Campbell Resources Reports a Second Quarter Loss: Revises Production Target For 1997.TORONTO--(BUSINESS WIRE)--Aug. 7, 1997--(TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). , ME, NYSE NYSE See: New York Stock Exchange :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) .) As a result of lower gold production, lower gold prices and higher exploration costs, Campbell Resources Inc. reports a loss of $1.8 million or $0.012 per share for the three months ended June 30, 1997 compared with income of $3.2 million or $0.022 per share in the same period a year earlier. For the six months ended June 30, 1997 Campbell recorded a loss of $4.6 million or $0.030 per share compared with net income $6.7 million or $0.047 per share in the same period of 1996. 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 was similarly impacted being reduced to $1.6 million in the six months compared to $13.1 million in 1996. For the six month and three month periods ended June 30, 1997, the Company produced 53,580 ounces and 28,060 ounces of gold compared with 68,310 ounces and 34,980 ounces in the corresponding periods of 1996. The decrease in production is primarily attributable to the mining of lower grade ores with lower recovery rate characteristics 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. Continuing lower gold prices resulted in Campbell receiving revenues of US$354 per ounce ounce, in zoology ounce, in zoology: see leopard. ounce, unit of measurement ounce: see English units of measurement. for the six month period compared to revenues of US$398 per ounce in the same period of 1996. The Company has hedged approximately 25 percent of its 1997 production at US$380 per ounce of gold and has a total of 118,000 ounces hedged between 1998 and 2000 at an average price of US$425 per ounce. Lower gold production resulted in an increase in the average cash operating cost to US$295 per ounce for the six months and US$271 per ounce for the second quarter in 1997. This compares with an average cash operating cost of US$234 per ounce and US$229 per ounce for the same periods in 1996. Working capital at June 30, 1997 was $53.7 million and consisted primarily of $38 million in cash and short term deposits. This compares to figures of $65.5 million and $55.3 million, respectively at December 31, 1996. Joe Mann Mine, Quebec During the first 6 months of 1997, the Joe Mann mine produced 35,820 ounces of gold at a cash operating cost of US$276 per ounce compared with 36,870 ounces at a cash operating cost US$270 per ounce during the same period in 1996. Second quarter production figures were 18,660 ounces in 1997 compared to 19,400 ounces in 1996 at a cash operating cost of US$258 per ounce for the second quarter in both 1996 and 1997. 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 Joe Mann is well underway and proceeding on schedule. Since last December, approximately 500 ft of the planned 1,104 foot shaft extension has been completed and 3 of the 6 stations have been constructed. In addition, development headings to explore the down plunge The term Plunge has multiple meanings:
There is potential for the West zone to host up to 500,000 ounces of gold and initial ore production from this zone, which is targeted for June 1999, will lead to an increment To add a number to another number. Incrementing a counter means adding 1 to its current value. increase in production once the zone is fully delineated de·lin·e·ate tr.v. de·lin·e·at·ed, de·lin·e·at·ing, de·lin·e·ates 1. To draw or trace the outline of; sketch out. 2. To represent pictorially; depict. 3. . Santa Gertrudis Mine, Mexico Gold production at Santa Gertrudis amounted to 17,760 ounces in the first six months of 1997 and 9,400 ounces in the second quarter of 1997 compared with 31,430 ounces and 15,570 ounces, respectively, in 1996. This decrease in production led to increased cash operating costs operating costs npl → gastos mpl operacionales of US$333 per ounce in the first half and US$298 per ounce in the second quarter. This compares with US$191 per ounce and US$193 per ounce, respectively in 1996. During the first six months of 1997, 488,000 tonnes of ore with a grade of 1.63 grams per tonne tonne measure of weight or mass; 1 tonne=1000 kg. See also ton. (gpt) and 4,260,000 tonnes of waste were mined compared to 496,000 tonnes of ore with a grade of 2.21 gpt and 4,002,000 tonnes of waste in 1996. The Company expects gold grades and associated gold recovery rates to increase in the third and fourth quarters as production moves into the main part of the Dora DORA Directory of Rare Analyses Clinical chemisty A reference book published by the Am Chemical Soc that catalogs rarely ordered clinical tests and provides details on the labs performing them Criteria for inclusion in DORA Test of interest is not performed by deposit. Revised Production Target Year-to-date gold production at Joe Mann is higher than projected for the six month period ended June 30, 1997 and as a result, the Company anticipates Joe Mann will exceed its production target by 2,000 ounces to produce approximately 72,000 ounces in 1997. At Santa Gertrudis, certain deposits that were considered ore at December 31, 1996 are not economic at current gold prices. Removal of these deposits from the mine plan combined with the delay in the commencement of mining the La Trinidad La Trinidad could be:
