FMC GOLD REPORTS FOURTH QUARTER RESULTS.CHICAGO--(BUSINESS WIRE)--Jan. 26, 1995--FMC Gold Co. today reported fourth quarter 1994 net income of $0.6 million, or $0.01 per share, compared with net income (before asset write-downs and other charges) of $3.1 million, or $0.04 per share, in the fourth quarter of 1993. In December December: see month. 1993, the company recorded an after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. special charge of $60.6 million, or $0.82 per share, primarily to cover the write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. of the Beartrack development property. After asset write-downs and other charges, 1993 losses per share were $0.78 for the quarter. Sales for the 1994 fourth quarter fell 57 percent to $11.3 million. The business posted an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $1.1 million due to decreased production. The 1993 closure of the Paradise Peak mill and the July July: see month. 1994 shut down of the Royal Mountain King facility contributed, as anticipated, to the decrease, as did disappointing grades and recoveries at the Jerritt Canyon mine (30 percent owned by FMC See fixed mobile convergence. Gold). The impact of decreased production was partially offset by higher 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 and a reduction in reclamation Reclamation A claim for the right to return or the right to demand the return of a security that has been previously accepted as a result of bad delivery or other irregularities in the delivery and settlement process. reserves, reflecting lower estimated costs associated with the closure of Paradise Peak. The average realized price of gold increased to $386 per ounce ounce, in zoology ounce, in zoology: see leopard. ounce, unit of measurement ounce: see English units of measurement. from $373 per ounce in the fourth quarter of 1993. In the fourth quarter, FMC Gold produced 29 thousand ounces of gold compared with 64 thousand ounces in the same period last year. At the Paradise Peak mine, gold production declined to 5 thousand ounces compared with 22 thousand ounces in the fourth quarter of 1993. This decrease in gold production reflects the winding down of the residual heap-leach operation in the fourth quarter of 1994. At the Jerritt Canyon mine, results were disappointing as gold production declined, driven by lower mill 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 and recoveries. FMC Gold's share of production decreased to 24 thousand ounces compared with 31 thousand ounces in the 1993 fourth quarter. Average cash production costs increased during the fourth quarter to $268 per gold equivalent ounce compared with $209 per gold equivalent ounce in the fourth quarter of 1993. The increase in cash production costs primarily reflects the decrease in production at the low-cost Paradise Peak operation, as well as lower grades and recoveries at Jerritt Canyon. FMC Gold held $118 million in cash and cash equivalents at the end of the quarter and realized interest income of $2.1 million during the fourth quarter -- $0.1 million lower than the year-ago period. As previously announced in the third quarter 1994, FMC Gold was notified that a motion had been filed seeking an injunction injunction, in law, order of a court directing a party to perform a certain act or to refrain from an act or acts. The injunction, which developed as the main remedy in equity, is used especially where money damages would not satisfy a plaintiff's claim, or to against all ongoing and future activities, including the Beartrack development, within the various national forests in Idaho Idaho (ī`dəhō), one of the Rocky Mt. states in the NW United States. It is bordered by Montana and Wyoming (E), Utah and Nevada (S), Oregon and Washington (W), and the Canadian province of British Columbia (N). . FMC Gold continued developing the Beartrack project in the fourth quarter of 1994. In January January: see month. , the Federal Court in Idaho granted the injunction, which FMC Gold and other concerned parties moved to stay. On Jan. 20, 1995, the Court granted a stay until Jan. 28, 1995, to permit the government to pursue an emergency appeal. On Jan. 25, 1995, the court granted a stay until March 16, 1995, to permit the government to complete an Endangered Species endangered species, any plant or animal species whose ability to survive and reproduce has been jeopardized by human activities. In 1999 the U.S. government, in accordance with the U.S. consultation between the National Marine Fisheries Service The U.S. National Marine Fisheries Service (NMFS) is a United States federal