Normandy Mining Limited: Q1 Report On Activities To Shareholders.Business Editors ADELAIDE Adelaide, empress consort of Holy Roman Emperor Otto I Adelaide (ăd`əlād) or Adelheid (ä`dĕlhīt), c. , South Australia--(BUSINESS WIRE)--Oct. 25, 2001 Normandy Normandy (nôr`məndē), Fr. Normandie (nôrmäNdē`), region and former province, NW France, bordering on the English Channel. Mining Ltd (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :NDY NDY Not Dead Yet NDY Not Done Yet .)(ASX ASX See: Australian Stock Exchange :NDY.) Three Months to 30 September September: see month. 2001 Great exploration quarter, including: high grade intersections at Favona Favona is an Auckland suburb and part of Mangere. The area has a long history of habitation, due to its fertile lands, a productive harbour, and proximity to the Manukau-Tamaki isthmus. (Martha Martha, in the New Testament, friend of Jesus, sister of Mary and Lazarus of Bethany. In Christian literature, Martha has been a symbol of the active, as opposed to the contemplative, life. Feast: July 29. Martha personification of the busy housekeeper. ) and new high grade zone at Golden Grove
PRODUCTION
-- Gold production, 637,579 ounces (634,843ozs)
-- total cash cost, $310 per ounce (US$157/oz)
-- average realised price, $568 per ounce (US$287/oz)
-- Tanami gold production 141,369 ounces, a record
-- Golden Grove zinc concentrate production
-- 44,464 tonnes (40,335t)
DEVELOPMENT
-- Groundrush mining commences ahead of schedule
-- ore processing scheduled for December 2001
-- At Martha, Favona mine permitting commences
EXPLORATION
-- Jundee, high grade 600m strike length structure identified
-- Favona (Martha), follow-up drilling intersects high grades
-- including 6m at 83g/t, 10m at 20.8g/t
-- Golden Grove, new high grade zone (Ethel)
-- 8m at 19.6% zinc, 9.9g/t gold
-- Wiluna, mineralisation defined over 1.5km strike
-- Martabe (Sumatra), major zones of gold mineralisation
identified at several sites
FINANCE
-- Quarterly net profit $35.4 million, up 39%
-- Reduction trend for gearing maintained, now 39%
CORPORATE
-- AngloGold takeover offer Bidders Statement received
-- AMC project funding arrangements announced
-- Normandy NFM announces scrip bid for Otter Gold Mines
(Previous quarter figures bracketed in italics italics npl → italique m italics npl → Kursivschrift f . Australian dollar 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 values are used in this report except where specified, with some key financial figures translated at A$1.00 = US$0.5056) PRODUCTION Gold production - 637,579 ounces Attributable production was strong, with increased output from Tanami Operations, Martha, Mt Charlotte and Ovacik offsetting lower production from the Super Pit, Bronzewing Bronzewing standard domestic turkey; black with bronzing on neck and back, and bronze barring on tail, which has a wide, white end-stripe. The female has white end-stripes on breast, back and wing bows, and secondary bows. Shanks are blackish-pink. and Jundee. Performance in the final month was strong, which augurs augurs Roman officials who interpreted omens. [Rom. Hist.: Parrinder, 34] See : Prophecy well for next quarter. Total cash cost was $310 per ounce ounce, in zoology ounce, in zoology: see leopard. ounce, unit of measurement ounce: see English units of measurement. (US$157/oz). The average net realised gold price was $534 per ounce, compared to the average spot price for the quarter of $533 per ounce. Including the deferred hedge gain, the price achieved was $568 per ounce.
