Dayton Mining Reports Second Quarter Financial Results.Business Editors 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. , B.C.--(BUSINESS WIRE)--July 25, 2000 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 Corporation (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) announces today the results of operations for the quarter and six months ending June June: see month. 30, 2000. During the second quarter the Company completed a number of transactions that it believes strengthens its financial position and will support future growth efforts. These transactions included the acquisition of Mirage Resource Corporation and a 49% interest in the Denton-Rawhide Mine effective April 1, 2000, a 20:1 share consolidation effected on April 11, 2000 and the issuance of 4,090,909 common shares in June, 2000 as a result of the exercise of the special warrants sold in March, 2000. Net cash proceeds from this offering were approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. US$5.8 million. For the purposes of determining per share amounts, the average number of shares outstanding during the first quarter was 351,526,779, for the second quarter 25,692,676, and for the first six months of 2000 165,335,863. At June 30, 2000 Dayton Mining Corporation had 31,123,978 common shares outstanding. For the three months ending June 30, 2000, Dayton Mining reported a loss of US$332,000 or $0.01 per share compared to a loss of US$433,000 or $0.02 per share for the second quarter of 1999. Cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses for the second quarter of 2000 was US$ 1,664,000 or $0.06 compared to cash flow from operations of US$2,722,000 or $0.01 per share for the second quarter of 1999. For the six months ending June 30, 2000 Dayton Mining Corporation reported a loss of US$2,533,000 or $0.015 per share. In 1999, Dayton Mining Corporation lost $433,000 in the second quarter but reported a profit of $410,000 for the first quarter. For the first six months of 2000, cash flow from operations was US$975,000 compared to US$2,604,000 and US$2,722,000 in the first and second quarters of 1999, respectively. Dayton Mining Corporation adopted "fresh start" accounting in April 1999 and therefore the results for the first two quarters of 1999 are reported separately. Gold revenues for the second quarter of 2000 were US$11.38 million with an average realized price of $290 per ounce ounce, in zoology ounce, in zoology: see leopard. ounce, unit of measurement ounce: see English units of measurement. of gold. For the first six months of 2000, gold revenues totaled US$18.91 million with an average realized price of $291 per ounce. Operating results for the second quarter and first half of 2000 are summarized below:
Operating Results
Three months Six months
Ended Ended
June 30, 2000 June 30, 2000
------------- -------------
Andacollo
Gold Production ( oz) 26,399 52,204
Silver Production (oz) 6,697 14,150
Cash Cost ($/oz) 230 253
(net of silver credit)
Denton-Rawhide (49%)
Gold Production (oz) 12,887 12,887 (1)
Silver Production (oz) 98,980 98,980 (1)
Cash Cost ($/oz) 209 209 (1)
(net of silver credit)
Dayton Consolidated
Gold Production (oz) 39,286 65,091
Silver Production (oz) 105,677 113,130
Cash Cost ($/oz) 223 245
(net of silver credit)
(1) Dayton acquired its interest on April 1, 2000
Dayton Mining Corporation has increased its asset base to US$73.9 million at June 30, 2000 from US$48.5 million at December December: see month. 31, 1999. As at June 30, 2000 the Company had US$7.9 million in cash, not including US$2.1 million held in trust for closure obligations at Denton-Rawhide. In other news . . .effective August 3, 2000 Ms. 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 Garrett Thomas Garrett (August 21, 1789 – January 25, 1871) was an abolitionist and leader in the Underground Railroad movement before the American Civil War. Garrett was born into a prosperous landowning Quaker family on their homestead called "Thornfield" in Delaware County, , Dayton's This article is about the defunct chain of department stores. For the former parent company formed by the 1969 merger with Hudson's, see Target Corporation. Minneapolis-based Dayton's was among the nation's leading department stores for nearly a century. Vice President Corporate Development and Investor Relations Investor relations The process by which the corporation communicates with its investors. announced she will be leaving the Company to pursue other opportunities. Diane has been an integral part of the management of Dayton for five years and the Company wishes her well in her new endeavors. Dayton Mining Corporation holds a 100% interest in the Andacollo Andacollo is a city in the Coquimbo Region, Chile. It is located at around . 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. , a 49% interest in the Denton-Rawhide mine in Nevada Nevada (nəvăd`ə, –vä–), far western state of the United States. It is bordered by Utah (E), Arizona (SE), California (SW, W), and Oregon and Idaho (N). , and a 100% interest in the El Dorado El Dorado, legendary country of South America El Dorado (ĕl`dərä`dō, –rā`–) [Span.,=the gilded man], legendary country of the Golden Man sought by adventurers in South America. gold project and two exploration concessions in El Salvador El Salvador (ĕl sälväthōr`), officially Republic of El Salvador, republic (2005 est. pop. 6,705,000), 8,260 sq mi (21,393 sq km), Central America. . Dayton 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. "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 forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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 Ore grade is a measure that describes the concentration of a valuable natural material (such as metals or minerals) in its surrounding ore. Ore grade is used to assess the economic feasibility of a mining operation: the cost of extracting a natural material from its ore is directly ; 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.
