina). Outlook "The Company is making every effort to resume mining operations at the Omai Mine by the end of 1995", says Louis P. Gignac, Cambior's President and Chief Executive Officer. "We are also confident that our financial performance will improve following the closing of the Valdez Creek Placer, which had a considerable negative impact on the Company's earnings in 1995. In the near term, the expansion of the Omai mill, an increase in production at the Bouchard-Hebert Mine and the start-up of the Grevet Project will generate increased cash flow from operations. The coming six months will be very active for the Company, with the completion of four prefeasibility studies. Depending on the results of the studies, we will determine the most advantageous strategy for the long-term maximization of shareholder value. Finally, due to the Omai incident, we anticipate a global gold production of about 450,000 ounces compared to our initial target of 550,000 ounces. For 1996, with production resuming at Omai, we expect to produce over 550,000 ounces of gold." With the favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. financial position created by cash assets of $116 million at September 30, 1995, the Company plans to continue to vigorously pursue its strategy of growth in the Americas. Cambior is a major gold producer with operating and exploration activities in Canada, 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. , Guyana and various other countries of the Americas. Cambior shares and warrants trade on the Montreal and Toronto stock exchanges Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. as well as 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. (AMEX AMEX See: American Stock Exchange ) under the symbols 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 and CBJ.WTA WTA Washington Trails Association WTA Women's Tennis Association WTA World Transhumanist Association WTA Willingness to Accept WTA Winner-Take-All WTA Winner Takes All WTA World Toilet Association (Singapore) . -0-
CAMBIOR INC.
FINANCIAL HIGHLIGHTS
______________________________________________________________
Third Quarter ended Nine months ended
September 30, September 30,
1995 1994 1995 1994
______________________________________________________________
RESULTS (Cdn $'000)
Total revenue $ 87,526 $ 74,836 $ 284,483 $ 226,017 Mine operating costs 57,297 54,919 171,403 144,681 Realization costs 7,865 1,357 25,181 3,486 Depreciation, depletion and amortization 13,376 12,382 40,772 42,068 Exploration expenses 3,624 1,891 14,536 6,602 Net earnings (net loss) (6,347) (15,383) 1,482 (4,685) Cash flow from operations 9,228 12,134 57,949 56,398 ______________________________________________________________ PER SHARE (Cdn $) Earnings (loss) $ (0.12) $ (0.31) $ 0.03 $ (0.10) Cash flow from operations $ 0.18 $ 0.25 $ 1.16 $ 1.15 Weighted average of common shares outstanding (thousands) 51,609 49,002 49,913 48,996 ______________________________________________________________ GOLD PRODUCTION
Number of ounces 111,654 126,780 378,672 386,820
Mine operating costs US $/oz 320 300 281 256
Mine operating costs
(excluding Valdez) US $/oz 244 264 237 237
Cambior's selling
price US $/oz 424 397 414 394
Market price US $/oz 384 386 384 384
______________________________________________________________
FINANCIAL POSITION (Cdn $'000) September 30, December 31,
1995 1994
Cash $ 116,496 $ 133,741 Working capital 132,101 168,048 Total assets 951,584 863,654 Total debt 273,470 215,239 Net debt 156,974 81,498 Shareholders' equity 603,867 567,677 ______________________________________________________________
______________________________________________________________
CAMBIOR INC.
Production
(Cambior's share) Third Quarter Nine months
ended September 30, ended September 30,
1995 1994 1995 1994
GOLD (ounces)
Omai Mine (100 percent) (1) 40,640 61,136 175,080 188,097
Doyon Mine (50 percent) 24,702 22,084 79,842 87,555
Rouyn-Noranda Division (2) 12,531 16,006 30,122 50,260
Chimo Mine 9,367 9,164 23,356 12,192
Sleeping Giant Mine
(50 percent) 5,307 5,477 18,353 15,513
Bouchard-Hebert Mine (3) 6,297 -- 19,169 --
Valdez Creek Placer (4) 12,810 12,913 32,750 33,203
__________________________________
TOTAL 111,654 126,780 378,672 386,820
__________________________________
__________________________________
BASE METALS AND OTHER Bouchard-Hebert Mine (3) Zinc (tonnes) in concentrate 4,976 -- 19,383 -- Copper (tonnes) in concentrate 2,129 -- 3,872 -- Niobec Mine (50 percent) (5) Ferroniobium (kg Nb) 288,000 -- 810,000 -- Nb2O5 (kg) in concentrate -- 399,000 -- 1,242,000 ______________________________________________________________
Explanatory notes for changes between 3rd quarter 1994 and 3rd
quarter 1995:
(1) Production at the Omai Mine declined in the 3rd quarter of
1995 due to the interruption of mining activities on August 19
following a failure in the main tailings dam.
(2) Gold production fell due to lower tonnage milled and head
grade at the Silidor Mine.
(3) The Bouchard-Hebert Mine entered into commercial production
on January 1, 1995.
(4) Mining activities at the Valdez Creek Placer ceased on
September 30, 1995.
(5) The Niobec Mine began producing ferroniobium in 1995. In
1994, the mine only produced niobium concentrate.
More information can be obtained on the Internet (http://www. cambior.com). The Company makes its quarterly reports and press releases available to the public. CONTACT: Henry A. Roy Senior Vice President, Administration and Finance and Chief Financial Officer 514/878-1484 or Robert LaValliere Manager, Investor Relations Investor relations The process by which the corporation communicates with its investors. 514/878-1282 or Victoria Putnam Assistant Manager, Investor Relations 514/878-3166 INDUSTRY KEYWORD: MINING EARNINGS REPEATS: New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of 212-575-8822 or 800-221-2462; Boston 617-236-4266 or 80 |
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