ATTRIBUTABLE PRODUCTION COST
GOLD INSTITUTE STANDARD
periods ended 3 months 3 months 12 months
(unaudited) Sept. '01 June '01 June '01
($/oz) ($/oz) ($/oz)
-------------------------------------------------------------------
Direct mining expenses 336 300 300
Stripping & mine development
adjustments (10) (1) 3
By-product credits (26) (16) (15)
Sundry expenditure (income) (1) 5 2
Cash operating cost 299 288 290
Royalties 11 10 10
Total cash cost 310 298 300
Depreciation 40 46 41
Amortisation 69 86 61
Mine closure 7 12 11
Total production cost 426 442 413
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Pajingo - owner-mining commences (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. , 50%) The changeover (programming) changeover - The time when a new system has been tested successfully and replaces the old system. to owner-mining occurred on 1 October October: see month. 2001. Combined with production from higher grade stopes Stopes , Marie Carmichael 1880-1958. British social reformer who opened England's first birth control clinic (1924) in London and later promoted family planning in east Asia. , this is expected to reduce total cash cost for the remainder of the year. Vera South mine development was completed in early August and reserve delineation drilling is scheduled for completion in December December: see month. 2001. Vera South Deeps development commenced. Tanami - record 141,369 ounces produced (Northern Territory, 87.45%) Gold production was 141,369 ounces, a 32% increase, with average head grade 29% higher at 6.98g/t. 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. increased, in part reflecting commissioning of the new crushing crushing deaths of newborn animals, especially those in litters, caused by the mother lying on them accidentally. Contributed to by weakness of the neonate or awkward accommodation. A problem in piglets and puppies. Called also overlying. circuit. Total cash cost declined $43 per ounce to $265 per ounce. Callie Callie may refer to People
The Origins Award is commonly referred to as a Calliope, as the statuette is in the likeness of the Muse of the same name. Academy members frequently shorten this name to "Callie." produced 446,129t at 8.13g/t and the Villa and Colliwobble open pits 492,129t at 2.70g/t. It is anticipated that the contribution from this operation will further improve with commissioning of the 150,000ozpa Groundrush mine in December. Boddington Places called Boddington include:
(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. , 44.44%) Gold production increased 12%, with record Direct Leach Plant throughput and high grade production from Q4 pit. Operations have been extended until November November: see month. . Bronzewing - gold production 73,389 ounces (Western Australia, 100%) Gold production was 20% lower, with mine production hindered by poor equipment availability, ore breakage problems and resultant This article is about the resultant of polynomials. For the result of adding two or more vectors, see Parallelogram rule. For the technique in organ building, see Resultant (organ). In mathematics, the resultant of two monic polynomials 15% lower mill throughput. Plans have been implemented to increase production flexibility and capacity. Martha - gold production up 42% (New Zealand New Zealand (zē`lənd), island country (2005 est. pop. 4,035,000), 104,454 sq mi (270,534 sq km), in the S Pacific Ocean, over 1,000 mi (1,600 km) SE of Australia. The capital is Wellington; the largest city and leading port is Auckland. , 67.06%) Gold production increased 42% and total cash cost declined 31%, reflecting restored access to higher grade ore zones. Mill throughput was 81% higher, but elevated silver grades reduced recovery. Planned modifications to leaching leaching, method of extraction in which a solvent is passed through a mixture to remove some desired substance from it. A simple example is the passage of boiling water through ground coffee to dissolve and carry out the chemicals necessary for producing the beverage. and adsorption adsorption, adhesion of the molecules of liquids, gases, and dissolved substances to the surfaces of solids, as opposed to absorption, in which the molecules actually enter the absorbing medium (see adhesion and cohesion). capacity are expected to improve recovery. The permitting process commenced for underground development of the high grade Favona deposit, adjacent to the treatment plant. Jundee - gold production 100,167 ounces (Western Australia, 100%) Gold production declined 15%, largely reflecting a 10% reduction in average grade from the open pits, particularly Nim 3. Cook and Menzies Men·zies , Sir Robert Gordon 1894-1978. Australian politician who twice served as prime minister (1939-1941 and 1949-1966). pits were completed, Moore Moore, city (1990 pop. 40,761), Cleveland co., central Okla., a suburb of Oklahoma City; inc. 1887. Its manufactures include lightning- and surge-protection equipment, packaging for foods, and auto parts. and Lyons Lyons, city, France Lyons, Fr. Lyon (both: lyôN`), city (1990 pop. 422,444), capital of Rhône dept., E central France, at the confluence of the Rhône and Saône rivers. Pits commenced, and preparations advanced for mining Elliot Elliot is a common last name, and may refer to any one of the various people bearing that name. See . It is also a first name, once rare, now becoming more common. As