Normandy Mining Limited: Report On Activities For The Three Months Ended 30 September 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)--Oct. 25, 2000 Normandy Normandy (nôr`məndē), Fr. Normandie (nôrmäNdē`), region and former province, NW France, bordering on the English Channel. 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 .) -------------------------------------------------------------------- NET PROFIT $30.8M (US$16.7M) (unaudited) -------------------------------------------------------------------- PRODUCTION 543,969 ounces at $298 per ounce -------------------------------------------------------------------- EXPLORATION Continued success at Pajingo, Callie and Golden Grove -------------------------------------------------------------------- CORPORATE Settlement reached on Peruvian assets -------------------------------------------------------------------- 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 other than where specified. For convenience, some key financial figures have been translated at A$1.00 = US$0.5436. Enquiries concerning this report may be directed to: C G Jackson Jackson. 1 City (1990 pop. 37,446), seat of Jackson co., S Mich., on the Grand River; inc. 1857. It is an industrial and commercial center in a farm region. , Group Executive - Corporate 100 Hutt HUTT Hull-To-Torrent Transmitter Street, Adelaide Adelaide, empress consort of Holy Roman Emperor Otto I Adelaide (ăd`əlād) or Adelheid (ä`dĕlhīt), c. 5000 South Australia, Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. Telephone: +61 8 8303 1703 Facsimile: +61 8 8303 1994 -------------------------------------------------------------------- This report (with additional information) and previous reports available at web site: http://www.normandy.com.au -------------------------------------------------------------------- -------------------------------------------------------------------- Board of Directors RJ Champion de Crespigny Chairman MS Hamson Non-Executive Director A non-executive director (NED, also NXD) or outside director is a member of the board of directors of a company who does not form part of the executive management team. He or she is not an employee of the company or affiliated with it in any other way. BG McKay Mc·Kay , Claude 1890-1948. Jamaican-born American writer who figured prominently in the Harlem Renaissance of the 1920s. His works include collections of poetry, such as Constab Ballads (1912), and novels, including Home to Harlem (1928). Non-Executive Director JB Prescott Prescott, town, Canada Prescott (prĕs`kət), town (1991 pop. 4,512), SE Ont., Canada, on the St. Lawrence River, opposite Ogdensburg, N.Y. Fort Wellington, built during the War of 1812, is now a military museum. 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 CARR Carrier CARR Customer Acceptance Readiness Review CARR Carrollton Railroad CARR Corrective Action Request and Report CARR City Area Rural Rides (Texas) CARR Configuration Audit Readiness Review CARR Customer Acceptance Requirements Review Company Secretary -------------------------------------------------------------------- -------------------------------------------------------------------- Previous quarter figures in brackets brackets: see punctuation. and italics italics npl → italique m italics npl → Kursivschrift f -------------------------------------------------------------------- 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 Aus·tral·a·sia 1. The islands of the southern Pacific Ocean, including Australia, New Zealand, and New Guinea. 2. Broadly, all of Oceania. Aus 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
FINANCE
- Net profit
- $30.8 million (unaudited)
- Hedging
- no new or replacement commitments
- Final dividend
- $61.3 million, paid 20 September 2000
GOLD
- ATTRIBUTABLE PRODUCTION
- 543,969 ounces (544,533oz)
- Total cash cost, $298 per ounce ($297/oz)
- Attributable gold sales, 512,659 ounces (553,562oz) at an average
realised $542 per ounce ($562/oz)
- Margin, $244 per ounce ($265/oz)
- Increased WA Royalty and fuel prices add to costs
- DEVELOPMENT
- Boddington Expansion, feasibility study completion imminent
- Groundrush, resource upgraded, feasibility proceeding
- Perama (Greece), licensing process continues
- Yamfo-Sefwi/Area E (Ghana), integrated feasibility proceeding
- EXPLORATION
- Pajingo, new high grade shoot at Jandam, strong intersection at
Zed
- Callie, new mineralised positions outlined
- Yamfo-Sefwi (Ghana), strong mineralisation in deep drillholes
- Paracatu (Brazil), resource addition estimated at 2Moz
NON-GOLD
- ZINC (Golden Grove)
- Record zinc concentrate production
- 67,862 tonnes (58,649t)
- Average realised price 90.2 (US51.9) cents per pound
(US50.1(cent)/lb)
- Amity and Catalpa, further high grade intersections
- COBALT (Kasese)
- Plant modifications and testing progresses
CORPORATE
- PERUVIAN ASSETS
- estimated $164 million realised, following conclusion of disputes
and disposal of BRGM-related associate companies
- INDUSTRIAL MINERALS
- Larvik Pigment Group sale completed, proceeds due next quarter
- AUSTRALIAN MAGNESIUM CORPORATION
- restructure approved, financing progresses
Chairman's message Consolidated profit after tax and outside equity interests for the three months ended 30 September September: see month. 2000, was $30.8 million. The operating contribution from the core gold business was $138.8 million.
