Dayton Mining -- Second Quarter 1997 Results, Andacollo Resource Increases to 3.2 Million Ounces.VANCOUVER Vancouver, city, Canada Vancouver, city (1991 pop. 471,844), SW British Columbia, Canada, on Burrard Inlet of the Strait of Georgia, opposite Vancouver Island and just N of the Wash. border. , British Columbia--(BUSINESS WIRE)--Aug. 27, 1997-- Dayton Dayton, city (1990 pop. 182,044), seat of Montgomery co., SW Ohio, on the Great Miami River where it is joined by the Stillwater River; inc. 1805. It is the trade center for a fertile farm area, but is best known for its involvement with industry, invention, and Mining Corpor (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). , AMEX AMEX See: American Stock Exchange :DAY) Dayton Mining Corporation (AMEX, TSE:DAY) announces today its results for the three months and six months ended June June: see month. 30, 1997, all amounts in 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 unless otherwise stated. FINANCIAL REVIEW Don MacDonald Mac·don·ald , Sir John Alexander 1815-1891. Canadian politician and the first prime minister of the Dominion of Canada (1867-1873 and 1878-1891). He is considered the organizer of the Canadian confederation, established in 1867. , Chief Financial Officer, today reported Dayton Mining Corporation had a net loss of $786,000 ($0.05 per share, after recognizing the effect of the interest on convertible debentures Convertible Debenture Any type of debenture that can be converted into some other security. Notes: For example, a convertible bond can be converted into stock. ) for the three months ended June 30, 1997, compared with net income of $9,000 ($0.00 per share) for the same period in 1996. Gold production for the second quarter of 1997 increased 11 percent to 23,895 ounces compared with 21,567 ounces over the same period in 1996. Cash operating costs operating costs npl → gastos mpl operacionales at the Andacollo Andacollo is a city in the Coquimbo Region, Chile. It is located at around . Gold Mine were US$239 per ounce ounce, in zoology ounce, in zoology: see leopard. ounce, unit of measurement ounce: see English units of measurement. in the second quarter of 1997 compared with US$182 per ounce in the same period in 1996. Revenues were $12,689,000 for the second quarter of 1997 compared with $11,395,000 in the same period in 1996. The average price realized for gold sold during the second quarter of 1997 was US$402 per ounce compared with US$390 per ounce for the same period in 1996. For the six months ended June 30, 1997 Dayton Mining Corporation had a net loss of $597,000 ($0.05 per share, after recognizing the effect of the interest on convertible debentures), compared with net income of $504,000 ($0.01 per share) for the same period in 1996. Gold production at the Andacollo Gold Mine for the first half of 1997 increased 8 percent to 47,435 ounces compared with 43,726 ounces over the same period in 1996. Cash operating costs at the Andacollo Gold Mine were 8 percent over budget at US$242 per ounce (including royalty Compensation for the use of property, usually copyrighted works, patented inventions, or natural resources, expressed as a percentage of receipts from using the property or as a payment for each unit produced. payments) in the first half of 1997 compared with US$173 per ounce in the same period in 1996. Revenues were $25,217,000 for the first half of 1997 compared with $23,338,000 in the same period in 1996. The average price realized for gold sold during the first half of 1997 was US$395 per ounce compared with US$394 per ounce for the same period in 1996. Dayton continues to have a strong balance sheet with a cash position of $108 million. The gold hedging hedging, in commerce, method by which traders use two counterbalancing investment strategies so as to minimize any losses caused by price fluctuations. It is generally used by traders on the commodities market. program includes 126,500 ounces of puts at US$380 per ounce. OPERATIONS REVIEW Ore is currently being mined from the Tres Perlas, Tres Perlas West and Socorro Socorro is a Portuguese and Spanish word that means 'aid', by providing help or relief. It is a cognate of the word succor (or succour) in the English language.
