LionOre Mining Reports Third Quarter Results.TORONTO -- LionOre Mining International Ltd. ("LionOre")(TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :LIM)(ASX ASX See: Australian Stock Exchange :LIM)(LSE LSE - Language Sensitive Editor :LOR LOR Letter Of Reprimand (military) LoR Lord of the Rings (J.R.R. Tolkien) LOR Learning Object Repository LOR Linux.Org. ), an international nickel and gold producer, today reported its third quarter financial results and operational highlights. All amounts are in U.S. dollars unless otherwise noted. For the three-month period ended September 30, 2004, LionOre's revenue increased to $83.7 million from $52.9 million in the same period of 2003. Net earnings for the third quarter were $13.9 million or $0.07 per share compared to $7.9 million or $0.05 per share in the third quarter of the prior year. Revenue for the nine months ended September 30, 2004, was $277.0 million compared to $165.6 million for the same period in the prior year, while earnings for the nine months ended September 30, 2004, were $54.2 million or $0.28 per share compared to $27.9 million, or $0.17 per share for the nine months ended September 30, 2003. 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 for the third quarter of 2004 was $24.9 million and $112.5 million for the nine-month period ending September 30, 2004. The prior year cash flows were $21.1 million and $53.0 million respectively. Colin Steyn, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of LionOre stated "We are pleased with the performance of all of our operations during the third quarter. Both Emily Ann and Thunderbox had strong production, whilst Tati continued to produce nickel concentrate during BCL's shutdown. As a result of the shutdown, Tati Nickel's sales in the third quarter were less than the total amount of nickel produced in the quarter. However, all the nickel produced in the second and third quarters of the year is expected to be sold by the end of the year. Combined with production in the fourth quarter, total payable nickel sales for the year from Tati are expected to be between 12,500 and 13,000 tonnes, thereby providing for a very strong fourth quarter. Had all of the production at Tati and LionOre Australia been sold and reflected as income for the quarter, earnings per share would have been four cents higher; including three cents from Tati." Fourth quarter production in Australia is expected to remain strong and should meet previously disclosed annual forecasts of 8,000 tonnes of nickel from the Lake Johnson Operations, and 156,000 ounces of gold from Thunderbox. Please see complete Consolidated Interim Financial Statements with accompanying notes at www.lionore.com. Mr. Steyn also commented on the MPI MPI - Message Passing Interface takeover bid Noun 1. takeover bid - an offer to buy shares in order to take over the company two-tier bid - a takeover bid where the acquirer offers to pay more for the shares needed to gain control than for the remaining shares launched on October 17, 2004. "This transaction, if accepted by the MPI shareholders, will greatly enhance the values of both companies by potentially extracting value from the Honeymoon Well deposit through the use of hydrometallurgy hydrometallurgy Extraction of metal from ore by dissolving the metal (as one of its salts) and then recovering it from the solution. The operations usually involved are leaching (dissolving in water), commonly with additional agents; separating the waste and purifying the ." In Botswana, LionOre's Activox(R) demonstration plant was fully commissioned with the first production of nickel and copper cathodes occurring during the third quarter. The BCL BCL - The successor to Atlas Commercial Language. ["The Provisional BCL Manual", D. Hendry, U London 1966]. smelter re-opened on August 13, 2004, and with the rehabilitation rehabilitation: see physical therapy. complete, the likelihood of future unscheduled unscheduled Adjective not planned or intended Adj. 1. unscheduled - not scheduled or not on a regular schedule; "an unscheduled meeting"; "the plane made an unscheduled stop at Gander for refueling" interruptions to the processing of Tati's concentrates is greatly reduced. LionOre will host a conference call to discuss the third quarter results at 8:00 am EST EST electroshock therapy. EST abbr. electroshock therapy ., on November 12, 2004. A live audio webcast of the conference call will be available at www.financialdisclosure.ca. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast. The webcast will be archived at the above web sites for 90 days. HIGHLIGHTS LionOre's Consolidated Interim Financial Statements including notes and Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial can be found at www.lionore.com. Corporate Highlights On October 17th, the Company announced an A$285 million (US$208 million) takeover offer for Australian Stock Exchange-listed mining company MPI Mines Limited (ASX: MPM MPM Multi-Processing Module (Apache) MPM Manufacturing Process Management MPM Milwaukee Public Museum MPM MMW (Millimeter Wave) Power Module MPM Master of Project Management (degree) ) ("MPI"), excluding MPI's gold assets. The offer, which is made by LionOre's wholly-owned subsidiary LionOre Australia Pty Ltd PTY LTD Propriety Limited (company structure in Australia) , comprises A$1.00 cash and 0.1675 LionOre shares for every MPI share. LionOre's offer has been unanimously recommended by the Board of MPI in the absence of a superior offer emerging. During the quarter the Company closed an offering for US$144.0 million of senior unsecured 3.8% convertible notes. The conversion price of US$6.13 represents a 37% premium over the Company's share price on the announcement date, June 29, 2004. Financial Highlights Mineral sales for the quarter were $83.3 million, compared to $52.8 million for the third quarter in 2003. Operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before for the quarter were $22.2 million compared to $16.9 million in the third quarter of the prior year. Third quarter net earnings were $13.9 million or $0.07 per share compared to $7.9 million or $0.05 per share for the third quarter of 2003. The Company produced a total of 5,253 tonnes of payable nickel in the third quarter of 2004 at a cash cost of $2.67 per pound (Q3 - 2003: 4,917 tonnes at $2.31). Cash flow from operations was $24.9 million for the third quarter (Q2 - 2003: $21.1 million). Total cash at September 30, 2004, including restricted cash, was $198.0 million, compared to $45.2 million at December 31, 2003. Working capital (excluding cash) was $52.0 million at September 30, 2004, compared to $31.7 million at December 31, 2003. Total long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. at September 30, 2004, including the liability component of the convertible notes of $118.3 million, was $162.5 million, compared to $77.0 million at December 31, 2003. The Company's cash balance at September 30, 2004, exceeded total long-term debt by $35.5 million. Interest expense was $2.5 million for the quarter (Q2 - 2003: $2.0 million) Australia Highlights Emily Ann produced 2,128 tonnes of payable nickel for the quarter ended September 30, 2004, at a cash cost of $2.59 per pound (Q3 - 2003: 1,604 tonnes at $2.51 per pound). Sales of payable nickel during the third quarter were 2,031 tonnes (Q3-2003: nil). The Thunderbox gold mine produced 40,052 ounces of gold in the third quarter at a cash cost of $244 per ounce (Q2 - 2003: 45,699 ounces at $154 per ounce) Development of the Maggie Hays nickel mine reached the Upper Massive Sulphide sulphide: see sulfide. level (UMS (Unified Messaging System) See unified messaging. ) and ore from the mine was initially processed during the quarter. Botswana Highlights Tati Nickel produced 3,125 tonnes of payable nickel for the quarter ended September 30, 2004, at a cash cost of $2.72 per pound (Q3 - 2003: 3,313 tonnes, $2.22/lb). Sales of payable nickel during the third quarter were 2,092 tonnes (Q3-2003: 3,320). The Activox(R) demonstration plant was successfully commissioned during the quarter, with the production of nickel and copper cathodes occurring during the third quarter. EXPLORATION - AUSTRALIA Lake Johnston (100% - owned) Drilling at the Billy Ray prospect confirmed the presence of a broad zone (25-45 meters wide) of shallowly east dipping pyroxenite pyroxenite Dark medium- to coarse-grained igneous