Normandy Mining Limited: Report On Activities For The Three Months Ended 30 June 2000.Business Editors SOUTH AUSTRALIA South Australia, state (1991 pop. 1,236,623), 380,070 sq mi (984,381 sq km), S central Australia. It is bounded on the S by the Indian Ocean. Kangaroo Island and many smaller islands off the south coast are included in the state. , AUSTRALIA--(BUSINESS WIRE)--July 18, 2000 Normandy Mining Limited (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)
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PRODUCTION Three months - 544,533 ounces
(attributable) Twelve months - record 1.97 million ounces
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EXPLORATION Further high grade drill
intersections at Jundee, Pajingo, Callie and
Golden Grove
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CORPORATE Magnesium restructure approved,
Industrial Minerals sale nears completion
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Australian Dollar Values are used in this report other than where
specified. For convenience, some key financial figures have been
translated at A$1.00 = US$0. 0.5990
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Board of Directors
RJ Champion de Crespigny Chairman
MS Hamson Non-Executive Director
BG McKay Non-Executive Director
JB Prescott AC Non-Executive Director
B Wheelahan Non-Executive Director
Registered & Principal Office
100 Hutt Street, Adelaide 5000
South Australia, Australia
Telephone +61 8 8303 1700
Facsimile +61 8 8303 1900
PF Carr Company Secretary
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Previous quarter figures in brackets brackets: see punctuation. and italics 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 reporting requirements of the "Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves" (the JORC JORC Joint Ore Reserves Committee Code). It is based on information compiled by BD Kay KAY Kick Ass Year KAY Kansas Association of Youth , Group Executive Exploration, Normandy Mining Limited, a Fellow of the AusIMM and a Competent Person as defined by the Code. It is included in this report with his consent.
Overview
GOLD
ATTRIBUTABLE PRODUCTION
-544,533 ounces (419,477oz)
-Total cash cost, $297 per ounce ($313/oz)
-Attributable gold sales, 553,562 ounces (420,083oz) at an
average realised $562 per ounce ($567/oz)
-Margin, $265 per ounce ($254/oz)
-High fuel prices adds to costs
-Record production from Tanami, Pajingo and Martha
DEVELOPMENT
-Callie, 1.5Mtpa ore production and 2.5Mtpa mill rates achieved
-Ity (Cote d'Ivoire), plant relocated, expanded and commissioned
-Kalgoorlie, flotation circuit upgrade commissioning commences
-Yandal, Wiluna open pit project approved
-Boddington Expansion, 10.9Moz reserve estimated
-Groundrush, pre-feasibility drilling completed
-Perama (Greece), permitting process continues
-Yamfo-Sefwi (Ghana), feasibility on schedule, contiguous
Ntotoroso Area E feasibility commenced
EXPLORATION
-Heavy rainfall continued to impede northern Australia
exploration
-Yandal, Jundee high grade intersections
-Pajingo, new intersections at Jandam and Zed
-Callie, resource potential outside typical host unit
-Ity, drilling extends known mineralisation
-Kenbert (Ghana), resource estimation and scoping in progress
-Tasiast (Mauritania), resource estimation and scoping in
progress
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NON-GOLD
ZINC (Golden Grove)
-Zinc concentrate production 58,649 tonnes (51,016t)
-Realised price 83.6cent /lb, US50.1, cents per pound (US47.2cent /lb)
-Amity, Catalpa and Scuddles Deeps North, further high grade
intercepts
COBALT (Kasese)
-Production and cathode quality improve
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RESTRUCTURING FOR GROWTH IN GOLD
MAGNESIUM
-Magnesium ownership restructure approved
INDUSTRIAL MINERALS
-Commercial Minerals and Omya Southern sold and consideration
received, Larvik Pigment sale negotiations advanced
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FINANCE
Profit for the twelve months to 30 June 2000 will be released 30
August 2000.