a first or last name, it can be spelled Elliot, Eliott, Eliot, or Elliott. pit, 10km south of Jundee. Underground ore production was 7% lower, partly due to a changeover of mining contractors. Mill throughput declined to an historical low, the result of hard feed from underground and the deeper open pits. Total cash cost increased to $272 per ounce, due to higher open pit mining costs and treatment costs. Kalgoorlie Kalgoorlie (kălg  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. - ore sourced from Oroya For a city in Peru, see .Oroya is a genus of cacti (family Cactaceae), originating from Peru. and Stores (Western Australia, 50%) Super Pit grade declined 21%, with ore sourced primarily from narrow, lower grade zones in the Oroya and Stores/Paringa cutbacks. A mine production rate of 227,000tpd was achieved despite access and productivity constraints CONSTRAINTS - A language for solving constraints using value inference. ["CONSTRAINTS: A Language for Expressing Almost-Hierarchical Descriptions", G.J. Sussman et al, Artif Intell 14(1):1-39 (Aug 1980)]. due to the frequency of historic underground workings. Mt Charlotte performed strongly, with 360,000t of ore hauled to surface and gold production up 80%. Wiluna - average grade increases (Western Australia, 100%) Grade improved to 6.0g/t, due mainly to increased contributions from Golden Age and East Lode - West Lode open pits. Stoping commenced at Woodley For the area in Stockport, see Woodley, Greater Manchester. . Midas - owner mining-milling next quarter (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). , USA, 100%) Gold production increased 17% to 50,862 ounces. Owner-operator An owner-operator is a type of business owner, who typically works and runs their own business. An owner-operator will usually be responsible for day-to-day operations, such as inventory, finances, labor control, etc. mining and milling, a new mining fleet and work force, and improved maintenance practices and operating efficiencies are expected to benefit productivity and costs from the end of next quarter. The first of two surface 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 rises is planned for completion next quarter and electrical infrastructure improvements will also be completed by December-end. Underground diamond drilling Diamond Drilling is a highly specialized industry used for mineral exploration around the world. Most commonly using wireline and core bits with diamond encrusted matrix. To drill holes to max depths of twelve thousand feet, for the recovery of core used in verifying mineral is significantly improving orebody delineation and reserve increases are anticipated. Ovacik - approaching design output (Turkey, 100%) Milling of stockpiles was completed in July July: see month. . Open pit ore production was 67,440t at 8.56g/t, primarily from S Vein. The higher grade M Vein is scheduled to provide supplementary feed next quarter. Decline development recommenced. Gold and silver recoveries are above design and continue to improve. The cyanide cyanide (sī`ənīd'), chemical compound containing the cyano group, -CN. Cyanides are salts or esters of hydrogen cyanide (hydrocyanic acid, HCN) formed by replacing the hydrogen with a metal (e.g., sodium or potassium) or a radical (e.g. destruction plant performed impressively and the site continues to meet all strict environmental obligations. Cash unit costs are lower than predicted. TVX TVx Target Vertex TVX Transmission Valid Timer (FDDI) TVX Valid Transmission Normandy Americas A·mer·i·cas , the See America. (49.9%) Attributable gold production was 46,769 ounces at a total cash cost of $335 per ounce, similar to last quarter. Stronger performances at Crixas, New Britannia Bri·tan·nia n. 1. A female personification of Great Britain or the British Empire. 2. also britannia Britannia metal. and La Coipa were offset by a weaker result at Paracatu There is a place and a river that have the name Paracatu (originating from the Tupi or Tupinambá language) in Minas Gerais, Brazil:
Rio Tinto Rio Tinto may refer to:
rescind v. that agreement. Normandy and TVX Gold Inc are confident that Rio's action is entirely without foundation and intend to strenuously stren·u·ous adj. 1. Requiring great effort, energy, or exertion: a strenuous task. 2. Vigorously active; energetic or zealous. resist any step which Rio seeks to take to give effect to its purported pur·port·ed adj. Assumed to be such; supposed: the purported author of the story. pur·port  ed·ly adv. but
invalid Null; void; without force or effect; lacking in authority.For example, a will that has not been properly witnessed is invalid and unenforceable. INVALID. In a physical sense, it is that which is wanting force; in a figurative sense, it signifies that which has no effect. rescission The abrogation of a contract, effective from its inception, thereby restoring the parties to the positions they would have occupied if no contract had ever been formed. By Agreement of the Shareholders Agreement. This action comes more than two years after completion of the transaction between Normandy and TVX. During this period, TVX Normandy Americas and Rio representatives have had a number of meetings and this is the first indication of any concerns on the part of Rio.
GOLD PRODUCTION, COSTS & SALES
Three months ended Equity Ore Head
30-Sep-01 Interest Treated Grade
(%) ('000t) (g/t)