rock that consists chiefly of pyroxene. Accessory minerals include hornblende, biotite, or olivine. Pyroxenites are not abundant. hosted Ni-Cu-Pt-Pd-Au-Co 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. . Assay results from the single line of drilling in this new and previously unexplored geological setting include: - LJPP0006: 43m @ 0.61%Ni, 0.31%Cu, 0.38g/t Pt-Pd from 2m - LJPP0007: 29m @ 0.49%Ni, 0.15%Cu from 79m Including: 2m @ 3.13%Ni, 1.21%Cu, 0.62%Co, 0.56g/t Pt-Pd from 79m - LJPP0023: 23m @ 0.49%Ni, 0.22%Cu, 0.44g/t Pt-Pd from 39m A follow up drilling program to test for strike and/or plunge extensions to the mineralization has been planned to commence in late October. At the Hardcore gold prospect, assays for all thirteen RC holes (LJPP0009-21) and from one of three diamond drill holes have been received. Assays confirm a consistent low grade 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 over a strike extent of some 270m, with a number of higher grade internal zones, including: - LJPP0009: 6m @ 2.86g/t Au from 53m - LJPP0010: 3m @ 17.69g/t Au from 124m - LJPP0014: 3m @ 2.95g/t Au from 43m The host unit plunges, and is open down dip to the west and along strike to the north. A reconnaissance hole drilled approximately 1 kilometer south of Hardcore, intersected 3m @ 2.52g/t Au down dip of a previous anomalous RAB Rab (räb), Ital. Arbe, island (1991 pop. 9,205), 40 sq mi (104 sq km) off Croatia, in the Adriatic Sea. One of the Dalmatian islands, it is a popular seaside resort. Fishing and agriculture are the main occupations. intersection. This intersection is considered significant given that recent drilling below a similar anomalous intersection at Hardcore intersected mineralization. Northeastern Goldfields n. 1. A small slender woolly annual (Lasthenia chrysostoma) with very narrow opposite leaves and branches bearing solitary golden-yellow flower heads; it grows from Southwestern Oregon to Baja California and Arizona; - it is often cultivated. (100% - owned) Drilling of a MLTEM anomaly on the Roadside ultramafic ul·tra·maf·ic adj. Ultrabasic. ultramafic Containing mainly mafic minerals. Used of igneous rocks and often used interchangeably with ultrabasic. Dunite is an ultramafic rock. discovered a new nickel prospect, The Horn, 8km west of Thunderbox. Initial intersections have encountered significant thicknesses of low grade nickel sulphides. All holes drilled to date have intersected nickel-copper bearing sulphides with the better intersections being: - LWDD754: 9.95m @ 0.98%Ni & 0.21%Cu from 133.05m, incl. 1.55m @ 2.34%Ni & 0.37%Cu from 133.05m - LWDD756: 9.85m @ 0.79%Ni & 0.24%Cu from 110.15m, incl. 0.30m @ 2.03%Ni & 0.17%Cu from 110.15m - LWDD757: 2.65m @ 1.83%Ni & 0.44%Cu from 155.05m - LWDD758: 12.13m @ 0.85%Ni & 0.22%Cu from 98.4m The mineralization confirms that strategic importance and exploration potential of the Roadside belt. Work is in progress to identify other prospective areas, offering the potential for higher concentrations of nickel sulphides. Drilling is planned to test a strong magnetic anomaly Magnetic Anomaly may refer to:
nose, poke, pry, intrude search, look - search or seek; "We looked all day and finally found the child in the forest"; "Look elsewhere for the perfect gift!" the fourth quarter. Notes: 1Nickel geochemical analysis was undertaken by a combination of Ultratrace Pty Ltd and Genalysis Laboratory Services Pty Ltd, which are well known and reliable laboratories. Nickel and copper assays are based on a high precision four acid (nitric nitric /ni·tric/ (ni´trik) pertaining to or containing nitrogen in one of its higher valences. nitric oxide , perchloric, hydrofluoric and hydrochloric) digestion and inductively in·duc·tive adj. 1. Of, relating to, or using logical induction: inductive reasoning. 2. Electricity Of or arising from inductance: inductive reactance. coupled plasma/optical emission spectrometry spectrometry /spec·trom·e·try/ (spek-trom´e-tre) determination of the wavelengths or frequencies of the lines in a spectrum. spec·trom·e·try n. (ICP/OES ICP/OES Inductively Coupled Plasma Optical Emissions Spectrometry ) finish. Selected samples were reassayed by Genalysis Laboratory Services Pty Ltd using high precision flame atomic absorption spectrometry Absorption spectrometry A scientific procedure to determine chemical makeup of samples. Mentioned in: Herbalism, Traditional Chinese (AAS). 