The profit was achieved despite:
- a lower realised gold price (by $20 per ounce compared with last
quarter, and by $21 per ounce compared to last year, as maturing
contracts decline);
- no contribution from Normandy Industrial Minerals, sold effective
30 June 2000;
- a buildup of gold in the Gidgi roaster, Kalgoorlie Operations
(Normandy attributable share 27,500 ounces); and
- the shipment of only two-thirds of Golden Grove's record zinc
production.
Gold production, at 2.17 million ounces annualised, was achieved
at a total cash cost sub-$300 per ounce for the second consecutive
quarter. This was pleasing, given:
- the second increase in the Western Australian gold royalty (to 2.5
percent) from 1 July 2000 (equivalent to $3 per ounce across the
Group total);
- the ongoing higher fuel price (an additional $1 per ounce); -
higher equivalent Australian dollar total cash costs for overseas
production due to the weaker currency; and
- major scheduled maintenance at a number of operations.
The quarter was one of production success, continued exploration success at Pajingo and Golden Grove
Production, Development & Exploration
On the production front:
- owner-mining at the Kalgoorlie Super Pit achieved an 88.5Mtpa
movement rate (up 16 percent) and the Fimiston flotation upgrade
was successfully commissioned;
- Jundee achieved an annualised rate above 400,000 ounces; and
- Golden Grove produced a record concentrate output (67,900t) at its
highest ever grade.
Internally generated development projects with forecast total cash costs below the current average, progressed in line with schedule expectations. The Groundrush resource increased 53 percent to over 700,000 ounces, importantly with an increase in average grade to 5.6g/t. The Boddington Places called Boddington include:
1. , incorporating the adjacent Area E resource, and the Perama Perama (Greek: Πέραμα) is a port city and a suburb of Athens that lies on the southwest edge of the Aegaleo mountains. It creates the western terminus of the Port of Piraeus (Athens' port)and there is also a port that provides ferry services to licencing and approval process is proceeding towards completion next financial year. Exploration results from Pajingo and Golden Grove continue to be highly encouraging. At Pajingo, a new zone of gold-silver mineralisation has been outlined at Jandam, adjacent to Vera South. At Zed, 800m along strike, two significant intersections were recorded. At Golden Grove, further high grade 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. intersections were recorded from the 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 zone 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, including the thickest encountered to date. High gold grades were also intersected in the Amity 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. . Additional drilling is scheduled to develop a mine plan. Drilling is also planned to test for orebody repetitions elsewhere at Gossan Hill, and also between Amity and the 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. discovery some 800m to the north along strike. Balance Sheet A satisfactory conclusion to long-standing long-stand·ing adj. Of long duration or existence: a long-standing friendship. long-standing Adjective existing for a long time disputes over Yanacocha Yanacocha is a gold mine in northern Peru, considered one of the biggest and most profitable in the world producing over US$7 billion worth of gold to date. The 251-square kilometer open pit mine is situated about 30 kilometers (14km straight line) north of Cajamarca, in high and Cedimin asset ownership was reached with Newmont and Buenaventura Buenaventura (bwā'nävānt  `rä), city (1993 pop. 194,727), W Colombia, a port on the Pacific Ocean. .
BRGM BRGM Bureau de Recherches Géologiques et Minières (France) , Normandy and related Normandy-associate companies will receive in
aggregate an additional US$80 million settlement. Simultaneously,
Normandy disposed dis·pose v. dis·posed, dis·pos·ing, dis·pos·es v.tr. 1. To place or set in a particular order; arrange. 2. of shares in the associates, simplifying the corporate structure further and realising an estimated $164 million. The Peruvian settlement proceeds, the Larvik Larvik (lär`vēk), city (1995 pop. 39,011), Vestfold co., SE Norway, at the head of the Larviksfjord (an arm of the Skagerrak); chartered 1671. It is a shipping and whaling center. Tanum Church, a medieval stone structure, is nearby. sale proceeds and the realisation of excess gold and zinc inventories will be directed towards debt reduction and working capital for ongoing project development and exploration. Hedging Normandy-managed companies delivered into maturing contracts, with no new or replacement contracts written, thereby reducing the hedge book by a further 531,000 ounces in the quarter. Normandy reports hedging positions in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with the new Australian New Australian Noun Austral an Australian name for a recent immigrant, esp. one from Europe Gold Council standard. The book is not subject to margin calls. Outlook The current weak Australian dollar has resulted in a sustained gold price of over $500 per ounce ounce, in zoology ounce, in zoology: see leopard. ounce, unit of measurement ounce: see English units of measurement. for the first time in 24 months. Normandy, as previously advised, has progressively restructured its hedge book to achieve increased participation in rising gold prices, and is today benefiting from that strategy. Robert Champion de Crespigny Robert Champion de Crespigny AC is a high-profile Australian businessman. Champion de Crespigny was educated at Melbourne Grammar School and the University of Melbourne, from which he graduated with a Bachelor of Commerce degree. Chairman 25 October October: see month. 2000 Discussion on operations, ... development & exploration, ... Gold Attributable production was similar to last quarter at 543,969 ounces, with lower production 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. and Pajingo largely offset by increased output from Jundee and 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. . Total cash cost was
steady at $298 per ounce (US$162/oz).The realised cash gold price of $502 per ounce (after hedge fees) exceeded the average spot price for the quarter by $21 per ounce. Including the deferred hedge gain, the net gold price achieved was $542 per ounce.
