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LAC MINERALS THIRD QUARTER AND NINE MONTHS RESULTS

 LAC MINERALS THIRD QUARTER AND NINE MONTHS RESULTS
 NOTE TO EDITORS: All amounts are expressed in U.S. dollars
 TORONTO, Oct. 29 /PRNewswire/ -- Lac Minerals Ltd. (NYSE: LAC) reported today that during the third quarter this year gold production increased by 16 percent while cash costs per ounce decreased by 23 percent and, in the first nine months of 1992, gold production increased almost 11 percent while cash costs per ounce decreased by 11 percent.
 A loss was reported for the quarter ended Sept. 30, 1992 of $1.1 million or one cent per share compared to net earnings of $6.2 million or five cents per share during the same quarter last year. Lower gold prices and a writedown of certain mining interests during the quarter were the primary reasons for the drop in earnings. The writedown was related to the Richmond Hill and Colosseum Mines where mining, but not gold recovery, ceased in 1992. For the first nine months of 1992, net earnings were $7.0 million or five cents per share compared to $13.4 million or 11 cents per share for the corresponding period last year. Despite higher gold shipments, earnings for the nine months were down primarily due to lower gold prices, lower copper shipments and lower realized zinc prices.
 Elaborating further on gold prices, gold revenue per ounce in the third quarter was $377 compared to $403 in 1991. For the nine month period, gold revenue per ounce was $390 compared to $412 a year ago.
 Management's response to the continuing low real and nominal price of gold includes concerted action during 1992 and beyond to improve substantially the productivity and financial performance of the company's existing assets. In addition, the global search by our Exploration and Business Development groups for low cost, long life assets has intensified.
 While gold offtake demand for jewelry has exceeded mine production, the price has nonetheless been depressed by large investor and central bank selling. Given chronically low gold prices and contango rates, the company's hedging strategy has been modified to one that provides some short-term insurance for the next half year. As a result of actions taken several months ago to reduce Lac's hedge position, the company has realized a gain which will be included in revenue in the amounts of $7.9 million in 1992 and $7.5 million in 1993. At Sept. 30, 1992 the company had 567,000 ounces hedged at an average price of $386 per ounce.
 Copper and zinc prices are satisfactory, given the current worldwide economic slowdown.
 In the United States, the Bullfrog mine's nine month production jumped 61 percent to 243,000 ounces, due largely to higher grade, producing an operating cash flow of $32 million.
 In Canada, temporary grade and dilution problems at Bousquet No. 2 contributed to lower gold production and higher unit costs. The company expects an improvement in the fourth quarter and in 1993. At Bousquet No. 1, a research and development program for continuous mining will be ready for evaluation in the fourth quarter. If successful, it will permit extraction of the narrow ore reserves.
 In Chile, at the El Indio complex, gains from intensive efforts in marketing, cost and inventory control are already being seen and further benefits are expected in the coming quarters. At Toqui, Lac's zinc mine in southern Chile, performance has been adversely affected this year by dramatic increases in industry treatment charges which could remain in place for at least another year.
 At Sept. 30, 1992, cash and short-term investments were $303 million and total debt was $295 million on total assets of $1.3 billion. Debt represented 28 percent of debt plus equity at the end of September. Subsequently, during October, the company increased an existing loan facility by $100 million to $170 million. The expanded five year loan will mature in October 1997 and will result in a longer average term for the company's debt thus creating an improved, but still partial, matching of the terms of assets and liabilities.
 The additional funds will be used for acquisitions. The company is comfortable with this level of debt and is well positioned financially for future long-term growth.
 During the recent quarter, Lac announced the signing of a purchase agreement to acquire all of Chevron Corporation's mineral interests in Ireland for approximately $70 million. Upon closing, the company will have a 52.5 percent effective interest in the Lisheen deposit, one of the world's best undeveloped zinc deposits, located near Kilkenny in the Republic of Ireland. Chevron's partner in the project, Ivernia West PLC, has claimed a pre-emptive right on the property. Currently, the two parties are in arbitration to resolve the issue.
