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FMC GOLD REPORTS SECOND QUARTER RESULTS

 CHICAGO, July 20 /PRNewswire/ -- FMC Gold Company (NYSE: FGL) today reported second quarter net income of $1.0 million compared with net income of $1.1 million in the second quarter of 1992. Precious metal prices increased during the quarter, partially offsetting the decline in production resulting from the May 1993 closing of the Paradise Peak mill. Earnings per share were $0.01 in the second quarter compared with $0.02 last year.
 Sales for the second quarter of 1993 were $31.2 million compared with $36.9 million last year. The average realized price of gold increased to $362 per ounce from $340 per ounce in the second quarter of 1992. The average realized price of silver decreased to $3.65 per ounce compared with $4.09 in the year-ago period.
 In the second quarter, FMC Gold produced 86 thousand ounces of gold compared with 105 thousand ounces in the same period last year.
 Silver production decreased 47 percent to 247 thousand ounces compared with 464 thousand ounces last year. At the Paradise Peak, Nev., mine, gold production decreased to 44 thousand ounces compared with 61 thousand ounces in the second quarter of 1992.
 The mill at Paradise Peak shut down on May 18, 1993, but heap-leach production will continue there through the remainder of 1993. Silver production fell as the higher silver content mill ore reserves were exhausted.
 At the Jerritt Canyon, Nev., mine (30 percent owned by FMC Gold), gold production increased, reflecting higher mill ore grades and recoveries. FMC Gold's share of production increased to 27 thousand ounces compared with 25 thousand ounces in the second quarter of 1992. At the Royal Mountain King, Calif., mine, lower mill throughput, grades and recoveries resulted in a decline in gold production to 15 thousand ounces compared with 19 thousand ounces in the prior-year period.
 Average cash production costs increased during the second quarter to $198 per gold equivalent ounce compared with $182 per gold equivalent ounce in the second quarter of 1992. The increase in cash production costs reflects higher costs and lower production at Royal Mountain King due to the difficulty of milling harder-than-expected ore.
 FMC Gold held $161 million in cash and cash equivalents at the end of the quarter, and realized interest income of $1.8 million during the second quarter compared with $1.5 million last year.
 SIX MONTH RESULTS
 Net income for the first half of 1993 was $3.8 million compared with $8.0 million in the first half of 1992, reflecting lower gold production and the expense associated with an increase in exploration activities. Earnings per share were $0.05 in the first half of 1993 compared with $0.11 last year. Sales were $66.7 million compared with $76.4 million in the year-ago period. The average realized price of gold for the first half of 1993 was $344 per ounce -- just $1 below the 1992 price of $345.
 Cash production costs increased to $191 per gold equivalent ounce compared with $179 per gold equivalent ounce in the first half of 1992. The increase in cash production costs reflects higher costs at Royal Mountain King due to inclement winter weather and harder-than-expected mill ore.
 OUTLOOK
 Larry D. Brady, FMC Gold chairman and chief executive officer, noted that: "After more than seven years of production, we closed the Paradise Peak mill, having exhausted the mill grade ore there. We are encouraged by the recent rise in gold prices," he continued, "and remain committed to growth through exploration."
 FMC GOLD COMPANY
 CONSOLIDATED STATEMENTS OF INCOME
 (Unaudited and in millions, except per share amounts)
 PERIODS ENDED THREE MONTHS SIX MONTHS
 JUNE 30, 1993 1992 1993 1992
 Sales $31.2 $36.9 $66.7 $76.4
 Costs and expenses
 Cost of sales 25.8 31.6 55.9 61.4
 Exploration co 4.2 3.1 6.6 5.2
 Selling, general and
 administrative expenses 1.6 1.7 3.2 3.5
 Total costs and expenses 31.6 36.4 65.7 70.1
 Earnings before interest
 and taxes (0.4) 0.5 1.0 6.3(A)
 Interest income 1.8 1.5 3.9 3.0
 Income before income taxes 1.4 2.0 4.9 9.3
 Provision for income taxes 0.4 0.9 1.1 1.3
 Net income $ 1.0 $ 1.1 $ 3.8 $ 8.0
 Earnings per common share $0.01 $0.02 $0.05 $0.11
 Number of common shares used
 in earnings per share
 computations 73.5 73.5 73.5 73.5
 (A) Restated to reflect an increase in postretirement expense of $0.3 million.
 FMC GOLD COMPANY
 OPERATING DATA
 (Unaudited)
 PERIODS ENDED THREE MONTHS SIX MONTHS
 JUNE 30, 1993 1992 1993 1992
 Tons of ore processed (thousands)
 Paradise Peak
 - Mill 188 430 587 872
 - Heap Leach 1,122 1,169 1,952 2,502
 Total 1,310 1,599 2,539 3,374
 Jerritt Canyon
 (FMC Gold share) 235 242 458 448
 Royal Mountain King 333 358 656 731
 Ore grade (ounces per ton milled)
 Paradise Peak
 - Gold 0.126 0.097 0.115 0.097
 - Silver 1.823 1.410 1.900 1.174
 Jerritt Canyon 0.121 0.115 0.136 0.120
 Royal Mountain King 0.058 0.062 0.056 0.061
 Mill recoveries
 Paradise Peak
 - Gold (in percents) 84.5 93.3 89.2 93.2
 - Silver 51.3 64.7 56.7 64.5
 Jerritt Canyon 89.8 89.3 89.8 89.0
 Royal Mountain King 80.7 84.1 78.8 82.7
 Production (thousands of ounces)
 Gold
 Paradise Peak 44 61 103 123
 Jerritt Canyon 27 25 56 49
 Royal Mountain King 15 19 29 37
 Total 86 105 188 209
 Silver 247 464 739 1,142
 Cash cost of production ($ per gold
 equivalent ounce)
 Paradise Peak $141 $140 $133 $139
 Jerritt Canyon $234 $248 $225 $223
 Royal Mountain King $312 $242 $346 $268
 Average $198 $182 $191 $179
 -0- 7/20/93
 /CONTACT: Pat Brozowski, 312-861-6106; or Lisa Azzarello (investors), 312-861-6921, both for FMC Gold Company/
 (FGL)


CO: FMC Gold Company ST: Illinois IN: MNG SU: ERN

SH -- NY083 -- 3447 07/20/93 14:18 EDT
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Date:Jul 20, 1993
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