Glamis Gold Reports Third Quarter 2003 Results.Business Editors RENO Reno (rē`nō), city (1990 pop. 133,850), seat of Washoe co., W Nev., on the Truckee River; inc. 1903. Tourism has been the major industry since gambling was legalized in Nevada in 1931. , Nev.--(BUSINESS WIRE)--Nov. 3, 2003 Glamis Gold Glamis Gold Ltd. was a Reno, Nevada based gold producer with operations in the Americas. In 2006 they expected to produce 620,000 ounces of gold at a total cash cost of US$190 per ounce. They remained 100% unhedged. On 31 August 2006, Goldcorp acquired Glamis Gold for $8. Ltd. (NYSE NYSE See: New York Stock Exchange :GLG GLG Geology GLG Ganz Liebe Grüße (German) GLG Grocery List Generator GLG Glamis Gold Ltd (stock symbol) GLG Goofy Little Grin GLG Goodrich Landing Gear ) (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :GLG) today reported net income of $3.5 million or $0.02 per share for the third quarter of 2003 compared to net income of $2.4 million or $0.02 per share for the third quarter of 2002. Third Quarter Highlights: -- Produced 51,707 ounces of gold at a total cash cost of $201 per ounce ounce, in zoology ounce, in zoology: see leopard. ounce, unit of measurement ounce: see English units of measurement. . -- Generated 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 of $7.5 million. -- Advanced construction of the El Sauzal El Sauzal (Spanish meaning Slaughter of Acentejo in which the Spanish won in 1494) is located on the north coast of Tenerife 19 to 20 km E of Puerto de la Cruz, about 20 km SSW of the island's capital, Santa Cruz de Tenerife, NE of Los Cristianos and Las Américas of Arona and WSW gold project in Mexico Mexico, city, Mexico Mexico or Mexico City, Span. Ciudad de México (Méjico), city (1990 pop. 8,236,960; 1991 met. area est. 20,899,000), central Mexico, capital and largest city of Mexico. which is on budget and on schedule. -- Received the Resolution approving the Environmental Impact Assessment for the Marlin project in Guatemala Guatemala, city, Guatemala Guatemala, city (1994 est. pop. 823,301), S central Guatemala, capital of the republic. Its full name is La Nueva Guatemala de la Asunción. In a broad, fertile, highland valley, c. . -- Presently completing the updated feasibility study 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. for the Marlin project for presentation to the Glamis Glamis (glämz), village, Angus, E Scotland. King Malcolm II died (1034) nearby, and a sculptured cross in the village is known as King Malcolm's Gravestone. Board of Directors. -- Continued the Marigold marigold, any plant of the genus Tagetes of the family Asteraceae (aster family), mostly Central and South American herbs cultivated elsewhere as garden flowers. The two common species of marigold, both annuals, are distinguished as African, or Aztec (T. exploration program to extend the recent TZN TZN South Andros, Bahamas - Congo Town (Airport Code) TZN Time Zone Name discovery and other promising targets on the property. Kevin KEVIN Keepers of the Eternal Vigilance of the Islamic Nation (fictional, from White Teeth by Zadie Smith) McArthur McArthur may refer to: Places:
The process by which the body uses minerals to build bone structure. Mentioned in: Rickets mineralization, n the bioprecipitation of an inorganic substance. around current operations. As a direct result of these discoveries, consideration of a further expansion will commence once a scoping study is completed by year end. At El Sauzal, we are on schedule and within our budget. Excavation excavation In archaeology, the exposure, recording, and recovery of buried material remains. The techniques employed vary by the type of site, but all forms of archaeological excavation require great skill and careful preparation. of the mill site and other plant facilities is well underway and concrete has already been poured for the office buildings and maintenance shop. We remain on schedule to reach commercial production for the first quarter of 2005, but expect gold production to commence in the fourth quarter of 2004. Glamis has also completed a number of optimization optimization Field of applied mathematics whose principles and methods are used to solve quantitative problems in disciplines including physics, biology, engineering, and economics. studies at its Marlin gold project in Guatemala that will revise the original feasibility study completed in May of this year. These collectively have the potential to significantly enhance the project and will be formally submitted to the Board of Directors later this week for approval to proceed with development. "Turning to existing operations, we achieved record quarterly gold production of 25,270 ounces at Marigold mine, but leach leach v. leached, leach·ing, leach·es v.tr. 1. To remove soluble or other constituents from by the action of a percolating liquid. 