Homestake Reports Third Quarter Results.SAN FRANCISCO--(BUSINESS WIRE)--Oct. 26, 1998-- -0-
Highlights:
Financial
-- Homestake reported a net loss of $182.2 million or 86 cents per
share in the third quarter of 1998, compared to a net loss of
$155.6 million or 74 cents per share in the third quarter of
1997. Excluding the effects of nonrecurring items, Homestake
recorded a net loss of $16.3 million or 8 cents per share in the
third quarter of 1998, compared to a net loss of $10.5 million or
5 cents per share in 1997.
-- During the third quarter of 1998 Homestake recognized a net loss
on its foreign currency protection program of $7.2 million or 4
cents per share ($17 million before taxes and minority
interests), primarily noncash mark-to-market adjustments, due to
the continued decline of the Australian and Canadian dollars in
relation to the United States dollar. During the 1997 third
quarter, Homestake recorded a loss of $2.6 million or 1 cent per
share ($4.2 million before taxes and minority interests) on its
foreign currency protection program. Excluding the effects of
nonrecurring items and the losses on the foreign currency
protection program, Homestake recorded a net loss of $9.1
million, or 4 cents per share in the third quarter of 1998
compared to a net loss of $7.9 million or 4 cents per share in
the third quarter of 1997.
Operations
-- Consolidated gold production for the third quarter of 1998 was
630,700 ounces at a cash cost of $195 per ounce, compared to
642,000 ounces at a cash cost of $236 per ounce during the
corresponding period in 1997.
-- Homestake and its joint venture partner, Normandy Mining Limited,
are implementing a revised operating plan at their jointly owned
Mt Charlotte mine in Western Australia. The mine has experienced
a downturn in economic performance and an accelerated level of
ground movement. The new plan provides for a reduced level of
mining in low-risk areas of the mine over the next twelve months.
Homestake has recorded a pretax charge of $38.4 million for
severance, unrecovered capital and other costs related to the
operation. This reduces Homestake's carrying value for the Mt
Charlotte mine to zero.
Exploration
-- In Australia, intensive regional exploration and in-mine
delineation drilling programs are being conducted at the mine
sites and on the tenements acquired through the Plutonic
Resources acquisition. Drill results have been promising at the
Lawlers operation along the Glasgow Lass Trend, at the Mt Morgans
property's Just-in-Case prospect in Western Australia and at the
Twin Hills property in Queensland.
-- Homestake has entered into a three-year exploration and option
agreement covering all the exploration properties of WMC Limited
located in the Argentine provinces of Rio Negro, Chubut and Santa
Cruz.
Corporate
-- Subject to requisite shareholder approvals, Homestake and Prime
Resources Group Inc. have agreed on an exchange ratio for
Homestake's acquisition of the 49.4% of Prime not already owned
by Homestake. Prime shareholders have the choice of receiving
0.74 of a Homestake common share or 0.74 of a Homestake Canada
Inc. (HCI) exchangeable share. Homestake will issue an additional
27.8 million common shares following the shareholder meetings of
each company on December 1, 1998.
-0- Homestake Mining Company (NYSE NYSE See: New York Stock Exchange :HM)(ASX ASX See: Australian Stock Exchange :HSM (1) (Hierarchical Storage Management) The automatic movement of files from hard disk to slower, less-expensive storage media. The typical hierarchy is from magnetic disk to optical disc to tape. ), today reported a net loss of $182.2 million or 86 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. in the third quarter of 1998 compared to a net loss of $155.6 million or 74 cents per share in the third quarter of 1997. The latest quarter results include 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. nonrecurring charges Nonrecurring Charge An expense occurring only once on a company's financial statement. Notes: An extraordinary item is an example of a nonrecurring charge. Also known as "nonrecurring item". totaling approximately $165.9 million or 78 cents per share resulting from a review of the carrying values Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of certain assets in the persistent low gold price environment and the impact of specific operational issues during the third quarter. The comparable 1997 quarter included after-tax nonrecurring charges totaling approximately $145.1 million or 69 cents per share. The most significant carrying value adjustment related to the Homestake mine Homestake Mine is the name for several mines in the United States:
ounce, in zoology: see leopard. ounce, unit of measurement ounce: see English units of measurement. by the end of 1999. Due to continuing low gold prices, the Company will use a gold price of $325 per ounce for determining its gold reserves at the end of 1998. On that basis, the Company does not expect to recover its remaining investment in property, plant and equipment. The total amount of 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. was $76.1 million before tax, which reduced the carrying value of the mine to zero. In addition, the Company has recorded a provision for estimated additional 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. costs of $35 million pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern . These charges will have no impact on current efforts to reduce cash production costs at the Homestake mine to the target level of $280 per ounce. In Western Australia Western Australia, state (1991 pop. 1,409,965), 975,920 sq mi (2,527,633 sq km), Australia, comprising the entire western part of the continent. It is bounded on the N, W, and S by the Indian Ocean. Perth is the capital. , Homestake and its joint venture partner, Normandy Normandy (nôr`məndē), Fr. Normandie (nôrmäNdē`), region and former province, NW France, bordering on the English Channel. Mining Limited, are implementing a new mining plan for the Mt Charlotte mine due to the downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. in economic performance and an accelerated level of ground movement. Mining will be restricted to low risk areas of the mine for the next twelve months. Performance of the mine will be monitored during this time to determine whether the operation will continue beyond that point. Homestake has recorded a charge of $26.4 million ($38.4 million pretax) during the third quarter for severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when , unrecovered capital and other costs. This reduces Homestake's carrying value for the Mt Charlotte mine to zero. The carrying values of Homestake's investments in certain mining properties and marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has have been reduced by $19.2 million ($27.3 million pretax), including $19.9 million pretax related to Homestake's 