Campbell Resources Reports Improved Overall Cash Production Cost, Reduced Third Quarter Loss and Cash of $41 Million.TORONTO--(BUSINESS WIRE)--Nov. 10, 1998--Campbell Resources Inc. (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :CCH CCH Colegio de Ciencias y Humanidades (Spanish) CCH Certified Clinical Hypnotherapist CCH Cook County Hospital CCH Certified in Classical Homeopathy CCH Country Club Hills (Fairfax City, VA, USA) .) (ME:CCH.) (NYSE NYSE See: New York Stock Exchange :CCH) After consideration of a $2.1 million writedown writedown A reduction in the value of an asset carried on a firm's financial statements. For example, the firm's accountants, believing the inventory is overvalued, may decide to take a writedown by reducing inventory valuation. on the sale of surplus equipment, Campbell Campbell, city, United States Campbell, city (1990 pop. 36,048), Santa Clara co., W Calif., in the fertile Santa Clara valley; founded 1885, inc. 1952. Resources recorded a loss of $3.2 million or $0.021 per share for the latest three month period and a loss of $6.9 million or $0.052 per share for the nine months ended September September: see month. 30, 1998. This compares to a loss of $3.4 million or $0.022 per share and $7.9 million or $0.053 per share in the comparable periods of 1997. Excluding the writedown, the loss would have been $1.1 million for the quarter and $4.8 million for the nine months. 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 before the change in operating working capital increased during the quarter to $0.4 million compared to a cash outflow of $0.3 million in 1997. During the nine month period ended September 30th, cash flow decreased to $1 million in 1998 from $1.2 million in 1997. Working capital at September 30, 1998 was $44 million compared to $49 million a year earlier. The Company has successfully maintained its strong cash position which, after consideration of the recent sale of surplus equipment following the quarter end, amounts to approximately $41 million. Gold production was lower for the three month and nine month periods in 1998 compared with 1997 resulting from the cessation cessation Vox populi The stopping of a thing. See Smoking cessation. of mining at the Santa Gertrudis Santa Gertrudis Heaviest breed of beef cattle, developed in the 20th century by the King Ranch in Texas by crossing Brahman bulls with shorthorn cows. It is usually solid red with occasional small white markings on the forehead or the flanks. mine in Sonora Sonora (sōnō`rä), state (1990 pop. 1,823,606), 70,484 sq mi (182,554 sq km), NW Mexico, on the Gulf of California, S of Arizona. Hermosillo is the capital. , Mexico Mexico, city, Mexico Mexico or Mexico City, Span. Ciudad de México (Méjico), city (1990 pop. 8,236,960; 1991 met. area est. 20,899,000), central Mexico, capital and largest city of Mexico. . During the quarter, gold production decreased by 33 percent to 19,000 ounces from 28,400 ounces a year earlier and by 21 percent in the nine months of 1998 to 64,300 ounces from 81,700 ounces in 1997. Campbell continues to receive a higher price than the average Comex market gold price as a result of hedging activities. During the nine months, Campbell's average realized price of gold was US$306 per ounce ounce, in zoology ounce, in zoology: see leopard. ounce, unit of measurement ounce: see English units of measurement. compared with the average Comex market price of US$294 for the comparable period. Currently, the Company has hedged 7,500 ounces of gold production for the remainder of the year at a price of US$330 per ounce. Campbell continued to lower the overall cash production cost which has fallen to US$250 per ounce for the third quarter and US$258 for the nine months compared to US$290 and US$294, respectively in 1997. Campbell expects to produce approximately 85,000 ounces of gold for the year at a cash operating cost of US$260 per ounce. Joe Mann Mine, Quebec During the first nine months, the Joe Mann mine produced 53,230 ounces of gold at a cash operating cost of US$268 per ounce compared with 53,020 ounces at the same cash operating cost during the first nine months of 1997. Third quarter production figures were 16,670 ounces at a cash operating cost of US$250 per ounce in 1998, compared to 17,420 ounces at the same cash operating cost in 1997. The number of tons milled increased to 222,400 tons in the first nine months of 1998, compared to 195,200 tons in 1997 while the mill head grade decreased to 0.258 ounces of gold per ton compared to 0.296 ounces of gold per ton in 1997. The mill recovery r[_1]ate has been steadily improving over the past few years following improvements to the various components of the mill and reached a record