2. pad issues at San Martin persisted throughout most of the third quarter, much longer than we had expected. It now appears that we have returned to projected production levels and should see substantial improvement in the fourth quarter." Financial Results During the third quarter of 2003, Glamis sold 51,110 ounces of gold at an averaged realized price of $371 per ounce compared to the sale of 62,062 ounces of gold in the corresponding quarter of 2002 at an average realized price of $318 per ounce. Revenue for the latest quarter was $19.0 million compared to $19.8 million in the third quarter of 2002 as lower sales volumes were nearly offset by the increase in gold prices. The decline in gold sales in the most recent quarter was principally the result of lower gold production at both the San Martin and Rand Rand See Witwatersrand. rand 1 n. See Table at currency. [Afrikaans, after(Witwaters)rand. mines, partially offset by sharply higher production at Marigold mine. Temporary production difficulties at San Martin are being successfully resolved but active mining at Rand ceased in the first quarter of this year as scheduled and only leaching leaching, method of extraction in which a solvent is passed through a mixture to remove some desired substance from it. A simple example is the passage of boiling water through ground coffee to dissolve and carry out the chemicals necessary for producing the beverage. operations have continued from that point. Net income for the third quarter of 2003 was $3.5 million or $0.02 per share compared to $2.4 million or $0.02 per share in the third quarter of the prior year. The increase in net income in the current quarter was primarily the result of higher gold prices, lower exploration expenses and a decline in depreciation and depletion depletion n. when a natural resource (particularly oil) is being used up. The annual amount of depletion may, ironically, provide a tax deduction for the company exploiting the resource because if the resource they are exploiting runs out, they will no longer be able expenses due to the lower gold production at the San Martin and Rand mines. Most of the exploration during the latest quarter, at Marlin in particular, was capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. and exploration expense declined to $0.2 million compared to $1.2 million in the third quarter of 2002. For the first nine months of 2003, Glamis reported net income of $9.3 million or $0.07 per share compared to net income of $9.0 million or $0.10 per share for the first nine months of 2002. For the current year to date, Glamis sold 172,155 ounces of gold at an averaged realized price of $356 per ounce compared to gold sales in the nine month period of 2002 of 188,975 ounces at an average realized price of $309 per ounce. Cash flow generated from operations during the latest quarter was $7.5 million compared to $7.6 million in the third quarter of the prior year. For the first three quarters of 2003 cash flow generated from operations was $24.1 million compared to $24.3 million in the corresponding period of the previous year. As of September September: see month. 30, 2003, the Company reported cash and equivalents of $147.2 million and working capital of $160.9 million. Operations Review Gold production for the third quarter of 2003 was 51,707 ounces compared to 58,987 ounces in the third quarter of 2002. Total cash costs for the three month period were $201 per ounce compared to $167 per ounce in the third quarter of the prior year. San Martin Mine Gold production at San Martin mine was 20,344 ounces in the third quarter at a total cash cost of $211 per ounce compared to 34,895 ounces in the previous year at a total cash cost of $103 per ounce. Temporary delays in gold recoveries due to leach pad solution issues persisted throughout much of the third quarter. Although Glamis believes these temporary setbacks have been resolved, they continued much later into the year than originally predicted. These difficulties were also compounded by drought conditions "Drought Conditions" is episode 126 of The West Wing. Plot Senator Rafferty, a new presidential candidate garnered much media attention with a ground-breaking speech about health care. experienced throughout the region this year. As a result, total cash costs are higher and Glamis has revised its 2003 production target to approximately 105,000 ounces of gold. Marigold Mine Glamis' two-thirds share of gold production from Marigold mine in the third quarter of 2003 increased to a record 25,270 ounces, compared to 10,089 ounces of gold produced in the third quarter of the previous year. This increase reflects successful implementation of the initial phase of the Marigold expansion program designed to lower total cash costs and raise Glamis' proportional proportional values expressed as a proportion of the total number of values in a series. proportional dwarf the patient is a