81%-owned Lachlan Lach·lan A river, about 1,483 km (922 mi) long, of southeast Australia flowing northwest then southwest to the Murrumbidgee River. Resources NL, which was acquired as part of the Plutonic plu·ton·ic adj. Of deep igneous or magmatic origin: plutonic rocks. [From Latin Pl Resources transaction in April 1998. Other miscellaneous charges and adjustments total $9.2 million ($11.1 million pretax). In addition to the foregoing nonrecurring charges, during the third quarter of 1998 Homestake recognized $17 million in pretax losses pretax loss A loss reported before tax benefits are considered. , primarily noncash mark-to-market Mark-to-market Adjustment of the book value or collateral value of a security to reflect current market value. adjustments, on its foreign currency protection program due to the continued decline of the Australian Australian pertaining to or originating in Australia. Australian bat lyssavirus disease see Australian bat lyssavirus disease. Australian cattle dog a medium-sized, compact working dog used for control of cattle. and 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 in relation to 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. dollar. Gold production in the third quarter of 1998 was 630,700 ounces compared to 642,000 ounces during the corresponding period in 1997. This reduction primarily is due to lower production from the Homestake and Mt Charlotte mines, partially offset by production from the new Ruby ruby, precious stone, the transparent red variety of corundum, found chiefly in Myanmar, Thailand, and Sri Lanka and classified among the most valuable of gems. The Myanmarese stones are blood red, the most valued tint being the "pigeon's blood. Hill mine and by an increase in production at the Eskay Creek mine. During the third quarter, Homestake sold 636,600 ounces of gold at an average price of $307 per ounce compared to sales of 623,200 ounces at an average price of $341 per ounce of gold during the corresponding period in 1997. Through the end of the third quarter of 1998, Homestake sold 1,969,100 ounces of gold at an average price of $313 per ounce compared to sales of 1,855,100 ounces of gold at an average price of $357 per ounce during the first nine months of 1997. Cash costs in the third quarter of 1998 declined by 17% to $195 per ounce from $236 per ounce during the third quarter of 1997. Part of the reduction in costs is due to declines in the 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. and Australian dollars Noun 1. Australian dollar - the basic unit of money in Australia and Nauru dollar - the basic monetary unit in many countries; equal to 100 cents in relation to the U.S. dollar. Cost reductions were achieved at all operations except the Pinson Pinson may refer to: Places:
The period beginning at the start of the calendar year up to the current date. 1998 cash costs declined to $203 per ounce from $249 per ounce in the 1997 nine-month period. The net loss for the first nine months of 1998 was $219.7 million or $1.04 per share compared to a net loss of $172.2 million or 82 cents per share during the first nine months of 1997. The 1998 net loss includes after-tax nonrecurring charges totaling $192.1 million or 91 cents per share. Through the first nine months of 1998, Homestake has recorded nonrecurring Non`re`cur´ring a. 1. Nonrecurrent; as, the costs of a layoff are considered as a nonrecurring expense s>. after-tax charges for the following: -0-
-- $82 million ($85 million pretax) for restructuring costs and
carrying value adjustments at the Homestake mine.
-- $26.4 million ($38.4 million pretax) for severance, unrecovered
capital and other costs related to the restructuring of the Mt
Charlotte mine.
-- $35 million ($35 million pretax) for estimated additional
reclamation costs at the Homestake mine.
-- $17.7 million ($20.7 million pretax) for combination and
integration costs related to the acquisition of Plutonic
Resources.
-- $21.8 million ($30.2 million pretax) to reduce the carrying
values of Homestake's investments in certain mining properties
and marketable securities, including approximately $12.3 million
($19.9 million pretax) related to Homestake's 81%-owned Lachlan
Resources.
-- $9.2 million ($11.1 million pretax) for other miscellaneous
charges and adjustments.
During the first nine months of 1997, Homestake recorded
nonrecurring charges of $195.1 million ($248.7 million pretax) or 93
cents per share for the following:
-- $84.9 million ($107.8 million pretax) write-down of Homestake's
investment in the Main Pass 299 sulfur mine.
-- $21.5 million ($29.1 million pretax) increase in the estimated
accrual for future reclamation expenditures.
-- $29.2 million ($31 million pretax) write-down of certain
investments to market value.
-- $50.1 million ($69.3 million pretax) reduction in the carrying
values of short-lived mining properties as a result of
low gold prices.
-- $9.4 million ($11.5 million pretax) in other charges.
-0- The 1997 nine-month period also included after-tax gains of $47.2 million ($62.9 million pretax) or 22 cents per share from the break-up break-up noun 1. separation, split, divorce, breakdown, ending, parting, breaking, splitting, wind-up, rift, disintegration, dissolution, termination noun 2. fee received upon termination of Homestake's merger agreement with Santa Fe Santa Fe, city, Argentina Santa Fe, city (1991 pop. 341,000), capital of Santa Fe prov., NE Argentina, a river port near the Paraná, with which it is connected by canal. Pacific Gold Corporation, and $8.1 million ($13.5 million pretax) or 4 cents per share from the sale of the George George, river, c.345 mi (560 km) long, rising in a lake on the Quebec-Labrador boundary, E Canada. It flows N through Indian Lake (125 sq mi/324 sq km) to Ungava Bay (an arm of Hudson Strait). Lake and Back River joint venture interests in the Northwest Territories Northwest Territories, territory (2001 pop. 37,360), 532,643 sq mi (1,379,028 sq km), NW Canada. The Northwest Territories lie W of Nunavut, N of lat. 60°N, and E of Yukon. of 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 . Cash generated from operations for the first nine months of 1998 was $105 million compared to $113 million for the first nine months of 1997. Cash and short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments have increased by $44 million since the end of 1997 and totaled $309 million at September September: see month. 