Hedging restructure increases gold price participation to 44 percent
in 2001
No new or replacement hedging commitments
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Chairman's message Attributable gold production for the quarter and the year were records at 544,533 ounces and 1,972,753 ounces, up 30 percent and 18 percent respectively. This continues an unbroken sequence of 14 years of production growth. Importantly, total cash cost for the quarter (annualised production rate of 2.2Moz) was sub-$300 per ounce, which contributed to a 7.9 percent reduction in annual total cash cost, to $303 per ounce. The increase in production and lower total cash cost of $297 per ounce for the quarter (despite further increases to fuel costs) reflects increased returns from capital investments at Tanami, Pajingo and Martha, full ownership of Yandal Operations (effective 5 April 2000) and improved performance at Kalgoorlie. The Boddington Expansion Project achieved a further milestone, with a reserve estimate calculated at $425 (US$255) per ounce, containing 10.9Moz. The reserve was derived from an increased resource of 19.7Moz, up 28 percent, reflecting the lower cost structure associated with the high-pressure grinding grinding, process by which surface material is removed from an object, usually metal, by the abrasive action of a rotating wheel or a moving belt that contains abrasive grains. roll - ball mill plant configuration. The 18 percent increase in annual production demonstrates the strength of the portfolio, which has absorbed the loss of more than 250,000 ounces of annual production through depletion depletion n. when a natural resource (particularly oil) is being used up. The annual amount of depletion may, ironically, provide a tax deduction for the company exploiting the resource because if the resource they are exploiting runs out, they will no longer be able of both Kaltails and Tennant Creek, and sale of Big Bell. Exploration results at Groundrush, Pajingo and Golden Grove
The satisfaction derived from these results is, however, overshadowed by two incidents, the subject of coronial enquiries, which resulted in the loss of four lives at Normandy-managed sites. Restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). for Growth in Gold The transactions announced in April 2000 - to reposition and fundamentally change Normandy by streamlining the corporate structure, increasing cashflow and providing clear strategic direction toward a goal of profitable growth in gold - are essentially complete. Yandal Operations Major initiatives have been implemented in the first three months of full control. All administration and financial functions have been integrated within existing group functions, reducing overheads by a forecast $12.0 million per annum Per annum Yearly. . The designated hedge book has been largely restructured, at negligible  This article or section is written like a personal reflection or and may require .Please [ improve this article] by rewriting this article or section in an . cost, increasing gold price participation in the immediate time frame. On the exploration front, drilling at Jundee to support the underground development strategy was rewarded with high grade intersections. On the operational front, at Wiluna, the East Lode - West Lode open pit development study has selected a 820,000tpa production scenario, including some higher grade ore from Golden Age. This requires minimum capital expenditure and offers a higher return on capital employed Return on capital employed (ROCE) Indicator of profitability of the firm's capital investments. Determined by dividing Earnings Before Interest and Taxes by (capital employed plus short-term loans minus intangible assets). than larger production rate options. The future of the Wiluna operation is more substantive than at any time in the past 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. . 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. Normandy's interest in Australian Magnesium Corporation Limited (formerly Queensland Metals Corporation) increased to 62 percent. Commercialisation funding by third parties is proceeding, upon completion of which, and subject to approvals, it is intended that the AMC (Advanced Mezzanine Card) See AdvancedTCA. shares be distributed to Normandy shareholders. Industrial Minerals The Commercial Minerals and Omya Southern sales have been completed. Discussions with potential bidders for Larvik Pigment pigment, substance that imparts color to other materials. In paint, the pigment is a powdered substance which, when mixed in the liquid vehicle, imparts color to a painted surface. continue, and an agreement is anticipated soon. Exploration The programme for the 2000-2001 year has been approved, maintaining the commitment of prior years in contrast to the majority of resource companies which have reduced spending and disbanded their teams. This provides Normandy with many opportunities. Exploration, while a high risk activity is, if successful, a principal way to increase shareholder value. Normandy has, accordingly, maintained a strong greenfields budget component at 38 percent, with the balance allocated to advanced projects, near-mine and resource definition. Hedging Normandy-managed companies delivered into maturing contracts. No new or replacement contracts were written, thereby reducing the hedge book a further 578,000 ounces in the quarter. Current committed hedging totals 10.5 million ounces at a net realisable $565 per ounce. The former Great Central component was restructured to achieve a significant increase to the overall hedge book gold price participation in 2000-2001, with 44 percent of all maturities now fully participating in rising gold prices. Finance The operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. result, to be released on 30 August 2000, is forecast to be an improvement on last year, before abnormals. Robert Champion de Crespigny Chairman 19 July 2000 Discussion on operations, ... Gold Attributable production was 30 percent above last quarter, reflecting increased contributions from Tanami, Pajingo, Jundee and Kalgoorlie. Total cash cost was 5.1 percent lower at $297 per ounce (US$178/oz). The realised cash gold price of $513 per ounce (after hedge fees) exceeded the average spot price for the quarter by $38 per ounce. Including the deferred hedge gain, the net gold price achieved was $562 per ounce.
Attributable Gold Production
periods ended 3 mths. 12 mths.
30 June '00 30 June '00
('000oz) ('000oz)
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Yandal 171.7 494.4
Kalgoorlie 98.6 392.7
Tanami 83.9 268.8
Mt Leyshon 53.7 216.1
Pajingo 34.9 97.3
TVX Normandy 50.4 192.4
Others 51.3 311.1
Total 544.5 1,972.8
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Attributable Realised Price *
periods ended 3 mths. 12 mths.
30 June '00 30 June '00
($/oz) ($/oz)
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Yandal 524 537
Kalgoorlie 641 635
Tanami 568 576
Mt Leyshon 539 542
Pajingo 641 635
TVX Normandy 503 462
Others 550 553
Average 562 563
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* (including deferred hedge gain)
Detailed Excel spread sheet at web site
Attributable Total Cash Cost
periods ended 3 mths. 12 mths.
