Meridian Gold Reports Fourth Quarter And Full Year 1999 Results; All dollar amounts in U.S. currency.Business Editors RENO Reno (rē`nō), city (1990 pop. 133,850), seat of Washoe co., W Nev., on the Truckee River; inc. 1903. Tourism has been the major industry since gambling was legalized in Nevada in 1931. , Nev.--(BUSINESS WIRE)--Feb. 23, 2000 (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :MNG MNG Multiple-image Network Graphics (PNG-like image format supporting multiple images, animation and transparency) MNG Mongolia (ISO Country code) MNG Multinodular Goiter MNG Meet 'n Greet .) (NYSE NYSE See: New York Stock Exchange :MDG MDG Millennium Development Goals (UNDP) MDG Madagascar (ISO Country code) MDG Medical Group (USAF) MDG Air Madagascar (ICAO code) ) Meridian Meridian (mərĭd`ēən), city (1990 pop. 41,036), seat of Lauderdale co., E Miss., near the Ala. line; settled 1831, inc. 1860. Gold Inc. today reported fourth quarter gold production of 70,086 ounces at a cash cost of $133 per ounce ounce, in zoology ounce, in zoology: see leopard. ounce, unit of measurement ounce: see English units of measurement. . For the full year, the Company produced 241,661 ounces of gold at an average cash cost of $163 per ounce, outperforming expectations as both Jerritt Canyon and Beartrack improved their efficiency. For Beartrack, 1999's full-year production level set records, both for the mine and for the State of Idaho Idaho (ī`dəhō), one of the Rocky Mt. states in the NW United States. It is bordered by Montana and Wyoming (E), Utah and Nevada (S), Oregon and Washington (W), and the Canadian province of British Columbia (N). . Cash costs at Beartrack for the quarter and the year set mine records as well, at $102 and $140 per ounce, respectively. The Company recognized a fourth quarter loss of $1.3 million, or $0.03 per share, which included a charge of approximately $5.7 million relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc an increase in the Company's 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. liability for the Royal Mountain King mine. This compares to last year's fourth quarter loss of $20.7 million, or $0.28 per share, which included a non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. of $19.8 million taken as an impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. of the Beartrack mine based on the depressed gold market. At the end of the year, Meridian Gold's cash balance was $20.8 million. During the year, the company drew only $30 million of its $50 million credit facility with Standard Bank of London London, city, Canada London, city (1991 pop. 303,165), SE Ont., Canada, on the Thames River. The site was chosen in 1792 by Governor Simcoe to be the capital of Upper Canada, but York was made capital instead. London was settled in 1826. , for use in the construction of the El Penon mine in northern Chile. The El Penon mine was completed on time and on budget with pre-commercial startup (STARTing UP) "At startup" means when the computer is first turned on or when a program is first loaded. See Startup folder. occurring on September September: see month. 1, 1999. Fourth Quarter Results Sales for the quarter were $24.9 million, versus $21.3 million in the fourth quarter of 1998, due to increased production levels. Realized gold prices averaged $336 per ounce in the fourth quarter, versus $340 per ounce in the prior year's quarter. During the quarter, the Company recognized $2.9 million in put option revenue. Cash production costs in the fourth quarter were $133 per ounce, versus $210 per ounce in 1998. At Beartrack, gold production in the fourth quarter was 38,667 ounces, with cash costs of $102 per ounce. This compares to fourth quarter 1998 production of 31,594 ounces at a cash cost of $209 per ounce. The lower 1999 cash costs reflect a significant improvement in mining efficiency and an increase in grades and production. Mining will be completed at Beartrack in the first quarter of 2000. Processing of the heap 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. pads will continue throughout 2000, with anticipated production of approximately 60,000 ounces at a cash cost of about $155 per ounce. At Jerritt Canyon, the Company's share of production in the fourth quarter was 31,419 ounces of gold, versus 25,705 in the prior year's quarter. Cash costs were lower, at $171 per ounce versus $211 per ounce, primarily as a result of higher mill feed grades from the Dash open pit ore. Exploration spending in the fourth quarter was $2.2 million, compared to $3.8 million in the fourth quarter of 1998. Results for the Full Year For the full year 1999, the Company recorded a loss of $13.7 million, or $0.19 per share, compared to a loss of $39.2 million or $0.53 per share for the full year 1998. Sales for the full year, including put option revenues, were $71.2 million versus $65.7 million in 1998. Gold production was higher, at 241,661 ounces versus 214,640 ounces, while the average realized gold price fell to $295 per ounce from $307 per ounce. Exploration spending for the full year decreased to $10.2 million from $13.1 million in 1998. El Penon Mine Update El Penon met the targets of its startup period, which ran from September 1, 1999 to December December: see month. 