Dayton Mining Announces 1999 Operating and Financial Results.Business Editors VANCOUVER, British Columbia--(BUSINESS WIRE)--Feb. 23, 2000 (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :DAY.) (AMEX AMEX See: American Stock Exchange :DAY) Bill Myckatyn, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Dayton Mining Corporation (AMEX:DAY)(TSE:DAY) is pleased to announce the operating and financial results for the Company for the year ending December 31,1999. All figures reported are in United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. dollars. 1999 Operations Review The Andacollo Gold Mine attained a record level of production for the 12 month period ending December 31, 1999, with gold production totaling 134,995 ounces at a record low cash cost of $204 per ounce. This compares with 1998 production of 92,548 ounces at a cash production cost of $241 per ounce. Mr. Myckatyn attributed the improved operating performance to a substantial increase in tonnage of ore crushed and placed under leach, greatly improved ore control procedures, a higher grade of ore placed on the heaps and rigorous attention to operating costs operating costs npl → gastos mpl operacionales . Production during the final quarter of 1999 was 29,507 ounces at a cash cost of $244 per ounce compared to 30,558 ounces at a cash cost of $209 per ounce in 1998. The mine experienced higher waste stripping demands and slightly lower grades in the fourth quarter of last year. For the Year 2000 Dayton anticipates production of 125,000 ounces of gold at a cash cost of $229 per ounce. Mining will take place in the Churrumata, Tres Perlas and the Natalia pits. In addition the Company plans to spend approximately $1,000,000 on exploration this year at the Andacollo property. Financial Review The Company is reporting a net loss of $2.053 million (or $0.01 per share) for the nine months ending December 31, 1999. This is a substantial improvement over the net loss of $40.15 million (or $0.98 per share) incurred for the comparable period of 1998. For the first quarter of 1999 Dayton Mining reported a profit of $410,000 (or a loss of $0.02 per share after recognizing the effect of equity accretion on the 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. ) compared to a loss of $2.212 million (or $0.08 per share) for the first quarter in 1998. With the adoption of "fresh start" accounting on March 31,1999, the Company undertook a comprehensive revaluation Revaluation A calculated adjustment to a country's official exchange rate relative to a chosen baseline. The baseline can be anything from wage rates to the price of gold to a foreign currency. In a fixed exchange rate regime, only a decision by a country's government (i.e. of all its assets and liabilities and at the same time was required to initiate a new reporting period. In accordance with generally accepted accounting principals, the Company is not required to disclose prior period comparable financial results, however, it is doing so to assist all shareholders and other interested readers in their understanding of the results of the Company. Effective January 1, 1999 the Company changed its reporting currency Reporting Currency The currency used in published reports and financial documents. Notes: All annual and quarterly reports state the currency in which their results are listed. from Canadian to United States dollars. All historical results have been restated to United States dollars for comparative purposes. Revenue for the nine month period was $26.3 million, which includes a reduction of $3.4 million for the amortization of hedge gains recognized as an asset at the time of the comprehensive revaluation. This amortization was offset by $2.6 million in proceeds received from the expiry of these hedge positions. Revenue for the final quarter of 1998 was $23.3 million, reflecting the lower level of gold production offset somewhat by greater hedging gains. Gross profit for the final nine months of 1999 was $0.3 million compared with $0.18 million for the corresponding period of 1998. Overall in 1999 the Company's financial position also benefited from lower interest costs and lower general and administrative cost administrative cost Managed care A cost incurred by the 'business' end of a health care facility or university–eg, staffing and personnel costs, nursing home and hospital administration, insurance, and overhead expenses. Cf Indirect costs. in 1999 as compared with 1998. Finally, in the final nine months of 1999 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 totaled $6.155 million (or $0.02 per share), compared to cash flow from operations of $3.76 million (or $0.09 per share) in the comparable period in 1998. The Company remains largely unhedged. It currently has 20,000 ounces of gold sold forward to February at $305 an ounce and 10,000 ounces of gold sold forward to November at $314 per ounce. Year 2000 During 1999 the management of Dayton and Andacollo implemented an exhaustive review and testing program to ensure that there would be minimal Year 2000 issues with respect to the functioning of hardware and software employed in its operations as well as with business dealings with third party suppliers. As at January 1, 2000 all systems were operating normally and there were no disruptions in operations nor were there any disruptions caused by problems with suppliers. The Company will continue to monitor its critical systems, suppliers, and third party business partners to minimize any problems should they arise. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement: The statements, which are not historical facts contained in this release, are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from targeted results. These risks and uncertainties include but are not limited to significant declines in precious metals Precious Metals Valuable metals such as gold, iridium, palladium, platinum, and silver. Notes: Investing in precious metals can be done either by purchasing the physical asset, or by purchasing futures contracts for the particular metal. prices; currency fluctuations; increases in production costs; differences in ore grades, recovery rates, and tonnes mined from those expected; changes in mining, or heap leaching Heap leaching is an industrial mining process to extract precious metals and copper compounds from ore. Process The mined ore is crushed into small chunks and heaped on an impermeable plastic and/or clay lined leach pad where it can be irrigated with a leach solution to rates from currently planned rates; the results of current exploration activities and new opportunities; and other factors detailed in the Company's filings with the U.S. Securities and Exchange Commission. 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. |
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