30 June '00 30 June '00
($/oz) ($/oz)
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Yandal 322 311
Kalgoorlie 321 340
Tanami 301 321
Mt Leyshon 289 283
Pajingo 126 161
TVX Normandy 244 219
Others 333 332
Average 297 303
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Australia At Yandal Operations, Jundee gold production exceeded the previous two quarters, with throughput and recovery higher despite a planned shutdown shut·down n. A cessation of operations or activity, as at a factory. shutdown Noun the closing of a factory, shop, or other business Verb shut down . Nimary mill achieved record throughput, with additional feed sourced from low grade stockpiles. Underground development advanced ahead of plan, with additional ore development and access progressing toward Hughes and Nim3 orebodies. At Wiluna,recovery was lower due to additional treatment of partially oxidised Adj. 1. oxidised - combined with or having undergone a chemical reaction with oxygen; "the oxidized form of iodine" oxidized stockpiles. Plant improvements are expected to increase recoveries next quarter and further cost reductions are anticipated. At 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. , production was mainly sourced from Central Shoot until late in June when a backfill back·fill n. Material used to refill an excavated area. tr.v. back·filled, back·fill·ing, back·fills To refill (an excavated area) with such material. barricade wall failure caused suspension of operations. Rectification rectification /rec·ti·fi·ca·tion/ (rek?ti-fi-ka´shun) 1. the act of making straight, pure, or correct. 2. redistillation of a liquid to purify it. continued on the Discovery Shoot crown pillar pillar, freestanding columnar supporting member. It is a general term, little used as an exact architectural definition except as applied to an upright support in the medieval styles, consisting of an assemblage of juxtaposed shafts and moldings; unlike the column, , with production planned next quarter. At McClure, open pit mining commenced, with initial waste stripping completed. Underground operations Underground Operations is a Toronto-based independent punk rock record label. Operated by Mark Spicoluk, former Closet Monster member, this label is one of the most cutting edge independent labels in Canada. were hampered by delays in mining equipment deliveries. At Kalgoorlie Operations, owner-mining progressed, with improved scheduling and dispatch A dispatch or dispatches can refer to:
or froth flotation Most widely used process for extracting many minerals from their ores. The method separates and concentrates ores by altering their surfaces so that they are either repelled or attracted by water. circuit commenced on schedule at period end, which should lead to improved recovery. Mt Charlotte ore throughput was restricted due to crusher availability, leading to a higher total cash cost per ounce. Mine life expectation currently remains March 2001. At Boddington, production was similar but costs were adversely affected by higher waste movement and accounting charges for stockpile stock·pile n. A supply stored for future use, usually carefully accrued and maintained. tr.v. stock·piled, stock·pil·ing, stock·piles To accumulate and maintain a supply of for future use. drawdowns. The current oxide reserve is expected to be depleted de·plete tr.v. de·plet·ed, de·plet·ing, de·pletes To decrease the fullness of; use up or empty out. [Latin d in mid-2001. Options to extend mine life to bridge the period to an expansion commissioning continue to be reviewed. At Tanami Operations, full production was achieved in May following reopening Reopening Treasury offerings of additional amounts of outstanding issues, rather than an entirely new issue. A reopened issue will always have the same maturity date, CUSIP number, and interest rate as the original issue. of the Tanami Road and re-establishment of normal fuel deliveries. Gold production was 35 percent higher, average grade improved 23 percent and recovery 1.7 percent reflecting processing of an increased proportion of higher grade underground ore. Total cash cost was 8 percent lower, attributable to higher grade and recovery and a new mining contract offsetting continuing higher diesel fuel costs. Callie achieved its targeted annualised mining rate of 1.5Mtpa at quarter end. The 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. contractor completed the second stage of the circuit upgrade, which is now producing the required 2.5Mtpa for the treatment plant. A seven-day plant shutdown is scheduled for July, to allow mill repair and maintenance, conveyor belt conveyor belt One of various devices that provide mechanized movement of material, as in a factory. Conveyor belts are used in industrial applications and also on large farms, in warehousing and freight-handling, and in movement of raw materials. replacements and an ore bin reline reline /re·line/ (re-lin´) to resurface the tissue side of a denture with new base material in order to achieve a more accurate fit. . A $5.5 million upgrade of the gold handling circuit and installation of automated au·to·mate v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. process controls is scheduled for completion late in the December quarter. Site works commenced for the backfill plant, and a larger 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 fan was installed at surface to facilitate current production rates during summer. Build-own-operate power stations will be constructed at Dead Bullock bullock a mature castrated male cattle destined for meat production or draft. Soak and The Granites to replace existing facilities, reducing the cost of power, with completion expected in the December quarter. The trial of a powered trailer to road trains used for ore haulage between Dead Bullock Soak and The Granites mill, increasing capacity to 270 tonnes, proved successful. development & exploration, ... At Mt Leyshon, gold production was the second highest on record, primarily due to better than