Attributable Gold Production
periods ended 3 mths. 12 mths.
30 Sept. '00 30 June '00
('000oz) ('000oz)
--------------------------------------------------------------------
Yandal 170 494
Kalgoorlie 113 393
Tanami 81 269
Mt Leyshon 54 216
Pajingo 25 97
TVX Normandy 52 193
Others 49 311
Total 544 1,973
--------------------------------------------------------------------
--------------------------------------------------------------------
Attributable Realised Price
periods ended 3 mths. 12 mths.
30 Sept. '00 30 June '00
($/oz) ($/oz)
--------------------------------------------------------------------
Yandal 518 537
Kalgoorlie 613 635
Tanami 539 576
Mt Leyshon 487 542
Pajingo 613 635
TVX Normandy 501 462
Others 563 553
Average 542 563
--------------------------------------------------------------------
--------------------------------------------------------------------
Including deferred hedge gain.
Detailed Excel spread sheet at web site
Attributable Total Cash Cost
periods ended 3 mths. 12 mths.
30 Sept. '00 30 June '00
($/oz) ($/oz)
--------------------------------------------------------------------
Yandal 302 311
Kalgoorlie 305 340
Tanami 322 321
Mt Leyshon 296 290
Pajingo 172 161
TVX Normandy 279 219
Others 315 332
Average 298 304
--------------------------------------------------------------------
--------------------------------------------------------------------
Australia At Yandal Operations, Jundee gold production was the second highest on record and cash cost the lowest achieved. The open pit mining rate declined, reflecting an increase in hard, fresh ore as the pits deepen deep·en tr. & intr.v. deep·ened, deep·en·ing, deep·ens To make or become deep or deeper. deepen Verb to make or become deeper or more intense Verb 1. , although compensated by higher grades. The main production source was Nim 3 pit, with five other pits mined. Underground, Barton BARTON, old English law. The demesne land of a manor; a farm distinct from the mansion. Deeps continued to produce at a rate comparable to previous quarters. Decline development continued towards Hughes and Nim 3 orebodies, the next source of production. Mill throughput was lower with the relatively hard feed. Recovery was maintained at 93.9 percent despite the increasing proportion of fresh ore. At Bronzewing, restricted Central Zone operations recommenced in August. A mass blast of 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, (approaching 400,000t) was completed and production commenced toward period end. Ore 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. replenishment replenishment the addition of an appropriate quantity of properly prepared solution containing the correct concentration of chemicals to the developer solutions used in radiography. commenced. McClure Mc·Clure , Samuel Sidney 1857-1949. Irish-born American editor and publisher who founded McClure's Magazine (1893), an influential muckraking periodical. operations continued normally. At Wiluna, processing of stockpiled primary ore (higher tonnage TONNAGE, mar. law. The capacity of a ship or vessel. 2. The act of congress of March 2, 1799, s. 64, 1 Story's L. U. S. 630, directs that to ascertain the tonnage of any ship or vessel, the surveyor, &c. , but lower grade) improved recoveries and unit costs as forecast. Pillar recovery at Bulletin commences next quarter. At Kalgoorlie Operations, the Super Pit owner-mining rate increased 16 percent to a record annualised 88.5Mt (243,000tpd). Record mill throughput, annualised at 13.6Mt (12 percent higher), combined with a 4.4 percent improvement in recovery following commissioning of the sulphide sulphide: see sulfide. flotation flotation 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. plant, contributed to increased production and a lower cash cost. Seasonal climatic conditions limited roaster roaster a young fowl for eating; weighs 5 to 7 lb at 6 months of age. operations, resulting in a buildup build·up also build-up n. 1. The act or process of amassing or increasing: a military buildup; a buildup of tension during the strike. 2. of gold in concentrate estimated at 55,000 ounces. Mt Charlotte production and costs improved, reflecting the successful firing of the C4 crown pillar. At Boddington, record rainfall and a difficult mining schedule contributed to lower ore production and plant throughput. Operating costs operating costs npl → gastos mpl operacionales declined, with lower waste mining as 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. pits approach 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 . At Tanami Operations, mill throughput was lower, with further contract 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 underperformance and a six-day mill maintenance 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 . Gold production, although 5 percent lower, was the second highest on record. Total cash operating cost increased due to the higher proportion of underground ore milled, higher unit costs and mill repair and maintenance costs. 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." 