Normandy Mining Limited: Report On Activities For The Three Months Ended 31 December 2000.Business Editors ADELAIDE, Australia--(BUSINESS WIRE)--Jan. 17, 2001 Normandy (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 .)
PRODUCTION 565,695 ounces
Six months - 1.1 million ounces
COSTS Total cash cost $300 per ounce
Six months - $299 per ounce
FINANCE Further hedge book restructuring
and asset realisation
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$0.5545.
Board of Directors
RJ Champion de Crespigny Chairman
MS Hamson Non-Executive Director
BG McKay Non-Executive Director
JB Prescott AC Non-Executive Director
KH Spencer Non-Executive Director
B Wheelahan Non-Executive Director
Registered & Principal Office
100 Hutt Street, Adelaide 5000
South Australia, Australia
Telephone +61 8 8303 1700
Facsimile +61 8 8303 1900
PF Carr Company Secretary
Previous quarter figures bracketed in 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, 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
- 565,695 ounces (543,969oz)
- Total cash cost, $300 per ounce ($298/oz)
- Attributable gold sales, 560,752 ounces (512,659ozs) at an
average realised $563 per ounce ($542/oz)
- Margin, $263 per ounce ($244/oz)
- DEVELOPMENT
- Boddington Expansion, owner review commenced - Groundrush,
feasibility scheduled for completion June 2001 - Perama
(Greece), licensing and approvals progressing -
Yamfo-Sefwi/Area E (Ghana), feasibility completion due
January 2001
- EXPLORATION
- End of field season results in reduced activity
- Boddington, high grade quartz vein confirmed at Hovea
NON-GOLD
- GOLDEN GROVE (Zinc-Copper)
- Zinc concentrate production - 41,773 tonnes (67,862t) -
Average realised zinc price 87.7/lb
(US46.7/lb, down US5.2/lb) - Successful copper ore
commissioning - Gossan Hill, new mineralised zone
identified adjacent to Amity
- KASESE (Cobalt)
- Improved production and cathode purity
CORPORATE
- Australian Magnesium Corporation - financing progresses
- Mr. Ken Spencer appointed Non-executive Director, 1 December 2000
FINANCE
- Hedging restructure increases gold price participation
- Peruvian dispute settlement proceeds received
- Various non-core and non-gold tenement interests sold/subject to
sale agreements
- Financial results for the three months and six months to 31
December 2000 will be released 14 February 2001
Chairman's message Attributable gold production for the quarter was the highest ever at 565,695 ounces, up 4 percent. Importantly, total cash cost was maintained at $300 per ounce despite extensive scheduled maintenance at Kalgoorlie Operations, unseasonable un·sea·son·a·ble adj. 1. Not suitable to or appropriate for the season. 2. Not characteristic of the time of year: unseasonable weather. 3. Poorly timed; inopportune. rains in North Queensland North Queensland is the northern part of the state of Queensland in Australia. Queensland is a massive state, larger than most countries, and the Tropical northern part of it has been historically remote and underdeveloped, resulting in a distinctive regional character and and a continuation of high fuel prices. Production was positively influenced by high grades at Callie, a higher percentage of 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. ore at Pajingo, in line with the mine schedule, and the return to more normal operations Generally and collectively, the broad functions that a combatant commander undertakes when assigned responsibility for a given geographic or functional area. Except as otherwise qualified in certain unified command plan paragraphs that relate to particular commands, "normal operations" of 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. . High internal rate of return capital investments at Paracatu (new jigs), Crixs (Knelson gravity circuit), and La Coipa (pre-crushing circuit), contributed to the outcome. Looking forward; Mt Charlotte mine life has been extended, with improvements to mining practice recovering above-forecast remnant ore; Kalgoorlie Gidgi roaster roaster a young fowl for eating; weighs 5 to 7 lb at 6 months of age. capacity will be supplemented with the commissioning of an ultrafine grinding mill Grinding mill A machine that reduces the size of particles of raw material fed into it. The size reduction may be to facilitate removal of valuable constituents from an ore or to prepare the material for industrial use, as in preparing clay for pottery making , reducing gold in concentrate inventories; the Musselwhite mine received First Nations approval for a 10 percent increase in mining rate; Jundee Operations will develop the Elliot pit, extending the life of the Nimary plant; and Wiluna is close to commencing the first open pit at the site for five years. Each of Boddington Expansion, Yamfo-Sefwi/Area E integrated project, Perama and Groundrush feasibilities are on schedule. New proposals for Pajingo assessments/developments (Anne and Jandam) commenced. On the exploration front, interesting new results at Hovea (Boddington), Zed (Pajingo) and Hougoumont (Golden Grove