30, 1998. Commenting on the latest quarterly results, Jack E. Thompson Thompson, city, Canada Thompson, city (1991 pop. 14,977), central Man., Canada, on the Burntwood River. A mining town, it developed after large nickel deposits were discovered in the area in 1956. , President and Chief Executive Officer said "The persistent low gold price environment has required that Homestake adjust the carrying value of certain assets. However, the contribution from our recently acquired Plutonic mines and continuing efforts to increase efficiency at our remaining operations have lowered our cash costs to previously unachieved levels. Homestake's operations continue to generate strong cash flows and we expect to achieve near record levels of gold production in 1998. Our aggressive focus on exploration is beginning to generate success in both the United States and Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. . This strong operating and growth performance was achieved through the efforts of a strong and goal-oriented A system, person, or organization that tends to achieve a goal and demonstrate it in subsequent actions. Goal-oriented or goal-driven/goal-directed/purposive is a property of systems which are able to think/reason/inference using symbols. management team. Through their efforts, we are transforming Homestake into a stronger and more competitive company that is focused on increasing shareholder value." Operations United States At the Homestake mine, underground production resumed in April at a reduced rate. The mine is still implementing a new mine plan with the objective of producing between 150,000 to 180,000 ounces of gold per year at a cash cost of $280 per ounce. The new mine plan will require an additional $30 million capital investment. The decision to proceed with the capital expenditure program will be made during the first half of 1999 based on the mine's performance during the remainder of 1998 and the first part of 1999. Mining at the Open Cut was completed in September and residual stockpiled material is now being processed. Gold production for the third quarter was 64,500 ounces at a cash cost of $256 per ounce compared to 97,000 ounces at $307 per ounce for the corresponding period during the previous year. The McLaughlin Mc·Laugh·lin , John Born 1942. British jazz guitarist best known for his virtuosic playing and for his affinity for flamenco and Eastern music. operation is continuing to process residual ore stockpiles. Gold production increased to 32,900 ounces from 31,200 ounces in the prior year due to increased mill throughput The speed with which a computer processes data. It is a combination of internal processing speed, peripheral speeds (I/O) and the efficiency of the operating system and other system software all working together. 1. . A new ore stacking system commissioned in late 1997 has improved ore handling efficiencies, resulting in lower unit operating and maintenance costs. Cash costs have been reduced by 10% to $220 per ounce in the third quarter of 1998 from $243 per ounce in the third quarter of 1997. Homestake's share of production at the Round Mountain mine increased by 3,200 ounces during the third quarter of 1998 to 34,600 ounces from 31,400 ounces in the third quarter of 1997. The new gravity milling facility that is designed to process sulfide sulfide, chemical compound containing sulfur and one other element or sulfur and a radical. Sulfides may be salts or esters of hydrogen sulfide, H2S, or may be formed directly, e.g., by heating a metal with sulfur. ore is performing well and should offset a decline in reusable re·use tr.v. re·used, re·us·ing, re·us·es To use again, especially after salvaging or special treatment or processing. re·us pad gold production. Homestake's share of mill production was approximately 6,500 ounces during the latest quarter. Cash costs declined to $200 per ounce in the 1998 third quarter from $237 per ounce in the corresponding quarter of 1997. The revised pit design implemented in late 1997 and various cost reduction measures are the major reasons for the 16% decrease in costs during the current quarter. The new Ruby Hill mine, which achieved commercial production in January January: see month. 1998, was formally dedicated on August 18th. Performance at the operation has progressively improved during the year and production for the third quarter of 1998 totaled 27,800 ounces at a cash cost of $120 per ounce. Production has exceeded plan due to higher throughput and recovery rates. Canada Production at the Eskay Creek mine increased to 121,900 gold equivalent ounces during the third quarter of 1998 from 105,400 gold equivalent ounces in the corresponding period of 1997. The production growth is due to higher throughput, a lower silver-to-gold equivalency equivalency the combining power of an electrolyte. See also equivalent. ratio, and increased performance from the new gravity/flotation mill commissioned in December December: see month. 1997. Cash costs (including third-party smelter charges) fell to $138 per ounce in the third quarter of 1998 from $163 per ounce in last year's quarter. The substantial unit cost reduction is due principally to the lower silver-to-gold equivalency ratio, improved economics of the new mill, and a decline in the Canadian/U.S. dollar exchange rate. Homestake's share of production at the Williams mine was 48,600 ounces of gold in the third quarter and was 2,600 ounces less than the 51,200 ounces produced during the third quarter in 1997. The reduced production was attributable to an expected decline 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 , partially offset by increased throughput. However, cash costs were $211 during the third quarter of 1998 compared to $218 per ounce in the third quarter of 1997, primarily reflecting the reduced Canadian/U.S. dollar exchange rate and reduced development requirements, partially offset by the lower production. Homestake's share of production at the David Bell David Bell may refer to:
Production from the Snip mine was 28,300 gold ounces at a cash cost of $173 per ounce in the latest quarter compared to 31,200 ounces at a cash cost of $210 per ounce in the third quarter of 1997. The decline in production was expected and is attributable to lower throughput and grade as the operation approaches the end of its economic life. The reduction in cash costs is due principally to the decline in the Canadian/U.S. dollar exchange rate and increased efficiency. The operation is expected to complete mining and begin decommissioning of the facility by April 30, 1999. Australia Homestake's share of production from the combined operations For the department of the British War Office during World War II, see . In the military, combined operations are operations conducted by forces of two or more allied nations acting together for the accomplishment of a single mission. See also
 r`lē), town (1991 pop. 25,016), Western Australia, SW Australia. It is the chief mining town of the state and the center of the East Coolgardie Goldfield. in Western Australia declined to 92,500 ounces in the
third quarter of 1998 from 102,500 ounces during the similar period in