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. backfilling An early technique used with XTs and ATs that let DESQview run more programs concurrently. Motherboard chips were disabled and EMS chips were assigned the low memory addresses. will commence in October using a temporary facility. At Mt Leyshon, gold production was higher than last quarter, with average grade 7 percent above forecast due to a revised and accelerated pit development programme bringing higher grades forward. Mill throughput was a record, largely due to optimal blending and slightly reduced ore hardness. At Pajingo Operations, average grade declined, with development ore comprising 39 percent of feed in accordance with the mine plan. Mine production was 133,576t, sourced from Vera South, Nancy and Nancy North. International At 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. , grade declined in line with the mine plan. Focus continues on increasing mill throughput and reducing milling and crushing/conveying costs. TVX TVx Target Vertex TVX Transmission Valid Timer (FDDI) TVX Valid Transmission Normandy Americas attributable production was 51,922 ounces at a higher total cash cost of $279 per ounce, (of which $6 per ounce due to weaker currency on translation). At Paracatu, throughput was limited by harder ore, variable grind 1. GRIND - GRaphical INterpretive Display. A graphics input language for the PDP-9. ["GRIND: A Language and Translator for Computer Graphics", A.P. Conn, Dartmouth, June 1969]. 2. and thickener thick·en tr. & intr.v. thick·ened, thick·en·ing, thick·ens 1. To make or become thick or thicker: Thicken the sauce with cornstarch. The crowd thickened near the doorway. 2. overloading In programming, the ability to use the same name for more than one variable or procedure, requiring the compiler to differentiate them based on context. (language) overloading - (Or "Operator overloading"). . Recovery was lower (due in part to poor carbon activation activation /ac·ti·va·tion/ (ak?ti-va´shun) 1. the act or process of rendering active. 2. the transformation of a proenzyme into an active enzyme by the action of a kinase or another enzyme. 3. ) and cash costs higher. Ore blending is expected to improve performance. At Crixas, increased throughput resulted in record gold production. The Knelson gravity units and tables were installed, with increased recovery expected once fully commissioned. At La Coipa, the pit wall failure at Coipa Norte last year continues to influence mine scheduling. Groundwater flooding restricted access to higher grade benches in the Ladera-Farellon pit. At Musselwhite, gold production was a record, with a continual improvement Continual Improvement (also called incremental improvement or staircase improvement) is a process or productivity improvement tool intended to have a stable and consistent growth and improvement of all the segments of a process or processes. in throughput complementing a programme to minimise stope dilution Dilution A reduction in earnings per share of common stock that occurs through the issuance of additional shares or the conversion of convertible securities. Notes: Adding to the number of shares outstanding reduces the value of holdings of existing shareholders. . At New Brittania, an unscheduled unscheduled Adjective not planned or intended Adj. 1. unscheduled - not scheduled or not on a regular schedule; "an unscheduled meeting"; "the plane made an unscheduled stop at Gander for refueling" four-day mill maintenance shutdown affected throughput. Development Gold At Boddington, all material aspects of 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. were completed, including the engineering and cost study. The final consolidated report is in the completion stage. Material reports and advance drafts of key sections of the report have been circulated to the owners, allowing review of conclusions and recommendations. Community and government agency consultation was expanded as project impacts were more closely defined, with reassuring re·as·sure tr.v. re·as·sured, re·as·sur·ing, re·as·sures 1. To restore confidence to. 2. To assure again. 3. To reinsure. responses following significant efforts to minimise adverse impacts. The cost of the study is in line with budget. At Wiluna, the East-West Lode open pit project study is nearing completion, with only final pit design detail outstanding. Additional drilling is scheduled for the conceptual underground design. At Perama (Greece, 80 percent), a Technical 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 Study was completed, and the data incorporated into the Environmental Impact Assessment document, to be presented to the Ministry of Environment in late October. A subsequent Technical Study will go to Government in November. The approval process and receipt of an Intervention A procedure used in a lawsuit by which the court allows a third person who was not originally a party to the suit to become a party, by joining with either the plaintiff or the defendant. Licence (permit to commence construction) is expected to be complete next financial year. At Yamfo-Sefwi (Ghana, 90 percent), the feasibility study evaluating increased throughput to incorporate the adjoining Area E (Normandy earning 50 percent) continued. A review of the planned SAG (1) A momentary drop in voltage from the power source. Contrast with spike. (2) (SAG) (SQL Access Group) See CLI. mill flowsheet will be included, as Area E ore characteristics are different. An arrangement to toll treat Area E ore has been agreed with the JV partner. 