Cerro Quema Gold Project, Panama Lower gold prices, which culminated in the price of gold reaching a 12 year low of US$314 per ounce in July, have compelled the Company to review capital and operating programs. An effort is being made to cut costs and defer de·fer 1 v. de·ferred, de·fer·ring, de·fers v.tr. 1. To put off; postpone. 2. To postpone the induction of (one eligible for the military draft). v.intr. certain programs where possible without impairing future operations. As a result, the Company is reassessing the construction schedule at its Cerro Quema project in Panama. Previously, construction at the project site was halted following the adoption of a resolution by the Ministry of Commerce and Industry in Panama. The resolution was adopted to address concerns about soil sediment sediment, mineral or organic particles that are deposited by the action of wind, water, or glacial ice. These sediments can eventually form sedimentary rocks (see rock). from the construction site entering the waterways The list of waterways is a link page for any river, canal, estuary or firth. International waterways
adj. rain·i·er, rain·i·est Characterized by, full of, or bringing rain. rain  i·ness n.Adj. season. 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 have been completed to prevent further sedimentation sedimentation In geology, the process of deposition of a solid material from a state of suspension or solution in a fluid (usually air or water). Broadly defined it also includes deposits from glacial ice and materials collected under the effect of gravity alone, as in talus problems and the Company is working closely with Panamanian authorities to ensure that the project can proceed in a timely and responsible manner. Minimal construction will be completed during the remainder of the rainy season, which is expected to end in December. At that time, the Company will reassess reassess Verb to reconsider the value or importance of reassessment n Verb 1. reassess - revise or renew one's assessment reevaluate the outlook for gold and the potential for any regional opposition to the project and proceed accordingly. Assuming work recommences in December, the project will have been delayed nine months and production will begin in the first quarter of 1999. Exploration Exploration at Santa Gertrudis is continuing, designed to test two types of targets - those near the existing mining operations which could provide reserves in the short term and other targets away from the mining areas that could potentially be developed into self- sustaining operations. At the El Tigre El Tigre is a city in the eastern Venezuelan state of Anzoátegui. This city is the shire town of the Simón Rodríguez Municipality and, according to the 2001 Venezuelan census, the municipality has a population of 147,800. zone approximately 4 kilometres southeast of the mine, step out drilling over a 250 metre metre In poetry, the rhythmic pattern of a poetic line. Various principles have been devised to organize poetic lines into rhythmic units. Quantitative verse, the metre of Classical Greek and Latin poetry, measures the length of time required to pronounce syllables, strike length south of the discovery hole has continued to return significant 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. intersections. The following table summarises the most recent assay results: -0-
Hole Intersection Width Gold Grade
(metres downhole) (m) (g/t)
TIG-108 30.0-33.0 3.0 2.84
TIG-109 54.0-58.5 4.5 0.43
TIG-110 25.5-27.0 1.5 3.35
TIG-111 27.0-33.0 6.0 7.05
TIG-112 70.5-75.0 4.5 0.54
TIG-113 51.0-54.0 3.0 0.46
TIG-114 61.5-64.5 3.0 1.75
TIG-115 66.0-67.5 1.5 2.00
and 90.0-91.5 1.5 3.05
TIG-116 40.5-46.5 6.0 0.85
TIG-117 30.0-37.5 7.5 1.35