1997. In June June: see month. 1998, structural cracks were detected in the SAG (1) A momentary drop in voltage from the power source. Contrast with spike.(2) (SAG) (SQL Access Group) See CLI. mill ring gear of the Fimiston mill. Rotation speed for the SAG mill has been reduced to minimize stress. A temporary replacement gear is being fabricated fab·ri·cate tr.v. fab·ri·cat·ed, fab·ri·cat·ing, fab·ri·cates 1. To make; create. 2. To construct by combining or assembling diverse, typically standardized parts: which will be available in January 1999. As a result, Homestake expects to maintain current rates of production through the end of 1998. On September 15, 1998 Homestake and its joint venture partner, Normandy Mining Limited, announced a revised operating plan at their jointly owned Mt Charlotte mine. The mine has experienced a downturn in economic performance and an increased level of ground movement. The Company's primary concern is that appropriate safety levels be maintained. The new plan provides for a restricted level of mining activity in low-risk areas of the mine for the next twelve months. Performance of the mine will be monitored to determine whether the operation will continue beyond that period. Cash costs for the combined Kalgoorlie operation decreased to $215 per ounce in the third quarter of 1998 from $242 per ounce during the comparable period in 1997 reflecting the weaker Australian dollar in relation to the U.S. dollar, partially offset by the lower production at the Mt Charlotte mine. Gold production at the Plutonic mine decreased to 67,100 ounces at a cash cost of $201 per ounce in the third quarter of 1998 compared to 72,400 ounces at a cash cost of $220 per ounce in the prior year's third quarter. Mill feed was 5% below levels achieved during the corresponding period in 1997 due to down-time (jargon) down-time - A period of time during which a (computer) system is not operational, due to a malfunction or maintenance. associated with commissioning a new gas-fired gas-fired adj → de gas gas-fired adj → au gaz gas-fired adj (heater etc) → Gas- plant that generates power for the operation. The ore grade was slightly below the corresponding period in 1997 due to processing additional low-grade low-grade Of or relating to debt that has a credit rating of B or below. Low-grade debt offers an above-average yield but entails substantial risk because promised payments may not be made in a timely manner. 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. material to compensate for lower than expected underground production. An intensive in-fill drilling and access development program is being conducted to provide adequate information for development of higher-grade ore lodes in the new Zone 124 area of the mine. This program is expected to continue through 1999, at which time the operation is expected to stabilize stabilize See peg. at an average production rate of about 260,000 ounces per year. Development drilling also continued from surface at Area 4, and preliminary design work is underway for the proposed Area 4 open pit. The reduction in cash costs is attributable to the decline in the Australian/U.S. dollar exchange rate. The Darlot/Centenary mine also has been conducting an intensive drilling and development program during the third quarter of 1998. Gold production increased to 22,700 ounces from 18,200 ounces during the third quarter of 1997. The improved performance is attributable to increased throughput and grade from underground orebodies within extensions of the original Darlot ore zones and initial mining in the new Centenary orebody. Cash costs decreased to $200 per ounce in the third quarter of 1998 from $292 per ounce in the third quarter of 1997 due to a 12% increase in ore grade and the decline in the Australian/U.S. dollar exchange rate. Production from the higher-grade Centenary ore body is expected to increase through 1999 while in-fill drilling and ore block development continues. During the third quarter of 1998, development was initiated on a second decline to the Centenary orebody to be used for haulage and additional ventilation ventilation, process of supplying fresh air to an enclosed space and removing from it air contaminated by odors, gases, or smoke. Proper ventilation requires also that there be a movement or circulation of the air within the space and that the temperature and . In the third quarter of 1998, the Lawlers gold mine produced 28,300 ounces compared to 32,400 ounces during the third quarter of 1997. The decrease in production is due to unusually high grades mined in the Genesis pit during the third quarter of 1997. Mining during the third quarter of 1998 was conducted in the New Holland, Genesis and Fairyland surface pits and the down-plunge extension of the uppermost ore lens from the New Holland pit. An exploration decline that has been developed out of the southern end of the New Holland pit provides underground access to gently plunging plunge v. plunged, plung·ing, plung·es v.tr. 1. To thrust or throw forcefully into a substance or place: ore lenses. The grade of the New Holland ore zone has averaged 0.25 to 0.30 ounces per ton and has been instrumental in raising the gold production to 90,700 ounces for the first nine months of 1998 compared to 60,600 ounces in 1997. During the third quarter of 1998, cash costs declined to $162 per ounce compared to $219 per ounce during the corresponding period in 1997. The cost reduction is attributable to higher ore grades and the reduction in the Australian/U.S. dollar exchange rate. A second decline, also from the New Holland pit, recently was commenced to access lower ore zones and a third decline is planned from the Genesis pit in early 1999. At the Mt Morgans Morgans can refer to:
cantankerous matriarch of the Clampett family. [TV: “The Beverly Hillbillies” in Terrace, I, 93–94] See : Irascibility Smith joint venture. Homestake's share of gold production at the 66.7% owned Peak Hill operation was 5,700 ounces compared to 8,000 ounces during the corresponding period in 1997. Mining activity has ceased and the operation is processing remaining low-grade stockpiled material. Cash costs increased to $261 per ounce from $244 per ounce during the third quarter of 1997 due to the lower grades of ore processed. Recent treatment trials on stockpiles previously classified as sub-economic value have demonstrated the grades are economic at current gold prices. Consequently, production from Peak Hill is now expected to continue until September Until September is a 1984 romantic drama set in France. It stars Karen Allen as an American tourist in Paris who falls in love with a married Frenchman (Thierry Lhermitte). External links 1999. Chile During the third quarter of 1998, the La Falda La Falda is a small city in the province of Córdoba, Argentina, located 79 km from Córdoba City and 800 km from Buenos Aires. It has about 15,000 inhabitants as of the 2001 census INDEC]. mine produced 10,700 gold ounces, equal to production levels during the corresponding period in 1997. Cash costs, however, declined to $203 per ounce from $231 per ounce in the third quarter of 1997. The reduced costs are attributable to reduced 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. tonnage TONNAGE, mar. law. The capacity of a ship or vessel. 