2Gold geochemical analysis were undertaken by both Ultratrace Pty Ltd and Genalysis Laboratory Services Pty Ltd. Gold assays were carried out by fire assay on either a 40g or 50 g charge with readings carried out by ICP/MS ICP/MS Inductively Coupled Plasma/Mass Spectrometry (chemical analysis) . 3Nickel intersections have been calculated by weighting individual assays by their corresponding interval width and specific gravity specific gravity, ratio of the weight of a given volume of a substance to the weight of an equal volume of some reference substance, or, equivalently, the ratio of the masses of equal volumes of the two substances. measurements. 4Gold intersections have been calculated by weighting individual assays by their corresponding interval width. 5This report has been compiled by Mr Peter Buck For New Zealand Maori leader and academic, see . Peter Lawrence Buck (born 6 December, 1956 in Berkeley, California) is the guitarist and co-founder, along with Bill Berry, Mike Mills, and Michael Stipe of the alternative rock band R.E.M.. He is the oldest member of the band. (a director of LionOre Australia Pty Ltd, a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of LionOre Mining International) who is a member of the Australasian Institute of Mining and Metallurgy metallurgy (mĕt`əlûr'jē), science and technology of metals and their alloys. Modern metallurgical research is concerned with the preparation of radioactive metals, with obtaining metals economically from low-grade ores, with with more than twenty years TWENTY YEARS. The lapse of twenty years raises a presumption of certain facts, and after such a time, the party against whom the presumption has been raised, will be required to prove a negative to establish his rights. 2. experience in the mining industry. Mr Buck satisfies the requirement of a Qualified Person as defined in the National Instrument 43-101 (Standards of Disclosure for Mineral Projects). EXPLORATION - BOTSWANA Exploration drilling during the third quarter focused on potential ore zone extensions in the far south area and the immediate north of the existing Phoenix pit. Far south in-fill drilling continued to intersect In a relational database, to match two files and produce a third file with records that are common in both. For example, intersecting an American file and a programmer file would yield American programmers. largely low to moderate tenor disseminated sulphides consistent with mineralization evident to the near south of the pit. In the southwest geochemical anomaly area, less than 400m from the current final pit design limits, drilling has further delineated de·lin·e·ate tr.v. de·lin·e·at·ed, de·lin·e·at·ing, de·lin·e·ates 1. To draw or trace the outline of; sketch out. 2. To represent pictorially; depict. 3. consistent, more robust near surface sulphide mineralization characterized by well developed disseminated sulphides grading into thicker pods of basal semi-massive to massive sulphide concentrations. The sulphides are brecciated brec·ci·ate tr.v. brec·ci·at·ed, brec·ci·at·ing, brec·ci·ates To form (rock) into breccia. brec at the footwall foot·wall n. Geology 1. The mass of rock underlying a mineral deposit in a mine. 2. The underlying block of a fault having an inclined fault plane. contact, typified in places by veins or stringers that locally penetrate the footwall tonalite Tonalite is an igneous, plutonic (intrusive) rock, of felsic composition, with phaneritic texture. Feldspar is present as plagioclase (typically oligoclase or andesine) with 10% or less alkali feldspar. Quartz is present as more than 20% of the rock. . It is anticipated that the improved tenor of the sulphide mineralization intersected in this quadrant will favourably influence the conversion of shallow open-pitable mineral resources Noun 1. mineral resources - natural resources in the form of minerals natural resource, natural resources - resources (actual and potential) supplied by nature . Drilling in the near north has intersected