Balance Sheet Management's clearly enunciated attitude to debt is reflected in the realisation during the quarter of part of the non-cash assets from the Yanacocha settlement, with proceeds from the settlement and sale of a number of non-gold and non-core mineral tenements and resources also being directed to the programme of debt reduction. A conditional agreement, which will realise the value from a non-core investment (New Hampton New Hampton is the name of several towns in the United States:
Hedging Normandy gained from the higher Australian gold price, with prior period hedge book 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). allowing spot market sales to be achieved at prices superior to underlying contract prices. Further restructuring was initiated, with convertible put options for 2000 - 2004 swapped into uncommitted puts, increasing the ounces and percentage of the book which fully participates in any gold price increase whilst still guaranteeing a minimum price. A modest number of new contracts were entered into, at base prices above $500 per ounce, to meet specific delivery dates. The net increase, after allowing for maturing contracts, was less than 100,000 ounces. The lower period end gold price and fall in interest rates has materially improved the off balance sheet mark-to-market value of the hedge book. 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 and recently amended Australian Gold Council standard. The positions are not subject to margin calls and there are no separate foreign exchange gold-related contracts. Shareholder Communications Normandy shareholders increased by more than 1,500 in the December quarter to 61,612, a record high for the Company. This growing shareholder base is indicative of the increasing level of confidence in the business, and was the motivation for an initiative which has been implemented enabling members to receive notification of Company announcements via e-mail, concurrent with release to the Stock Exchange. Outlook A clear priority over the last year has been a rationalisation Noun 1. rationalisation - (psychiatry) a defense mechanism by which your true motivation is concealed by explaining your actions and feelings in a way that is not threatening rationalization of the business to achieve a gold focus. With the majority of initiatives successfully completed and a simplified management structure in place, the Company's ability to deliver improved margins and future consistent earnings growth is much enhanced. We can also look forward to additional benefits generated by the development of our substantial global project portfolio. (signed) 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 18 January 2001 Discussion of operations, ... Gold Attributable production was 565,695 ounces, with increased output from Tanami, Bronzewing and Pajingo offsetting lower production from Jundee and Kalgoorlie. Total cash cost was $300 per ounce (US$160/oz). The realised cash gold price of $520 per ounce (after hedge fees) exceeded the average spot price for the quarter by $15 per ounce. Including the deferred hedge gain, the net gold price achieved was $563 per ounce.
ATTRIBUTABLE PRODUCTION COST--
periods ended 31 December '00 3 mths 6 mths
(unaudited) ($/oz) ($/oz)
---------------------------------------------------------
Direct mining expenses 301 302
Stripping & mine
development adjustments 1 (1)
By-product credits (15) (14)
Sundry expenditure (income) 2 2
Cash operating cost 289 289
Royalties 11 10
Total cash cost 300 299
Depreciation 47 44
Amortisation 50 43
Mine closure 9 8
Total production cost 406 394
--------------------------------------------------------
-- Gold Institute Standard