 A spokesman of the company said
 We continue to strategically reposition the company in response to dramatic global and national events. This repositioning includes improving and expanding our assets and reserves through exploration at our existing mines and through world-wide new business development and pure exploration. Gold will continue to be the dominant metal in our evolving asset mix.
 The company is undertaking a number of initiatives for continuing control and reduction of cost - a priority operating strategy. Of even greater long-term importance will be our ability to take advantage of technological and research and development opportunities relevant to every facet of the company's activities.
 In response to more diversified currency, interest rate and commodity exposures, a more comprehensive set of Treasury policies have been implemented.
 Finally, we have just tallied a No vote on proposed constitutional changes in Canada, which was essentially a vote in favor of retaining our federal system rather than a devolution of some powers to the regions. We do not foresee this result having any significant effect on the operations or assets of Lac.
 LAC MINERALS
 Financial Highlights
 (in millions of United States dollars except per share data)
 Periods ended Three Months Nine Months
 Sept. 30 1992 1991 1992 1991
 Financial
 Revenues $114.6 $121.3 $361.1 $372.9
 Earnings (loss) from
 operations (2.0) 6.3 17.9 29.3
 Net earnings (loss) (1.1) 6.2 7.0 13.4
 Net earnings (loss) $(0.01) $0.05 $0.05 $0.11
 per share
 Production
 Gold (ounces) 277,000 238,000 848,000 767,000
 Average cash cost
 per share $206 $268 $218 $246
 Copper metal (tons) 7,800 7,600 23,600 26,800
 Zinc metal (tons) 7,800 8,200 24,800 22,600
 Sales
 Gold (ounces) 264,300 254,800 818,000 767,400
 Copper metal (tons) 7,900 7,300 21,100 25,400
 Zinc metal (tons) 6,900 8,100 23,900 22,800
 Per Ounce
 Gold revenue $377 $403 $390 $412
 Spot market gold price $347 $358 $346 $363
 Total cost $336 $347 $326 $343
 LAC MINERALS
 Operating Statistics
 (100 percent basis unless otherwise noted)
 Periods ended Three Months Nine Months
 Sept. 30 1992 1991 1992 1991
 Production
 Gold (ounces)
 Canada
 Bousquet No. 1 12,306 12,968 43,678 48,046
 Bousquet No. 2 39,643 38,874 111,598 135,004
 Doyon (50 pct) 28,154 35,645 94,650 98,223
 Francoeur (50 pct) - 2,101 2,318 6,912
 Golden Patricia 20,277 19,537 62,059 54,268
 Lake Shore Tailings 3,936 2,734 12,449 9,503
 Macassa 15,454 18,159 55,811 60,305
 United States
 Bullfrog 83,737 45,911 234,250 145,600
 Colosseum 10,851 14,708 34,949 48,803
 Richmond Hill 7,561 12,721 25,882 31,401
 Chile
 El Indio 54,686 34,262 170,355 129,330
 Total 276,605 237,620 847,999 767,395
 Lac's Share 267,281 203,736 818,953 623,416
 Copper Metal (Tons)
 Bousquet No. 2 1,215 1,433 3,393 4,526
 El Indio 6,585 6,214 20,162 22,263
 Total 7,800 7,647 23,555 26,789
 Lac's Share 6,677 5,518 20,117 17,224
 Zinc Metal (Tons)
 Toqui 7,781 8,163 24,771 22,566
 Cash Cost Per Ounce of Gold
 Canada
 Bousquet No. 1 $343 $396 $321 $332
 Bousquet No. 2 194 214 218 176
 Doyon 218 192 196 213
 Francoeur - 347 342 308
 Golden Patricia 193 262 215 268
 Lake Shore Tailings 189 295 163 250
 Macassa 311 373 299 348
 United States
 Bullfrog 162 274 193 274
 Colosseum 271 326 339 272
 Richmond Hill 277 255 307 280
 Chile
 El Indio 192 274 176 201
 Average cash
 cost per ounce $206 $268 $218 $246
 Sales
 Gold (ounces) 264,348 254,756 818,018 767,447
 Copper metal (tons) 7,925 7,266 21,109 25,383
 Zinc metal (tons) 6,940 8,072 23,911 22,766
 Gold revenue per ounce $377 $403 $390 $412
 Spot market gold
 price per ounce $347 $358 $346 $363
 Total cost per ounce $336 $347 $326 $343
 Cash Cost Per Ounce includes all site operating expenses and royalties, net of silver, copper and other by-product credits, but excludes capital and exploration expenditures, post-closure restoration accruals, finance and corporate administrative expenses; divided by ounces produced.