a higher-grade mineralized zone running NNW-SSE, along the median line median line n. 1. Anterior median line. 2. Posterior median line. of the northern final pit design through to the currently projected Cut 8 northern pit margin. Eighty-four diamond drill holes amounting to 18,322m were drilled during the third quarter and the programme was completed by the end of September 2004. Some significant intersections in both the southwest and northern areas are indicated below in Figure 1 & Figure 2 respectively. The detailed statistical modeling of this enhanced drill hole database will be undertaken in the fourth quarter in order to establish the new global ore zone perimeters for the resource/reserve estimate from this program. Figure 1 - Southwest collars & notable intersections http://www2.cdn-news.com/database/fax/2000/fig1.gif Figure 2 - North In-fill collars & Notable intersections http://www2.cdn-news.com/database/fax/2000/fig2.gif LIONORE MINING INTERNATIONAL LTD. Consolidated Interim Balance Sheets (Unaudited) (US$ 000s) --------------------------------------------------------------------- Notes 1) Geochemical analysis was undertaken at the Tati Nickel laboratory on mine site. PGE PGE Pacific Gas and Electric Company PGE Portland General Electric PGE Prostaglandin E PGE Platinum Group Elements PGE Pacific Great Eastern (Railroad) PGE Phenyl Glycidyl Ether PGE Perfect Girl Evolution assays are based on a fire assay digest and Inductively Coupled Plasma An inductively coupled plasma (ICP) is a type of plasma source in which the energy is supplied by electrical currents which are produced by electromagnetic induction, that is, by time-varying magnetic fields. (ICP-OES ICP-OES Inductively Coupled Plasma-Optical Emission Spectroscopy ) finish. Nickel and copper assays are determined by XRF XRF X-Ray Fluorescence XRF X-Ray Flash XRF Cross Reference XRF Extended Recovery Facility (IBM) XRF Extended Reliability Feature XRF Cross Reference File XRF External Reference calibrated cal·i·brate tr.v. cal·i·brat·ed, cal·i·brat·ing, cal·i·brates 1. To check, adjust, or determine by comparison with a standard (the graduations of a quantitative measuring instrument): using internationally recognized Certified Reference Materials Certified Reference Materials (CRMs) are ‘controls’ used to check the quality and traceability of products. The demand for reference materials is growing rapidly. . All assays are matrix corrected for local variations. Random checks are undertaken using mixed acid digestion and Atomic Absorption Spectrometry (AAS). All analyses are obtained in conjunction with a rigorous QA/QC QA/QC Quality Assurance/Quality Control program. 2) All diamond drill hole intersections have been calculated by weighting individual assays by their corresponding interval. Specific gravity measurements have not been applied to the weighting of nickel diamond drill intersections. Specific gravity determinations have not been carried out on any RC percussion percussion /per·cus·sion/ (per-kush´un) the act of striking a part with short, sharp blows as an aid in diagnosing the condition of the underlying parts by the sound obtained. sample intervals. Calculated intersection grades lacking weighting by specific gravities will have slightly lower average grades than if specific gravity measurements were available. 3) This report on exploration has been compiled by Mr. Koketso Botepe (Chief Geologist, Tati Nickel Mining Company, a company owned 85% by LionOre Mining International and 15% by the Botswana Government), who has 16 years experience in the mining industry. Mr. Botepe satisfies the requirement of a Qualified Person as defined in the National Instrument 43-101 (Standards of Disclosure for Mineral Projects). ACTIVOX(R) DEMONSTRATION PLANT Commissioning of the Activox hydrometallurgical hy·dro·met·al·lur·gy n. The treatment of metal or the separation of metal from ores and ore concentrates by liquid processes, such as leaching, extraction, and precipitation. demonstration plant was completed during the quarter and all sections of the plant achieved full functionality. The first copper cathodes were produced in mid-July and production of the first nickel cathodes