expected porphyry Porphyry, Greek scholar Porphyry (pôr`fĭrē), c.232–c.304, Greek scholar and Neoplatonic philosopher. He studied rhetoric under Cassius Longinus and philosophy under Plotinus. ore grades Ore grade is a measure that describes the concentration of a valuable natural material (such as metals or minerals) in its surrounding ore. Ore grade is used to assess the economic feasibility of a mining operation: the cost of extracting a natural material from its ore is directly and improved recovery due to the processing of optimal ore blends. Production next quarter is forecast to be lower, with throughput similar and head grade returning to life-of-mine projections. Mining is scheduled to conclude in eight months, with milling to continue for a further twelve months. At Pajingo Operations, gold production was 38 percent higher than last quarter, with head grade returning to current stope stope n. An excavation in the form of steps made by the mining of ore from steeply inclined or vertical veins. tr.v. stoped, stop·ing, stopes To remove (ore) from or mine by means of a stope. grade following completion of the 70tph plant commissioning phase on lower grade material. Mill throughput increased 3.2 percent and recovery was maintained at 97 percent. Mine movement declined 4.2 percent contrary to expectations, and the contractor increased mining fleet and personnel levels at period end to ensure future production matched mill throughput. International At Martha, 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 of the upgraded crusher, conveyor Conveyor A horizontal, inclined, declined, or vertical machine for moving or transporting bulk materials, packages, or objects in a path predetermined by the design of the device and having points of loading and discharge fixed or selective. and treatment plant facilities continued. Mill throughput increased 8.2 percent and gold production 25 percent, influenced by average grade 18 percent higher. Next quarter will see a continuation of upgrade optimisation activities, with focus on increased mill throughput and reduced crushing and conveying costs. TVX TVx Target Vertex TVX Transmission Valid Timer (FDDI) TVX Valid Transmission Normandy Americas attributable production was 50,387 ounces at a total cash cost of $244 per ounce. At Paracatu (Brazil), mill throughput was similar despite harder ore and heavy rains. The mining schedule is currently being reviewed to minimise ore hardness variation, to achieve optimum mill throughput. At Crixas (Brazil), throughput exceeded design and, combined with a return to budgeted grade, achieved similar production. Installation of a gravity circuit has been accelerated to later in calendar 2000 to further improve recovery. At La Coipa (Chile), mill throughput increased 7.8 percent due to the excellent performance of the pre-crushing circuit. The mine plan continues to be affected by the wall failure in the Coipa Norte pit late last year. At Musselwhite (Canada), incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. throughput resulted in record milled tonnages and record low cost of production. The partners are confident that reserves will support a mining rate of 4,000tpd, a 20 percent increase on the current rate. Any proposal to increase production is subject to renegotiation of the Musselwhite agreement. At New Brittania (Canada), grades declined to mine plan expectations, resulting in lower production. Mine production will decline going forward to 2,000tpd, but at better grades. The annual target of 100,000 ounces remains. Development Gold At Boddington, the expansion feasibility study The analysis of a problem to determine if it can be solved effectively. The operational (will it work?), economical (costs and benefits) and technical (can it be built?) aspects are part of the study. Results of the study determine whether the solution should be implemented. progressed rapidly, with completed engineering and cost studies anticipated late July leading to a full feasibility completion late in the quarter. A new resource of 19.7Moz (up 28 percent) was estimated, made up of a Measured 130Mt at 0.93g/t, an Indicated 370Mt at 0.83g/t, and an Inferred 220Mt at 0.8g/t, giving a total of 720 Mt at 0.84g/t, plus 0.11 percent copper. This increase, based on a lower cutoff grade, reflects the lower cost structure of the high pressure grinding rolls - ball mill configuration. A conservative new reserve estimate (included in the above resource), using a gold price of $425 (US$255) per ounce, and excluding any Inferred material from the pit design, comprises a Proved 125Mt at 0.94g/t, and a Probable 265Mt at 0.84g/t, totalling 390Mt at 0.87g/t (10.9 Moz), plus 0.12 percent copper. At Ity, the crushing and agglomerating plant relocation RELOCATION, Scotch law, contracts. To let again to renew a lease, is called a relocation. 2. When a tenant holds over after the expiration of his lease, with the consent of his landlord, this will amount to a relocation. and expansion to 1,700tpd was completed and commissioned, below budget and on schedule. A CIC CIC circulating immune complexes. CIC Circulating immune complexes. See Immune complexes. plant upgrade is planned later this calendar year. Gold production is expected to increase to 65,000 ounces per annum, with total cash costs declining an estimated 10 percent. The Yamfo-Sefwi (Ghana, 90 percent) feasibility study is on schedule and budget for review in August 2000, with the Environmental Impact Assessment currently under review by the authorities. At the adjacent Ntotoroso property (earning 50 percent), infill in·fill n. 1. The use of vacant land and property within a built-up area for further construction or development, especially as part of a neighborhood preservation or limited growth program. 