rate of 95 percent during the month of August. The lower mill head grades reflect the scheduled mining of lower grade material. The program to deepen deep·en tr. & intr.v. deep·ened, deep·en·ing, deep·ens To make or become deep or deeper. deepen Verb to make or become deeper or more intense Verb 1. the main production 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. at the Joe Mann mine is substantially complete other than minor peripheral work with an estimated cost of $0.5 million to be completed when development of the lower levels commences. The Company has delayed full development below the 2350 level due to continuing low gold prices however, accelerated development of the first level below the 2350 level has commenced to ensure continued production through to the end of the year 2000. Various Life-of Mine production plans are being studied in an effort to increase production from the mine while at the same time reducing the cost per ounce of gold produced. This analysis could be completed by the end of the fourth quarter and will enable a full development decision to be made early in 1999. Santa Gertrudis Mine, Mexico Despite the cessation of mining activity in December 1997, Santa Gertrudis has continued to produce gold in 1998. A total of 2,340 ounces of gold was produced in the third quarter of 1998 and 11,100 ounces in the first nine months compared to 10,960 ounces and 28,720 ounces in the comparable periods of 1997. Cash production cost at the Santa Gertrudis mine, which include ongoing fixed overhead costs overhead costs see fixed costs. , decreased to US$211 per ounce in the first nine months of 1998 compared to US$341 in the comparable period of 1997. Leaching leaching, method of extraction in which a solvent is passed through a mixture to remove some desired substance from it. A simple example is the passage of boiling water through ground coffee to dissolve and carry out the chemicals necessary for producing the beverage. operations will continue during 1998 for as long as the process generates positive cash flow, now estimated to be late in 1998. Exploration consisting of geochemical soil sampling, mapping, trenching and drilling was completed on two of three principal target areas during the past quarter. Work on the San Enrique San Enrique is the name of two places in the Philippines:
In the area of previous mining activity, targets that were investigated centred around the past producing El Toro El To·ro An unincorporated community of southern California southeast of Santa Ana. Founded in the 1890s, it is mainly residential. Population: 62,685. and Ruben open pits. Previously, these pits yielded production of approximately 29,000 ounces and currently have significant resources near surface and at depth. Mapping and trenching south of the El Toro pit has uncovered Uncovered may refer to:
An alteration is a variation made in the language or terms of a legal document that affects the rights and obligations of the parties to it. zone with several narrow zones of mineralization Mineralization The process by which the body uses minerals to build bone structure. Mentioned in: Rickets mineralization, n the bioprecipitation of an inorganic substance. . Assays to test the zones of mineralization returned values of 2.34 grams per tonne tonne measure of weight or mass; 1 tonne=1000 kg. See also ton. (gpt) gold over 1.6 metres, 1.88 gpt gold over 3.1 metres, 1.15 gpt gold over 1.7 metres and 9.4 gpt gold over 1.6 metres from several trenches. North of the pit, trenching has returned an assay value of 4.51 gpt gold over 6.7 metres. These values in the proximity of the El Toro and Ruben pits, have enabled company geologists A geologist is a contributor to the science of geology. Geologists are also known as earth scientists or geoscientists. The following is a list of famous or notable geologists. to define a deposit with 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. resources of approximately 100,000 ounces. Closing of the previously announced acquisition of mining claims from the neighbouring former gold producer, Minera Roca Roja, has been delayed due to the formal bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most proceeding of Minera Roca Roja. The court appointed bankruptcy trustee has indicated that he will permit Campbell to complete exploration work on these claims and advised the Company that he expects the transaction to close by December 15, 1998. With this acquisition, the Company will acquire approximately 1,300 hectares of highly prospective mining claims located north of the area of previous mining at Santa Gertrudis. Within the El Carmen There are many toponyms called Carmen or El Carmen. See also Carmen (disambiguation).
