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FIRSTMISS GOLD INC. FINANCIAL RESULTS



ENGLEWOOD, Colo., May 9 /PRNewswire/ -- FirstMiss Gold Inc. (Nasdaq: FRMG FRMG Forming ; Toronto: FSM See finite state machine.

1. (mathematics, algorithm, theory) FSM - Finite State Machine.
2. (networking) FSM - FDDI Switching Module.

(3Com implements this device on its LAN switches).
) today announced a loss of $1.7 million, or $0.07 per share, for the first quarter ended March 31, 1996, versus a loss of $0.5 million, or $0.03 per share, in the same three month period a year ago. Continued use of lower grade stockpile stock·pile  
n.
A supply stored for future use, usually carefully accrued and maintained.

tr.v. stock·piled, stock·pil·ing, stock·piles
To accumulate and maintain a supply of for future use.
 ores to meet mill feed requirements, along with increased costs associated with conversion from open-pit to underground mining, were responsible for the less favorable fa·vor·a·ble  
adj.
1. Advantageous; helpful: favorable winds.

2. Encouraging; propitious: a favorable diagnosis.

3.
 results in the current period. Low grade stockpile ores will continue to be needed until the Turquoise turquoise, hydrous phosphate of aluminum and copper, Al2(OH)3PO4·H2O+Cu, used as a gem. It occurs rarely in crystal form, but is usually cryptocrystalline.  Ridge mine comes on stream no earlier than the end of 1997.

Sales of $14.7 million were down 7 percent from $15.8 million in the same three month period last year, reflecting lower production from the Heap Leach operation. Market gold price improved during the quarter, to average $403 per ounce. While the Company received full cash benefit of the gold price improvement, decreases in the book value of certain hedge positions upon which non-cash hedge gains had been recognized in earlier periods yielded a realized price of $394 per ounce. Gold output totaled 37,217 ounces for the quarter compared to 40,496 ounces in the same quarter of the prior year. Cost of Sales was $16.6 million, up $2.4 million from the same period a year earlier, reflecting higher operating costs operating costs nplgastos mpl operacionales  associated with an increased percentage of underground ore.

OPERATING RESULTS

The mill processed 268,225 tons of ore during the quarter at an average grade of 0.146 ounces per ton, compared to 306,614 tons at an average grade of 0.166 ounces per ton a year earlier. Mill feed continues to consist of a mix of approximately one third Getchell Underground ore and two thirds lower-grade stockpile ore. Cash cost per ounce rose to $398 per ounce from $303 per ounce a year ago, the result of increased costs and lower mill feed grades. Underground mining costs were $55 per ton mined during the quarter, down from $61 per ton in the preceding six month period ended December 31, 1995, due to improvements in underground mining conditions and efficiencies.

Underground ore production averaged slightly under 1,000 tons per day, up from 832 tons per day in the three months ended December 31, 1995. Underground ore grade 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  averaged 0.286 ounces per ton during the quarter, down from 0.328 ounces per ton in the prior quarter, due to what the Company believes to be temporary mining of lower grade areas. A new 2,000 ton per day backfill back·fill  
n.
Material used to refill an excavated area.

tr.v. back·filled, back·fill·ing, back·fills
To refill (an excavated area) with such material.
 plant began commercial operation during the quarter. This plant replaced a smaller outdated backfill facility which was not able to keep up with backfill requirements and was limiting production rates. The second portal into the Getchell Underground mine is anticipated to be completed during the second quarter. The second portal and new backfill plant are intended to contribute to increased mine output. Development of a new higher grade mining area on the north end of the Getchell Underground ore body was completed during the quarter.

Cash costs and gold production continue to be adversely affected by the fact that, although the mill runs at a rated capacity of 3,200 tons per day, the Getchell underground mine is producing at an average rate of approximately 1,000 tons per day. The balance of the mill feed is derived from low grade stockpiles which are currently averaging 0.087 ounces per ton gold. The Company is seeking to increase production at the Getchell Underground mine to an average rate of 1,500 tons per day by the fourth quarter of 1996; however, substantial mill throughput from the low grade stockpiles will continue to be required until potential production from Turquoise Ridge mine comes on stream no earlier than the end of 1997.

Heap Leach output contributed 1,038 ounces to sale volumes during the quarter, down from 4,293 in the same period a year ago. Current period Heap Leach production consisted of residual recoveries from ores stacked prior to July 1995 and as such is down significantly from the same period a year ago when oxide mining was underway. Heap Leach output may increase in the immediate future as ore from the new Valmy Hill oxide pit is stacked and leached. The Valmy Hill oxide orebody contains approximately 834,000 tons of ore grading 0.020 ounces per ton. Mining on the Valmy Hill ore body is expected to be completed by late 1996.

TURQUOISE RIDGE

Construction and development of the Turquoise Ridge mine is proceeding on schedule. At the end of March the ventilation shaft Noun 1. ventilation shaft - a shaft in a building; serves as an air passage for ventilation
air duct, air passage, airway - a duct that provides ventilation (as in mines)

shaft - a vertical passageway through a building (as for an elevator)
 had been collared and excavated to 110 feet. Head frame erection erection /erec·tion/ (e-rek´shun) the condition of being rigid and elevated, as erectile tissue when filled with blood.

e·rec·tion
n.
1.
 and hoist hoist: see winch.  installation are underway. Shaft sinking shaft sinking, excavation from the surface of an opening in the earth. Shafts, which are generally vertical, are usually distinguished from tunnels, which are horizontal.  at the ventilation shaft is expected to resume in the second quarter once hoist installation is complete. Collaring of the Production shaft is also currently underway.