2. drilling at Area E was completed and a feasibility study "A Feasibility Study" is an episode of the original The Outer Limits television show. It first aired on 13 April, 1964, during the first season. It was remade in 1997 as part of the revived The Outer Limits series with a minor title change. has commenced. The joint venture partner has reported an independently determined measured and indicated resource of 1.1Moz (13.2Mt at 2.62g/t at a 1g/t cutoff) within a 1,100m strike length portion of the deposit. Several production scenarios are being investigated, including a stand-alone processing plant and a joint facility, treating ores from Ntotoroso and Yamfo-Sefwi. Expenditure of US$1.5 million has been budgeted for the study which, together with additional drilling and exploration, will result in Normandy gaining a 50 percent interest. At Perama (Greece, 80 percent), submission of the Environmental Impact Assessment has been rescheduled to incorporate additional detail, following local debate of the Ministry of Environment approval of the Pre-Approval of Site Location application. Exploration Expenditure on direct interests worldwide was $26.0 million, bringing the twelve month total to $79.4 million. Gold - Australia Unusually heavy rainfall continued to impede im·pede tr.v. im·ped·ed, im·ped·ing, im·pedes To retard or obstruct the progress of. See Synonyms at hinder1. [Latin imped exploration activity in central and northern Australia The term northern Australia is generally considered to include the States and territories of Australia of Queensland and the Northern Territory. The part of Western Australia (WA) north of latitude 26° south — a definition widely used in law and State government policy . At Yandal Operations, drilling of the Nim3 - Lyons structure at Jundee intersected further high grades (2m at 55.7g/t, 1.4m at 28.9g/t and 1.7m at 43.5g/t). Intersections from the main Invicta structure included 1.1m at 91.8g/t, 2m at 24.4g/t, and 14m at 15.6g/t, with 5.4m at 97.5g/t in a 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. exploration, ... At McClure, narrow high-grade intersections confirmed continuity of the Lotus Footwall Lode at 400m depth. At Cockburn, encouraging results (2m at 14.3g/t) were recorded from drilling down-plunge of the main Calista zone. At Wiluna, drilling of the East Lode - West Lode system continued to return excellent results including 52m at 3.7g/t, 15m at 9.2g/t, 33m at 5.3g/t, and 20m at 11.7g/t. Underground drilling at Golden Age indicates potential below 19 Level (22m at 21.1g/t). At Regent REGENT. 1. A ruler, a governor. The term is usually applied to one who governs a regency, or rules in the place of another. 2. In the canon law, it signifies a master or professor of a college. Dict. du Dr. Call. h.t. 3. , 6km south of Wiluna, diamond drill intercepts included 20m at 3.4g/t, and 14m at 5.4g/t. Along strike, south of Regent, encouraging results (14m at 1.7g/t, 24m at 2.1g/t) were returned from aircore drilling beneath Lake Way. At Kalgoorlie, results from surface and underground drilling included 10m at 13.4g/t and 7m at 18.5g/t from Chaffers CHAFFERS. Anciently signified wares and merchandise; hence the word chaffering, which is yet used for buying and selling, or beating down the price of an article. The word is used in stat. 3 Ed. III. c. 4. Shaft, 52m at 3.5g/t from Australia East 3 Lode at Office Pit, 5m at 45.8g/t from 2 Lode at Morrison, and 30m at 3.6g/t from 3 Lode at Horseshoe horseshoe, narrow plate, commonly of iron or steel, shaped to fit a horse's hoof and attached to the hoof by nailing it to the inner edge of the horny wall of the hoof. . At Pajingo, intersections from Anne 1 and 2 and Janet B structures included 4.8m at 21.7g/t, 4.3m at 17.7g/t, 7.3m at 12.9g/t, and 6.1m at 14.8g/t. A modest resource has been outlined. Drilling at Vera South, about 500m below surface, returned 2.4m at 11.3g/t, 1.3m at 92.1g/t and 7.6m at 11.2g/t. The first drillhole of the season at Jandam, between Vera South and Zed along the Vera-Nancy trend, intersected 1m at 14.5g/t, 6.6m at 3.3g/t and 2.3m at 13.2g/t in a wide zone of brecciation brec·ci·ate tr.v. brec·ci·at·ed, brec·ci·at·ing, brec·ci·ates To form (rock) into breccia. brec and quartz veining vein·ing n. Distribution or arrangement of veins or veinlike markings. . Approximately 1,000m southeast of Vera South, at Zed, two holes intersected quartz veining and gold 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. in Zed Main Vein (1.7m at 33.6g/t) and Hanging Wall vein (3.6m at 24.5g/t) between 300m and 400m below surface. At Mt Leyshon, drilling of lateral extensions to the porphyry ore zone returned several intercepts including 60m at 1.9g/t, 10m at 8.0g/t, and 36m at 2.0g/t. Whilst a modest resource addition is possible, the economic potential is still to be assessed. At Callie, drilling on Wilson Shoot section 60,350E returned several intersections including 23m at 6.7g/t. Underground drilling of the Lower Blake Beds suggests increased resource potential, with several intersections including 10m at 11.7g/t (29.1g/t uncut), 16m at 10.9g/t, 33m at 12.0g/t (23.8g/t), and 51m at 6.4g/t (8.1g/t), stratigraphically above and below the typical host unit. At Groundrush, preliminary results from several diamond holes drilled for 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. purposes returned considerably better results than previous RC intervals that they twinned. These included 51m at 6.3g/t (compared with 35m at 3.8g/t) and 18m at 8.2g/t (14m at 2.7g/t). In the Ripcord rip·cord n. 1. A cord pulled to release the pack of a parachute. 2. A cord pulled to release gas from a balloon. ripcord Noun a cord pulled to open a parachute from its pack area, 3km southeast, favourable lithologies, alteration Modification; changing a thing without obliterating it. An alteration is a variation made in the language or terms of a legal document that affects the rights and obligations of the parties to it. and veining were identified in a similar structural position to Groundrush. 