Australia At Yandal Operations, Jundee mill throughput declined with the increasing proportion of underground ore and fresh ore from the deepening deep·en tr. & intr.v. deep·ened, deep·en·ing, deep·ens To make or become deep or deeper. Noun 1. deepening - a process of becoming deeper and more profound open pits. Open pit production was slightly higher than the previous three quarters, with average grade the second highest on record, surpassed only by last quarter. Nim 3 was the main open pit ore source (and will be for at least the next year). Nim 7 and Kestrel kestrel Any of several birds of prey (genus Falco) known for hovering while hunting. Kestrels prey on large insects, birds, and small mammals. The male is more colourful than the female. Kestrels are mainly Old World birds, but one species, the American kestrel (F. pits commenced during the quarter, while Nim 4 and Deakin pits were exhausted. A decision to develop the low grade Elliot pit, 10km from the plant site, will result in operation of the Nimary treatment plant continuing beyond June 2001. Underground, Barton Deeps production was the second highest on record, although average grade was the lowest for 15 months. Decline development advanced towards Hughes, facilitating 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 of the orebody from underground. Development is expected to intersect In a relational database, to match two files and produce a third file with records that are common in both. For example, intersecting an American file and a programmer file would yield American programmers. ore in February 2001, with stope production scheduled for early in the September quarter. Development advanced toward Nim 3, beneath Nim 3 pit, to enable underground delineation drilling and preparatory pre·par·a·to·ry adj. 1. Serving to make ready or prepare; introductory. See Synonyms at preliminary. 2. Relating to or engaged in study or training that serves as preparation for advanced education: development of the orebody. At Bronzewing, production from Central Zone approached normal levels, using cemented aggregate 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. . Extraction from 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, 400,000t mass blast was 50 percent complete, with the majority of the balance to be extracted next quarter. Open pit operations at McClure were terminated slightly ahead of schedule (and the contractor demobilised), with ore now sourced entirely from underground. Production is estimated to be approximately 60,000 ounces next quarter, as higher grade Discovery Shoot stopes Stopes , Marie Carmichael 1880-1958. British social reformer who opened England's first birth control clinic (1924) in London and later promoted family planning in east Asia. become available, and potentially 30 percent higher in the June quarter if all backfill/rockfill options are available. At Wiluna, extraction of the penultimate pe·nul·ti·mate adj. 1. Next to last. 2. Linguistics Of or relating to the penult of a word: penultimate stress. n. The next to the last. crown pillar at Bulletin commenced. Development of the Woodleigh decline continues, with orebody access expected midyear mid·year n. 1. The middle of the calendar or academic year. 2. a. An examination given in the middle of a school year. b. midyears A series of such examinations. . Recoverable reserves are estimated at 65,000 ounces at an average 6.8g/t. Mobilisation n. 1. Mobilization. Noun 1. mobilisation - act of marshaling and organizing and making ready for use or action; "mobilization of the country's economic resources" mobilization for development of the East-West pits commences next quarter. The project has been revised in the light of high fuel prices and the exchange rate and is now expected to recover 95,000 ounces at an average grade of 4.7g/t. The feasibility of an underground development based on a 3Mt resource continues. At Kalgoorlie Operations, high sulphur Sulphur, city, United States Sulphur, city (1990 pop. 20,125), Calcasieu parish, SW La.; inc. 1914. It is a trade center for an area producing natural gas, oil, and timber as well as sorghum, soybeans, cattle, and crawfish. and lower grade Super Pit ore, and substantial scheduled mill maintenance (Fimiston and Mt Charlotte mill relines and bearing replacements, elution elution /elu·tion/ (e-loo´shun) in chemistry, separation of material by washing; the process of pulverizing substances and mixing them with water in order to separate the heavier constituents, which settle out in solution, from the column replacement - all of which are expensed) resulted in lower production, with costs also adversely impacted by increased fuel costs, longer waste haul distances following completion of the Croesus pit backfill, and tighter (increased metres) grade control drilling. High gold in concentrate inventories continued, with both Gidgi roasters shut down for scheduled maintenance and modifications. Throughput improved by up to 5tph, but high sulphur levels resulted in no effective drawdown Drawdown The peak to trough decline during a specific record period of an investment or fund. It is usually quoted as the percentage between the peak to the trough. Notes: . An inventory reduction is scheduled with commissioning of the ultrafine grinding mill at month end, February 2001. Mt Charlotte circuit mill throughput