Consolidated Balance Sheets
in thousands of US dollars
(unaudited)
Jun 30 Dec 31
2000 1999
----------- ---------
(unaudited) (audited)
Assets
Current assets
Cash and cash equivalents 7,888 3,669
Restricted cash - 1,667
Investments in marketable securities 171 175
Bullion settlements receivable 1,243 2,281
Other receivables 877 984
Inventories 17,416 9,058
------ ------
27,595 17,834
Reclamation Sinking Fund 2,118 -
Property, plant and equipment 39,846 26,847
Deferred stripping 4,300 3,800
Other assets 44 63
------ ------
73,903 48,544
------ ------
Liabilities
Current liabilities
Accounts payable and accrued liabilities 9,074 6,745
Operating line of credit 1,400 1,401
Bank loan - 1,667
Capital lease obligation 1,495 1,495
Deferred revenue 269 -
------ ------
12,238 11,308
------ ------
Loans Payable to a Related Party 1,849 -
Capital lease obligation 4,486 5,234
Accrued closure costs 6,122 2,123
------ ------
12,457 7,357
------ ------
24,695 18,665
------ ------
Shareholders' Equity
Common shares 53,794 31,932
Deficit (4,586) (2,053)
------ -------
49,208 29,879
------ -------
73,903 48,544
------ -------
Consolidated Income Statements
in thousands of US dollars
(unaudited)
Post Pre
Reorganization Reorganization
Six Three Three months Three months
months months ended ended
ended ended
Jun 30 Jun 30 Jun 30 1999 Mar 31 1999
2000 2000
--------------- ------------------------------
Revenues 19,087 11,718 10,120 10,182
--------------- ------------------------------
Cost of sales
Operating costs 16,260 9,147 7,554 6,479
Depreciation,
depletion and
amortization 3,457 2,197 2,120 2,180
--------------- ------------------------------
19,717 11,344 9,674 8,659
--------------- ------------------------------
(630) 374 446 1,523
--------------- ------------------------------
Expenses
Amortization of
deferred
financing costs - - - 115
Exploration 784 468 25 66
Foreign exchange
loss(gain) 30 (216) (187) (109)
General and
administrative 890 407 806 529
Interest expense 370 184 305 608
Interest income (171) (137) (70) (96)
--------------- -----------------------------
1,903 706 879 1,113
--------------- -----------------------------
Net (loss) income
for the period (2,533) (332) (433) 410
---------------- -----------------------------
Per share:
Net (loss)
earnings per
share $(0.02) $(0.01) $(0.02) $(0.02)
Consolidated Statements of Cash Flow
in thousands of US dollars
(unaudited)
Post Pre
Reorganization Reorganization
Six Three Three months Three months
months months ended ended
ended ended
Jun 30 Jun 30 Jun 30 1999 Mar 31 1999
2000 2000
--------------- ------------------------------
Net income (loss)
for the period (2,533) (332) (433) 410
Depletion,
depreciation
and
amortization 3,457 2,192 2,124 2,188
Foreign exchange
loss(gain) 30 (216) (187) (109)
Administrative
expenses settled
by issuance of
common stock 21 -
Amortization of
deferred
financing costs - - - 115
Amortization of
gold hedging
contracts - - 1,218 -
-------------- ------------------------------
Cash flow from
operations 975 1,644 2,722 2,604
Bullion
settlements
receivable 1,038 (301) 539 (234)
Other receivables 209 74 94 114
Inventories (2,989) (2,480) 1,089 (4)
Accounts payable 555 64 (4,618) (341)
Deferred revenue 269 (155) - -
Accrued closure
costs 205 38 26 53
-------------- -----------------------------
Cash flow provided
by operating
activities 262 (1,116) (148) 2,192
-------------- -----------------------------
INVESTING ACTIVITIES
Purchases of
property, plant
and equipment (580) (461) (207) (339)
Deferred
stripping (500) (250) (1,100) (1,400)
Other assets 10 249 (29) 44
---------------- -----------------------------
Cash flow used
for investing
activities (1,070) (462) (1,336) (1,695)
---------------- -----------------------------
FINANCING ACTIVITIES
Issuance of
special warrants
(net of issue
costs) 5,805 (54) - -
Restricted cash 1,667 5,959 - 10,857
Principal
repayments of
bank loan (1,667) - (1,000) (11,857)
Principal
repayments of
capital lease (748) (374) (374) (844)
---------------- -----------------------------
Cash flow
provided by
(used for)
financing
activities 5,057 5,531 (1,374) (1,844)
---------------- -----------------------------
FOREIGN EXCHANGE (30) 216 187 109
---------------- -----------------------------
Net increase
(decrease) in
cash and cash
equivalents 4,219 4,169 (2,671) (1,238)
Cash and cash
equivalents,
beginning of
period 3,669 3,719 6,562 7,800
-------------- ------------------------------
Cash and cash
equivalents, end
of period 7,888 7,888 3,891 6,562
-------------- ------------------------------
Supplemental Schedule of Non Cash Transactions
in thousands of US dollars
(unaudited)
The Company completed the acquisition of the Mirage Resources
Corporation and the acquisition of a 49% interest in the
Denton-Rawhide Mine on April 6,2000, effective as of April 1,2000. The
fair values of assets acquired and liabilities assumed related to
these transactions were as follows:
Mirage Resource Corporation
Cash and cash equivalents 1
Accounts Receivable 3
Mineral properties 3,757
-----
Net assets acquired and value of shares issued to effect
purchase 3,761
-----
Denton-Rawhide Mine (49%)
Other current assets 5,374
Reclamation sinking fund 2,118
Property, plant and equipment 11,880
Current liabilities (1,454)
Loans payable to a related party (1,849)
Accrued closure costs (reclamation liabilities)
(3,794)
-------
Net assets acquired and value of shares issued to effect
purchase 12,275
-------
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