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. approval for Yamfo-Sefwi was received. Exploration Expenditure on direct interests worldwide was $20.5 million. Gold - Australia At Yandal Operations, Jundee exploration focused on targets with potential to support underground production. Nim 3 was tested to 600m depth, with 3m at 18.6g/t intersected in the Nim 3-Lyons Structure. Wedge wedge, piece of wood or metal thick at one end and sloping to a thin edge at the other; an application of the inclined plane. It is employed in separating two objects from each other or in separating one part of a solid object from an adjoining part, as in splitting holes testing Hughes Shoot down-plunge intersected 3m at 25.8g/t, 16m at 7.2g/t and 5m at 8.0g/t. Intersections on extensions of the Invicta Structure included 2m at 110g/t, 5m at 16.9g/t, 2m at 32.7g/t, 2m at 35.7g/t and 2m at 30.8g/t. One of three holes on the Menzies Structure intersected 5m at 36.0g/t. At Bronzewing, underground drilling of Lotus Deeps Footwall Lode at McClure continued to return high grades over narrow widths, including 3m at 97.4g/t. At Wiluna, a hole testing underground potential north of West Lode towards Calvert Lode intersected 13m at 5.2g/t, 11m at 4.0g/t, and 14m at 4.3g/t. Previously untested hanging-wall structures returned 2m at 13.4g/t, 3m at 40.3g/t and 8m at 11.8g/t. The first deep hole testing East Lode intersected 9m at 8.2g/t, 400m below surface. The gold mineralised trend identified beneath Lake Way, south of Wiluna, has been extended to 4km. At Boddington, a new zone of shallow mineralisation was discovered at Hovea and resource potential is being assessed. High grade intersections to date over 100m strike length include 2m at 115g/t, 14m at 5.0g/t, and 28m at 25.4g/t. This zone may link with an intercept intercept in mathematical terms the points at which a curve cuts the two axes of a graph. of 5m at 42.6g/t, 600m north. At Callie, drilling of the Kerril South target was completed to Section 60,450mE. Results include 17m at 6.8g/t (60,200mE), 11m at 11.5g/t (60,300mE), 17m at 7.2g/t and 41m at 5.2g/t (60,400mE), 20m at 6.0g/t (60,450mE). The intersections are in a position originally thought to be unmineralised. One hole also intersected 19m at 7.9g/t in Wilson Shoot, north of Kerril Fault. None of this mineralisation is included in reserves, and none east of Section 60,400E is included in resources. At Pajingo, a new high grade shoot is taking shape at Jandam, with intercepts including 8m at 38.4g/t (V1), 16m at 7.6g/t (V2), 6m at 52.9g/t (V1), 15m at 23.1g/t (V1) and 11m at 51.4g/t (V2). At Zed, 800m southeast along strike, intersections included 4m at 24.5g/t and 35m at 18.3g/t. Much of the structure between Jandam and Zed is yet to be drilled at depth. Gold - International At Maronia North (40km north of Perama) rock chip samples have returned encouraging values, with soil sampling defining a zone at least 200m by 800m. At Ity, drilling returned some good intercepts (48m at 9.8g/t from 52m, 21m at 4.7g/t from 98m) and a moderate resource addition is indicated, with drillout proceeding to establish reserves. At Yamfo Sefwi, deeper drilling at Area E intersected strong mineralisation in two holes 100m apart along strike (60m at 4.8g/t from 311m, including 23m at 8.4g/t) and 21m at 4.7g/t from 422m (including 8m at 7.6g/t). Widely-spaced scout 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 and soil sampling defined anomalies at Rubiso and Bisi, between Kenyase and Yamfo. At Golden Ridge (Kenbert, Ghana, 72%), resource modelling and permitting is progressing. A Prospecting Licence was granted over 124km(2) of prospective ground west of Golden Ridge. At Tasiast (Mauritania, 100%), new estimates did not significantly upgrade the resource, and an economic review is in progress. On the Ahmeyim-Tijirit Project, a 10km(2) zone of sporadic sporadic /spo·rad·ic/ (spo-rad´ic) occurring singly; widely scattered; not epidemic or endemic. spo·rad·ic or spo·rad·i·cal adj. 1. Occurring at irregular intervals. 2. gold-bearing 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. veining vein·ing n. Distribution or arrangement of veins or veinlike markings. was defined, and will be followed-up with RAB drilling. At Paracatu, extension drilling has defined additional resources, with initial estimates up to 2 million ounces. At Calcatreu (Argentina, TVX Normandy 100%), trenching extended known veining in the Nelson sector by 1,000m to the south.
production, costs, hedging, ...
PRODUCTION & COSTS
period ended 30 September 2000 Equity Ore Head
Interest Treated Grade
(%) ('000t) (g/t)
--------------------------------------------------------------------
Jundee (100) 672 5.08
Bronzewing (100) 268 4.42
Wiluna (100) 191 5.79
Kalgoorlie Super Pit (50) 3,043 2.25
Mt Charlotte (50) 367 3.02
Boddington (44.44) 1,965 0.94
Tanami Operations (87.45) 604 5.18
Mt Leyshon (76.36) 1,502 1.66
Pajingo Operations (50) 162 10.01
Martha (New Zealand) (2) (67.06) 273 3.35
Ity (Cote d'Ivoire) (3,4) (51) 103 5.70
TVX Normandy Americas (3) (49.9)
Paracatu (Brazil) (49) 5,052 0.48
Crixas (Brazil) (50) 184 8.90
La Coipa (Chile) (2) (50) 1,502 0.94
Musselwhite (Canada) (32) 315 6.47
New Britannia (Canada) (50) 173 4.74
period ended 30 September 2000 Gold Total Cash Total Prod.