EXPLORATION

Core drilling between the Powder Hill hole and Turquoise Ridge has encountered a significant new zone of gold mineralization approximately 1,000 feet due south of the Turquoise Ridge ore body. The mineralized zone identified to date appears to cover an area approximately 500 feet by 700 feet and is located between 1,200 and 2,500 feet below the surface. The inferred resource around this new discovery stands at approximately 750,000 ounces of gold, or 1.6 million tons at an average grade of 0.465 ounces per ton, using a 0.250 ounce per ton cut-off and is open in all directions.

The Company intends to expand the 1996 drilling program by approximately $2.0 million to allow additional drilling in areas surrounding the known Turquoise Ridge ore body. This new program is intended to provide a better understanding of the overall structure and mineralization extending outward from the Turquoise Ridge ore body as well as provide information for both short and medium term mine planning purposes. All other drilling projects planned for the Getchell Property during 1996 are scheduled to proceed as originally budgeted.

SHAREHOLDERS' MEETING

The annual shareholders' meeting will be held Thursday, June 13, 1996 at 10:00 A.M. at the Embassy Suites Hotel, 10250 E. Costilla Ave., Englewood, Colorado Englewood is a city in Arapahoe County, Colorado, USA. As of 2005, the city is estimated to have a total population of 32,350.[5] It is part of the Denver-Aurora Metropolitan Area.  80112. All shareholders are cordially invited to attend.

FirstMiss Gold Inc. is a gold mining and exploration company with operations at its Getchell property in north central Nevada and corporate offices in Englewood, Colorado.
                   FirstMiss Gold Inc. and Subsidiary


Consolidated Statement of Operations See Income statement.  

(Unaudited, In Thousands, Except Per Share Amounts)
                                              Three months ended
                                                   March 31
                                               1996          1995
    Net sales                                $14,655      $15,786*
    Cost of sales                             16,578        14,149
    Gross margin/(loss)                      (1,923)         1,637


Selling, general and administrative
     expenses                                  1,218           494
    Exploration expenses                         852           797
    Earnings/(loss) from operations          (3,993)           346
    Interest and other income/(expense)        1,623           (1)
    Interest expense                             233           384
    Loss before income taxes                 (2,603)          (39)
    Income tax expense/(benefit)               (870)           415
    Net loss                                ($1,733)        ($454)
    Total loss per common share              ($0.07)       ($0.03)


Average shares and equivalents
     outstanding                              25,679        18,190


Operating Highlights
                                               Three months ended
                                                    March 31
                                               1996          1995
    Ounces of gold sold                       37,217       40,469*
    Average realized price per ounce            $394          $390
    Average cash cost per ounce                 $398          $303


Mill operations
         Production (ounces)                  36,179       36,176*
         Ore milled (dry tons)               268,225       306,614
         Average grade (ounces per ton)        0.146         0.166
         Cash costs per ounce produced          $405          $297
         Total costs per ounce produced         $454          $349


Heap Leach
         Production (ounces)                   1,038         4,293
         Ore processed (dry tons)                  0       221,219
         Average grade (ounces per ton)          N/A          0.03
         Cash costs per ounce produced          $127          $349
         Total costs per ounce produced         $151          $357


* - Excludes 6,996 ounces produced during underground development.
                   FirstMiss Gold Inc. and Subsidiary


Consolidated Condensed con·dense  
v. con·densed, con·dens·ing, con·dens·es

v.tr.
1. To reduce the volume or compass of.

2. To make more concise; abridge or shorten.

3. Physics
a.
 Balance Sheets
                    (Unaudited, In Thousands)
                                     Mar. 31,       Dec. 31,
                                         1996           1995
    Current assets                    119,395        130,649
    Other assets                       86,941         79,844
    Total assets                     $206,336       $210,493
    Current liabilities                 4,691          6,499
    Notes payable to First Mississippi 23,771         23,771
    Other long-term liabilities        15,023         15,959
    Stockholders' equity              162,851        164,264


Total liabilities and stockholders'
     equity                          $206,336       $210,493


Consolidated Condensed Statements of Cash Flows
              (Unaudited, In Thousands)
                                        Three  months ended
                                             March 31


Cash flows from operating
     activities:                         1996           1995
    Net loss                         ($1,733)         ($454)


Depreciation, depletion and
     amortization                       1,720          2,799
    Other operating activities        (2,136)          1,460


Net cash provided by (used in)
     operating activities             (2,149)          3,805
    Capital expenditures              (8,812)        (5,335)
    Reduction of lease obligations      (139)              0


Other investing and financing
     activities                           351          2,537


Net increase (decrease) in cash and
     cash equivalents                (10,749)        (1,007)


Cash and cash equivalents at
     end of period                   $103,884         $1,641
    -0-                       5/9/96


/CONTACT: Donald S. Robson, Vice President & Chief Financial Officer of FirstMiss Gold, 303-771-9000/

(FRMG)

CO: FirstMiss Gold, Inc. ST: Colorado IN: MNG MNG Multiple-image Network Graphics (PNG-like image format supporting multiple images, animation and transparency)
MNG Mongolia (ISO Country code)
MNG Multinodular Goiter
MNG Meet 'n Greet
 SU: ERN

DM-TT -- LATH075 -- 2019 05/09/96 19:23 EDT EDT
abbr.
Eastern Daylight Time


EDT Eastern Daylight Time

EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York

EDT 
 
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Date:May 9, 1996
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