Dayton Mining Corp. Announces Third Quarter Operating Results and Gold Hedging Status.VANCOUVER, British Columbia--(BUSINESS WIRE)--Oct. 12, 1999-- Dayton Mining Corporation (AMEX AMEX See: American Stock Exchange , TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). : DAY) announces today that its Andacollo Gold Mine located in central Chile produced 34,001 ounces of gold in the quarter ended September 30, 1999. Cash operating costs for the third quarter were US$188 per ounce of gold, bringing year-to-date production and cash costs to 105,448 ounces at US$193 per ounce. This is the lowest cash cost quarter in the last three years. Dayton anticipates total production for 1999 to be 138,000 ounces at a cash operating cost of US$195 per ounce. At September 30, 1999 Dayton had US$7.0 million in cash and total bank debt of US$3.3 million. Dayton will be completely debt free by January 2000. Bill Myckatyn, Chairman, 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. states: "This past year the management of the Andacollo Gold Mine, under the leadership of General Manager Fred Earnest and his staff have worked diligently to improve the performance of the operation, increase production and reduce operating costs. On the corporate side, we have successfully cleaned up the balance sheet by converting US$69 million of convertible debentures into equity, thereby ensuring the viability of the company in a depressed gold market. In January 2000 we will make the final payment on our project debt at which time the company will be completely debt free. With the mine performing well and generating cash flow, a clean balance sheet Clean Balance Sheet Refers to a company whose balance sheet has very little or no debt. Notes: A company is told to "clean up" its balance sheet if they are exposed to large amounts of debt. and a strong operating and management team focused on growth, Dayton is well positioned to add to shareholder value through mergers and acquisitions. Dayton is currently assessing various opportunities to grow the company." Hedging Status The recent increase in gold price and accompanying volatility has raised concerns in the financial markets with respect to gold company hedging programs. Dayton's hedge position is structured to provide downside protection Downside Protection Generally used in connection with covered call writing, this is the cushion against loss, in case of a price decline by the underlying security, that is afforded by the written call option. while not significantly limiting the upside. This has been accomplished primarily through a program of puts which expire at the end of this year. During the recent rally in the gold price, Dayton acquired an additional hedge Additional hedge A protection against fallout risk in the mortgage pipeline. position of spot deferred contracts equivalent to approximately three months gold production or 5% of reserves. As at October 12, 1999, Dayton's gold hedge position consists of 21,000 ounces of puts at US$340 per ounce and 35,000 ounces of spot deferred contracts (priced between US$260 and US$301 per ounce) at an average of US$276 per ounce. Dayton Mining Corporation holds a 100% interest in the Andacollo Gold Mine located in central Chile, 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 DAY. For further information please contact Diane Thomas Garrett, Vice President, Investor Relations (604) 662-8383; web: http://www.dayton-mining.com . 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. Web: www.dayton-mining.com . |
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