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. drilling outlined anomalism over a two kilometre strike length. Gold - International At Martha, three diamond drill holes were completed on the adjacent Gladstone Hill-Favona prospects (50%). At Silverton, midway Midway, island group (2 sq mi/5.2 sq km), central Pacific, c.1,150 mi (1,850 km) NW of Honolulu, comprising Sand and Eastern islands with the surrounding atoll. Discovered by Americans in 1859, Midway was annexed in 1867. A cable station was opened in 1903. between Favona and Gladstone Hill, a drillhole intersected hydrothermal hydrothermal, hydrothermic relating to the temperature effects of water, as in hot baths. breccia breccia: see conglomerate. breccia Coarse sedimentary rock consisting of angular or nearly angular fragments larger than 0.08 in. (2 mm). Breccia commonly results from processes such as landslides or geologic faulting, in which rocks are fractured. , including mineralised quartz clasts, indicating the likelihood of undisturbed un·dis·turbed adj. Not disturbed; calm. undisturbed Adjective 1. quiet and peaceful: an undisturbed village 2. veining at depth. At the Moonlight Vein (Gladstone Hill), two holes failed to add to the resource potential of this target. On the Yamfo Sefwi Belt, drilling along strike immediately south of Area E at Ntotoroso (earning 50 %) indicated modest resource extensions. Elsewhere on the Sefwi belt, reconnaissance  This article or section needs copy editing for grammar, style, cohesion, tone and/or spelling.You can assist by [ editing it] now. soil sampling outlined extensions to the Rubiso and Afrisiparum anomalies. At Golden Ridge (Kenbert, Ghana, 72%), resource estimation estimation In mathematics, use of a function or formula to derive a solution or make a prediction. Unlike approximation, it has precise connotations. In statistics, for example, it connotes the careful selection and testing of a function called an estimator. is in progress. RAB drilling along strike encountered significant anomalism to the east, with mineralisation intersected up to 1,500m away (best, 2m at 6.5g/t). Further drilling is dependent upon permitting approvals. At Tasiast (Mauritania, 100%), drilling of the main Piment zone confirmed two shoots, each about 400m long, and open at depth. Close-spaced drilling in the main shoot demonstrated continuity of high grade oxide mineralisation (including 67m at 5.1g/t from 1.5m, 62m at 5.9g/t from 2m, and 63m at 6.3g/t from surface). Resource estimation is in progress. A further 7,000km2 of tenements has been granted adjacent to the property over prospective Archaean greenstone green·stone n. Any of various altered basic igneous rocks colored green by chlorite, hornblende, or epidote. greenstone Noun NZ a type of green jade used for Maori carvings and ornaments terrain. Reconnaissance of the Tijirit (100%) and Ahmeyim (90%) permits outlined extensive zones of geochemical anomalism. In the Ity mine area (Cote d'Ivoire, 51%), drilling at Mt Ity and Mt Tontouo extended known mineralisation, with intercepts including 23m at 11.0g/t, 11m at 11.3g/t, 31m at 5.9g/t and 15m at 6.7g/t. At Sibolga (Sumatra, NAAL NAAL National Assessment of Adult Literacy NAAL North American Academy of Liturgy 90%), in the Aek Pahu area, first pass drilling was completed on the Monyet (Monkey monkey, any of a large and varied group of mammals of the primate order. The term monkey includes all primates that do not belong to the categories human, ape, or prosimian; however, monkeys do have certain common features. ) prospect. Results are being evaluated. On the Calcatreu project, Argentina (TVX Normandy Americas 100%), two drillholes on the western vein in the Nelson sector returned 0.8m at 19.6g/t gold and 8.3oz/t silver, and 2m at 18.0g/t gold and 8.8oz/t silver. At Paracatu, a drilling programme to extend resources intersected a site record 140m at 0.50g/t and, together with other results, is expected to add significantly to the resource. At Crixas, preliminary drill results from the Palmeiras target have outlined a modest, high grade resource, which is open at depth. production, costs, hedging, ...
PRODUCTION & COSTS
Equity Ore Head
Interest Treated Grade
(%) ('000t) (g/t)
----------------------------------------------------------------------
Three months to 30 June 2000
Australia
Yandal Operations (100)(2)
Jundee 771.6 3.96
Bronzewing 402.2 4.06
Wiluna 163.2 6.97
Kalgoorlie Operations (50)
Super Pit 2,796.5 2.34
Mt Charlotte 230.3 3.03
Boddington (44.44) 2,290.1 0.87
Tanami Operations (84.86) 650.5 4.99
Mt Leyshon (76.36) 1,412.5 1.76
Pajingo Operations (50) 153.9 14.56
International
Martha (New Zealand) (3) (67.06) 275.0 3.70
Ity (Cote d'Ivoire) (4, 6) (51) 66.8 4.47
TVX Normandy Americas (4, 5) (49.9)
Paracatu, Brazil (49%) 4,932.5 0.49
Crixas, Brazil (50%) 187.3 8.17
La Coipa, Chile (50%) (3) 1,542.0 0.71
Musselwhite, Canada (32%) 312.7 6.45
New Britannia, Canada (50%) 185.6 4.40
----------------------------------------------------------------------
PRODUCTION & COSTS
Gold Total Cash Total Prod.
Produced (1) Cost (2) Cost (2)
(oz) ($/oz) ($/oz)
----------------------------------------------------------------------
Three months to 30 June 2000
Australia
Yandal Operations
Jundee 91,634 279 380
Bronzewing 50,813 402 533
Wiluna 29,202 318 466
Kalgoorlie Operations
Super Pit 176,966 312 360
Mt Charlotte 20,301 400 400
Boddington 58,354 396 495
Tanami Operations 98,897 301 370
Mt Leyshon 70,385 289 348
Pajingo Operations 69,828 126 207
International
Martha (New Zealand) (3) 30,241 274 362
Ity (Cote d'Ivoire) (4, 6) 9,767 247 285
TVX Normandy Americas (4, 5)
Paracatu, Brazil (49%) 58,223 311 390
Crixas, Brazil (50%) 48,324 189 293
La Coipa, Chile (50%) 32,593 89 366
Musselwhite, Canada (32%) 62,193 261 358
New Britannia, Canada (50%) 24,174 376 491
ATTRIBUTABLE (7) 544,533 297 384
----------------------------------------------------------------------
Twelve months to 30 June 2000
ATTRIBUTABLE (7,8) 1,972,753 303 383
----------------------------------------------------------------------
----------------------------------------------------------------------
PRODUCTION & COSTS
Detailed Excel spread sheet at web site
---------------------------------------
(1) 100 percent for each operation.