-------------------------------------------------------------------
Boddington (WA) (44.44) 2,205.0 1.01
Bronzewing (WA) (100) 458.3 5.21
Ity (Cote d'Ivoire) (3,4) (51) 98.8 6.17
Jundee (WA) (100) 532.1 6.21
Kalgoorlie Super Pit (WA) (50) 2,498.10 1.89
Martha (NZ) (5) (67.06) 352.0 3.29
Midas (Nevada, USA) (3,5) (100) 65.7 24.70
Mt Charlotte (WA) (50) 437.5 3.27
Mt Leyshon (Qld) (76.36) 1,418.1 0.79
Ovacik (Turkey) (3) (100) 79.8 8.11
Pajingo Operations (Qld) (50) 167.3 11.87
Tanami Operations (NT) (87.45) 651.8 6.98
TVX Normandy Americas (3) (49.9)
Paracatu (Brazil) (49) 4,114.8 0.44
Crixas (Brazil) (50) 185.2 8.89
La Coipa (Chile) (5) (50) 1,670.0 0.56
Musselwhite (Canada) (32) 323.9 5.88
New Britannia (Canada) (50) 176.7 5.70
Wiluna (WA) (100) 194.2 6.00
ATTRIBUTABLE PRODUCTION
-------------------------------------------------------------------
Three months ended Gold Total Cash Total Prodn
30-Sep-01 Produced (1) Cost Cost
(%) (ozs) ($/oz) ($/oz)
-------------------------------------------------------------------
Boddington (WA) 66,002 346 347
Bronzewing (WA) 73,389 305 451
Ity (Cote d'Ivoire) (3,4) 13,402 314 370
Jundee (WA) 100,167 272 484
Kalgoorlie Super Pit (WA) 123,363 446 507
Martha (NZ) (5) 33,918 218 381
Midas (Nevada, USA) (3,5) 50,862 279 494
Mt Charlotte (WA) 40,602 379 379
Mt Leyshon (Qld) 25,745 402 533
Ovacik (Turkey) (3) 19,448 325 408
Pajingo Operations (Qld) 61,880 193 258
Tanami Operations (NT) 141,369 265 302
TVX Normandy Americas (3)
Paracatu (Brazil) 45,664 383 431
Crixas (Brazil) 50,417 195 297
La Coipa (Chile) (5) 24,366 16 573
Musselwhite (Canada) 58,235 396 537
New Britannia (Canada) 30,383 345 538
Wiluna (WA) 30,160 500 635
ATTRIBUTABLE PRODUCTION 637,579 310 426
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Three months ended Gold Realised Total Hedged
30-Sep-01 Sold(2) Price Price
(%) (ozs) ($/oz) ($/oz)
-------------------------------------------------------------------
Boddington (WA) 29,258 511 665
Bronzewing (WA) 73,895 536 536
Ity (Cote d'Ivoire) (3,4) 6,823 551 551
Jundee (WA) 102,463 536 536
Kalgoorlie Super Pit (WA) 62,645 511 665
Martha (NZ) (5) 24,734 521 521
Midas (Nevada, USA) (3,5) 49,089 553 553
Mt Charlotte (WA) 21,632 511 665
Mt Leyshon (Qld) 19,642 511 511
Ovacik (Turkey) (3) 19,639 541 541
Pajingo Operations (Qld) 30,940 511 665
Tanami Operations (NT) 127,003 537 537
TVX Normandy Americas (3)
Paracatu (Brazil) 11,476 572 572
Crixas (Brazil) 13,441 576 576
La Coipa (Chile) (5) 5,938 570 570
Musselwhite (Canada) 9,513 570 570
New Britannia (Canada) 8,396 563 563
Wiluna (WA) 28,622 536 536
ATTRIBUTABLE PRODUCTION 645,149 534 568
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METALS Golden Grove - record mill throughput (Western Australia, 100 percent) Mine production increased by 20.6% to 315,663t (200,206t zinc zinc, metallic chemical element; symbol Zn; at. no. 30; at. wt. 65.38; m.p. 419.58°C;; b.p. 907°C;; sp. gr. 7.133 at 25°C;; valence +2. Zinc is a lustrous bluish-white metal. It is found in Group 12 of the periodic table. ore, 115,457t copper ore). Mill throughput rose 14.9% to 324,693t, the result of alterations to SAG (1) A momentary drop in voltage from the power source. Contrast with spike. (2) (SAG) (SQL Access Group) See CLI. lifter design, increased mill availability and increased throughput of softer copper ore. Zinc concentrate Zinc concentrate is a highly hazardous product used in the production of zinc metal and zinc alloys, which is the result of a flotation process after the zinc ore has been mined and milled. quality improved to average 53.41% from a lower feed grade of 11.6% zinc. Copper concentrate grade improved to 22.6%. Cash costs have reduced as a consequence of a concerted efficiency program. Kasese - production records set (Uganda, Banff Resources 63%) Cobalt production improved significantly, for the third consecutive quarter. A record 386,801lbs was produced, a 14% increase on the previous quarter, with clear evidence of potential for further substantial improvement. The average purity Purity: see Pearl, The. Purity See also Modesty. almond symbol of the Virgin Mary’s innocence. [O.T.: Numbers 17: 1–11; Art: Hall, 14] crystal its transparency symbolizes pureness. of cobalt cathodes increased to 99.91% (99.88%).
periods ended 3 months 3 months 12 months
Sept. '01 June '01 June '01
($/oz) ($/oz) ($/oz)
-------------------------------------------------------------------
Ore mined ('000t) 315.7 261.7 1191.2
Zinc ore milled ('000t) 227.7 194.2 895.2
Grade (%) 11.6 12.1 12.1
Copper ore milled ('000t) 96.9 88.4 272.1
Grade (%) 5.1 4.5 4.8
Zinc concentrate (t) 44,464 40,335 182,655
Grade (%) 53.4 52.9 53.2
Copper concentrate (LPM) (t) 15,865 15,786 48,605
Grade (%) 22.6 22.1 22.4
Copper concentrate (HPM) (t) 464 1,103 4,202
Grade (%) 21.2 13.1 13.7
Silver grade (g/t) 249 2,513 1,931
Gold grade (g/t) 3.3 29.4 21.7
Lead concentrate (t) 4,189 3,453 18,218
Grade (%) 34.4 37.3 32
Zinc sales (1)
Payable metal (t) 16,855 13,393 79,716
Estimated price (cent/lb) 73.1 70.6 85.4
Copper sales (1)
Payable metal (t) 2,686 5,808 11,683
Estimated price (2) (cent/lb) 128 137 147
-------------------------------------------------------------------
(1) Revenues on provisionally priced "open" pounds adjusted
monthly, based on then-current prices with settlement generally on
average LME price for specified future month.
(2) 1.97Mlb of payable copper provisionally priced at US66.22
cents/lb.