 Total Cost Per Ounce comprises cash cost plus amortization of mining interests, post-closure restoration accruals and inventory adjustments for differences in timing of production and sales; divided by units sold.
 LAC MINERALS
 Consolidated Statements of Earnings
 (in thousands of U.S. dollars except share and per share amounts)
 (Unaudited)
 Periods ended Three Months Nine Months
 Sept. 30 1992 1991 1992 1991
 Revenues
 Precious metals $102,423 $105,962 $325,254 $322,316
 Base metals 10,344 13,279 31,447 45,297
 Other 1,793 2,065 4,402 5,321
 Total revenues 114,560 121,306 361,103 372,934
 Expenses
 Operating 77,539 79,690 230,789 240,625
 Amortization
 of mining
 interests 27,783 26,516 83,131 78,705
 Corporate
 administration 3,973 4,074 12,319 11,765
 Mineral exploration 4,366 4,683 13,272 12,510
 Writedown of
 mining interests 2,862 - 3,738 -
 Total expenses 116,523 114,963 343,249 343,605
 Earnings (loss)
 from operations (1,963) 6,343 17,854 29,329
 Other income (expense)
 Interest income 4,053 6,289 14,308 16,515
 Interest expense
 Long-term debt (2,616) (3,735) (8,183) (13,126)
 Other (777) (213) (2,476) (331)
 Foreign exchange losses (32) 618 (837) (2,769)
 Gain on extinguishment of
 long-term debt - 2,352 - 2,352
 Other income, net (881) (274) (594) (6)
 Total (253) 5,037 2,218 2,635
 Earnings (loss)
 before undernoted
 items (2,216) 11,380 20,072 31,964
 Income and
 mining taxes 1,355 (7,863) (12,445) (24,660)
 Minority interest (262) 2,649 (651) 6,101
 Net earnings (loss)
 for the period $ (1,123) $ 6,166 $ 6,976 $ 13,405
 Earnings (loss)
 per share $(0.01) $0.05 $0.05 $0.11
 Weighted average
 number of shares
 outstanding (000) 147,073 126,179 147,001 122,916
 LAC MINERALS
 Consolidated Balance Sheets
 (in thousands of United States dollars)
 AS AT 9/30/92 AS AT 12/31/91
 (UNAUDITED)
 Assets
 Current Assets
 Cash and short-term
 investments $ 303,051 $ 310,925
 Accounts receivable 42,615 35,126
 Inventories
 Finished products
 and concentrates 52,769 44,186
 Materials and supplies 39,045 41,311
 Income and mining
 taxes recoverable 2,738 5,452
 Other 7,245 8,855
 Total current assets 447,463 445,855
 Mining interests 808,469 883,268
 Other assets 19,577 17,315
 Total assets $1,275,509 $1,346,438
 Liabilities
 Current Liabilities
 Accounts payable
 and accrued liabilities $ 43,527 $ 45,429
 Short-term borrowings 64,707 64,626
 Current portion of
 long-term debt 68,707 97,141
 Income and mining
 taxes payable 433 18,871
 Total current liabilities 177,374 226,067
 Long-Term debt 161,430 166,897
 Deferred revenue 11,881 19,694
 Other liabilities 28,501 22,502
 Deferred taxes 115,690 118,323
 Minority interest 15,543 14,892
 Shareholders' Equity (note)
 Capital stock 201,433 753,061
 Contributed surplus 553,061 -
 Cumulative translation
 adjustment (13,048) 2,104
 Retained earnings 23,644 22,898
 Total shareholders' equity 765,090 778,063
 Total liabilities and
 shareholders' equity $1,275,509 $1,346,438
 NOTE: On April 21, 1992, the company's shareholders passed a special resolution reducing the stated capital of the company's common shares by transferring $553,061,000 from the stated capital account to a contributed surplus account.