Produced (1) Cost Cost
(oz) ($/oz) ($/oz)
--------------------------------------------------------------------
Jundee 103,006 235 320
Bronzewing 37,072 447 620
Wiluna 29,752 351 505
Kalgoorlie Super Pit 194,869 299 346
Mt Charlotte 31,858 343 343
Boddington 54,543 353 419
Tanami Operations 94,286 322 400
Mt Leyshon 71,192 296 353
Pajingo Operations 50,067 172 256
Martha (New Zealand) (2) 27,545 263 345
Ity (Cote d'Ivoire) (3,4) 11,329 322 378
TVX Normandy Americas (3)
Paracatu (Brazil) 54,816 338 398
Crixas (Brazil) 49,902 187 278
La Coipa (Chile) (2) 39,548 260 520
Musselwhite (Canada) 63,140 270 375
New Britannia (Canada) 24,525 384 512
ATTRIBUTABLE 543,969 298 382
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ATTRIBUTABLE PRODUCTION COST
periods ended 3 mths. 12 mths.(1)
(unaudited) Sept. '00 June '00
($/oz) ($/oz)
--------------------------------------------------------------------
Direct mining expenses 303 311
Stripping & mine
development adjustments (4) 4
By-product credits (13) (16)
Sundry expenditure (income) 2 (2)
Cash operating cost 288 297
Royalties 10 7
Total cash cost 298 304
Depreciation 41 41
Amortisation 36 31
Mine closure 7 7
Total production cost 382 383
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Gold Institute Standard 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 credited in the calculation of total cash cost per ounce. If silver production was reported as gold equivalent, gold total cash cost and production would be $287 per ounce and 30,999 ounces for Martha and $370 per ounce and 81,363 ounces for La Coipa.
PRODUCTION & COSTS (opposite) (1) 100 percent for each operation.
(2) Average head grade was 3.35g/t gold and 32.9g/t silver for
27,545oz gold and 194,634oz silver for Martha and 0.94g/t gold
and 73.4g/t silver for 39,548oz gold and 2,351,998oz silver for
La Coipa.
(3) US$ costs converted at exchange rate for September '00 quarter of
$0.5754 (30 June '00, $0.5901).
(4) Tonnes stacked on heaps, not under irrigation.
Detailed Excel spread sheet at web site.
HEDGING POSITIONS (opposite)
Disclosure in accordance with Australian Gold Council Standard
(1) Exercise prices are net of lease fees fixed for an average of
130 days at a rate of 0.95%, and assumed to be 2% for the
remaining term.
(2) Upside participation on 10,550 ounces capped at $546/oz.
(3) 100% of subsidiaries.
(4) Upside participation on 45,000 ounces capped at $545/oz.
(5) Margin calls do not apply to any contracts.
Deferred income from prior hedge close-outs to be brought to the
income statement in future periods:
($M)
2000-01 72.4
2001-02 84.8
2002-03 56.4
2003-04 48.6
2004-10 61.6
Total 323.8
The present value of the hedge book, mark-to-market is:
$M)(i)
Normandy (ii) (459)
Normandy Mt Leyshon (iii) (3)
Normandy NFM (iii) 10
(i) Spot price at 30 September 2000, $505/oz.
(ii) Wholly-owned, including TVX Normandy Americas.
(iii) 100 percent of subsidiaries.
HEDGING POSITIONS
at 30 September 2000
--------------------------------------------------
NORMANDY WHOLLY-OWNED
Forward Sales ('000oz) ($/oz)(1)
2000-01 817 513
2001-02 823 517
2002-03 686 537
2003-04 787 550
2004-10 2,635 583
Total 5,748 554
Put Options Purchased
2000-01(2) 382 493
2001-02 234 537
2002-03 164 536
2003-04 - -
2004-10 607 532
Total 1,387 523
Call Options Sold
2000-01 4 640
2001-02 - -
2002-03 46 550
2003-04 156 559
2004-10 369 538
Total 575 545
Convertible Options Purchased
2000-01 39 559
2001-02 74 558
2002-03 200 552
2003-04 160 553
2004-10 1,890 570
Total 2,363 566
TVX NORMANDY AMERICAS
Forward Sales ('000oz) (US$/oz)(1)
2004-10 175 452
Total 175 452
Put Options Purchased
2000-01(2) 97 291
2001-02 133 284
2002-03 129 281
2003-04 130 275
2004-10 346 314
Total 835 295
NORMANDY MT LEYSHON LIMITED
& NORMANDY NFM LIMITED (3)
Forward Sales ('000oz) ($/oz)(1)
2000-01 304 541
2001-02 362 568
2002-03 294 600
2003-04 236 582
2004-08 367 598
Total 1,563 578
Put Options Purchased
2000-01 74 444
2001-02 (4) 69 449
Total 143 446
--------------------------------------------------
Total A$ Contracts (5) 11,779 554
Total US$ Contracts (5) 1,010 323
Committed A$ Contracts 10,249 560
Committed US$ Contracts 175 452
finance ... The operating contribution of $155.0 million was a 26 percent improvement on the corresponding quarter. Profit after tax, at $30.8 million, was 4 percent lower, reflecting significantly higher depreciation and amortisation Noun 1. amortisation - the reduction of the value of an asset by prorating its cost over a period of years amortization reduction, step-down, diminution, decrease - the act of decreasing or reducing something 2. , by $28.5 million, with the inclusion of TVX Normandy Americas, a more conservatively stated Yandal Operations, and increased interest charges. The balance sheet reflects the initial consolidation of 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. 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, particularly the inclusion of debt of $110.3 million (which takes net debt to net debt plus equity to 57.2 percent); the increase in development projects (MagMetal); a reduction in investments; and an increase in outside equity interests. Cash levels were lower at $191.2 million, reflecting the payment of $54.4 million in cash as dividends and an increase in equity in Normandy NFM NFM Nebraska Furniture Mart NFM Network File Management NFM Network Fault Management NFM No Further Message NFM Near Field Monitor NFM National Firearms Museum (Fairfax, Virginia) NFM NATOPS Flight Manual NFM Northern Fowl Mite Limited.