declined due to the mill 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. and, with a lower average grade, resulted in lower gold production, by 15 percent, and higher costs, by 10 percent. Improved mining practices have resulted in increased remnant ore recovery, and an eight month extension of operations to November 2001. At Boddington, plant throughput returned to scheduled levels after the record rainfall of the previous quarter. The demanding mine schedule in remnant areas resulted in lower than anticipated grade, as the current operation's reserves approach estimated September 2001 depletion. development, ... At Tanami Operations, gold production was a record, with average grade improving 22 percent, reflecting processing of an increased proportion of Callie ore from higher grade stopes and a positive grade reconciliation. Total cash operating cost was 21 percent lower, attributable to higher grade and recovery, and recommencement Re`com`mence´ment n. 1. A commencement made anew. Noun 1. recommencement - beginning again resumption of open pit mining following award of the new contract. Callie mine production was the highest on record, up 21 percent (1.6Mt annualised), and grade continued to exceed schedule at 7.44g/t. Primary 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. commenced, with the first stope nearing completion. Mining of secondary stopes is scheduled to commence in September 2001. The transfer of ore production to shallower levels will facilitate planning for the optimal development of Callie Deeps. At Mt Leyshon, gold production declined 4.7 percent, a consequence of the early onset of wet season rains and wet ore. Mining is expected to finish in early February 2001, after which mill feed will be sourced from ROM and low grade stockpiles for a further 12 months. At Pajingo Operations, average grade improved in line with the mine schedule as the proportion of development ore decreased. Mine production was sourced from Nancy, Nancy North, Vera and Vera West orebodies and supplemented by low grade stockpiles which are approaching depletion. Vera South orebody development continues, with connection of the incline - decline accesses scheduled late next quarter. New development scheduled includes Vera South Deeps. Design engineering for development of the Anne and Jandam orebodies has commenced, with the capital approval submission due early next financial year. International At Martha, gold production declined in line with the production plan as ore was sourced predominantly pre·dom·i·nant adj. 1. Having greatest ascendancy, importance, influence, authority, or force. See Synonyms at dominant. 2. from lower grade areas of the extended-pit cutback cut·back n. 1. A decrease; a curtailment: "The political effects of food cutbacks could be devastating" New York Times. 2. . Cutback activity will continue for a further six months, with 80 percent of mill feed sourced from existing low grade stockpiles and overall grade forecast at 2.3g/t. The treatment plant was optimised to reflect the ongoing lower grade schedule, with a higher throughput-coarser grind-lower recovery scenario achieving the best economic return. An annualised rate approaching 1.2Mtpa is anticipated during this campaign. Options to achieve similar throughput rates Throughput rate is an obsolete term[1] in the terminology of automated chemical analysis. It may mean either:
1. ^ International Union of Pure and Applied Chemistry. "throughput rate". at the higher life-of-mine grades are being reviewed. TVX TVx Target Vertex TVX Transmission Valid Timer (FDDI) TVX Valid Transmission Normandy Americas attributable production was 51,391 ounces, similar to last quarter, at a total cash cost of $282 per ounce, (of which $11 per ounce is due to weaker currency on translation). At Paracatu, throughput was again limited by variable ore hardness, with grinding-classification process evaluation and test work continuing. However, gold production increased, with significantly higher recovery following commissioning of new jigs and primary screens in the crusher area, and operation of the fifth ball mill in closed circuit with hydrocyclones. Commissioning of a new carbon regeneration furnace furnace, enclosed space for the burning of fuel. There are many kinds of furnaces, the type depending upon the fuel and the use to which the heat produced within it is put. Most familiar are the furnaces used in the heating of buildings. reduced soluble soluble /sol·u·ble/ (sol´u-b'l) susceptible of being dissolved. sol·u·ble adj. Capable of being dissolved, especially easily dissolved. gold losses. At Crixs, mill throughput again exceeded the 720,000tpa nominal expansion rate. Although