followed in August. By the end of the quarter the plant was running on a 24 hour continuous basis and the training of the local operating and engineering staff was progressing well. The plant is expected to be run on a continuous basis for the remainder of 2004 and throughout 2005. The plant, which was designed and constructed in Perth, Western Australia This article is about the metropolitan area of Perth, Western Australia. For the local government area, see City of Perth. Perth is the capital of the Australian state of Western Australia. by LionOre's 80%-owned subsidiary, Western Minerals Technology Pty Ltd. (WMT (Windows Media Technologies) See Windows Media. ), and shipped to the Tati site between January and May 2004, won two awards at the 2004 Western Australian Engineering Excellence Awards in September. This included one of the industry's most prestigious awards in Australia; 'Overall Winner of 2004' award. WMT also won the '2004 Small Company Projects Division' in the awards. The project was judged the outstanding winner ahead of major resource and infrastructure projects including projects worth hundreds of millions of dollars. ABOUT LIONORE: LionOre Mining International Ltd. is an international mining company with a strong record of growth through an integrated program of acquisitions, exploration success, and operational efficiency. The Company owns the Activox(R) process, a proprietary technology for processing metal concentrates. LionOre's producing mining properties include the Phoenix nickel mine in Botswana and the Emily Ann nickel and Thunderbox gold mines in Australia. The Maggie Hays nickel sulphide deposit currently under development in Australia is expected to be a producing nickel mine by the end of 2004. LionOre also has several highly prospective nickel exploration and development properties. LionOre trades on the Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. and 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. under the symbol "LIM" and on the London Stock Exchange London Stock Exchange London marketplace for securities. It was formed in 1773 by a group of stockbrokers who had been doing business informally in local coffeehouses. under the symbol "LOR".
LIONORE MINING INTERNATIONAL LTD.
Consolidated Interim Balance Sheets
(Unaudited) (US$ 000s)
---------------------------------------------------------------------
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September 30 December 31
2004 2003
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ASSETS
CURRENT
Cash and cash equivalents $ 190,513 $ 35,256
Accounts receivable 69,257 96,476
Inventories 27,077 11,596
Other 1,108 895
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287,955 144,223
Restricted cash 7,500 9,907
Property, plant and equipment 287,922 299,641
Mineral exploration and development
properties 176,248 163,951
Other long-term investments and
assets 12,218 6,507
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$ 771,843 $ 624,229
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LIABILITIES
CURRENT
Accounts payable and accrued
liabilities $ 27,285 $ 37,841
Short-term financing - 3,950
Current portion of long-term debt 18,180 35,428
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45,465 77,219
Long-term debt 144,337 41,537
Asset retirement obligations 14,757 10,265
Other 9,489 7,748
Non-controlling interest 21,056 15,166
Future income tax liability 79,377 77,436
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314,481 229,371
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SHAREHOLDERS' EQUITY
Share capital
Authorized
Unlimited number of common shares
without nominal or par value
Unlimited number of preferred shares
issuable in series
Issued
195,113,600 common shares
(2003 - 194,077,600) 357,359 355,020
Equity component of convertible
debenture 24,780 -
Share purchase warrants - 764
Stock options 2,067 1,010
Retained earnings (deficit) 27,455 (26,750)
Cumulative translation adjustment 45,701 64,814
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457,362 394,858
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$ 771,843 $ 624,229
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LIONORE MINING INTERNATIONAL LTD.