Elsewhere in the Greta Area, 7 kilometres to the southeast of the Mine Area at Santa Gertrudis, work has continued to outline extensions of known mineralization. Previously the Company announced the Greta Area contained geological resources of approximately 140,000 ounces within 5 deposits. Drilling this quarter was focused on defining additional mineralization in the Tracy East and Tracy North zones. Two holes that intersected the Tracy North zone returned values of 1.27 gpt gold over 6 metres and 8.0 gpt gold over 6 metres. In the northern portion of the Greta area, geochemical sampling and drilling has been completed north of the Greta Ontario Hill zone. Several geochemical samples, ranging in value up to 1 gpt gold with high path finder Path Finder is a file browser developed by Cocoatech, built as a Finder replacement for the Mac OS X operating system. The latest major version, 4.0, was released on January 14, 2006. It includes support for Mac OS X v10. element values, have outlined a zone known as the Pinos Quatros. Subsequent drilling at Pinos Quatros has returned a value of 2.8 gpt gold over 1.5 metres along with highly anomalous a·nom·a·lous adj. 1. Deviating from the normal or common order, form, or rule. 2. Equivocal, as in classification or nature. values over a 40-metre interval. At the far western end of the Greta area is the Nely East zone which has returned a value of 0.64 gpt over 9.0 metres from drilling. The Company will continue to evaluate targets within the Mine Area and the Greta Area. 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. Certain information contained in this release contains "Forward-Looking Statements" within the meaning of the 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 and is subject to certain risks and uncertainties, including those "Risk Factors" set forth in the Company's current Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 1997. Such factors include, but are not limited to: differences between estimated and actual ore reserves; changes to exploration, development and mining plans due to prudent reaction of management to ongoing exploration results, engineering and financial concerns; and fluctuations in the gold price which affect the profitability and ore reserves of the Company. Readers are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" . The Company undertakes no obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date hereof or to reflect unanticipated events or developments Campbell Resources is a growth-oriented gold mining company with operations in Quebec, Canada and Sonora, Mexico, and a development-stage gold project in Panama awaiting higher gold prices in order to continue development. The Company is currently exploring on its mine properties in Quebec and Mexico and is actively seeking additional acquisitions in Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. . -0-
CAMPBELL RESOURCES INC.
(Incorporated under the laws of Canada)
UNAUDITED CONSOLIDATED BALANCE SHEETS
(Expressed in thousands of Canadian dollars)
September December 31
1998 1997
---------------------
ASSETS
CURRENT ASSETS
Cash and short-term deposits $38,425 $41,735
Receivables 3,601 4,805
Inventories 5,272 7,250
Prepaids 495 995
---------------------
Total current assets 47,793 54,785
---------------------
OTHER ASSETS 718 986
---------------------
NATURAL RESOURCE PROPERTIES 176,581 170,256
Less accumulated depreciation
and amortization (107,623) (102,145)
---------------------
68,958 68,111
---------------------
Total assets $117,469 $123,882
---------------------
---------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $2,409 $3,989
Accrued liabilities 1,357 1,757
Income taxes payable 28 31
---------------------
Total current liabilities 3,794 5,777
---------------------
OTHER LIABILITIES 3,050 1,442
CONVERTIBLE DEBENTURES 6,038 7,341
DEFERRED MINING TAXES 3,642 4,198
SHAREHOLDERS' EQUITY
Capital stock 123,203 121,425
Foreign currency translation adjustment 1,374 408
Deficit (23,632) (16,709)
---------------------
Total shareholders' equity 100,945 105,124
---------------------
Total liabilities and
shareholders' equity $117,469 $123,882
---------------------
---------------------
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(Expressed in thousands of Canadian dollars except per share amounts)
Three months ended Nine months ended
September 30 September 30
1998 1997 1998 1997
---- ---- ---- ----
METAL SALES $8,847 $12,979 $28,369 $38,837
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EXPENSES
Mining 7,361 11,884 25,918 34,380
General administration 631 774 1,987 2,221
Depreciation and
amortization 1,472 2,267 4,733 6,705
Exploration 820 1,704 1,870 4,214
------------------------------------
10,284 16,629 34,508 47,520
------------------------------------
Loss from operations
before writedown
of natural resource
properties (1,437) (3,650) (6,139) (8,683)
Writedown of natural
resource properties 2,138 2,138
------------------------------------
Loss from operations (3,575) (3,650) (8,277) (8,683)
------------------------------------
Other income (expense)
Interest and
other income 483 474 1,608 1,421
Foreign exchange loss (87) (7) (172)
Convertible debenture
interest expense (125) (163) (403) (481)
------------------------------------
358 224 1,198 768
------------------------------------
Loss before income taxes (3,217) (3,426) (7,079) (7,915)
Income tax recovery
(expense) 27 58 156 (6)
------------------------------------
NET LOSS ($3,190) ($3,368) ($6,923) ($7,921)
------------------------------------
------------------------------------
LOSS PER SHARE ($0.021) ($0.022) ($0.052) ($0.053)
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