2. The act of congress of March 2, 1799, s. 64, 1 Story's L. U. S. 630, directs that to ascertain the tonnage of any ship or vessel, the surveyor, &c. and increased ore grade. In addition to oxide oxide, chemical compound containing oxygen and one other chemical element. Oxides are widely and abundantly distributed in nature. Water is the oxide of hydrogen. Silicon dioxide is the major component of sand and quartz. ore mined and leached from La Falda, 8,000 tons of refractory refractory Material that is not deformed or damaged by high temperatures, used to make crucibles, incinerators, insulation, and furnaces, particularly metallurgical furnaces. ore from the predominantly pre·dom·i·nant adj. 1. Having greatest ascendancy, importance, influence, authority, or force. See Synonyms at dominant. 2. unoxidized Jeronimo orebody have been mined. A pilot-scale trial will be conducted to verify (1) To prove the correctness of data. (2) In data entry operations, to compare the keystrokes of a second operator with the data entered by the first operator to ensure that the data were typed in accurately. See validate. successful laboratory tests that indicate this ore may be amenable AMENABLE. Responsible; subject to answer in a court of justice liable to punishment. to bio-oxidation. Exploration Homestake expects to spend approximately $58 million for exploration in 1998. Approximately 30% of this amount is allocated to North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and 50% is planned for Australia. Australia has become a high priority as a result of the many promising exploration projects acquired as part of the Plutonic Resources acquisition in April of this year. United States At the Pinson mine near Winnemucca, Nevada | Winnemucca(Win-ah-muc-ah) is the county seat of Humboldt County in the U.S. state of Nevada and the site of a September 19, 1900 bank robbery by the Wild Bunch. As of the 2000 census, the city had a total population of 7,174. , encouraging results have been generated from a $6 million drilling program conducted by joint venture partners Homestake and Barrick Gold Barrick Gold Corporation TSX: ABX NYSE: ABX is the largest pure gold mining company in the world, with its headquarters in Toronto, Ontario, Canada; and four regional business units (RBU's) located in Australia, Africa, North America and South America. Corporation. In particular, two holes drilled in the Range Front structural zone have returned high-grade High-grade Credit quality of AAA or AA. high-grade Of, relating to, or being a bond with little risk of default on the part of the issuer. High-grade is usually reserved for bonds rated AAA or AA by the rating services. mineral intercepts. Offset drilling is underway to test the size and extent of this mineralized min·er·al·ize v. min·er·al·ized, min·er·al·iz·ing, min·er·al·iz·es v.tr. 1. To convert to a mineral substance; petrify. 2. To transform a metal into a mineral by oxidation. 3. zone. The program is targeting high-grade sulfide ore at depth in rocks similar to those that host the nearby 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 deposit of Getchell Gold Corporation. At Ruby Hill, Nevada Nevada (nəvăd`ə, –vä–), far western state of the United States. It is bordered by Utah (E), Arizona (SE), California (SW, W), and Oregon and Idaho (N). , most of the 1998 exploration program has focused on additional near-surface oxide zones similar to the currently mined West Archimedes deposit. Most recently, exploration drilling has been accelerated so that two deep target areas can be tested before winter. Canada Drilling in the second quarter below the No. 4 stope stope n. An excavation in the form of steps made by the mining of ore from steeply inclined or vertical veins. tr.v. stoped, stop·ing, stopes To remove (ore) from or mine by means of a stope. of the 21B zone at Eskay Creek intersected additional high-grade material that was classified as ore during the third quarter, adding a total of 100,000 ounces of gold and four million ounces of silver to existing reserves. Preliminary results of the summer drilling program have been encouraging as to the 21A and 21C zones, but full data compilation Compiling a program. See compiler. and interpretation is not expected to be finished until the end of the year. Western Australia At the Kalgoorlie Super Pit, surface and underground drilling has generated positive results and will provide better information to optimize optimize - optimisation the design of future pit cutbacks. An intensive drilling program is being conducted at the Just-in-Case project on the Mt Morgans land tenements. This prospect is contiguous Adjacent or touching. Contrast with fragmentation. See contiguous file. with the Placer Dome Placer Dome was a large mining company specializing in gold and other precious metals, with corporate headquarters in Vancouver, British Columbia, Canada. Barrick has acquired 100% of the Placer Dome shares on January 20, 2006, and has integrated the company into its own. and Delta Gold Wallaby wallaby: see kangaroo. wallaby Any of about 25 species of medium-sized kangaroos, found chiefly in Australia. Brush wallabies (11 species) are built like the big kangaroos but differ in dentition. Rock wallabies live among rocks, usually near water. prospect located to the south on the Granny Smith mine tenements. The program is designed to provide sufficient information for the calculation of a resource estimate. At Lawlers, Homestake recently announced positive drilling results from a $3 million exploration program to define the Glasgow Lass Trend ore zones. Two drills are providing information to determine the extent of mineralization Mineralization The process by which the body uses minerals to build bone structure. Mentioned in: Rickets mineralization, n the bioprecipitation of an inorganic substance. and the continuity of known mineralized zones within sandstone sandstone, sedimentary rock formed by the cementing together of grains of sand. The usual cementing material in sandstone is calcium carbonate, iron oxides, or silica, and the hardness of sandstone varies according to the character of the cementing material; quartz between the Genesis, New Holland and Hidden Secret pits that are part of the Lawlers operation land package. Of the 61 holes drilled, 54 have intercepted ore grade mineralization and Homestake expects to record increased reserves and resources at the Lawlers operation at the end of 1998. Drilling continues on a number of other Western Australian prospects including the Peak Hill tenements, Red Dam dam, barrier, commonly across a watercourse, to hold back water, often forming a reservoir or lake; dams are also sometimes used to control or contain