GOLDEN GROVE ZINC PRODUCTION COST
periods ended 3 months 3 months 12 months
(unaudited) Sept. '01 June '01 June '01
(cent/lb) (cent/lb) (cent/lb)
-------------------------------------------------------------------
Direct mining expenses 29 35 32
Transport & smelter
charges 37 42 42
Mine development (2) (4) (3)
By-product credits (11) (13) (12)
Cash operating cost 53 60 59
Royalties 2 3 3
Total cash cost (1) 55 63 62
Depreciation 2 4 4
Amortisation 4 7 7
Mine closure 1 1 1
Total production cost (2) 62 75 74
-------------------------------------------------------------------
(1) US28 cents/lb (US32 cents/lb) at period average exchange rate.
(2) US32 cents/lb (US38 cents/lb) at period average exchange rate.
[NOTE: Excludes copper campaign costs, estimated at total cash cost
119 cents/lb (143 cents/lb) and total production cost 138 cents/lb
(174 cents/lb).
DEVELOPMENT Groundrush (87.45%) - final project approvals Final approvals were granted for the Groundrush project and agreement was reached to lease the Tanami mine treatment plant. Mining commenced mid-September and gold production will commence in December 2001. Martabe - scoping study (Sumatra, Indonesia, 90%) Project development work commenced, with initial 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. testwork indicating high gold recoveries from a low cost, high return dump leach/heap leach operation. Boddington - management negotiations The environmental protection statement submission was lodged at quarter end, all heritage clearance requirements were resolved and undertakings with respect to neighbouring bauxite bauxite (bôk`sīt, bŏk`–), mixture of hydrated aluminum oxides usually containing oxides of iron and silicon in varying quantities. resources were settled. Negotiations over management were progressed with draft agreements distributed to all parties. Yamfo-Sefwi/Area E - optimisation Noun 1. optimisation - the act of rendering optimal; "the simultaneous optimization of growth and profitability"; "in an optimization problem we seek values of the variables that lead to an optimal value of the function that is to be optimized"; "to promote the studies (Ghana, 90%; Area E, 42.3%) All Government approvals to develop the project are in place and optimisation studies are being undertaken to improve project economics, including the potential to heap leach the 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. Perama - permitting progress (Greece, 80%) The Ministry of Environment is awaiting the reasoning from a High Administrative Court decision on another gold project before approving the Perama EIS (1) (Executive Information System) An information system that consolidates and summarizes ongoing transactions within the organization. It provides top management with all the information it requires at all times from internal and external sources. . Appeals against Government decisions are delaying development of gold mining projects in Greece. EXPLORATION Expenditure on direct interests worldwide was $16.5 million. Jundee - encouraging Westside results Underground drilling of the Westside structure (reported last quarter as Barton BARTON, old English law. The demesne land of a manor; a farm distinct from the mansion. Parallel and 80C Lode Parallel structures) continued to produce high grade intercepts, including 1.1m at 96.3g/t, 3.6m at 46.2g/t, 1.0m at 52.8g/t, 2.4m at 26.7g/t, 1.9m at 30.8g/t and 0.3m at 1,010g/t. A structure more than 600m in strike length and open at depth is indicated. Martha - high grade Favona zone outlined At Favona, adjacent to the Martha treatment plant, drilling to follow-up follow-up, n the process of monitoring the progress of a patient after a period of active treatment. follow-up subsequent. follow-up plan the 16m at 27.8g/t reported last quarter 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. multiple parallel high grade quartz quartz, one of the commonest of all rock-forming minerals and one of the most important constituents of the earth's crust. Chemically, it is silicon dioxide, SiO2. veins over about 400m strike length. Better intersections included 10m at 20.8g/t, 30m at 10.1g/t, 7m at 12.8g/t and 6m at 83.0g/t. These results indicate a zone of mineralisation of about 0.5Mozs that could be mined underground in conjunction with the open pit for combined annual production of 200,000 ounces. There is excellent potential to expand the ore zone. Wiluna - Williamson prospect expanded At the Williamson Prospect, beneath Lake Way, drilling continued to expand the area of known mineralisation, with over 1.4km of strike extent now delineated. Best results included 38m at 1.55g/t from 111m, 4m at 12.1g/t from 56m and 4m at 25.0g/t from 32m. Tanami - Callie resource potential extended The upper portions of previously completed drill holes targeting Kerril South/Wilson Shoot mineralisation were analysed. The most significant results were in DBD DBD DNA binding Domain (nuclear receptors) DBD Database Design DBD Day-By-Day DBD Database Description dBd Decibels (dipole antenna) DBD Death Before Dishonor (gaming clan) 