miniature without disproportionate reductions or enlargements of body parts. share of gold production to more than 100,000 ounces annually. Total cash costs in the most recent quarter declined to $173 per ounce compared to $247 per ounce in the third quarter of the prior year as a result of the higher production levels and an improvement in gold grades. Glamis' two-thirds share of gold production for 2003 is expected to be approximately 95,000 ounces. Rand Mine Third quarter gold production at Rand mine was 6,093 ounces at a total cash cost of $285 per ounce compared to 14,003 ounces of gold at a total cash cost of $267 in the third quarter of 2002. Active mining ceased in the first quarter of this year although leaching activities will continue throughout 2003 and 2004 in conjunction with final 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. . Rand is on track to meet its 2003 production target of approximately 35,000 ounces of gold. In total, Glamis continues to expect gold production of approximately 235,000 ounces for 2003 at a total cash cost of $175 to $185 per ounce. Development Projects El Sauzal Project, Mexico Construction and development at the Company's El Sauzal gold project in the State of Chihuahua Chihuahua, state, Mexico Chihuahua (chēwä`wä), state (1990 pop. 2,441,873), 94,831 sq mi (245,612 sq km), N Mexico, on the border of N.Mex. and Texas. The city of Chihuahua is the capital. is within budget and on schedule. Much of the access road from the port city of Los Mochis Los Mochis (lōs mō`chēs), city (1990 pop. 162,659), Sinaloa state, W Mexico. Los Mochis is connected to Mexico City by highway and to the port of Topolobampo by road and rail. It also has an airport. to the property has been completed and excavations for the mill site and other process facilities are well underway. Concrete has been poured for administrative buildings and the truck shop. Permanent camp and communications facilities have been completed. El Sauzal is on schedule to begin gold production in the fourth quarter of 2004 and achieve commercial production in the first quarter of 2005. Marlin Project, Guatemala Glamis' Marlin deposit is still open to the west along strike and at depth. Most of the recent drilling has been part of an in-fill program to further define open pit and underground reserves and resources. Additionally, a number of optimization studies have been completed and incorporated into an updated feasibility study to be submitted to the Board of Directors for approval to proceed with development. Marlin will be developed as a combination open pit and underground mine with annual gold production in excess of 200,000 ounces at a total cash cost of approximately $100 per ounce, net of silver 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. With respect to permitting progress, Marlin has received the Resolution approving its Environmental Impact Assessment and awaits the key final permit, the Exploitation License. In addition to further exploration of the main Marlin deposit, Glamis has commenced surface sampling programs at certain of the anomalous a·nom·a·lous adj. 1. Deviating from the normal or common order, form, or rule. 2. Equivocal, as in classification or nature. zones in the immediate district. Two of the most promising of these are the La Hamaca and Coral to the north of the Main zone, both of which are planned to be drilled in 2004. Glamis also plans to carry out regional exploration programs to identify other prime targets on its large, virtually unexplored land package surrounding sur·round tr.v. sur·round·ed, sur·round·ing, sur·rounds 1. To extend on all sides of simultaneously; encircle. 2. To enclose or confine on all sides so as to bar escape or outside communication. n. the original Marlin discovery. Glamis anticipates updating the market with a news release and webcast presentation discussing the Marlin project's revised feasibility results and development plans following the Board of Directors' consideration of these items late this week. Marigold Expansion and Exploration Glamis' emphasis on productivity and innovation has significantly enhanced Marigold mine profitability. A better understanding of the geology geology, science of the earth's history, composition, and structure, and the associated processes. It draws upon chemistry, biology, physics, astronomy, and mathematics (notably statistics) for support of its formulations. and regional structural elements Structural elements are used in structural analysis to simplify the structure which is to be analysed. Structural elements can be linear, surfaces or volumes. Linear elements:
Recently, Glamis has focused much of its Marigold exploration program on the promising Section 7 area that resulted in the new TZN discovery. In the third quarter, the Marigold partnership authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: an additional $1 million dollar program for in-fill and extensional drilling at depth and along strike. The mineralization encountered to date is fairly deep but is oxidized oxidized having been modified by the process of oxidation. oxidized cellulose see absorbable cellulose. material above the water table that appears to be amenable AMENABLE. Responsible; subject to answer in a court of justice liable to punishment. to run-of-mine 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 . A scoping study is planned for completion by year end. Glamis has expanded its exploration program to include areas around existing open pits, yielding positive results. Following completion of the scoping study, the Company will consider a further expansion at Marigold that could boost annual gold production to more than 200,000 ounces on a 100 percent basis. There will be a conference call to discuss the latest quarterly financial and operating results at 3:00 p.m. EST P.M. also p.m. or p.m. abbr. post meridiem Usage Note: By definition, 12 a.m. (12:00 noon PST PST Paroxysmal supraventricular tachycardia, see there ) on November November: see month. 3, 2003. You may join the call by dialing (877) 500-5824 in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of or (706) 634-0787 internationally by quoting Conference ID# 3547239 or asking for the Glamis Gold Third Quarter Conference Call hosted by Kevin McArthur. A replay of the call will be available until November 17, 2003 by dialing (800) 642-1687 in the United States and Canada or (706) 645-9291 internationally and entering Conference ID# 3675418. Glamis Gold Ltd. is a premier intermediate gold producer with low-cost mines and development projects in Nevada, Mexico and Central America Central America, narrow, southernmost region (c.202,200 sq mi/523,698 sq km) of North America, linked to South America at Colombia. It separates the Caribbean from the Pacific. . The Company remains debt free and 100 percent unhedged. Glamis' near-term near-term adj. Of, for, or involving a short period of time in the near future. strategic goal is increase annual gold production to more than 500,000 ounces at a total cash cost below $150 per ounce. 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 under the United States Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: Except for the statements of historical fact contained herein, the information presented constitutes "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. " within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements, include, but are not limited to those with respect to, the price of gold, the estimation estimation In mathematics, use of a function or formula to derive a solution or make a prediction. Unlike approximation, it has precise connotations. In statistics, for example, it connotes the careful selection and testing of a function called an estimator. of mineral reserves and resources, the realization of mineral reserves estimates, the timing and amount of estimated future production, costs of production, capital expenditures, costs and timing of the development of new deposits, success of exploration activities, Glamis' hedging practices, permitting time lines, currency fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims limitations on insurance coverage and the timing and possible outcome of pending litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. . Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", or "does not expect", "is expected", "budget", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variation of such words and phrases Words and Phrases® A multivolume set of law books published by West Group containing thousands of judicial definitions of words and phrases, arranged alphabetically, from 1658 to the present. or state that certain actions, events or results, "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Glamis to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the actual results of current exploration activities, actual results of current reclamation activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, future prices of gold, possible variations in 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 or recovery rates, failure of plant, equipment or processes to operate as anticipated, accidents, labor disputes and other risks of the mining industry, delays in obtaining governmental approvals or financing or in the completion of development or construction activities, as well as those factors discussed in the section entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: "Other Considerations" in the Glamis Annual Information Form. Although Glamis has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
Glamis Gold Ltd.
5190 Neil Road, Suite 310
Reno, NV 89502
Email requests for investor packets to: info@glamis.com
Email questions/correspondence to: michaels@glamis.com
GLAMIS GOLD LTD.