rockslides, mudflows, and the like in regions where these are common. and Warrida Well. Results have been encouraging and additional drilling is planned for the fourth quarter of 1998. Eastern Australia In Queensland Queensland, state (1991 pop. 2,477,152), 667,000 sq mi (1,727,200 sq km), NE Australia. Brisbane is the capital; other important cities are Gold Coast, Toowoomba, Townsville, Rockhampton, Cairns, and Ipswich. , drilling at the Twin Hills prospect in the Drummond Basin has generated positive results from the 309 area and expanded the size of the mineralized zone. During the fourth quarter of 1998, drilling will also be conducted on the Lone Sister target at Twin Hills. Chile At the 51% owned Agua de la Falda property in northern Chile, step-out drilling indicated that the Jeronimo sulphide sulphide: see sulfide. gold deposit extends to the west and is still open. Argentina During the third quarter, Homestake entered into a three-year exploration agreement and purchase option covering all the exploration properties of WMC WMC Winter Music Conference WMC Weill Medical College (Cornell University) WMC Wisconsin Manufacturers and Commerce (Madison, WI) WMC Westchester Medical Center WMC Western Mining Corporation Limited located in the Argentine Argentine having some relationship with the country Argentina. Argentine tick margaropuswinthemi. Argentine tortoise geochelonechilensis. provinces of Rio Negro Río Negro or Rio Negro ("black river" in, respectively, Spanish and Portuguese) may refer to: Rivers
Santa Cruz (săn`tə kr  z), city (1990 pop. 49,040), seat of Santa Cruz co., W Calif., on the north shore of Monterey Bay; inc. 1866. . The area comprises approximately 900,000
acres. Under the agreement, Homestake has the right to explore the
properties for three years and is required to spend a total of $1
million on exploration and certain other activities in order to keep the
option in effect. Homestake has the right to purchase all of Western
Mining's interest at any time within the three-year period for $1
million.Eastern Europe Eastern Europe The countries of eastern Europe, especially those that were allied with the USSR in the Warsaw Pact, which was established in 1955 and dissolved in 1991. Based on an initial reconnaissance  This article or section needs copy editing for grammar, style, cohesion, tone and/or spelling.You can assist by [ editing it] now. program conducted in early 1998, Homestake has initiated a drilling program at the Mad-Bomboly project in Eastern Hungary. The drilling is intended to test several epithermal gold targets over a strike length of three kilometers. Homestake is continuing to participate in a program with Navan Resources Plc to explore for gold on properties in Bulgaria. Homestake previously paid Navan $4 million to acquire a 32% interest in Navan's Bulgarian exploration properties. Homestake can increase its interest to 50% in these exploration properties by investing an additional $4 million by November 2002. In October 1998, Homestake became the manager for the Bulgarian exploration joint venture. Corporate On September 11, 1998, subject to the requisite shareholder approvals, Homestake and Prime Resources agreed on an exchange ratio for Homestake's acquisition of the 49.4% of Prime not already owned by Homestake. Prime shareholders (other than Homestake) have the choice of receiving 0.74 of a Homestake common share or 0.74 of a Homestake Canada Inc. (HCI (Human Computer Interaction) Refers to the design and implementation of computer systems that people interact with. It includes desktop systems as well as embedded systems in all kinds of devices. ) exchangeable share. Each HCI exchangeable share is exchangeable at any time for one Homestake common share, and will have dividend and voting rights Voting rights The right to vote on matters that are put to a vote of security holders. For example the right to vote for directors. voting rights The type of voting and the amount of control held by the owners of a class of stock. equivalent to those of one Homestake common share. Based on the price of Prime common shares on May 22, 1998 and the price of Homestake common stock on May 22 and October 16, 1998, the revised offer represents a premium to the Prime public shareholders of 23.2% at May 22 and 36.6% at October 16, 1998. Homestake will issue an additional 27.8 million common shares following the shareholder meetings of each company on December 1, 1998. Homestake has been a participant with Navan Resources Plc, an Irish public company regarding the Chelopech gold-copper mine and related processing facilities in Bulgaria. In September 1998, Homestake completed its evaluation of the Chelopech mine and concluded that the project was too small and did not warrant Homestake participation under current economic conditions. As a result, Homestake exercised its right to terminate its participation in the project. Approximately $11 million of Homestake's investment was returned to Homestake. In connection with that termination, Homestake loaned $500,000 to Navan and agreed to lend to Navan an additional $1 million for Navan's use in connection with Navan's proposed purchase of a majority interest in Chelopech EAD EAD Ensino A Distancia (Brazil) EAD Encoded Archival Description (DTD for SGML) EAD Employment Authorization Document (US INS) EAD Exposure At Default and privatization privatization: see nationalization. privatization Transfer of government services or assets to the private sector. State-owned assets may be sold to private owners, or statutory restrictions on competition between privately and publicly owned of the Chelopech mine. Navan has agreed to seek shareholder approval to give Homestake the option to convert the loans into Navan Ordinary Shares. Homestake expects to produce approximately 2.5 million ounces in 1998 at a cash cost of $200-$205 per ounce. In 1999, the Company is forecasting a similar production rate with cash costs approximating $200-$210 per ounce. (Based on October 16, 1998 exchange rates of approximately A$1 = US$0.63 and C$1 = US$0.65) Homestake Mining Company is an international gold mining company with substantial gold operations and exploration in the United States, Australia, Canada and Chile. The Company also has active gold exploration programs in Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. and in Eastern Europe, and a development and/or evaluation project in Chile. Homestake currently produces gold from 16 mines. Common shares of the Company are listed on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. , the Australian Stock Exchange Australian Stock Exchange (ASX) Australia's major securities market, formed when the six state stock exchanges (Adelaide, Brisbane, Hobart, Melbourne, Perth, and Sydney stock exchanges) were merged in 1987. and the Basel, Geneva Geneva, canton and city, Switzerland Geneva (jənē`və), Fr. Genève, canton (1990 pop. 373,019), 109 sq mi (282 sq km), SW Switzerland, surrounding the southwest tip of the Lake of Geneva. and Zurich stock exchanges in Switzerland. Homestake has received numerous industry environmental and safety awards for its responsible environmental, health and safety stewardships. Certain statements contained in this press release that are not statements of historical facts are "forward looking statements" within the meaning of the 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. Such statements are based on beliefs of management, as well as assumptions made by and information currently available to management. Forward looking statements include those preceded by the words "believe," "estimate," "expect," "intend," "will," and similar expressions, and include estimates of future production, costs per ounce, dates of construction completion, costs of capital projects and commencement of operations. 