31, 1999. Gold production was 20,500 ounces, mostly obtained by processing lower grade open pit ores. All operating costs operating costs npl → gastos mpl operacionales and revenues during this period were capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. . Commercial production began on January January: see month. 1, 2000 and the mine was officially inaugurated on January 21, 2000 at a ceremony attended by the President of the Republic of Chile, His Excellency HIS EXCELLENCY. A title given by the constitution of Massachusetts to the governor of that commonwealth. Const. part 2, c. 2, s. 1, art. 1. This title is customarily given to the governors of the other states, whether it be the official designation in their constitutions and laws or not. Eduardo Frei Eduardo Frei may refer to either of two presidents of Chile:
Frey (surname) Ruiz Ruiz refers to:
2000 Outlook Meridian expects to produce approximately 410,000 ounces from its operations in 2000. Meridian expects to generate its first annual profit as an independent entity in 2000. Exploration spending of $10.5 million has been budgeted for 2000, with approximately $3.1 million of this earmarked for El Penon and $3.5 million slated for Jerritt Canyon. Additionally, 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 plans drilling and development expenditures of about $2.7 million at the Rossi Rossi is an Italian surname, in fact the most frequent in Italy. Due to Italian immigration to many other countries, is also very common in the United States, Brazil, Argentina, Uruguay and Chile. Rossi is the plural of Rosso, meaning the color red in Italian language. property as part of their earn-in requirement under the terms of the joint venture agreement. Date of Annual and Special Meeting Meridian Gold's Annual and Special Meeting of Shareholders will be held at 4:00 p.m. on Tuesday, May 2, 2000 at the TSE Conference Centre located on street level of The Exchange Tower, 130 King Street West (NE corner of King and York Streets Although the ground currently has a maximum capacity of 6,643, the record crowd is 11,000 against Derby County. 10 further attendances of more than 8,000 are on record. Stands Staffsmart Stand The Staffsmart Stand is situated to the north of the pitch. ), Toronto, Canada (business attire required). The Record Date has been set at March 14, 1999. The Company's 1999 Annual Report and Proxy Circular will be mailed to shareholders on or about March 24, 1999. Publication of Reserves and Resources Meridian is planning to publish year-end 1999 reserves and resources later in the first quarter. Meridian Gold Inc. is a growth gold business with its common shares traded on The Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. (MNG) and 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. (MDG). Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement under the United States 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. 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: Statements in this release that are 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 various risks and uncertainties concerning the specific factors identified above and in the corporation's periodic filings with the Ontario Securities Commission The Ontario Securities Commission (OSC) is a regulatory agency which administers and enforces securities legislation in the Canadian province of Ontario. The OSC is an Ontario Crown corporation which reports to the Ontario legislature through the Minister of Finance. and the U.S. Securities Exchange Commission. Such information contained herein represents management's best judgment as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" based on information currently available. The corporation does not intend to update this information and disclaims any legal liability to the contrary.
Meridian Gold Inc.
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Consolidated Condensed Statement of Operations
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(in US$ millions, except per share data)
Three Months
Ended December 31 Full Year
----------------- ---------
1999 1998 1999 1998
Sales $ 24.9 $ 21.3 $ 71.2 $ 65.7
Costs and expenses
Cost of sales 18.3 15.4 53.0 49.0
Depreciation, depletion &
amortization 5.4 4.7 18.9 22.1
Exploration costs 2.2 3.8 10.2 13.1
Selling, general and
administrative expenses 1.1 2.4 5.0 7.2
Other operating income (0.9) (3.6) (0.9) (3.6)
Impairment of mineral properties --- 19.8 --- 19.8
----- ----- ----- -----
Total costs and expenses 26.1 42.5 86.2 107.6
----- ----- ----- -----
Operating loss (1.2) (21.2) (15.0) (41.9)
Interest income 0.3 0.5 1.7 2.7
Gain (loss) on sale of assets (0.4) --- (0.4) ---
----- ----- ----- -----
Net loss(1) $ (1.3) $ (20.7) $ (13.7) $ (39.2)
----- ----- ----- -----
----- ----- ----- -----
Loss per common share $(0.03) $ (0.28) $ (0.19) $ (0.53)
----- ----- ----- -----
----- ----- ----- -----
Weighted average common shares
outstanding 73.7 73.6 73.7 73.6
----- ----- ----- -----
----- ----- ----- -----
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(1)In the fourth quarter of 1998, the Company recognized a $19.8
million non-cash charge relating to the Beartrack mine, reflecting
the continued depressed gold market.
