Crown Announces Second Quarter Results.Business Editors DENVER--(BUSINESS WIRE)--Aug. 14, 2000 Crown Resources Corporation today reported net income of $1,493,000, or $0.10 per share, for the second quarter of 2000 compared with a net loss of $679,000, or $0.05 per share, for the second quarter of 1999. The Company reported net income of $680,000 or $0.05 per share for the six months ended June June: see month. 30, 2000, compared to a net loss of $1,410,000 for the same period last year. During the fourth quarter of 1999, Crown changed its method of accounting to expense all exploration costs on properties without proven and probable reserves. The change was applied retroactively ret·ro·ac·tive adj. Influencing or applying to a period prior to enactment: a retroactive pay increase. [French rétroactif, from Latin to January January: see month. 1, 1999, and balances for the 1999 interim statements have been restated to reflect the change in accounting principle. The 2000 net income was the result of the sale of the Yanacocha Yanacocha is a gold mine in northern Peru, considered one of the biggest and most profitable in the world producing over US$7 billion worth of gold to date. The 251-square kilometer open pit mine is situated about 30 kilometers (14km straight line) north of Cajamarca, in high property by Solitario For the Mexican professional wrestler, see . The Solitario is a large geologic formation in West Texas. Viewed from above, it suggests an impact crater. In fact, it is the eroded remains of a laccolith. The approximate center of the Solitario is located 56. , Crown's 57.2 percent-owned subsidiary for $6,000,000. This resulted in a gain on sale of mineral property of approximately $5,809,000 during the quarter. The gain on sale was mitigated mit·i·gate v. mit·i·gat·ed, mit·i·gat·ing, mit·i·gates v.tr. To moderate (a quality or condition) in force or intensity; alleviate. See Synonyms at relieve. v.intr. To become milder. by the minority interest in Solitario's net income of $2,344,000 and a non-cash write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. of $1,210,000 during the second quarter related to a portion of Crown's Cord Ranch ranch, large farm devoted chiefly to raising and breeding cattle, horses, sheep, and goats. The cattle ranch was introduced from Latin America to Texas and the plains of the W United States and Canada. property. Exploration expense for the first six months of 2000 was $688,000 compared to $546,000 in the prior year. Increased exploration by Crown in 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. and reconnaissance  This article or section needs copy editing for grammar, style, cohesion, tone and/or spelling.You can assist by [ editing it] now. exploration efforts in Brazil Brazil (brəzĭl`), Port. Brasil, officially Federative Republic of Brazil, republic (2005 est. pop. 186,113,000), 3,286,470 sq mi (8,511,965 sq km), E South America. and Bolivia Bolivia (bōlĭv`ēə, Span. bōlē`vyä), officially Republic of Bolivia, republic (2005 est. pop. 8,858,000), 424,162 sq mi (1,098,581 sq km), W South America. by Solitario accounted for the increase. During the six months ended June 30, 2000, the Company spent $143,000 for mineral property additions which was primarily related to the Crown Jewel Crown jewel A particularly profitable or otherwise particularly valuable corporate unit or asset of a firm. Often used in risk arbitrage. The most desirable entities within a diversified corporation as measured by asset value, earning power, and business prospects; in takeover project. Solitario received $118,000 during the first half of 2000 and 1999 from Cominco Ltd. related to its joint venture of the Bongara zinc zinc, metallic chemical element; symbol Zn; at. no. 30; at. wt. 65.38; m.p. 419.58°C;; b.p. 907°C;; sp. gr. 7.133 at 25°C;; valence +2. Zinc is a lustrous bluish-white metal. It is found in Group 12 of the periodic table. project in Peru of which $100,000 was mineral property option proceeds. As of June 30, 2000, the Company had consolidated cash and working capital of $9,082,000 and $8,862,000, respectively. Crown is listed on the NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on National Market System under the trading symbol Trading symbol See: Ticker symbol "CRRS CRRS Comprehensive Records Retention Schedule CRRS Combat Readiness Reporting System CRRS Comprehensive Risk Reduction Specialist " and on the Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. under the symbol "CRO."
CROWN RESOURCES CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands) June 30, December 31,
2000 1999
---- ----
Assets
Cash and cash equivalents $ 9,082 $ 5,174
Other current assets 229 201
Mineral properties, net 15,646 16,772
Other assets 720 562
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Total Assets $25,677 $22,709
======= =======
Liabilities and Stockholders' Equity
Current liabilities $ 449 $ 494
Long-term liabilities 15,000 15,000
Minority interest 3,462 1,235
Stockholders' equity 6,766 5,980
------- -------
Total Liabilities and
Stockholders' Equity $25,677 $22,709
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended Six months ended
(in thousands, except June 30, June 30,
per share amounts) 2000 1999 2000 1999
---- ---- ---- ----
Revenues:
Gain on sale of mineral property $5,809 $ - $ 5,809 $ -
Other revenue 146 127 336 338
------ ------- ------- ------
$5,955 $ 127 $ 6,145 $ 338
------ ------- ------- ------
Costs and expenses:
Exploration expense 270 279 688 546
Depreciation, depletion
and amortization 11 19 27 38
General and administrative 379 377 771 802
Interest expense 242 242 485 485
Abandonments 1,210 16 1,269 16
Other, net 6 (2) (2) 6
------ ------- ------- ------
2,118 931 3,238 1,893
------ ------- ------- ------
Loss before minority interest 3,837 (804) 2,907 (1,555)
Minority interest in income
(loss) of subsidiary (2,344) 125 (2,227) 145
------ ------- ------- ------
Net income (loss) $ 1,493 $ (679) $ 680 $(1,410)
======= ======= ======= =======
Basic and diluted income (loss)
per common equivalent share $ 0.10 $ (0.05) $ 0.05 $ (0.10)
======= ======= ======= =======
Weighted average shares
outstanding 14,553 14,533 14,552 14,533
CROWN RESOURCES CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Six months ended June 30,
(in thousands) 2000 1999
---- ----
Operating activities:
Net income (loss) $ 680 $(1,410)
Adjustments:
Depreciation, depletion & amortization 78 89
Loss (gain) on sale of assets
and mineral properties (5,809) 4
Minority interest in subsidiary gain (loss) 2,227 (145)
Abandonment of mining claims and leases 1,269 16
Other 47 (17)
------- -------
Net cash used in operating activities (1,508) (1,463)
------- -------
Investing activities:
Additions to mineral properties (143) (101)
Proceeds from asset and mineral property sales 5,605 22
Other (46) (61)
------- -------
Net cash used in investing activities 5,416 (140)
------- -------
Net increase (decrease) in cash and
cash equivalents 3,908 (1,603)
Cash and cash equivalents, beginning of period 5,174 8,136
------- -------
Cash and cash equivalents, end of period $ 9,082 $ 6,533
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