398D1, including 8m at 29.3g/t (15.6g/t, cut to 100g/t) and 8m at 5.4g/t. These intersections are approximately 300m above previously identified Kerril South mineralisation on Section 60,700E. Resource extension drilling targeting down-plunge extensions of Colliwobble pit mineralisation returned encouraging results (inc. 16m at 2.9g/t, 7m at 4.0g/t). No further drilling was undertaken at Groundrush, which remains open at depth. Pajingo - further Zed intersections Resource definition drilling continued at Zed with best intersections of 1.4m at 30.1g/t and 1.2m at 19.6g/t. An intersection intersection /in·ter·sec·tion/ (-sek´shun) a site at which one structure crosses another. intersection a site at which one structure crosses another. of 5.6m at 23.5g/t was returned from the Zed 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. structure. Akim - major resource delineated The Akim project is now recognised as a major grassroots discovery. Continuous mineralisation has been delineated over 1km of strike in the main zone and is estimated to contain an Indicated and Inferred resource of 51.4Mt at 2.1g/t (3.47Mozs). Tipperary Well - encouraging early results At Tipperary Well (60km north of Bronzewing), RC drilling of a 5km by 1.5km surface gold anomaly Abnormality or deviation. Pronounced "uh-nom-uh-lee," it is a favorite word among computer people when complex systems produce output that is inexplicable. See software conflict and anomaly detection. commenced with results including 64m at 1.5g/t (including 32m at 2.8g/t) from 28m downhole. Golden Grove - continued success, new zone Drilling continued to test between the Hougoumont and Catalpa catalpa (kətăl`pə): see bignonia. catalpa Any of 11 species of trees in the genus Catalpa (family Bignoniaceae), native to eastern Asia, eastern North America, and the West Indies. zones at Gossan gos·san n. An exposed, oxidized portion of a mineral vein, especially a rust-colored outcrop of iron ore. [Cornish gossen, from g Hill. A drillhole targeted 150m below the base of Catalpa intersected 8m at 19.6% zinc, 142g/t silver and 9.9g/t gold at 927m downhole (Ethel zone), significantly increasing Catalpa resource potential. In the past few days another Ethel drillhole, 200m south, intersected massive zinc sulphide Noun 1. zinc sulphide - a yellow to white crystalline fluorescent compound that occurs naturally as sphalerite or wurtzite and is used as a luminous pigment zinc sulfide over 22.7m at an estimated zinc grade of 27%, with visible gold. Information in this report relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc ore reserves, mineral resources Noun 1. mineral resources - natural resources in the form of minerals natural resource, natural resources - resources (actual and potential) supplied by nature or mineralisation conforms to the requirements of the "Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves" (JORC JORC Joint Ore Reserves Committee Code). It is based on information compiled by M Hatcher hatch 1 n. 1. a. An opening, as in the deck of a ship, in the roof or floor of a building, or in an aircraft. b. The cover for such an opening. c. A hatchway. d. , Chief Operations Geologist, Normandy Mining Limited, Fellow of the AusIMM and a Competent Person as defined by the Code, and is included in this report with his consent. Martabe - major gold discovery (Sumatra, Indonesia, 90%) The Martabe project has been confirmed as a major disseminated disseminated /dis·sem·i·nat·ed/ (-sem´i-nat?ed) scattered; distributed over a considerable area. dis·sem·i·nat·ed adj. Spread over a large area of a body, a tissue, or an organ. epithermal gold discovery, with several deposits identified within a 7km by 2km area. The project is located close to the Trans-Sumatra highway and the national electricity grid system, about 40km inland from the port of Sibolga, northern Sumatra. The Purnama deposit has been drilled to 100m centres or less and is likely to contain oxide and transition mineralisation at average grades of 1.5g/t to 2.0g/t. Another strong zone of mineralisation, 60m to 75m thick, has been discovered at Gerhana, 3.5km north of Purnama. Three drill holes completed to date returned 113m at 4.1g/t, 71m at 4.8g/t and 40m at 2.0g/t (all intersections from surface). Similar mineralisation of lower grades (1g/t to 1.5g/t) is partially tested at Baskara, Kejora and Pelangi. The Pelangi zone is 2.5km long and will be tested in the December quarter. FINANCE Financial Results - 39% profit increase Profit attributable to Normandy shareholders for the September quarter was $35.4 million, a 39% increase ($25.5M, before significant items). Significantly, over half of the result was achieved in September, with excellent operating performances from Tanami and Midas Operations. Gross profit from gold operations increased 15% to $99.8 million, largely due to record production at Tanami Operations, which will be further enhanced next quarter with commencement of production at Groundrush. Kalgoorlie Operations' contribution was lower reflecting a 21% decrease in Super Pit head grade.