Meridian Gold Inc.
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Operating Data
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Three Months
Ended December 31 Full Year
----------------- ---------
1999 1998 1999 1998
Beartrack Mine
Gold production - heap leach (ounces) 38,667 31,594 132,726 110,289
Tonnes mined (thousands)
Ore 1,089 996 4,671 4,088
Waste 755 1,679 3,511 7,163
------ ------ ------ ------
Total 1,844 2,675 8,182 11,251
Average heap leach grade (grams / tonne) 1.10 0.86 1.10 0.80
Cash cost of production / ounce $ 102 $ 209 $ 140 $ 220
Jerritt Canyon Joint Venture
Gold production (Meridian Gold's 30% share, ounces)
Milling 31,419 25,705 108,935 104,351
Tonnes mined (100%, thousands)
Ore 358 303 1,238 897
Waste 667 3,270 7,777 13,954
------ ------ ------ ------
Total 1,025 3,573 9,015 14,851
Mill tonnes processed (100%, thousands) 382 352 1,461 1,348
Average mill ore grade (grams / tonne) 9.43 7.95 8.60 8.71
Mill recoveries 90.8% 94.1% 91.0% 90.9%
Cash cost of production / ounce $ 171 $ 211 $ 191 $ 187
Totals
Ounces of gold produced 70,086 57,299 241,661 214,640
Ounces of gold sold 74,344 62,203 242,413 212,947
Average realized price / ounce $ 336 $ 340 $ 295 $ 307
Cash cost of production / ounce $ 133 $ 210 $ 163 $ 204
The calculation of cash costs of production conforms to the
standards recommended by the Gold Institute.
Meridian Gold Inc.
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Consolidated Condensed Balance Sheets
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(in US$ millions)
December 31 December 31
1999 1998
Assets
Current Assets
Cash and cash equivalents $ 20.8 $ 34.1
Trade and other receivables 5.1 8.1
Inventories 8.7 6.3
Other current assets 0.9 1.5
----- -----
Total current assets 35.6 50.0
----- -----
Property, plant and equipment, net 102.9 57.5
Other assets 3.0 2.6
----- -----
Total assets $ 141.5 $ 110.1
----- -----
----- -----
Liabilities and Shareholders' Equity
Current Liabilities
Current portion of long-term debt $ 12.0 $ ---
Accounts payable, trade and other 5.4 3.9
Accrued and other liabilities 17.1 9.6
----- -----
Total current liabilities 34.6 13.5
----- -----
Long-term debt, net of current portion 18.0 ---
Other long-term liabilities 28.5 23.1
Shareholders' equity 60.4 73.5
----- -----
Total liabilities and shareholders'
equity $ 141.5 $ 110.1
----- -----
----- -----
Meridian Gold Inc.
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Consolidated Condensed Statement of Cash Flows
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(in US$ millions)
Three Months
Ended December 31 Full Year
----------------- ---------
1999 1998 1999 1998
Net loss $ (1.3) $ (20.7) $ (13.7) $ (39.2)
Provision for depreciation,
depletion and amortization 5.4 4.8 18.9 22.2
Gain (loss) on sale of assets (0.4) --- 0.5 ---
Impairment of mineral properties --- 19.8 --- 19.8
Provision for reclamation, net
of costs incurred 6.0 --- 6.8 1.0
Accrued pension cost 0.4 --- 0.3 ---
Changes in assets and liabilities,
net (10.5) (5.9) 8.3 ---
------ ------ ------ ------
Net cash provided by (used in)
operating activities (0.4) (2.0) 21.1 3.8
------ ------ ------ ------
Cash flows from investing activities
Capital spending (6.8) (14.9) (64.9) (23.7)
Disposal of PP&E 0.2 0.1 0.3 0.1
------ ------ ------ ------
Net cash used in investing
activities (6.6) (14.8) (64.6) (23.6)
------ ------ ------ ------
Cash flows from financing activities
Proceeds from long-term borrowings 2.1 30.0 0.1
Proceeds from sale of common stock 0.6 0.1 0.8 (0.5)
Repayment of long-term debt --- --- (0.5) ---
Redemption of preferred stock --- --- (0.1) ---
------ ------ ------ ------
Net cash provided by (used in)
financing activities 2.7 0.1 30.2 (0.4)
------ ------ ------ ------
Increase (decrease) in cash and
cash equivalents (4.3) (16.7) (13.3) (20.2)
Cash and cash equivalents,
beginning of period 25.1 50.8 34.1 54.3
------ ------ ------ ------
Cash and cash equivalents,
end of period $ 20.8 $ 34.1 $ 20.8 $ 34.1
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