THIRD QUARTER REPORT
Production Data
(Dollar amounts expressed in U.S. dollars)
Three Months Nine Months
Ended Sept. 30, Ended Sept. 30,
2003 2002 2003 2002
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Gold ounces produced 51,707 58,987 173,582 184,642
Gold ounces sold 51,110 62,062 172,155 188,975
Average revenue
realized per ounce $ 371 $ 318 $ 356 $ 309
Average market price
per ounce $ 363 $ 314 $ 354 $ 306
Total cash cost per
ounce $ 201 $ 167 $ 180 $ 159
Total production
cost per ounce $ 273 $ 247 $ 259 $ 233
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Production Data:
San Martin Mine:
Ore tons processed 1,921,596 1,499,640 5,440,716 4,578,423
Waste tons 457,079 246,662 1,192,745 768,840
Grade (ounces per
ton) 0.025 0.037 0.028 0.036
Gold ounces
produced 20,344 34,895 76,123 100,028
Total cash
cost per ounce $ 211 $ 103 $ 170 $ 101
Total production
cost per ounce $ 297 $ 201 $ 263 $ 192
Marigold Mine (66.7%):
Ore tons mined 1,376,536 751,984 3,844,880 2,077,509
Waste tons 5,279,409 4,344,090 14,553,391 8,816,461
Grade (ounces
per ton) 0.025 0.020 0.026 0.019
Gold ounces
produced 25,270 10,089 68,889 32,672
Total cash
cost per ounce $ 173 $ 247 $ 166 $ 210
Total production
cost per ounce $ 243 $ 327 $ 237 $ 290
Rand Mine:
Ore tons mined - 1,527,000 - 4,238,200
Waste tons - 1,837,100 - 5,504,000
Grade (ounces per
ton) - 0.020 - 0.023
Gold ounces
produced 6,093 14,003 28,570 51,942
Total cash cost
per ounce $ 285 $ 267 $ 241 $ 240
Total production
cost per ounce $ 318 $ 303 $ 300 $ 277
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Financial Data: (in
millions of U.S.
dollars, except per
share amounts)
Working capital $160.9 $ 55.5 $160.9 $ 55.5
Cash flow from
operations $ 7.5 $ 7.6 $ 24.1 $ 24.3
Net earnings $ 3.5 $ 2.4 $ 9.3 $ 9.0
Basic earnings per
share $ 0.02 $ 0.02 $ 0.07 $ 0.10
Average shares
outstanding 129,423,753 104,635,751 127,547,081 92,278,017
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Non GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). Disclosures: Cash costs of production should not be considered as an alternative to operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. or net profit attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to shareholders, or as an alternative to other Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. or U.S. generally accepted accounting principle measures and may not be comparable to other companies. However, the Company believes that Cash costs of production per ounce of gold, by mine, is useful indicator to investors and management of a mine's performance as it provides: (i) a measure of the mine's cash margin per ounce, by comparison of the cash operating costs operating costs npl → gastos mpl operacionales per ounce by mine to the price of gold; (ii) the trend in costs as the mine matures; and (iii) an internal benchmark A performance test of hardware and/or software. There are various programs that very accurately test the raw power of a single machine, the interaction in a single client/server system (one server/multiple clients) and the transactions per second in a transaction processing system. of performance to allow for comparison against other mines.
Glamis Gold Ltd.
Consolidated Balance Sheets
(Expressed in millions of U.S. dollars)
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September 30, December 31,
2003 2002
(unaudited)
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Assets
Current assets:
Cash and equivalents $ 147.2 $ 160.0
Accounts and interest receivable 5.3 2.1
Taxes recoverable 0.1 1.1
Inventories (note 2) 17.1 16.6
Prepaid expenses and other 1.0 0.7
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170.7 180.5
Plant and equipment and mine
development costs, net 334.4 285.0
Other assets 13.9 9.0
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$ 519.0 $ 474.5
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Liabilities
Current liabilities:
Accounts payable and accrued
liabilities $ 8.5 $ 8.3
Site closure and reclamation costs,
current 1.3 2.4
Taxes payable - 0.7
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9.8 11.4
Reserve for site closure and
reclamation costs 6.2 6.9
Future income taxes 81.5 70.4
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97.5 88.7
Shareholders' equity
Share capital (note 3):
Authorized:
200,000,000 common shares without
par value
5,000,000 preferred shares, Cdn$10
per share par value,
issuable in series
Issued and fully paid:
129,839,878 (2002-125,978,115)
common shares 464.0 437.6
Contributed surplus 6.0 6.0
Deficit (48.5) (57.8)
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421.5 385.8
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$ 519.0 $ 474.5
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Glamis Gold Ltd.