SIMPLIFIED FINANCIAL RESULTS
periods ended ($M) 3 mths 3 mths 12 mths
(unaudited) 30 Sept. 30 June 30 June
2001 2001 2001
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Sales revenue 429.7 393.8 1,543.7
Cost of production (256.1) (216.8) (913.4)
Depreciation &
amortisation (71.8) (87.4) (263.3)
Mine closure (4.9) (6.4) (27.8)
Gross profit 96.9 83.2 339.2
Share of net profit of
associates 2.2 (5.1) (4.8)
Exploration provisions &
write-offs (9.2) (19.8) (58.1)
Administration expenses (15.2) (26.6) (64.3)
Borrowing costs (24.2) (28) (112.0)
Net write-off of
non-current assets - (236.7) (236.7)
Other income/(expenses) 1.6 17.7 33.7
Profit/(loss) from
ordinary activities 52.1 (215.3) (103.0)
Income tax expense
relating to
ordinary activities (12.5) 0.5 (20.4)
Profit/(loss) from
ordinary activities
after related income tax
expense 39.6 (214.8) (123.4)
Outside equity interests (4.2) (34.4) (31.2)
Net profit/(loss)
attributable to members
of Normandy Mining
Limited 35.4 (249.2) (154.6)
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Operating profit before
significant items
attributable to
members of
Normandy Mining Limited 35.4 25.5 120.1
Significant items
included in operating
profit/(loss) before
outside
equity interests (1) - (236.7) (236.7)
Outside equity interests - (38.0) (38.0)
Operating profit after
significant items
attributable to
members of
Normandy Mining Limited 35.4 (249.2) (154.6)
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(1) No tax benefit applicable
Non-gold operations recorded a loss of $2.9 million compared with a loss of $3.6 million in the June quarter. The result includes a loss of $4.0 million from Golden Grove, reflecting continued depressed base metal prices offset partly by increased concentrate production. Normandy's share of associates profit includes contributions from TVX Normandy Americas and 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. Gold Refineries (AGR AGR advanced gas-cooled reactor ). Exploration expense decreased to $9.2 million in line with reduced spending that is focused on projects within close proximity to existing infrastructure. Administration expenses were lower than last quarter, which included several one-off restructure costs. Reduced borrowing costs are the result of lower average borrowings for the quarter. Financial Position - gearing reduced A further reduction in gearing was achieved resulting in a net debt to net debt plus equity ratio of 39%, down from 40% in June. This was achieved on strong operating cash flows Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. coupled with increased equity from earnings.
SIMPLIFIED STATEMENT OF FINANCIAL POSITION
($M) 30 Sept. 30 June
(unaudited) 2001 2001
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Current assets
Cash, bank bills & gold
bullion 430.7 344.8
Receivables 109.2 123.7
Inventories 188.0 169.5
Other 142.1 161.9
870.0 799.9
Non-current assets
Investments 263.9 244
Exploration & evaluation 160.6 151.7
Development properties 449.3 499.5
Property, plant &
equipment 1,818.6 1,750.0
Other 395.5 401.4
3,087.9 3,046.6
Total assets 3,957.9 3,846.5
Current liabilities
Accounts payable 276.4 249.8
Interest-bearing
liabilities 116.5 114
Other 229.5 238.6
622.4 602.4
Non-current liabilities
Interest-bearing
liabilities 1,242.6 1,181.8
Other 656.2 664.3
1,898.8 1,846.1
Total liabilities 2,521.2 2,448.5
Net assets 1,436.7 1,398.0
Equity
Contributed equity 1,593.9 1,593.9
Reserves 72.6 71.4
Retained
profits/(accumulated
losses) (399.4) (434.8)
Equity attributable to
members of
Normandy Mining Limited 1,267.1 1,230.5
Outside equity interests
in controlled entities 169.6 167.5
Total equity 1,436.7 1,398.0
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Notes to Simplified Financial Results
-------------------------------------
($M) 3 mths to 3 mths to 12 mths to
30 Sept. 30 June 30 June
2001 2001 2001
GOLD
Yandal 9.6 7.4 40.3
Kalgoorlie 19.8 39.3 112.5
Tanami 36.1 16.3 78.1
Pajingo 12.6 11.6 47.2
Boddington 9.2 6.3 22.5
Mt Leyshon (0.9) (3.4) 11.9
Midas 3.9 3.5 3.5
Other 9.5 5.8 15.6
Total 99.8 86.8 331.6
NON-GOLD
Golden Grove (4) (6.1) 18
Other 1.1 2.5 (10.4)
Total (2.9) (3.6) 7.6
Cash Flow Cash at the end of the quarter increased to $430.7 million, largely the result of strong operating cash flow from gold operations. Payments for property, plant and equipment includes Midas ($32M), Yandal ($10M) and Martha ($8M). Development expenditure relates principally to AMC (Advanced Mezzanine Card) See AdvancedTCA. . Business acquired ($13.4M) relates to settlement of an investment in AGR. Net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from borrowings relates to drawings under the $650 million syndicated corporate facility ($255M drawn at 30 September 2001) which was offset by increases in cash balances in other subsidiaries, resulting in a decrease in consolidated net debt to $928 million ($951M at end of June).