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. are subject to risks, uncertainties and other factors that could cause actual results to differ materially from expected results. Some important factors and assumptions that could cause actual results to differ materially from expected results are discussed below. Those listed are not exclusive. Estimates of future production for particular properties and for the Company as a whole are derived from annual mine plans that have been developed based on mining experience, reserve estimates, assumptions regarding ground conditions and physical characteristics of ore (such as hardness and metallurgical met·al·lur·gy n. 1. The science that deals with procedures used in extracting metals from their ores, purifying and alloying metals, and creating useful objects from metals. 2. characteristics), and expected rates and costs of production. Actual production may vary for a variety of reasons, such as the factors described above, ore mined varying from estimates of grade and metallurgical and other characteristics, mining dilution Dilution A reduction in earnings per share of common stock that occurs through the issuance of additional shares or the conversion of convertible securities. Notes: Adding to the number of shares outstanding reduces the value of holdings of existing shareholders. , actions by labor, and government imposed restrictions. Cash costs may vary due to changes from reserve and production estimates, unexpected mining conditions, and changes in estimated costs of equipment, supplies, utilities, labor costs and exchange rates. Noncash cost estimates, based on total capital costs and reserve estimates, change based on actual amount of unamortized capital and changes in reserves. Reclamation and remediation cost estimates are based on existing and expected legal requirements, past experience, cost estimates by the Company and others, and expectations regarding government action and time for government agencies to act, all of which change over time and require periodic reevaluation. Tax estimates reflect expectations regarding geographic sources of income. Locations of expenditures and expected tax rates in each, and change as the mix of income, expenditures and tax rates change. For more information about Homestake, please visit our home page http://www.homestake.com. For investor relations Investor relations The process by which the corporation communicates with its investors. information, call 1/888-272-9123. This service supplies Homestake shareholders with instant access to corporate information by telephone, fax and mail. -0-
FINANCIAL SUMMARY
HOMESTAKE MINING COMPANY
Condensed Statements of Consolidated Operations
(in thousands, except per share amounts)
Three months ended Nine months ended
September 30, September 30,
1998 1997 1998 1997
---- ---- ---- ----
Revenues
Gold and ore sales $187,361 $203,996 $592,387 $646,214
Sulfur and oil sales 5,123 6,332 16,921 20,126
Interest income 4,891 4,067 14,368 13,173
Gain on termination
of Santa Fe merger 62,925
Other income (13,946) 3,342 (28,745) 18,697
--------- --------- --------- --------
Total Revenues 183,429 217,737 594,931 761,135
--------- --------- --------- --------
Costs and Expenses
Production costs 127,909 142,949 406,215 462,670
Depreciation, depletion
and amortization 33,617 41,141 107,109 114,731
Administrative and
general expense 12,328 12,516 36,165 34,337
Exploration expense 16,387 20,182 38,193 50,255
Interest expense 5,485 4,497 15,813 14,778
Write-downs and other
unusual charges 187,884 183,646 199,668 248,761
Business combination
and integration costs 20,710
Other expense 2,078 1,453 2,876 4,880
--------- --------- -------- --------
Total Expenses 385,688 406,384 826,749 930,412
--------- --------- -------- --------
Loss Before Taxes
and Minority Interests (202,259) (188,647) (231,818) (169,277)
Income and Mining Taxes 15,340 34,390 12,998 3,343
Minority Interests 4,693 (1,304) (923) (6,228)
========= ========= ======== ========
Net Loss $(182,226) $(155,561) $(219,743)$(172,162)
========= ========= ========= ========
Net Loss Per Share -
Basic and Diluted $ (0.86) $ (0.74) $ (1.04) $ (0.82)
========= ========= ========= ========
Average Shares Used
in the Computation 211,184 210,549 210,968 210,532
========= ========= ======== ========
FINANCIAL SUMMARY
HOMESTAKE MINING COMPANY
Condensed Consolidated Balance Sheets
(in thousands)
September 30, December 31,
1998 1997
----------------- --------------
Assets
Cash and equivalents $ 151,311 $ 124,083
Short-term investments 157,952 141,221
Other current assets 132,178 179,980
Property, plant and
equipment - net 763,590 1,021,147
Other noncurrent assets 110,897 143,103
========== ==========
Total $1,315,928 $1,609,534
========== ==========
Liabilities and
Shareholders' Equity
Current liabilities $ 157,188 $ 128,848
Long-term debt 354,451 374,593
Other long-term
liabilities 180,852 152,610
Deferred income and
mining taxes 113,012 161,862
Minority interests in
consolidated subsidiaries 103,830 108,116
Shareholders' equity 406,595 683,505
========== ==========
Total $1,315,928 $1,609,534
========== ==========
FINANCIAL SUMMARY
HOMESTAKE MINING COMPANY
Condensed Statements of Consolidated Cash Flows
(in thousands)
Nine months ended September 30,
1998 1997
---- ----
Cash Flows from Operations
Net loss $(219,743) $(172,162)
Reconciliation to net
cash provided by operations:
Depreciation, depletion
and amortization 107,109 114,731
Write-downs 190,789 248,761
Deferred taxes, minority
interests and other (32,684) (25,800)
Gains on asset disposals (3,264) (25,752)
Effect of changes in
operating working
capital items 62,928 (27,036)
--------- ---------
Net cash provided by operations 105,135 112,742
--------- ---------
Investment Activities
Capital additions (54,313) (166,637)
Proceeds from asset sales 15,877 25,215
Increase in short-term
investments (23,169) (38,724)
Other (539) 14,900
--------- ---------
Net cash used in
investment activities (62,144) (165,246)
--------- ---------