gold production was lower due to grade, recovery increased with the Knelson concentrator and table circuit recovering 45 percent of gold produced by quarter end. An unexpected increase in tailings Tailings (also known as tailings pile, tails, leach residue, or slickens[1]) are the materials left over[2] after the process of separating the valuable fraction from the worthless fraction of an ore. maintenance caused by heavy rains and implementation of the NOSA NOSA NASA Open Source Agreement NOSA National Occupational Safety Association (South Africa) NOSA National Office for Summative Assessment (for General Practice Training, University of Winchester, UK) safety programme added to costs. At La Coipa, operational flexibility improved with the installation of a second pre-crusher circuit. Higher grade ore was derived from the Ladera-Farellon pit which will 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 next quarter. Haulage trucks will be equipped with ultra-light beds to achieve 150t payloads over the next six months as the Farellon Bajo deposit is developed. At Musselwhite, gold production declined 9 percent due to operations being suspended sus·pend v. sus·pend·ed, sus·pend·ing, sus·pends v.tr. 1. To bar for a period from a privilege, office, or position, usually as a punishment: suspend a student from school. for five days. First Nations approval was received to increase the daily mining rate by 10 percent to 3,650tpd for calendar 2001. The underground 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. project, to access the deeper Phase II orebody from 475 Level to surface, continued. At New Britannia, gold production increased 10 percent, with increased throughput offsetting slightly lower grade. A new underground crusher is presently being installed at 2400 Level. Development Gold At Groundrush, 100km north-northwest of The Granites, resource infill drilling and 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. testing was completed. Lease applications, and the Mine Management Plan and Recovery Proposal have been submitted to the NT Department of Mines and Energy, and Central Land Council. Resource modelling, pit 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 , mining, haulage, grade control, contract tender preparation, haul road design and water supply establishment are in progress. The 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. is scheduled for completion in mid-year 2001. exploration, ... At Boddington, the final consolidated report of an exhaustive expansion feasibility study was completed, and a detailed owner review commenced. Government agency consultations were satisfactorily concluded, allowing preparation of final documents for submission to the Minister for Environment. Discussions commenced between the owners and the current manager which may see a change to the manager and management arrangements. These discussions are integral to the project approval and environmental approval timetables and may, as a consequence, cause deferral deferral - Waiting for quiet on the Ethernet. of the capital expenditure proposal to the Board to midyear. At Perama (Greece, 80 percent), the Environmental Impact Assessment and the Technical Study were submitted to the Department of Environment on schedule. The approvals process may take over six months and, with other licencing, could dictate that construction is unlikely before the end of 2001. At Yamfo-Sefwi (Ghana, 90 percent), the mining leases were approved and will now be presented for Presidential and Parliamentary ratification The confirmation or adoption of an act that has already been performed. A principal can, for example, ratify something that has been done on his or her behalf by another individual who assumed the authority to act in the capacity of an agent. . 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. to toll treat ore from the adjoining Area E property was completed and the 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. submitted to the Department of Environment. The integrated feasibility study is close to completion, to be followed by peer review, optimisation studies and an external independent review. Recent elections in Ghana Elections in Ghana gives information on election and election results in Ghana. An election is a process in which a vote is held to elect candidates to an office. It is the mechanism by which a democracy fills elective offices in the legislature, and sometimes the executive and resulted in a change in the Parliamentary majority and President, with both received positively in Ghana and Internationally. Exploration Expenditure on direct interests worldwide was $19.5 million. Gold - Australia At