SIMPLIFIED FINANCIAL RESULTS
unaudited, periods ended 3 mths. 12 mths.
30 Sept. '00 30 June '00
($M) ($M)
--------------------------------------------------------------------
Gold (1) 138.8 488.2
Non-Gold (2) 16.2 74.8
Total operations 155.0 563.0
Amortisation & depreciation (62.3) (176.7)
Mine completion provisions & costs (2.7) (28.5)
Exploration provisions & write-offs (13.1) (55.1)
Financing (net) (20.0) (41.7)
Corporate costs, administration & other (17.6) (63.6)
Profit before abnormals & tax 39.3 197.4
Income tax (expense)/benefit (8.7) (41.4)
Outside equity interests 0.2 (17.6)
Profit after tax & outside
equity interests 30.8 138.4
Abnormal items, net - (420.7)
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(1) Gold Contributions
Yandal Operations (i) 36.9 52.4
Kalgoorlie Operations 27.4 114.2
Boddington 6.4 27.8
Tanami Operations 20.5 82.4
Mt Leyshon 14.1 73.4
Pajingo Operations 12.1 45.5
Martha 5.8 14.2
Ity 1.6 7.3
TVX Normandy Americas 13.9 47.6
Discontinued businesses (ii) 0.1 23.4
(2) Non-Gold Contributions
Golden Grove 14.6 49.8
AMC (iii) 1.6 1.4
Discontinued businesses (iv) - 23.6
(i) 100% - includes 27.8% equity accounted share in prior year.
(ii) Big Bell, Kaltails and Tennant Creek.
(iii) 62.5% - 36.9% in prior year.
(iv) Commercial Minerals, Omya Southern and Larvik Pigment.
NOTE
12 months to 30 June 2000 restated. Contributions and costs for
associated companies (TVX Normandy Americas, QMC, BRGM Perou)
reallocated. Yandal Gold (27.8 percent interest) not reallocated as
subsequent fair value adjustments render comparisons meaningless.
SIMPLIFIED CONSOLIDATED BALANCE SHEET
unaudited, as at
30 Sept. '00 30 June '00
($M) ($M)
--------------------------------------------------------------------
Cash, bank bills & gold bullion 191.2 245.4
Receivables 380.5 401.3
Inventories 147.1 129.6
Investments 516.0 585.6
Exploration expenditure 142.3 129.0
Development projects 468.7 310.7
Property, plant & equipment 1,415.6 1,382.2
Other 562.7 442.4
Total assets 3,824.1 3,626.2
Creditors & provisions 1,005.9 1,088.0
Borrowings 1,694.8 1,552.2
Net assets (1) 1,123.4 986.0
Share capital & reserves 1,210.0 1,200.5
Retained profits (215.2) (251.9)
Outside equity interest 128.6 37.4
Total shareholders' equity 1,123.4 986.0
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--------------------------------------------------------------------
(1) Current assets $593.1M, current liabilities $467.7M
SIMPLIFIED CASH FLOWS
unaudited, for the periods 3 mths. 12 mths.
30 Sept. '00 30 June '00
($M) ($M)
--------------------------------------------------------------------
Net cash flow from mining operations 98.6 311.9
Expenditure on mining property & plant (49.1) (248.5)
Exploration expenditure (23.7) (58.5)
Proceeds/(payments) for investments - 228.8
Movement in borrowings & receivables 20.8 (260.1)
Dividends paid (54.4) (80.0)
Administration, interest, tax (49.2) (96.2)
Net increase/(decrease) in cash held (57.0) (202.6)
Cash at beginning of period 245.4 439.9
Exchange rate effect on cash held in
foreign currencies at beginning
of period 2.8 8.1
Cash at period end 191.2 245.4
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--------------------------------------------------------------------
RETAINED EARNINGS
unaudited, for the periods 3 mths. 12 mths.
30 Sept. '00 30 June '00
($M) ($M)
--------------------------------------------------------------------
Retained earnings at beginning
of period (251.9) 124.4
Net income/(loss) 30.8 (282.3)
Dividends (1) 5.9 (94.0)
Retained earnings at period end (215.2) (251.9)
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(1) Adjustment in current quarter for over provision arising from
shareholders electing to take shares under the parent entity
Share Investment Plan.
... & non-gold activities
GOLDEN GROVE PRODUCTION
periods ended 3 mths. 12 mths.