(2) Great Central Mines direct & indirect interest.
100 percent direct interest from 5 April 2000.
(3) Average head grade was 3.71g/t gold and 36.62g/t silver for
30,241oz gold and 238,626oz silver for Martha; and 0.71g/t gold
and 88.73g/t silver for 32,593oz gold and 2,751,576oz silver for
La Coipa.
(4) US$ costs converted at exchange rate for June '00 quarter of
$0.5901 (31 March'99, $0.6325).
(5) Production attributable from 1 July 1999.
(6) Tonnes stacked on heaps, not under irrigation.
(7) Includes production from operations closed or divested (Kaltails,
White Devil and Big Bell).
(8) First quarter total adjusted to reflect La Coipa silver production
using by-product accounting.
ADDITIONAL GOLD INSTITUTE STANDARD DISCLOSURE Martha and La Coipa are reported using by-product by·prod·uct or by-prod·uct n. 1. Something produced in the making of something else. 2. A secondary result; a side effect. by-product Noun 1. accounting, with silver revenues deducted de·duct v. de·duct·ed, de·duct·ing, de·ducts v.tr. 1. To take away (a quantity) from another; subtract. 2. To derive by deduction; deduce. v.intr. in the calculation of total cash cost per ounce. If silver production was accounted as gold equivalent, gold total cash cost and production would be $299 per ounce and 34,562 ounces for Martha and $362 per ounce and 82,066 ounces for La Coipa.
ATTRIBUTABLE PRODUCTION COST
Gold Institute Standard
periods ended 30 June 2000 3 mths.12 mths.(1)
(unaudited) ($/oz) ($/oz)
-----------------------------------------------------------
Direct mining expenses 297 311
Stripping & mine
development adjustments 11 4
By-product credits (16) (17)
Sundry expenditure (income) (2) (2)
Cash operating cost 290 296
Royalties 7 7
Total cash cost 297 303
Depreciation 43 41
Amortisation 37 32
Mine closure 7 7
Total production cost 384 383
-----------------------------------------------------------
-----------------------------------------------------------
-----------------------------------------------------------
HEDGING POSITIONS
at 30 June 2000 ('000oz) ($/oz)
-----------------------------------------------------------
NORMANDY WHOLLY-OWNED (1)
Forward Contracts
2000-01 786 511
2001-02 827 517
2002-03 686 537
2003-10 3,597 585
Total 5,896 560
Put Options
2000-01(2) 845 491
2001-02 367 513
2002-03 293 503
2003-10 1,084 519
Total 2,589 507
Convertible Puts
2000-01 62 559
2001-02 74 558
2002-03 200 551
2003-12 2,050 578
Total 2,386 575
Call Options
2000-01 4 640
2001-02 - -
2002-03 46 550
2003-08 525 544
Total 575 545
NORMANDY MT LEYSHON LIMITED
& NORMANDY NFM LIMITED (3)
Forward Contracts
2000-01 406 542
2001-02 362 568
2002-03 294 601
2003-08 603 593
Total 1,665 577
Put Options
2000-01 140 429
2001-02 (4) 69 449
Total 209 436
Group Total 13,320 552
Group Committed 10,522 565
-----------------------------------------------------------
-----------------------------------------------------------
(1) Includes contracts relating to TVX Normandy Americas
attributable production and Yandal Operations contracts.
(2) Upside participation on 12,650 ounces capped at $535/oz.
(3) 100% of subsidiaries
(4) Upside participation on 45,000 ounces capped at $545/oz.
Note: Exercise prices are net of actual or estimated fees.
Assumes 2 percent lease rate for calculation of net prices.
Exchange rates used, A$:US$ - 0.5990 (0.6070), A$:EUR - 0.6259
(0.6337).
MARK-TO-MARKET
at 30 June 2000 $M(1)
--------------------------------------
Normandy (2) (340)
Normandy Mt Leyshon (3) (1)
Normandy NFM (3) 44
--------------------------------------
(1) Spot price at 30 June 2000, $482/oz.
(2) Wholly-owned, including TVX Normandy Americas.
(3) 100% of subsidiaries.
... & non-gold activities
GOLDEN GROVE PRODUCTION
periods ended 30 June 2000
3 mths. 12 mths.
-----------------------------------------------------------
Ore mined ('000t) 275.6 1,209.1
Ore milled ('000t) 301.4 1,208.9
Zinc grade (%) 11.0 11.0
Copper grade (%) 0.4 0.5
Lead grade (%) 1.0 0.8
Zinc concentrate (t) 58,649 228,972
Grade (%) 52.3 51.6
Contained metal (t) 30,679 118,666
Cash cost (1,2)(cent /lb) 61 57
Copper concentrate (t) 1,350 16,779
Grade (%) 10.0 14.0
Contained metal (t) 135 2,310
Silver grade (g/t) 2,327 1,453
Gold grade (g/t) 29.1 16.7
Lead concentrate (t) 5,769 12,704
Grade (%) 27.3 42.0
Contained metal (t) 1,573 5,273
Zinc sales (3)
Payable metal (t) 24,271 92,725
Est. price (4) (cent /lb) 83.6 80.2
Copper sales (3)
Payable metal (t) 2,293 7,058
Est. price (5) (cent /lb) 120 129
-----------------------------------------------------------
-----------------------------------------------------------
(1) Includes smelting, refining, freight charges and insurance,
net of by-product revenue.