Jundee, exploration continued to focus on targets with underground development potential. Extensions to known mineralisation were indicated on the Invicta structure (4m at 21.8g/t, 8m at 33.5g/t), and Nim 1 (3m at 17.8g/t, 8m at 23.7g/t). An intersection of 8m at 393g/t from Nim3/Lyons may extend the economic pit shell to greater depth. A 1km long zone of anomalism was defined south of the Empire pit. At Wiluna, drilling continued to test the underground resource potential of East Lode, returning some encouraging intercepts (9m at 7.7g/t, 11m at 15.9g/t, 6m at 9.0g/t, 12m at 12.4g/t). South of Wiluna, broad intersections of low grade mineralisation were returned from diamond drilling Diamond Drilling is a highly specialized industry used for mineral exploration around the world. Most commonly using wireline and core bits with diamond encrusted matrix. To drill holes to max depths of twelve thousand feet, for the recovery of core used in verifying mineral at the Carroll prospect on Lake Way, with sufficient encouragement for further testing of this 4km long anomaly Abnormality or deviation. Pronounced "uh-nom-uh-lee," it is a favorite word among computer people when complex systems produce output that is inexplicable. See software conflict and anomaly detection. . At KCGM KCGM Kalgoorlie Consolidated Gold Mines Pty Ltd , drilling returned some narrow high grade intercepts, including 4m at 26.3g/t (Paringa Pillar), 4m at 85.0g/t (Oroya North) and 6m at 28.0g/t (Stores Cutback). At Boddington, further drilling on the new zone of shallow mineralisation at Hovea returned some additional high grade intercepts. Check fire assaying is in progress. The resource potential is being assessed and could lead to partial exploitation of near-surface material in the next six months. At Callie, on the Kerril South target, wedge drillholes on Section 60,450E returned 59m at 3.2g/t (DBD DBD DNA binding Domain (nuclear receptors) DBD Database Design DBD Day-By-Day DBD Database Description dBd Decibels (dipole antenna) DBD Death Before Dishonor (gaming clan) 413D3), and 11m at 8.6g/t plus 24m at 13.3g/t (DBD413D4). Visible gold was noted in two parent holes and three wedges completed on Sections 60,000E and 61,000E. Assay results are awaited. At Pajingo, drilling returned additional ore grade 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 intercepts at Jandam (7m at 8.0g/t, 1.4m at 64.5g/t) but largely served to close off the V1 and V2 veins at depth. Preliminary estimates indicate a substantial addition to the resource inventory. Further results from Zed included some high grade zones (1.5m at 11.8g/t, 5.5m at 9.3g/t and 2.4m at 36.6g/t, 2.5m at 19.5g/t and 0.5m at 923g/t), but the spatial relationship of the multiple vein sets remains to be established. Drilling at Janine-Debbie, west of the Vera-Nancy trend, intersected multiple quartz veins with a best result of 14m at 6.7g/t. Gold - International At Ity, drilling at Mont Ity continued to expand the mineralised zones, at depths of less than 100m. Intersections included 32m at 10.4g/t from 8.5m, 17m at 15.7g/t from 8m, 42m at 9.1g/t from 8m, 35m at 7.7g/t from 12m, and 42m at 13.3g/t from 14m. Mineralisation remains open to the northeast. At Yamfo-Sefwi (Ghana 90%), exploration between Kenyase and Yamfo downgraded the Rubiso geochemical anomaly. 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. results are awaited for the Bisi and Afrisiparum anomalies. There was no further deep drilling at Area E. At Golden Ridge (Kenbert, Ghana, 72%), stream sediment sediment, mineral or organic particles that are deposited by the action of wind, water, or glacial ice. These sediments can eventually form sedimentary rocks (see rock). sampling in the district indicated substantial gold anomalism, outlining two zones 10km - 20km long, one located in a geological setting similar to Golden Ridge. At Tasiast (Mauritania 100%), an economic review of the resource continues. RAB drilling commenced at Ahmeyim-Tijirit, targeting a 10km2 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 veins. At Musselwhite, underground drilling returned further significant intersections, including 22m at 7.7g/t (S Zone) and 9m at 11.4g/t (PQ Limb). At Crixs, further intersections were made on the Palmeiras vein (6m at 10.1g/t; 1m at 68.2g/t), with some indication that the mineralised shoot is widening at depth. A deep drilling programme is in progress on the Mina III deposit. At Calcatreu (Argentina, TVX Normandy 100%), epithermal veining vein·ing n. Distribution or arrangement of veins or veinlike markings. in the Nelson-Vein 49 sectors is now known to extend over a strike length of 2.2km. Trenching yielded moderate widths and grades in several locations, within broad zones of anomalism, including 6m at 5.8g/t, 7m at 4.1g/t, 10m at 2.7g/t and 8m at 3.4g/t. production, costs, hedging, ...