Financing Activities
Borrowings 97,676 79,617
Debt repayments (105,236) (31,396)
Dividends paid
- Homestake (7,339) (14,670)
- Plutonic (3,554) (9,768)
- Prime minority interests (1,040) (1,085)
Common shares issued 1,956 862
Other 1,774 2,653
--------- ---------
Net cash provided by
(used in) financing activities (15,763) 26,213
========= =========
Net Increase (Decrease)
in Cash and Equivalents $ 27,228 $ (26,291)
========= =========
Homestake Mining Company
Statistical Summary
1998 - Third Quarter
Tons Average Ounces
% Processed Grade Produced
Interest (thousands) (oz/ton) (thousands)
------------------------------------------------
United States
Homestake 100 521 0.130 64.5
Ruby Hill 100 282 0.109 27.8
McLaughlin 100 718 0.073 32.9
Round Mountain 25 2,560 0.016 34.6
Pinson 50 207 0.036 3.2
Marigold 33 234 0.019 5.2
Canada
Eskay Creek (1,2) 100 42 2.927 121.9
Williams 50 338 0.151 48.6
David Bell 50 58 0.391 21.9
Quarter Claim 25 -- -- 2.9
Snip (3) 100 42 0.762 28.3
Australia
Kalgoorlie 50 1,485 0.073 92.5
Plutonic 100 816 0.093 67.1
Darlot/Centenary 100 177 0.139 22.7
Lawlers 100 163 0.187 28.3
Mt Morgans 80 257 0.056 11.9
Peak Hill 67 121 0.051 5.7
Chile
Agua de la Falda 100 86 0.206 10.7
Total Production 630.7
Minority Interests (79.5)
-----
Homestake's Share 551.2
=====
Homestake Mining Company
Statistical Summary
1997 - Third Quarter
Tons Average Ounces
% Processed Grade Produced
Interest (thousands) (oz/ton) (thousands)
-----------------------------------------------------
United States
Homestake 100 656 0.157 97.0
Ruby Hill 100 -- -- --
McLaughlin 100 708 0.073 31.2
Round Mountain 25 2,898 0.015 31.4
Pinson 50 154 0.049 6.3
Marigold 33 169 0.020 4.4
Canada
Eskay Creek (1,2) 100 31 3.663 105.4
Williams 50 345 0.156 51.2
David Bell 50 58 0.320 17.7
Quarter Claim 25 -- -- 2.9
Snip (3) 100 43 0.793 31.2
Australia
Kalgoorlie 50 1,495 0.073 102.5
Plutonic 100 856 0.095 72.4
Darlot/Centenary 100 155 0.124 18.2
Lawlers 100 149 0.223 32.4
Mt Morgans 80 216 0.096 19.1
Peak Hill 67 127 0.064 8.0
Chile
Agua de la Falda 100 89 0.175 10.7
-----
Total Production 642.0
Minority Interests (72.6)
-----
Homestake's Share 569.4
=====
Homestake Mining Company
Statistical Summary
1998 - Year to Date
Tons Average Ounces
% Processed Grade Produced
Interest (thousands) (oz/ton) (thousands)
--------------------------------------------------
United States
Homestake 100 1,587 0.141 210.9
Ruby Hill 100 968 0.103 88.8
McLaughlin 100 2,117 0.079 97.8
Round Mountain 25 9,348 0.016 104.1
Pinson 50 702 0.037 14.1
Marigold 33 746 0.026 17.4
Canada
Eskay Creek (1,2) 100 123 3.283 393.0
Williams 50 1,025 0.148 144.2
David Bell 50 183 0.359 63.0
Quarter Claim 25 -- -- 8.5
Snip (3) 100 121 0.725 78.8
Australia
Kalgoorlie 50 4,683 0.071 291.4
Plutonic 100 2,473 0.084 179.1
Darlot/Centenary 100 558 0.102 53.0
Lawlers 100 477 0.201 90.7
Mt Morgans 80 712 0.077 46.5
Peak Hill 67 352 0.054 18.3
Chile
Agua de la Falda 100 234 0.201 34.4
-------
Total Production 1,934.0
Minority Interests (250.0)
-------
Homestake's Share 1,684.0
=======
Homestake Mining Company
Statistical Summary
1997 - Year to Date
Tons Average Ounces
% Processed Grade Produced
Interest (thousands) (oz/ton) (thousands)
---------------------------------------------------
United States
Homestake 100 1,931 0.164 301.3
Ruby Hill 100 -- -- --
McLaughlin 100 2,034 0.075 93.7
Round Mountain 25 8,618 0.016 92.0
Pinson 50 453 0.049 18.9
Marigold 33 600 0.029 18.7
Canada
Eskay Creek (1,2) 100 94 3.521 300.9
Williams 50 988 0.155 145.4
David Bell 50 176 0.367 61.5
Quarter Claim 25 -- -- 8.5
Snip (3) 100 126 0.793 90.7
Australia
Kalgoorlie 50 4,966 0.072 317.8
Plutonic 100 2,540 0.095 207.4
Darlot/Centenary 100 424 0.118 47.7
Lawlers 100 379 0.167 60.6
Mt Morgans 80 613 0.093 55.7
Peak Hill 67 363 0.074 26.4
Chile
Agua de la Falda 100 189 0.164 19.0
-------
Total Production (4) 1,879.2
Minority Interests (202.7)
-------
Homestake's Share 1,676.5
=======
1 Ounces produced are expressed on a gold equivalent basis and
include 70,900 (63,100 in 1997) ounces of gold and 2.8 million
(3.1 million in 1997) ounces of silver contained in ore and
concentrates sold to smelters in the third quarter, and 214,300
(174,000 in 1997) ounces of gold and 9.1 million (9.1 million in
1997) ounces of silver contained in ore and concentrates sold to
smelters in the year-to-date period.
2 Tons processed and average grade at Eskay Creek relate to tons of
ore mined at the average gold equivalent grade during the period.
During the third quarter, 41,900 (31,200 in 1997) tons of ore
grading 1.80 (2.31 in 1997) ounces of gold and 62.4 (97.0 in
1997) ounces of silver per ton were mined. During the
year-to-date period, 122,900 (94,300 in 1997) tons of ore grading
1.886 (2.115 in 1997) ounces of gold and 71.9 (100.4 in 1997)
ounces of silver per ton were mined.
3 Includes ounces of gold contained in dore and concentrates.
4 Includes 12,500 ounces of gold produced at the Bellevue project
in Western Australia and 500 ounces produced at the El Hueso mine
in Chile during the 1997 year-to-date period.
Homestake Mining Company
Statistical Summary
Total Cash Costs
(dollars per ounce)
1998 1997
3rd Year to 3rd Year to
Quarter Date Quarter Date
--------------------- ----------------------
United States
Homestake $256 $252 $307 $318
Ruby Hill 120 125 -- --
McLaughlin 220 217 243 247
Round Mountain 200 200 237 225
Pinson 607 425 344 343
Marigold 282 262 316 260
Canada
Eskay Creek (a) 138 130 163 162
Williams 211 221 218 240
David Bell 176 195 241 214
Quarter Claim 162 167 172 173
Snip (a) 173 199 210 210
Australia
Kalgoorlie 215 232 242 265
Plutonic 201 235 220 235
Darlot/Centenary 200 264 292 310
Lawlers 162 185 219 228
Mt Morgans 253 234 326 366
Peak Hill 261 273 244 245
Chile
Agua de la Falda 203 202 231 219
Weighted Average $195 $203 $236 $249
a For comparison purposes, total cash costs per ounce include
estimated third-party costs incurred by smelter owners and others
to produce marketable gold and silver.
Homestake Mining Company
Statistical Summary
Total Costs
(dollars per ounce)
1998 1997
3rd Year to 3rd Year to
Quarter Date Quarter Date
-------------------- ------------------
United States
Homestake $313 $308 $359 $364
Ruby Hill 235 239 -- --
McLaughlin 339 339 364 366
Round Mountain 253 251 280 273
Pinson 651 462 411 408
Marigold 330 288 359 294
Canada
Eskay Creek (a) 170 162 203 197
Williams 248 259 257 281
David Bell 215 236 286 260
Quarter Claim 163 169 173 175
Snip (a) 303 332 325 326
Australia
Kalgoorlie 259 283 298 321
Plutonic 252 304 298 298
Darlot/Centenary 228 296 320 335
Lawlers 187 208 242 250
Mt Morgans 273 261 482 537
Peak Hill 281 292 355 406
Chile
Agua de la Falda 296 291 313 302
Weighted Average $248 $258 $297 $309
a For comparison purposes, total costs per ounce include estimated
third-party costs incurred by smelter owners and others to
produce marketable gold and silver.
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