 LAC MINERALS
 Consolidated Statements of Cash Flows
 (in thousands of United States dollars, unaudited)
 Periods ended Three Months Nine Months
 September 30 1992 1991 1992 1991
 Operating Activities
 Net earnings (loss)
 for the period $(1,123) $6,166 $6,976 $13,405
 Items not involving cash
 Amortization of
 mining interests 27,783 26,516 83,131 78,705
 Deferred income and
 mining taxes (4,246) (187) 5,585 7,264
 Minority interest 262 (2,649) 651 (6,101)
 Unrealized foreign
 exchange (gains)
 losses (1,783) 694 465 1,608
 Gain on extinguishment
 of long-term debt - (2,352) - (2,352)
 Writedown of mining
 interests 2,862 - 3,738 -
 Other (2,180) 221 (5,380) (452)
 Changes in non-cash
 operating working
 capital (2,418) (1,238) (20,794) 2,772
 Net cash provided by
 operating activities 19,157 27,171 74,372 94,849
 Financing Activities
 Increase in short-term
 borrowings 196 - 81 -
 Repayment of
 long-term debt (11,999) (39,445) (27,562) (53,339)
 Increase (decrease)
 in deferred revenue 5,952 (286) 6,775 20,737
 Common shares issued 462 112,365 1,433 113,232
 Dividends paid - - (6,230) (11,580)
 Tax on expiry of warrants - - (6,966) -
 Other 11 - 11 (562)
 Net cash provided by
 (used in) financing
 activities (5,378) 72,634 (32,458) 68,488
 Investing Activities
 Mining interests (14,535) (20,799) (41,098) (76,545)
 Acquisition of
 minority interest
 in subsidiary - (115,430) - (115,430)
 Proceeds on
 disposition of
 mining
 interests 99 - 4,106 -
 Proceeds on
 sale of investments - 17,683 - 23,621
 Other 334 (800) 447 (982)
 Net cash used
 in investing
 activities (14,102)(119,346) (36,545) (169,336)
 Effect of exchange rate
 change on cash (6,571) 1,057 (13,243) 3,746
 Decrease in
 cash and short-term
 investments (6,894) (18,484) (7,874) (2,253)
 Cash and short-term
 investments at
 beginning of period 309,945 262,143 310,925 245,912
 Cash and short-term
 investments at
 end of period $303,051 $243,659 $303,051 $243,659
 INVESTOR INFORMATION
 Corporate Office: Royal Bank Plaza 21st Floor, North Tower P.O. Box 156 Toronto, Ontario M5J 2J4 Telephone: 416-777-2400 Telecopier: 416-777-2405.
 Stock Exchange Listings: New York Stock Exchange, The Toronto Stock Exchange, The Montreal Exchange, La Bourse de Paris, Brussels Stock Exchange, Antwerp Stock Exchange,
 Trading Symbol: LAC
 Transfer Agents:
 -- Montreal Trust Company of Canada, Halifax, Montreal, Toronto, Winnipeg, Regina, Calgary, and Vancouver
 -- United Missouri Trust Company of New York, New York, N.Y.
 -- Royal Bank of Canada Europe Limited, London, England
 Common Shares:
 Outstanding at Sept. 30,
 1992 1991
 147,137,486 135,822,846
 Trading Range and Volume:
 (quarter ended Sept. 30, 1992)
 TSE -- C$
 High Low Close
 $9 3/4 $7 3/4 $8 1/2
 Volume Traded: 14,775,943 Shares
 NYSE -- US$
 High Low Close
 $8 1/4 $6 1/2 $6 3/4
 Volume Traded: 8,653,800 Shares
 -0- 10/29/92
 /CONTACT: Hazel L. Rodrigues, corporate secretary (shareholder inquiries), 416-777-2400; John W. Pearson, manager-investor relations, 416-777-2400, both of Lac Minerals Ltd./
 (LAC) CO: Lac Minerals Ltd. ST: Ontario IN: MNG SU: ERN


AH -- NY075 -- 6800 10/29/92 17:04 EST
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Date:Oct 29, 1992
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