(2) Copper by-product credit on zinc concentrate.
(3) Revenues on provisionally priced "open" pounds adjusted monthly,
based on then-current prices with settlement generally on average
LME price for specified future month.
(4) 53.58Mlb of payable zinc provisionally priced at US51.2cent /lb.
(5) Includes hedging benefits.
ZINC PRODUCTION COST
periods ended 30 June 2000 3 mths. 12 mths.
(unaudited) (cent /lb) (cent /lb)
-----------------------------------------------------------
Direct mining expenses 32 29
Transport & smelter charges 40 39
Mine development (3) (4)
By-product credits (11) (9)
Cash operating cost 58 55
Royalties 3 2
Total cash cost (1) 61 57
Depreciation 5 5
Amortisation 6 6
Mine closure 1 1
Total production cost (2) 73 69
-----------------------------------------------------------
-----------------------------------------------------------
(1) US37cent /lb (US34cent /lb) at period avg. exchange rate.
(2) US44cent /lb (US41cent /lb) at period avg. exchange rate.
Zinc At Golden Grove (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. , 100 percent), zinc ore production declined 6.2 percent, with continued slow extraction from Scuddles 460 Stope. However, 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. production increased 15 percent, with a higher head grade and mill throughput returning to normal levels. Zinc recovery and concentrate grade improved, continuing a positive trend which is expected to extend into next quarter. Drilling at 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. , between 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 and Scuddles, intersected 6m at 29.7% zinc, 1.9 g/t gold and 5.3oz/t silver and 11m at an estimated 16% zinc (assays awaited a·wait v. a·wait·ed, a·wait·ing, a·waits v.tr. 1. a. To wait for. See Synonyms at expect. b. ), respectively 400m below and 100m north of the high grade 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. reported last quarter. At Amity am·i·ty n. pl. am·i·ties Peaceful relations, as between nations; friendship. [Middle English amite, from Old French, from Vulgar Latin *am , below the Gossan Hill mine workings, drilling produced further significant intersections including 41m at 20.6% zinc, 3.0g/t gold, 3.8oz/t silver and 23m at 26.1% zinc, 2.3g/t gold, 2.3oz/t silver (and, 60m into the Amity zone footwall in this hole, 8m at 1.1% copper and 10.3g/t gold). Potential for associated copper mineralisation was highlighted by an intersection of 31m at 5.6% copper in the Amity zone footwall. Drilling from surface intersected 10m at 10.1% zinc and 3m at an estimated 20% zinc (assays awaited), with mineralisation also encountered in a position 60m above the Amity zone. At Scuddles, delineation drilling of Deeps North zone continued, with intersections including 11.8m at 29.6% zinc and 27.4m at 5.9% copper. Industrial Minerals Whilst Larvik Pigment achieved stronger sales, lower sales were experienced by Commercial Minerals Australia as
Cobalt At Kasese (Uganda, Banff Resources 63 percent), additional modifications to the sparge sparge tr.v. sparged, sparg·ing, sparg·es 1. To spray or sprinkle. 2. To introduce air or gas into (a liquid). n. A sprinkle. system in the bioreactor bioreactor a container in which living organisms carry out a biological reaction. tanks achieved further increases in production to 248,000lbs of metal averaging 99.7 percent purity (153,000lbs at 99.5 percent). Changes to the air supply delivery pipe work are planned for implementation in the September quarter to further improve oxygen dispersal dis·per·sal n. The act or process of dispersing or the condition of being dispersed; distribution. Noun 1. dispersal . Replacement components for the failed hydroelectric generators Hydroelectric generator A low-speed generator driven by water turbines. Hydrogenerators may have a horizontal or vertical shaft. The horizontal units are usually small with speeds of 300–1200 revolutions per minute (rpm). were installed at quarter end and tested at 93 percent of design. Subject to good rainfall in the mountains, the delivery of reliable power essential for improved plant operations is nearing completion. Robert Champion de Crespigny Chief Executive Officer 19 July 2000 ----------------------------------------------------- INVESTOR INFORMATION Stock Exchange Listings Australian Stock Exchange (Ticker Symbol NDY) Toronto Stock Exchange (Ticker Symbol NDY) Issued Capital At 30 June 2000, issued capital was 1,751,558,731 shares There are 248,537,609 listed options exercisable at $2.50 per option until 30 April 2001. Major Shareholders Westpac Custodian Nominees 16.97% National Nominees 11.39% Chase Manhattan Nominees 9.08% ANZ Nominees 8.22% Substantial Shareholders Tiger Management Corporation 11.0% Maple Brown Abbott 8.5% ADS Depositary The Bank of New York 101 Barclay Street, New York, NY 10286 Telephone +1 212 815 2204 Facsimile +1 212 571 3050 Shareholder Enquiries Matters relating to shares held, change of address, tax file number and dividends should be directed to: National Shareholder Services Pty Limited 100 Hutt Street, Adelaide 5000 South Australia, Australia Telephone +61 8 8232 0003 Facsimile +61 8 8232 0072 Share Price Movement Quarter High Low September 1999 $1.40 $0.99 December 1999 $1.45 $1.01 March 2000 $1.16 $0.82 June 2000 $0.98 $0.83 ----------------------------------------------------- ----------------------------------------------------- |
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