1. averaging 14,500 tonnes (16,000 short tons (Transparent Optical Networking Services) A marketing term for providing dark fiber to a customer. The customer is responsible for generating the transmission signal and interpreting it at the other end. See dark fiber. ) per day. Because initial mining at the higher grade Socorro pit began later than planned in the first half of 1997, more ore was mined from the lower grade Tres Perlas West pit, contributing to overall lower grades being mined. Costs and production were negatively impacted by shutdowns for expansion and modification A change or alteration in existing materials. Modification generally has the same meaning in the law as it does in common parlance. The term has special significance in the law of contracts and the law of sales. , and by unusually high rainfall. As a result of extreme rainfall, only 50 percent of budgeted material was moved in June. Total production costs were US$330 per ounce in the first half of 1997 compared with US$268 per ounce in the same period in 1996. Construction for the installation of a third tertiary tertiary (tûr`shēârē), in the Roman Catholic Church, member of a third order. The third orders are chiefly supplements of the friars—Franciscans (the most numerous), Dominicans, and Carmelites. crusher commenced in July July: see month. and is scheduled for completion in the fourth quarter of 1997. Throughput capacity is expected to increase by 25 percent to 18,200 tonnes (20,000 short tons) per day. The first stage of modifications to the crushing crushing deaths of newborn animals, especially those in litters, caused by the mother lying on them accidentally. Contributed to by weakness of the neonate or awkward accommodation. A problem in piglets and puppies. Called also overlying. plant at Andacollo were completed successfully with a two week shutdown shut·down n. A cessation of operations or activity, as at a factory. shutdown Noun the closing of a factory, shop, or other business Verb shut down during the first half of 1997, with further shutdowns planned in the second half. As a result of longer shutdowns than originally planned for the plant expansion, shutdowns resulting from adverse weather conditions in June and August, and delays in mine start up of the higher grade Socorro pit, gold production projections for 1997 have been reduced to 102,000 ounces. EXPLORATION REVIEW Andacollo exploration drilling in 1997 has added 280,000 resource ounces grading 1.57 grams of gold per tonne tonne measure of weight or mass; 1 tonne=1000 kg. See also ton. from the Churrumata and Chisperos areas of the property. The interim resource at Andacollo now stands at 3.2 million ounces of gold. A total of 21,300 meters drilling has been completed in 120 holes with a finding cost of US$5.30 per resource ounce. Exploration at Andacollo for the remainder of 1997 will focus on the conversion of resources to reserves, extensional exploration away from currently identified resource areas and the identification of new exploration targets. Dayton continues to actively pursue opportunities worldwide using both Dayton personnel and outside consultants. The Company holds a 100 percent interest in the Andacollo Gold Mine located in central Chile Chile (chĭl`ē, Span. chē`lā), officially Republic of Chile, republic (2005 est. pop. 15,981,000), 292,256 sq mi (756,945 sq km), S South America, west of the continental divide of the Andes Mts. , and trades on both 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) and Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. (TSE) under the trading symbol Trading symbol See: Ticker symbol DAY. Notice: The Company relies on litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. protection for "forward looking" statements. -0-
Consolidated Balance Sheets
in thousands of Canadian dollars
(unaudited)
Jun-30-97 Dec-31-96
Assets
CURRENT ASSETS
Cash and short term investments 108,325 22,114
Gold sales receivable 3,139 2,021
Other receivables 1,504 1,002
Prepaid expenses 391 36
Inventories 7,402 7,761
--------- ---------
Total current assets 120,761 32,934
PLANT, PROPERTY AND EQUIPMENT 125,436 121,643
OTHER ASSETS 3,133 3,497
--------- ---------
Total assets 249,330 158,074
--------- ---------
Liabilities
CURRENT LIABILITIES
Accounts payable and accrued
liabilities 8,415 6,660
Bank loan-current 59,160 4,897
Capital lease obligation-current 3,470 2,712
Convertible debentures-liability-
current 7,215 -
--------- ---------
Total current liabilities 78,260 14,269
--------- ---------
LONG-TERM LIABILITIES
Bank loan-long term - 58,766
Capital lease obligation-long term 8,712 7,071
Convertible debentures-liability-
long term 20,983 -
Other accrued liabilities-long term 1,133 981
--------- ---------
Total long-term liabilities 30,828 66,818
--------- ---------
Total liabilities 109,088 81,087
--------- ---------