Sept. '00 June '00
--------------------------------------------------------------------
Ore mined ('000t) 295.7 1,209.1
Ore milled ('000t) 289.1 1,208.9
Zinc grade (%) 13.7 11.0
Copper grade (%) 0.5 0.5
Lead grade (%) 1.2 0.8
Zinc concentrate (t) 67,862 228,972
Grade (%) 53.2 51.6
Contained metal (t) 36,116 118,666
Cash cost (1,2) ((cent)/lb) 60 57
Copper concentrate (t) 1,842 16,779
Grade (%) 14.8 14.0
Contained metal (t) 273 2,310
Silver grade (g/t) 1,375 1,453
Gold grade (g/t) 14.0 16.7
Lead concentrate (t) 7,630 12,704
Grade (%) 28.9 27.3
Contained metal (t) 2,207 5,273
Zinc sales (3)
Payable metal (t) 19,627 92,725
Est. price (4) ((cent)/lb) 90.2 80.2
Copper sales (3)
Payable metal (t) 1,102 3,761
Est. price (5) ((cent)/lb) 127 129
--------------------------------------------------------------------
--------------------------------------------------------------------
(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) 14.66Mlb of payable zinc provisionally priced at US55.5(cent)/lb.
(5) Includes hedging benefits.
ZINC PRODUCTION COST
periods ended 3 mths. 12 mths.
(unaudited) Sept. '00 June '00
((cent)/lb) ((cent)/lb)
--------------------------------------------------------------------
Direct mining expenses 27 29
Transport & smelter charges 44 39
Mine development (2) (4)
By-product credits (12) (9)
Cash operating cost 57 55
Royalties 3 2
Total cash cost (1) 60 57
Depreciation 4 5
Amortisation 6 6
Mine closure 1 1
Total production cost (2) 71 69
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(1) US35(cent)/lb (US34(cent)/lb) at period avg. exchange rate.
(2) US41(cent)/lb (US41(cent)/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 rose 7.3 percent, with improved extraction rates at Scuddles and Gossan Hill. Mill throughput was lower as a consequence of a seven-day August shutdown. Milled grade rose as a result of campaigning high grade Gossan Hill ore, producing a record 67,862t of concentrate, up 16 percent. Importantly, concentrate grade improved again, to 53.2 percent, continuing the trend. Recovery improved to 90.9 percent. 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 is expected to fall to an estimated 42,000t in the December quarter, with the scheduled processing of lower grade ore from the Gossan Hill C Zinc stope, and a 45,000t copper campaign to produce 8,000t of copper-low precious metal concentrate. Drilling continued at Amity (below the Gossan Hill workings), extending and defining the zone of zinc mineralisation. Gold mineralisation was also intersected in pyrite-magnetite in the Amity footwall. At Catalpa (between Gossan Hill and Scuddles), results confirmed the presence of a significant mineralised system.
Significant Drill Intercepts
September quarter 2000 Zinc Gold Silver
(m) (%) (g/t) (g/t)
----------------------------------------------------
Amity
13W1 41 20.6 3.0 117
13W2 23 26.0 2.3 70
44 112 19.3 2.2 127
44W1 45 27.3 2.7 159
44W2 93 17.8 3.8 93
75 29 16.3 1.8 77
43W2 18 0.4 34.7 44
including 2 0 293 253
Catalpa
25D1 11 17.6 3.7 99
26 19 21.1 3.9 293
26D2 5 18.8 3.7 49
and 17 1.0 11.8 53
----------------------------------------------------
----------------------------------------------------
Cobalt At Kasese (Uganda, Banff Resources 63 percent), production was 233,000 pounds of cobalt averaging 99.7 percent 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. . Although similar to last quarter, metal in circuit was significantly higher at period end. Operator training has been reviewed and increased. Bioreactor bioreactor a container in which living organisms carry out a biological reaction. throughput increased steadily during the quarter. Changes to the feed delivery system and air supply delivery pipework, designed 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 and bacteria activity levels, will be evaluated over the next six months to determine effectiveness prior to any further modifications. The hydroelectric power hydroelectric power: see power, electric; water power. hydroelectric power Electricity produced from generators driven by water turbines that convert the energy in falling or fast-flowing water to mechanical energy. station has generated reliable power for the plant, and excess power has been sold to the national grid national grid Noun Brit & NZ 1. a network of high-voltage power lines linking major electric power stations 2. the arrangement of vertical and horizontal lines on an ordnance survey map continuously for the past two months. Robert Champion de Crespigny Chief Executive 25 October 2000 INVESTOR INFORMATION Stock Exchange Listings Australian Stock Exchange Australian Stock Exchange (ASX) Australia's major securities market, formed when the six state stock exchanges (Adelaide, Brisbane, Hobart, Melbourne, Perth, and Sydney stock exchanges) were merged in 1987. (Ticker Symbol Ticker Symbol An arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it selects an available ticker symbol for its securities which investors NDY) Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. (Ticker Symbol NDY) Issued Capital At 30 September 2000, issued capital was 1,765,249,020 shares There are 248,537,609 listed options Listed option An option that has been accepted for trading on an exchange. exercisable at $2.50 per option until 30 April 2001.
Major Shareholders
Westpac Custodian Nominees 16.52%
National Nominees 12.72%
Chase Manhattan Nominees 7.42%
ANZ Nominees 8.07%
Substantial Shareholders
Tiger Management Corporation 10.91%
Maple Brown Abbott 8.47%
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
December 1999 $1.45 $1.01
March 2000 $1.16 $0.82
June 2000 $0.98 $0.83
September 2000 $1.13 $0.89
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