PRODUCTION, COSTS & SALES
period ended 31 December 2000
Equity Ore Head Gold Total Total Gold Real- Total
Interest Treated Grade Prod- Cash Prodn Sold ised Hedged
(%) ('000t)(g/t) uced (1) Cost Cost (2) Price Price(3)
(oz) ($/oz) ($/oz) (oz) ($/oz) $/oz)
------------------------------------------------------------------------
Jundee (100) 667.4 4.58 92,691 271 408 95,428 532 532
Bronze
-wing (100) 509.0 3.46 54,643 370 549 54,243 532 532
Wiluna (100) 197.3 5.69 29,770 349 613 28,489 532 532
Kalgoorlie
Super
Pit (50) 2,974.0 2.15 182,364 339 389 90,044 500 650
Mt
Charlotte(50) 325.9 2.89 27,049 378 378 14,195 500 650
Bodding
-ton (44.44) 2,273.8 0.87 57,015 359 436 24,765 500 650
Tanami
Operat
-ions (87.45) 600.5 6.32 116,438 255 325 101,977 544 544
Mt
Leys
-hon (76.36) 1,410.2 1.66 67,874 321 402 51,827 488 488
Pajingo
Operat
-ions (50) 154.5 12.47 59,390 163 245 30,693 500 650
Martha
(New
Zealand)
(4) (67.06) 279.5 2.62 21,849 368 495 14,238 516 516
Ity
(Cte d'
Ivoire)
(5, 6) (51) 109.4 6.15 17,947 220 263 7,610 466 466
TVX
Normandy
Americas
(5) (49.9)
Paracatu
(Brazil) (49) 4,784.8 0.46 57,070 346 419 13,692 548 548
Crixs
(Brazil) (50) 184.0 8.22 46,589 228 336 9,533 536 536
La Coipa
(Chile)
(4) (50) 1,532.7 0.96 39,679 150 443 7,416 534 534
Musselwhite
(Canada) (32) 298.5 6.22 57,396 321 426 9,787 536 536
New Britannia
(Canada) (50) 194.3 4.65 27,046 389 505 6,815 536 536
ATTRIBUTABLE 565,695 300 406 560,752 520 563
Six months to 31
December 2000 1,109,664 299 394 1,073,411 511 553
---------------------------------------------------------------------
HEDGING POSITIONS
at 31 December 2000
-----------------------------------------------------
NORMANDY WHOLLY-OWNED
Forward Sales ('000oz) ($/oz)(1)
2000-01 695 515
2001-02 823 518
2002-03 751 542
2003-04 872 557
2004-10 2,875 591
Total 6,016 562
Put Options Purchased
2000-01(2) 291 498
2001-02 333 525
2002-03 213 522
2003-04 149 522
2004-10 711 534
Total 1,697 524
Call Options Sold
2000-01 - -
2001-02 - -
2002-03 46 550
2003-04 156 559
2004-10 369 538
Total 571 545
Convertible Options Purchased
2000-01 - -
2001-02 - -
2002-03 - -
2003-04 - -
2004-10 1,886 558
Total 1,886 558
TVX NORMANDY AMERICAS
Forward Sales ('000oz) (US$/oz)(1)
2004-10 175 453
Total 175 453
Put Options Purchased
2000-01(2) 65 290
2001-02 133 285
2002-03 129 281
2003-04 130 275
2004-10 346 314
Total 803 296
NORMANDY MT LEYSHON LIMITED
& NORMANDY NFM LIMITED (3)
Forward Sales ('000oz) ($/oz)(1)
2000-01 228 539
2001-02 492 555
2002-03 359 592
2003-04 236 584
2004-08 367 601
Total 1,682 575
Put Options Purchased
2000-01 16 494
2001-02 (4) 45 489
Total 61 490
-----------------------------------------
Total A$
Contracts (5, 6) 11,913 556
Total US$
Contracts (5, 6) 978 324
Committed
A$ Contracts 10,155 562
Committed
US$ Contracts 175 453
-----------------------------------------
PRODUCTION & COSTS (above)
--------------------------
(Detailed Excel spread sheet at web site)
(1) 100 percent for each operation.
(2) Normandy share.
(3) Includes deferred hedging.
(4) Martha and La Coipa are reported using by-product accounting,
with silver revenues credited in the calculation of total cash cost
per ounce. Average silver head grade was 24.7g/t for Martha
(154,853ozs) and 92.6g/t for La Coipa (2,926,044ozs). If silver
production was reported as gold equivalent, gold total cash cost and
production would be $383/oz 24,478ozs) and $349/oz (92,124ozs)
respectively.
(5) US$ costs converted at exchange rate for December
2000 quarter of $0.5325 (30 September '00, $0.5754).
(6) Tonnes stacked on heaps, not under irrigation.
HEDGING POSITIONS (opposite)
--------------------------
(Australian Gold Council standard)
(1) Exercise prices are net of lease fees fixed for an average 116
days at 1.1%, and assumed to be 2% for the remaining term.
(2) Upside participation on 6,250ozs capped at $559/oz.
(3) 100% of subsidiaries.
(4) Upside participation on 45,000ozs capped at $545/oz.
(5) Margin calls do not apply to any contracts.
(6) There are no separate foreign exchange contracts
relating to the gold hedging.
Deferred income from hedge close-outs to be brought to the income
statement:
($M)
2000-01 48.4
2001-02 84.8
2002-03 56.4
2003-04 48.6
2004-10 61.6
Total 299.8
The hedge book mark-to-market value is:
($M)(i)
Normandy (ii) (104)
Normandy Mt Leyshon (iii) 4
Normandy NFM (iii) 56
(i) Spot price at 31 December 2000, $487/oz.
(ii) Wholly-owned, including TVX Normandy Americas.
(iii) 100 percent of subsidiaries.
... & non-gold activities
GOLDEN GROVE
periods ended 31 December '00 3 mths. 6 mths.