Shareholders' Equity
SHARE CAPITAL 90,496 90,487
CONVERTIBLE DEBENTURES 65,483 -
DEFICIT (15,737) (13,500)
--------- ---------
Total shareholders' equity 140,242 76,987
--------- ---------
Total liabilities and equity 249,330 158,074
--------- ---------
Consolidated Statements of Income
for the periods ended June 30
in thousands of Canadian dollars
(unaudited)
Three months ended Six months ended
June 30 June 30
1997 1996 1997 1996
REVENUES
Sales 12,689 11,395 25,217 23,338
-------------------------------------
COST OF SALES
Operating costs 7,893 5,372 15,770 10,330
Depletion, depreciation
and amortization 2,741 2,589 5,396 5,378
-------------------------------------
Total cost of sales 10,634 7,961 21,166 15,708
-------------------------------------
2,055 3,434 4,051 7,630
-------------------------------------
EXPENSES
Amortization of deferred
financing costs 444 565 928 1,130
Exploration 172 102 352 236
Foreign exchange and other 290 48 (751) 65
General and
administrative 1,258 1,199 2,398 2,357
Interest expense 1,960 1,904 3,561 4,008
Interest income (1,283) (393) (1,840) (670)
-------------------------------------
Total expenses 2,841 3,425 4,648 7,126
-------------------------------------
NET INCOME (LOSS) (786) 9 (597) 504
-------------------------------------
Weighted average shares outstanding
-basic (000's) 40,857 37,549 40,852 34,610
Earnings (loss) per share
-basic $(0.05) $0.00 $(0.05) $0.01
Consolidated Statements of Deficit
for the periods ended June 30
in thousands of Canadian dollars
(unaudited)
Three months ended Six months ended
June 30 June 30
1997 1996 1997 1996
DEFICIT, BEGINNING OF 13,698 9,595 13,500 10,090
PERIOD
Convertible debentures-
equity accretion 1,253 - 1,640 -
Net (income) loss for
the period 786 (9) 597 (504)
-------------------------------------
DEFICIT, END OF PERIOD 15,737 9,586 15,737 9,586
-------------------------------------
Gold produced (oz) 23,895 21,567 47,435 43,776
Average price realized
(US$/oz) 402 392 395 394
Cash operating costs per
ounce (US$/oz) 239 183 242 174
Consolidated Statements of Cash Flows
for the periods ended June 30
in thousands of Canadian dollars
(unaudited)
Three months ended Six months ended
June 30 June 30
1997 1996 1997 1996
OPERATING ACTIVITIES
Net income (loss) for
the period (786) 9 (597) 504
Adjustment to reconcile net
income (loss) to cash provided
by operating activities
Depletion, depreciation and
amortization 2,741 2,589 5,396 5,378
Amortization of deferred
financing costs 444 565 928 1,130
Amortization of deferred
foreign exchange 189 (10) 191 27
Amortization of deferred
lease inducement - (4) - (8)
Amortization of other
assets 12 14 25 26
-------------------------------------
Cashflow from operations 2,600 3,163 5,943 7,057
Gold sales receivable (1,613) 985 (1,118) 331
Other receivables 78 899 (503) 317
Prepaid expenses 202 198 (355) (384)
Inventories 469 (1,483) 358 (2,104)
Accounts payable 1,213 1,087 2,468 1,937
Bank loans-current
portion (163) 4,822 54,263 9,753
Capital lease obligation-
current portion 733 (13) 758 357
-------------------------------------
Cashflow from operating
activities 3,519 9,658 61,814 17,264
-------------------------------------
INVESTING ACTIVITIES
Property, plant and
equipment (7,742) (3,236) (9,189) (9,106)
Other assets (171) (130) (147) (193)
-------------------------------------
Cashflow from investing
activities (7,913) (3,366) (9,336) (9,299)
-------------------------------------
FINANCING ACTIVITIES
Bank loans 163 (4,822) (59,093) (9,753)
Capital lease obligation 2,281 (568) 1,583 359
Accrued liabilities 125 81 152 206
Share capital (18) 31,986 8 37,747
Convertible debentures - (13,993) 91,083 (18,526)
Special warrants - (15,459) - -
-------------------------------------
Cashflow from financing
activities 2,551 (2,775) 33,733 10,033
-------------------------------------
NET INCREASE (DECREASE)
IN CASH (1,843) 3,517 86,211 17,998
CASH, BEGINNING
OF PERIOD 110,168 26,462 22,114 11,981
-------------------------------------
CASH, END OF PERIOD 108,325 29,979 108,325 29,979
-------------------------------------
Cashflow from operations
per share-basic $0.06 $0.08 $0.15 $0.20
Cashflow from operations
per share-fully diluted $0.05 $0.07 $0.12 $0.17
CONTACT: Dayton Mining Corporation Diane DIANE Diversified Information and Assistance Network (Tennessee Valley Authority) DIANE Direct Information Access Network for Europe DIANE Digital Integrated Attack and Navigation Equipment Thomas (language) Thomas - A language compatible with the language Dylan(TM). Thomas is NOT Dylan(TM). The first public release of a translator to Scheme by Matt Birkholz, Jim Miller, and Ron Weiss, written at Digital Equipment Corporation's Cambridge Research Laboratory runs , 604/662-8383 604/684-1329 (FAX) E-mail: dmining@dayton-mining.com Website: http://www.dayton-mining.com |
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