Consolidated Interim Statements of Earnings and Retained Earnings
(Deficit)
(Unaudited) (US$ 000s, except per share amounts)
---------------------------------------------------------------------
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For the three months ended For the nine months ended
September 30 September 30
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2004 2003 2004 2003
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REVENUES
Mineral sales $ 83,259 $ 52,836 $ 269,573 $ 165,516
Other 447 20 7,385 82
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83,706 52,856 276,958 165,598
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EXPENSES
Operating costs 45,662 28,103 135,569 87,566
Depletion,
depreciation and
amortization 12,252 5,741 37,731 22,156
General and
administrative 2,652 1,948 7,274 5,537
Stock-based
compensation
expense 399 224 1,087 540
Other 511 (27) 6,896 399
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61,476 35,989 188,557 116,198
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OPERATING EARNINGS 22,230 16,867 88,401 49,400
Foreign exchange (gain)
loss 371 (1,981) (29) (3,926)
Interest expense (2,460) (1,892) (5,391) (6,170)
Interest and
investment income 827 399 1,964 3,802
Other income 1,933 - 1,933 -
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NET EARNINGS BEFORE
TAXATION AND
NON-CONTROLLING
INTEREST 22,901 13,393 86,878 43,106
Current income
tax expense (3,527) - (20,234) -
Future income
tax expense (3,751) (4,244) (4,262) (12,474)
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NET EARNINGS
BEFORE
NON-CONTROLLING
INTEREST 15,623 9,149 62,382 30,632
Non-controlling
interest (1,697) (1,251) (8,177) (2,778)
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NET EARNINGS 13,926 7,898 54,205 27,854
RETAINED EARNINGS
(DEFICIT),
BEGINNING OF
PERIOD 13,529 (64,184) (26,750) (84,140)
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RETAINED EARNINGS
(DEFICIT), END
OF PERIOD $ 27,455 $ (56,286) $ 27,455 $ (56,286)
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Basic and diluted
earnings per share $ 0.07 $ 0.05 $ 0.28 $ 0.17
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Weighted average
number of shares
outstanding 195,113,600 168,423,628 194,150,991 166,996,092
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Weighted average
number of diluted
common shares 196,404,367 170,836,638 196,376,438 169,630,330
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LIONORE MINING INTERNATIONAL LTD.
Consolidated Interim Statements of Cash Flows
(Unaudited) (US$ 000s)
---------------------------------------------------------------------
---------------------------------------------------------------------
For the three months ended For the nine months ended
September 30 September 30
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2004 2003 2004 2003
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CASH FLOWS FROM
OPERATING
ACTIVITIES
Net earnings $ 13,926 $ 7,898 $ 54,205 $ 27,854
Items not
involving cash:
Depletion,
depreciation
and
amortization 12,252 5,741 37,731 22,156
Future income
tax expense 3,751 4,244 4,262 12,474
Gain on
marketable
securities - - (38) (2,936)
Non-controlling
interest 1,697 1,251 8,177 2,778
Stock-based
compensation 399 224 1,087 540
Unrealized
foreign
exchange
loss/(gain) 689 609 2,035 (799)
Other 3,142 (19) 2,126 (1,393)
Changes in
non-cash
working capital (10,933) 1,174 2,866 (7,636)
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24,923 21,122 112,451 53,038
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CASH FLOWS FROM
INVESTING
ACTIVITIES
Development of
mine properties (2,340) (1,709) (7,594) (8,324)
Exploration (4,215) (1,851) (10,011) (4,569)
Investment in
property, plant
and equipment (9,086) (4,591) (39,479) (10,676)
Purchase of
investments (13) - (2,155) -
Net proceeds
from sale of
securities - - - 4,346
Other (3,378) 53 (3,341) 345
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(19,032) (8,098) (62,580) (18,878)
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CASH FLOWS FROM
FINANCING
ACTIVITES
Proceeds from
the issue of
share capital - 357 1,545 16,168
Gross proceeds
of borrowings 144,000 890 144,000 1,252
Financing costs (5,544) - (5,544) -
Repayment of
borrowings (2,685) (5,825) (32,250) (33,156)
Other (350) (36) (850) (74)
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135,421 (4,614) 106,901 (15,810)
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Effect of
exchange rates
on cash and
cash
equivalents 493 701 (1,515) 3,232
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INCREASE IN
CASH AND CASH
EQUIVALENTS 141,805 9,111 155,257 21,582
CASH AND CASH
EQUIVALENTS,
BEGINNING OF
PERIOD 48,708 34,309 35,256 21,838
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CASH AND CASH
EQUIVALENTS,
END OF PERIOD $ 190,513 $ 43,420 $ 190,513 $ 43,420
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Supplemental
cash flow
information:
Cash payments
of interest $ 448 $ 938 $ 3,348 $ 4,833
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Cash payments
of income taxes $ 6,885 $ - $ 20,216 $ -
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LionOre Mining International Ltd. (TSX:LIM) (LSE:LOR) (ASX.:LIM) |
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