SIMPLIFIED STATEMENT OF CASH FLOWS
($M) 30 Sept. 30 June
(unaudited) 2001 2001
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Operating activities
Receipts from customers 416.1 1,576.6
Payments to suppliers &
employees (265.5) (1,186.9)
Dividends received from
associates - 42.6
Interest paid (33.4) (93.8)
Income tax paid (2.8) (38.9)
Other 6.7 22.5
Net operating cash flows 121.1 322.1
Investing activities
Payments for property,
plant & equipment (75) (146.5)
Payments for exploration (16.5) (62.8)
Payments for development
projects (19.2) (87.8)
Proceeds from sale of
investments - 130.3
Loans repaid by other
entities 16.9 113
Businesses
acquired/disposed (13.4) 120.1
Other 17.9 13.5
Net investing cash flows (89.3) 79.8
Financing activities
Net (repayment)/proceeds
of borrowings 55 (302.4)
Dividends paid (0.9) (95.2)
Proceeds from issue of
securities - 93.8
Net financing cash flows 54.1 (303.8)
Net increase/(decrease)
in cash held 85.9 98.1
Cash at beginning of
period 344.8 245.4
Exchange rate adjustments - 1.3
Cash at end of period 430.7 344.8
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HEDGING
-------------------------------------------------------------------
(Australian Gold Council Standard) '000ozs A$/oz(1)
-------------------------------------------------------------------
NORMANDY WHOLLY-OWNED
Forward Sales
2001-02 225 524
2002-03 1,238 519
2003-04 806 546
2004-05 735 574
2005-10 2,850 574
Total 5,854 557
Put Options Purchased
2001-02 660 523
2002-03 167 518
2003-04 9 526
2004-05 121 522
2005-10 409 513
Total 1,366 520
Convertible Options Purchased
2004-05 34 524
2005-12 1,639 544
Total 1,673 543
NORMANDY MT LEYSHON LIMITED
& NORMANDY NFM LIMITED (2)
Forward Sales
2001-02 364 560
2002-03 509 576
2003-04 286 574
2004-05 227 580
2005-07 140 609
Total 1,526 575
'000ozs US$/oz
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TVX NORMANDY AMERICAS
Forward Sales
2000-02 4 321
Total 4 321
Put Options Purchased
2001-02 91 282
2002-03 128 280
2003-04 130 274
2004-05 130 267
2005-09 218 341
Total 697 296
'000ozs $/oz
-------------------------------------------------------------------
Total A$ Contracts (3,4) 10,419 553
Total US$ Contracts (3,4) 701 296
Committed A$ Contracts 9,053 557
Committed US$ Contracts 4 321
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Notes to Hedging
----------------
(1) Net of lease fees for actual lease fees that are fixed, with
the balance assumed at 2%.
(2) 100% of subsidiaries.
(3) Margin calls do not apply to any contracts.
(4) No separate foreign exchange contracts relating to the gold
hedging.
Deferred income from hedge close-outs to be brought
to the income statement:
($M)
2001-02 62.5
2002-03 56.4
2003-04 48.6
2004-05 46.8
2005-10 13.5
Total 227.8
The hedge book mark-to-market value is:
($M)(i)
Normandy (ii) (802)
Normandy Mt Leyshon (iii) (1)
Normandy NFM (iii) (65)
(i) Spot price at 30 September 2001, $590/oz.
(ii) Wholly-owned, including TVX Normandy Americas.
(iii)100 percent of subsidiaries.
CORPORATE The AngloGold Bidders Statement was received on 17 October 2001. Directors will make a recommendation to shareholders once a review is completed. Normandy subsidiary, Australian Magnesium magnesium (măgnē`zēəm, –zhəm), metallic chemical element; symbol Mg; at. no. 12; at. wt. 24.305; m.p. about 648.8°C;; b.p. about 1,090°C;; sp. gr. 1.738 at 20°C;; valence +2. Corporation Limited announced, on 15 October, arrangements for a capital raising of up to $525 million to develop the Stanwell Magnesium Project. Normandy NFM NFM Nebraska Furniture Mart NFM Network File Management NFM Network Fault Management NFM No Further Message NFM Near Field Monitor NFM National Firearms Museum (Fairfax, Virginia) NFM NATOPS Flight Manual NFM Northern Fowl Mite announced a scrip bid for Otter Gold Mines Limited on 11 October.
INVESTOR INFORMATION
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Board of Directors
RJ Champion de Crespigny ........... Chairman & Chief Executive
MS Hamson .............................. Non-Executive Director
P Lassonde ............................. Non-Executive Director
BG McKay ............................... Non-Executive Director
JB Prescott AC ......................... Non-Executive Director
KH Spencer ............................. Non-Executive Director
B Wheelahan ............................ Non-Executive Director
Registered & Principal Office
100 Hutt Street, Adelaide 5000, South Australia, Australia
Tel: +61 8 8303 1700; Fax: +61 8 8303 1900
E-mail: investor@normandy.com.au
PF Carr ..................................... Company Secretary
Issued Capital
At 30 September 2001, issued capital was 2,231,293,599 shares.
Shareholder Enquiries
Matters relating to shares held, change of address, tax file number
and dividends should be directed to the Share Registry:
National Shareholder Services Pty Limited
100 Hutt Street, Adelaide 5000, South Australia, Australia
Tel: +61 8 8232 0003; Fax: +61 8 8232 0072
E-Mail: shareregistry@normandy.com.au
Stock Exchange Listings
Australian Stock Exchange ................... Ticker Symbol NDY
Toronto Stock Exchange ...................... Ticker Symbol NDY
ADS Depositary
The Bank of New York, 101 Barclay Street, New York, NY 10286
Tel: +1 212 815 2204; Fax: +1 212 571 3050
Share Price Movement
Dec. '00 Mar. '01 Jun. '01 Sept. '01
High ........ $1.03 $1.00 $1.24 $1.38
Low ......... $0.89 $0.88 $1.01 $1.06
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