FNX Mining Reports $1.3 Million Earnings in Q1-2004.Business Editors TORONTO--(BUSINESS WIRE)--May 5, 2004 FNX Mining FNX Mining Company Inc. TSX: FNX is a Toronto, Ontario based company that produces and explores for nickel, copper, platinum, palladium, gold and cobalt in the Sudbury Basin, Ontario, Canada. Company Inc. (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :FNX)(AMEX AMEX See: American Stock Exchange :FNX) reports earnings after tax of $1.3 million or $0.03 per share for the first quarter of 2004 compared to a loss of $1.6 million or $0.04 per share in the same period of 2003. The Q1-2004 results represent the Company's initial reporting period of commercial production from operations at its 75%-owned McCreedy West Mine located in the Sudbury mining camp, northern Ontario Northern Ontario is the part of the province of Ontario which lies north of Lake Huron (including Georgian Bay), the French River and Lake Nipissing. Northern Ontario has a land area of 802,000 km² (310,000 mi²) and constitutes 87% of the land area of Ontario, although it , Canada. The Company accounts for the Sudbury operations on a 100% consolidated basis, with the remaining 25% ownership interest accounted for as a minority interest. HIGHLIGHTS: - Earnings after tax of $1.3 million or $0.03 per share - Provisions for non-cash taxes of $0.9 million reduced quarterly earnings by $0.02 per share - Closing cash of $47.7 million with no debt - Revenue during the period was $9.5 million with average revenue of $240 per ton of ore shipped to the custom mill - Cash operating costs operating costs npl → gastos mpl operacionales totaled $4.5 million and averaged $114 per ton of ore - Cash operating costs were US$2.69 per pound of nickel net of by-product by·prod·uct or by-prod·uct n. 1. Something produced in the making of something else. 2. A secondary result; a side effect. by-product Noun 1. credits - Cash operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: totaled $5.0 million and averaged $126 per ton of ore - Declared commercial production January 1, 2004 at the McCreedy West Mine for mining commencing November 1, 2003 - On schedule to achieve 1,000 tons per day Phase 1 Production target at McCreedy West Mine - Feasibility studies The analysis of a problem to determine if it can be solved effectively. The operational (will it work?), economical (costs and benefits) and technical (can it be built?) aspects are part of the study. Results of the study determine whether the solution should be implemented. initiated at Levack Mine (Phase 2 Production) and at the McCreedy West PM Deposit (Phase 3 Production) - Continued exploration success at Norman 2000 Deposit - planning underground advanced exploration program Note: Currencies are in Canadian dollars Noun 1. Canadian dollar - the basic unit of money in Canada; "the Canadian dollar has the image of loon on one side of the coin" loonie dollar - the basic monetary unit in many countries; equal to 100 cents unless indicated otherwise. All production numbers are for 100% of operations. Cash operating costs, cash operating margins and cash costs per pound are non-GAPP measures. Cash operating costs represent the economic marginal cost Marginal cost The increase or decrease in a firm's total cost of production as a result of changing production by one unit. marginal cost The additional cost needed to produce or purchase one more unit of a good or service. to produce a given unit of output and cash operating margin is the difference between revenue and cash operating costs. Provisions for a non-cash tax expense of $0.9 million was recognized in Q1-2004, reducing the after tax earnings by $0.02 per share. The Company does not expect to pay taxes this year and not until all previous tax losses have been exhausted. Revenues from operations during the first quarter of 2004 totaled $9.5 million with a cash operating margin of $5.0 million, compared to nil revenues in the first quarter of 2003. Revenue per ton of ore was $240, while cash mining, processing and treatment costs were $4.5 million or $114 per ton for a cash operating margin of $126 per ton of ore. The Company had cash of $47.7 million at March 31, 2004, a decrease of $4.9 million in the quarter from $52.5 million at December 31, 2003. The Company had no debt and working capital was $54.8 million at the end of the period. The first $14 million of cash receipts from the Sudbury operations will be distributed 60% to the Company and 40% to its joint venture partner, Dynatec Corporation. This threshold is expected to be reached in Q2-2004, after which, cash receipts will be distributed 75% to the Company and 25% to Dynatec. Ore mined during the reporting period was 42,098 tons, while 39,539 tons were shipped to the mill for processing. The 36,725 tons of nickel ore shipped graded 1.9% Ni, 0.3% Cu and 0.06% Co. Copper ore shipped totaled 2,814 tons averaging 6.8% Cu, 0.8% Ni and 0.14 oz/ton platinum + palladium palladium, chemical element palladium [Gr. Pallas, goddess of wisdom], metallic chemical element; symbol Pd; at. no. 46; at. wt. 106.42; m.p. 1,554°C;; b.p. 2,970°C;; sp. gr. 12.02 at 20°C;; valence +2, +3, or +4. + gold. During the first quarter, payable nickel production was 952,342 pounds and payable copper was 509,893 pounds. The cash cost per pound of nickel net of by-product credits was US$2.69. An average nickel price during the quarter of US$6.65 per pound provided a cash operating margin of US$3.96 per pound of nickel. The Phase 1 Production target of 1,000 tons per day at the McCreedy West Mine will be achieved ahead of schedule and Q-2 2004 production is expected to nearly double that of Q-1 2004. The Company expects to achieve it fiscal 2004 production forecast of 300,000 tons of ore yielding 7.0 million pounds of nickel and 3.7 million pounds of copper and to meet or better its forecast average cash cost per pound nickel of US$2.98. FNX Mining will be hosting a Q1-2004 conference call at 4:00pm Eastern Time on Wednesday, May 5th, 2004. The number to call is 416-405-8532 for local calls and 877-295-2825 for North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. toll free calls; ask for the FNX Mining conference call. For the conference call replay dial 416-695-5800 or 800-408-3053. The access code is 3047770. The replay will be available until midnight April 14th. Slides will be available at the commencement of the conference call at: www.fnxmining.com. The complete Q1-2004 financial statements and accompanying notes can be accessed at: www.fnxmining.com. This press release contains certain 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. . These forward-looking statements are subject to a variety of risks and uncertainties beyond the company's ability to control or predict which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements. |
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