Campbell Resources Reports Second Quarter Results.Business Editors TORONTO--(BUSINESS WIRE)--Aug. 11, 2000 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 I (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) .)(NYSE NYSE See: New York Stock Exchange :CCH) Lower gold production combined with continuing low gold prices resulted in Campbell recording a loss of $6.5 million or $0.41 per share in the six months and a loss of $4.7 million or $0.30 per share in the three months ended June June: see month. 30, 2000. This compares to a loss of $7 million or $0.44 per share and a loss of $3.9 million or $0.25 per share in the comparable periods of 1999. All loss per share amounts for 1999 have been restated to take into account the 10-for-one share consolidation completed in May 2000. The results for the first six months of 2000 reflect the ongoing development and start-up Start-up The earliest stage of a new business venture. of operations at the Company's Joe Mann Mine in Chibougamau, Quebec Chibougamau is a town in central Quebec, Canada, located on Lake Gilman. and are not comparable in all aspects to the same period of 1999. All pre-production costs less any revenues from gold production relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Joe Mann Mine were 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. to the end of April, 2000 and expensed thereafter. During the first six months of 2000, Campbell produced 13,300 ounces of gold, of which 8,100 ounces were produced at the Joe Mann Mine and 5,200 ounces 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. . In the comparable period of 1999, Campbell produced 31,900 ounces of gold, of which 31,100 ounces were produced at the Joe Mann Mine. Production was lower than forecast primarily as a result of a number of start-up issues that have put production at Joe Mann behind schedule. Mine management and independent consultants are reviewing these issues to determine how best to achieve the forecast production rates. The start-up delays have contributed to the decrease 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. deposits to $14.7 million at June 30, 2000 compared to $26.2 million including money market instruments Money market instruments See: Cash investments at December December: see month. 31, 1999. Working capital has also decreased to $18.4 million from $31.4 million at December 31, 1999. Joe Mann Mine, Quebec, Canada Milling of ore began at the Joe Mann Mine in April following the initial development of levels below the 2350 ft. level using cut-and-fill mining methods. The introduction of cut-and-fill mining has achieved the operational objective of improving ground conditions in the underground working areas. Gold production to date, however, has been lower than originally projected due to a number of start-up problems that management is attempting to resolve. Conversion of certain working areas that had been developed under the previous mining method took much longer than anticipated and the associated costs were higher than forecast. In addition, the productivity levels forecast in the mine plan have not yet been achieved in all working areas or on a consistent basis. The ore grade Ore grade is a measure that describes the concentration of a valuable natural material (such as metals or minerals) in its surrounding ore. Ore grade is used to assess the economic feasibility of a mining operation: the cost of extracting a natural material from its ore is directly milled has also been considerably lower than the grade determined by definition drilling. Mine management and external consultants are in the process of reviewing these issues in order to determine how best to achieve the targeted gold production levels. A number of possible remedies are being suggested and management intends to implement solutions as soon as possible. The third quarter will be critical for the Joe Mann Mine as the impact of the remedial REMEDIAL. That which affords a remedy; as, a remedial statute, or one which is made to supply some defects or abridge some superfluities of the common law. 1 131. Com. 86. The term remedial statute is also applied to those acts which give a new remedy. Esp. Pen. Act. 1. measures and operating changes being implemented on production levels are closely evaluated. Should the gold price remain in the US$270 range and the measures being undertaken not prove successful in improving productivity, mining operations may have to be temporarily 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. pending higher gold prices. Santa Gertrudis Mine, Sonora, Mexico During the first six months of 2000, the Santa Gertrudis Mine mined approximately 198,200 tonnes of ore at a grade of 1.49 grams of gold per tonne tonne measure of weight or mass; 1 tonne=1000 kg. See also ton. with a strip ratio of 8.9 to one. During the comparable period of 1999 the mine was on care and maintenance. Gold production totalled 2,100 ounces in the quarter and 5,200 ounces in the six months ended June 30, 2000. This production was approximately 35% lower than forecast due to lower gold recovery rates from the heap leach leach v. leached, leach·ing, leach·es v.tr. 1. To remove soluble or other constituents from by the action of a percolating liquid. 