agency. A division of the National Oceanic and Atmospheric Administration (NOAA) and the Department of Commerce, NMFS is responsible for the stewardship and management of the nation's living marine and the U.S. Forest Service on the national forests' land resource management plans. Once satisfactorily completed, FMC Gold expects the injunction as it applies to Beartrack to be withdrawn. The Beartrack project has been granted all the necessary permits and has a ``no jeopardy'' opinion from the National Marine Fisheries Service relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the salmon identified under the Endangered Species Act The federal Endangered Species Act of 1973 (ESA) (16 U.S.C.A. §§ 1531 et seq.) was enacted to protect animal and plant species from extinction by preserving the ecosystems in which they survive and by providing programs for their conservation. . Production at Beartrack is scheduled to begin in mid- mid- pref. Middle: midbrain. 1995. Capital spent as of the end of 1994 totals $48 million of an expected $57 million for this development. FULL YEAR RESULTS Sales for the full year declined 47 percent to $63.4 million, and the company posted an operating loss for the year, reflecting the 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 of the Paradise Peak and Royal Mountain King mines, disappointing results at Jerritt Canyon and continued exploration spending. Gold production declined 49 percent to 163 thousand ounces. The average realized price of gold increased to $384 per ounce from $357 per ounce in 1993. The average realized price of silver increased to $5.29 per ounce compared with $3.94 last year. Net income was $0.2 million compared with net income before asset write-downs and other charges of $9.3 million 1993. After asset write-downs and other charges of $60.6 million, 1993 losses per share were $0.70. Cash production costs increased to $246 per gold equivalent ounce from $194 per gold equivalent ounce last year. The increase in average cash production costs per ounce primarily reflects a smaller proportion of low-cost Paradise Peak production and disappointing grades and recoveries at Jerritt Canyon. OUTLOOK "The disappointing results at Jerritt Canyon and the pending injunctive
orientation - an integrated set of attitudes and beliefs 2. reorientation - the act of changing the direction in which something is oriented of the mine plan. At Beartrack we continue toward completion in the belief that three years of our successful permitting effort and a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. biological opinion from the National Marine Fisheries Service will prevail." -0-
FMC GOLD CO.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited and in millions, except per share amounts)
THREE MONTHS YEAR
ENDED DEC. 31 ENDED DEC. 31
1994 1993 1994 1993
Sales $ 11.3 $ 26.3 $ 63.4 $ 118.9 Costs and expenses Cost of sales 9.8 19.8 53.8 96.8 Exploration costs 0.9 4.9 11.2 14.4 Selling, general and administrative expenses 1.7 2.1 6.5 7.0 Write-downs and other charges -- 60.6 -- 60.6 Total costs and expenses 12.4 87.4 71.5 178.8 Earnings before interest and taxes (1.1) (61.1) (8.1) (59.9) Interest income 2.1 2.2 8.7 8.3 Income before income taxes 1.0 (58.9) 0.6 (51.6) Provision for income taxes (benefit) 0.4 (1.4) 0.4 (0.3) Net income $ 0.6 $(57.5) $ 0.2 (51.3) Earnings per common share $ 0.01 $(0.78) $ -- (0.70) Number of common shares used in earnings per share computations 73.5 73.5 73.5 73.5
FMC GOLD COMPANY
OPERATING DATA (Unaudited)
THREE MONTHS YEAR
ENDED DEC. 31 ENDED DEC. 31
1994 1993 1994 1993
Tons of ore processed (thousands)
Paradise Peak
- Mill -- -- -- 587
- Heap Leach -- 552 -- 3,918
Total -- 552 -- 4,505
Jerritt Canyon
(FMC Gold share) 225 229 889 936
Royal Mountain King -- 341 700 1,334
Ore grade (ounces per ton milled)
Paradise Peak
- Gold -- -- -- 0.115
- Silver -- -- -- 1.900
Jerritt Canyon 0.125 0.151 0.119 0.129
Royal Mountain King -- 0.047 0.051 0.053
Mill recoveries
Paradise Peak
- Gold -- -- -- 89.2%
- Silver -- -- -- 56.7%
Jerritt Canyon 85.6% 89.7% 87.8% 89.4%
Royal Mountain King -- 68.5% 72.6% 76.5%
Production (thousands
of ounces)
Gold
Paradise Peak 5 22 39 158
Jerritt Canyon 24 31 98 108
Royal Mountain King -- 11 26 55
Total 29 64 163 321
Silver 26 47 154 863 Cash cost of production ($ per gold equivalent ounce) Paradise Peak $ 203 $ 94 $ 124 $ 117 Jerritt Canyon $ 288 $ 230 $ 283 $ 240 Royal Mountain King $ -- $ 372 $ 296 $ 336 Average $ 268 $ 209 $ 246 $ 194 CONTACT: FMC Gold Co. Pat Brozowski, 312/861-6104 or Cheryl Francis, 312/861-6674 |
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