Consolidated Statements of Operations
(Expressed in millions of U.S. dollars, except per share amounts)
Three Months Nine Months
Ended Sept. 30, Ended Sept. 30,
2003 2002 2003 2002
(unaudited) (unaudited)
--------------------------------------------------------------------
Revenue $ 19.0 $ 19.8 $ 61.4 $ 58.4
Costs and expenses:
Cost of sales 10.3 10.4 30.8 30.1
Depreciation and
depletion 3.7 4.6 12.7 12.5
Site closure and
reclamation 0.2 0.3 1.0 1.0
Exploration 0.2 1.2 4.4 1.8
General and
administrative 1.4 1.1 4.4 3.3
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15.8 17.6 53.3 48.7
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Earnings from
operations 3.2 2.2 8.1 9.7
Interest and other
income 0.5 0.6 2.6 0.9
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Earnings before
income taxes 3.7 2.8 10.7 10.6
Provision for income
taxes:
Current 0.0 (0.1) 0.2 0.1
Future 0.2 0.5 1.2 1.5
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0.2 0.4 1.4 1.6
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Net earnings $ 3.5 $ 2.4 $ 9.3 $ 9.0
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Basic earnings per
share $ 0.02 $ 0.02 $ 0.07 $ 0.10
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Diluted earnings per
share $ 0.02 $ 0.02 $ 0.07 $ 0.10
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Consolidated Statements of Deficit
(Expressed in millions of U.S. dollars)
Three Months Nine Months
Ended Sept. 30, Ended Sept. 30,
2003 2002 2003 2002
(unaudited) (unaudited)
--------------------------------------------------------------------
Deficit, beginning
of period $(52.0) $(64.9) $(57.8) $(71.5)
Net earnings 3.5 2.4 9.3 9.0
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Deficit, end of
period $(48.5) $(62.5) $(48.5) $(62.5)
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Glamis Gold Ltd.
Consolidated Statement of Cash Flows
(Expressed in millions of U.S. dollars)
Three Months Nine Months
Ended Sept. 30, Ended Sept. 30,
2003 2002 2003 2002
(unaudited) (unaudited)
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Cash flows from
operating activities
Net earnings $ 3.5 $ 2.4 $ 9.3 $ 9.0
Non-cash items:
Depreciation and
depletion 3.7 4.6 12.7 12.5
Site closure and
reclamation 0.2 0.3 1.0 1.0
Future income taxes 0.2 0.5 1.2 1.5
Loss (gain) on sale
of investments (0.1) (0.2) (0.1) 0.3
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7.5 7.6 24.1 24.3
Changes in non-cash
operating working
capital:
Accounts and
interest receivable (0.8) (0.2) (3.6) (0.5)
Taxes
recoverable/payable 0.8 0.5 0.3 -
Inventories (0.9) (0.7) (0.6) (2.7)
Prepaid expenses and
other 0.4 0.2 - (0.3)
Accounts payable and
accrued liabilities 0.3 3.2 0.1 3.9
Site closure and
reclamation
expenditures (0.4) (0.6) (2.9) (1.9)
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Net cash from
operating activities 6.9 10.0 17.4 22.8
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Cash flows from
(used in) investing
activities
Business
acquisitions, net of
cash acquired - (5.9) - (6.4)
Purchase of plant
and equipment, net
of disposals (7.9) (1.9) (19.2) (14.6)
Mineral property
acquisition and mine
development costs (9.4) (2.1) (22.7) (5.6)
Net proceeds from
sale of investments
and properties (note 5) 4.6 0.1 6.5 0.3
Other assets - (0.9) (0.5) (2.3)
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Net cash flows used
in investing
activities (12.7) (10.7) (35.9) (28.6)
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Cash flows from
financing activities
Issuance of share
capital 3.2 3.0 5.7 7.3
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Net cash flows from
financing activities 3.2 3.0 5.7 7.3
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Increase (decrease)
in cash and
equivalents (2.6) 2.3 (12.8) 1.5
Cash and
equivalents,
beginning of period 149.8 45.0 160.0 45.8
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Cash and
equivalents, end of
period $147.2 $ 47.3 $147.2 $ 47.3
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