2. pads and from mining lower grade cap material from the Mirador pit. As a result, mining operations have moved to another pit where gold production rates have been steadily increasing. Higher grade ore from the Mirador pit will be mined later in the year. Cash production cost at Santa Gertrudis for the six months was US$445 per ounce ounce, in zoology ounce, in zoology: see leopard. ounce, unit of measurement ounce: see English units of measurement. . Gold production from the Santa Gertrudis Mine for the year is now expected to be 23,000 ounces at a cash cost of US$255 per ounce. Exploration is ongoing in order to define deposits for production beyond 2000. Presently, most of the exploration is focused on targets within structures of the Roca Roja property. These structures include the La Peque-Escondida Fault, the Viviana Fault, the El Muerto Noun 1. El Muerto - a mountain peak in the Andes on the border between Argentina and Chile (21,457 feet high) Argentina, Argentine Republic - a republic in southern South America; second largest country in South America Fault, and the Coshaui Shear shear: see strength of materials. Shear A straining action wherein applied forces produce a sliding or skewing type of deformation. Zone. During the quarter, 7 targets were the subject of detailed investigation which included mapping, sampling, trenching and drilling. Several of these targets, including the Viviana North, Viviana West and Viviana Northeast as well as targets along the El Muerto Fault and the Cosahui Shear Zone, will be followed-up during this quarter. In addition, more than 10 preliminary stage targets have been identified and will undergo initial investigation before the year end.
CAMPBELL RESOURCES INC.
CONSOLIDATED BALANCE SHEETS
(Expressed in thousands of Canadian dollars)
Unaudited
June 30 December 31
2000 1999
----------------------
ASSETS
CURRENT ASSETS
Cash and short-term deposits 14,653 18,219
Money market instruments 7,958
Receivables 2,216 1,999
Inventories 5,212 4,891
Prepaids 799 460
----------------------
Total current assets 22,880 33,527
----------------------
OTHER ASSETS 179 194
FUTURE INCOME TAX ASSET 1,657
MINING INTERESTS 185,077 178,538
less accumulated depreciation and
amortization (126,784) (125,125)
----------------------
59,193 53,413
----------------------
Total assets 83,909 87,134
----------------------
----------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable 2,871 1,104
Accrued liabilities 686 1,003
Future income tax liability 916
----------------------
Total current liabilities 4,473 2,107
----------------------
ACCRUED RECLAMATION 2,241 2,169
CONVERTIBLE DEBENTURES 3,811 3,718
FUTURE INCOME AND MINING TAX LIABILITY 1,690 1,716
OTHER LIABILITIES 1,409 1,751
SHAREHOLDERS' EQUITY
Capital stock 125,380 125,339
Foreign currency translation adjustment 997 593
Deficit (56,092) (50,259)
----------------------
Total shareholders' equity 70,285 75,673
----------------------
Total liabilities and shareholders' equity 83,909 87,134
----------------------
----------------------
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(Expressed in thousands of Canadian
dollars except per share amounts)
Three months ended Six months ended
June 30 June 30
2000 1999 2000 1999
-------------------------------------
METAL SALES 3,547 6,424 4,803 13,025
-------------------------------------
EXPENSES
Mining 6,649 7,655 8,121 15,463
General administration 650 694 1,359 1,463
Depreciation and amortization 917 1,373 1,206 2,762
Exploration 385 573 1,079 909
Care and maintenance 80 549 217 787
-----------------------------------
8,681 10,844 11,982 21,384
-----------------------------------
Loss from operations (5,134) (4,420) (7,179) (8,359)
-----------------------------------
Other income (expense)
Other income 442 584 800 1,356
Convertible debenture interest
expense (79) (79) (156) (186)
-----------------------------------
363 505 644 1,170
-----------------------------------
Loss before taxes (4,771) (3,915) (6,535) (7,189)
Income and mining tax recovery
(expense) 50 (8) 18 218
-----------------------------------
NET LOSS (4,721) (3,923) (6,517) (6,971)
-----------------------------------
-----------------------------------
LOSS PER SHARE (0.30) (0.25) (0.41 (0.44)
-----------------------------------
-----------------------------------
Note: Loss per share amounts for comparative periods have been
adjusted to reflect the one-for-ten share consolidation in May,
Campbell Resources Inc. 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. 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, 1999. 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. |
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