-0- The zone remains open along strike and at depth and additional drilling will be completed to test both the continuity and extent of El Tigre. The potential to develop this deposit for inclusion into reserves by year end is considered excellent. One kilometre to the east of El Tigre is the Ontario zone. Earlier drilling at Ontario reported in the first quarter of 1997 intersected high grade gold values. Recent step out drilling continues to intersect In a relational database, to match two files and produce a third file with records that are common in both. For example, intersecting an American file and a programmer file would yield American programmers. high grade gold values which are related to a near surface, shallow dipping structure. The Ontario zone is one of many zones that comprise the Greta area, an area with potential to host a significant deposit. Some of the better intersections are as follows: -0-
Hole Intersection Width Gold Grade
(metres downhole) (m) (g/t)
GR-235 34.5-37.5 3.0 2.93
GR-239 30.0-37.5 7.5 5.13
GR-242 52.5-57.0 4.5 13.50
Within the mining operations area, Hole SEB-109 has intersected 2.90 gpt over a nine metre interval. This intersection intersection /in·ter·sec·tion/ (-sek´shun) a site at which one structure crosses another. intersection a site at which one structure crosses another. correlates with previous unmined intersections in the hanging wall of the Corral corral a small fenced-in enclosure with high, wooden fences, suitable for holding cattle or horses. corral system a management system in which range cattle are put into corrals and fed hay for a period when the environment is most open pit that assayed up to 5.20 gpt over 5.0 metres. The Company believes the Sebastian zone can be developed into reserves in the near future. Elsewhere two kilometres north of the mining operations, encouraging results are continuing to be received from the La Peque zone. A structure has been identified and has returned the following intervals: -0-
Hole Intersection Width Gold Grade
(metres downhole) (m) (g/t)
PEQ-204 22.5-24.0 1.5 7.90
PEQ-206 31.5-33.0 1.5 1.75
PEQ-207 10.5-27.0 16.5 0.80
PEQ-208 45.0-49.5 4.5 2.35
PEQ-209 63.0-69.0 6.0 1.77
PEQ-210 4.5-6.0 1.5 0.95
PEQ-211 0.0-10.5 10.5 0.71
and 15.0-16.5 1.5 2.75
PEQ-212 19.5-21.0 1.5 3.15
and 46.5-48.0 1.5 1.80
Exploration is ongoing across the Santa Gertrudis property and additional targets continue to be identified. Campbell Resources is a growth-oriented gold mining company with operating mines in Quebec, Canada and Sonora, Mexico, and a development-stage gold project in Panama. The Company is currently exploring on its mine properties in Quebec and Mexico, it is active in other gold exploration programs in Mexico and is pursuing advance-stage acquisition opportunities 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. . Campbell Resources Inc. (Incorporated under the laws of Canada) UNAUDITED CONSOLIDATED BALANCE SHEETS consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. (Expressed in thousands of Canadian dollars 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 ) -0-
June 30 December 31
1997 1996
ASSETS
CURRENT ASSETS
Cash and short-term deposits $37,957 $55,302
Receivables 10,614 8,270
Inventories 9,507 9,134
Prepaids 1,478 749
Total current assets 59,556 73,455
OTHER ASSETS 1,063 1,271
NATURAL RESOURCE PROPERTIES 166,397 149,879
Less accumulated depreciation
and amortization (66,300) (59,307)
100,097 90,572
Total assets $160,716 $165,298
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 4,379 $ 5,504
Accrued liabilities 1,423 2,337
Income taxes payable 5 94
Total current liabilities 5,807 7,935
OTHER LIABILITIES 888 881
CONVERTIBLE DEBENTURES 7,718 7,657
DEFERRED MINING TAXES 6,725 6,767
SHAREHOLDERS' EQUITY
Capital stock 120,750 118,605
Foreign currency translation adjustment (320) (248)
Retained earnings 19,148 23,701
Total shareholders' equity 139,578 142,058
Total liabilities and
shareholders' equity $160,716 $165,298
-0-
CAMPBELL RESOURCES INC.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(Expressed in thousands of Canadian dollars except per share
amounts)
Three months ended Six months ended
June 30 June 30
1997 1996 1997 1996
METAL SALES $13,569 $18,733 $25,858 $37,130
EXPENSES
Mining 10,998 11,455 22,645 22,788
General
administra-
tion 707 783 1,447 1,420
Depreciation
and
amortiza-
tion 2,323 3,085 4,484 5,723
Exploration 1,445 548 2,510 1,110
15,473 15,871 31,086 31,041
Income (loss)
from
operations (1,904) 2,862 5,228 6,089
Other income
(expense)
Interest
income 471 1,094 1,142 1,663
Foreign
exchange
loss (54) (170) (85) (205)
Convertible
debenture
interest
expense (169) (173) (318) (385)
248 751 739 1,073
Income
(loss)
before
income
taxes (1,656) (3,613) (4,489) 7,162
Income
tax
provision 115 386 64 469
NET INCOME
(LOSS) $(1,771) $3,227 ($4,553) $6,693
EARNINGS
(LOSS)
PER SHARE ($0.012) $0.022 ($0.030) $0.047
CONTACT: Campbell Resources Inc. Steven Dawson, 416/366-5201 Fax: 416/367-3294 |
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