----------------------------------------------------
Ore mined ('000t) 355.5 651.3
Zinc ore milled ('000t) 254.3 543.4
Grade (%) 9.9 11.9
Copper ore milled ('000t) 43.8 43.8
Grade (%) 5.7 5.7
Zinc concentrate (t) 41,773 109,635
Grade (%) 53.1 53.2
Copper LPM conc. (t) 8,978 8,978
Grade (%) 25.2 25.2
Copper HPM conc. (t) 723 2,565
Copper grade (%) 12.4 14.1
Silver grade (g/t) 2,181 1,602
Gold grade (g/t) 25.4 17.2
Lead concentrate (t) 3,589 11,219
Grade (%) 31.8 29.9
Zinc sales (1)
Payable metal (t) 29,205 48,832
Est. price (2) (cents/lb) 87.7 88.7
Copper sales (1)
Payable metal (t) 1,126 2,228
Est. price (3) (cents/lb) 153 146
---------------------------------------------------
(1) Revenues on provisionally priced "open" pounds adjusted
monthly, based on then-current prices with settlement generally on
average LME price for specified future month.
(2) 29.67Mlb of payable zinc provisionally priced
at US47.9/lb.
(3) Includes hedging benefits.
ZINC PRODUCTION COST
periods ended 31 December '00 3 mths. 6 mths.
(unaudited) (cents/lb) (cents/lb)
-------------------------------------------------------
Direct mining expenses 34 29
Transport & smelter charges 39 42
Mine development (4) (4)
By-product credits (9) (10)
Cash operating cost 60 57
Royalties 3 3
Total cash cost (1) 63 60
Depreciation 5 4
Amortisation 9 8
Mine closure 1 1
Total production cost (2) 78 73
-------------------------------------------------------
(1) US33/lb (US35/lb) at period average exchange rate.
(2) US41/lb (US41/lb) at period average exchange rate.
NOTE:
Excludes costs associated with the copper campaign. Copper
campaign costs were estimated at total cash cost 121/lb and total
production cost 145/lb.
Production 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), total zinc and copper ore production improved 20 percent, with high availability Also called "RAS" (reliability, availability, serviceability) or "fault resilient," it refers to a multiprocessing system that can quickly recover from a failure. There may be a minute or two of downtime while one system switches over to another, but processing will continue. of the SupraTruck and MT5000 trial haul units, and commissioning of the remote-controlled drill for oversize o·ver·size n. 1. A size that is larger than usual. 2. An oversize article or object. adj. o·ver·size also o·ver·sized Larger in size than usual or necessary. Adj. 1. breakage. The first copper campaign was completed since treatment plant expansion, with 8,978t of 25.2 percent low precious metal (LPM (Lines Per Minute) The number of lines a printer can print or a scanner can scan in a minute. lpm - lines per minute ) copper concentrate produced. Shipment is scheduled in the March 2001 quarter. Copper campaigns are scheduled in all future quarters, including approximately 200,000t at 3.9 percent copper in the March quarter to produce an estimated 28,000t of LPM copper concentrate. A similar 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. of 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. is also forecast. Drilling continued 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 gos·san n. An exposed, oxidized portion of a mineral vein, especially a rust-colored outcrop of iron ore. [Cornish gossen, from g Hill workings), successfully extending and improving definition of the mineralised zone, and allowing the calculation of a high confidence resource estimate to commence. Significant intersections included 12m at 12.5% zinc, 1.3g/t gold, 105g/t silver; 12m at 12.4% zinc, 1.0g/t gold, 59g/t silver; 9m at 20.8% zinc, 1.0g/t gold, 259g/t silver; and 25m at 7.9% copper. Two mineralised intercepts (5m at 3.7% zinc, 0.3g/t gold, 20g/t silver; 46m at 4.0% copper, 0.4g/t gold, 31g/t silver) were made in a new position, Hougoumont, approximately 300m north of Amity and 400m below 'A' Copper. Underground drilling of Scuddles Deeps extended the limits of known mineralisation. Significant intersections included 14m at 22.5% zinc, 3.8% lead; 12m at 22.5% zinc, 2.0% lead; and 12m at 27.0% zinc, 2.1% lead. Cobalt At Kasese (Uganda, Banff Resources 63 percent), production was 293,000lbs, a 26 percent increase, as improved operating procedures in the cell house returned metal in circuit to normal levels. Purity improved to 99.8 percent. Evaluation of changes 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 continued, although delayed by failure of a critical electric motor. 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 operated continuously, supplying reliable power to the plant. The approaching dry season will necessitate ne·ces·si·tate tr.v. ne·ces·si·tat·ed, ne·ces·si·tat·ing, ne·ces·si·tates 1. To make necessary or unavoidable. 2. To require or compel. power draw from 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 .
(signed)
Robert Champion de Crespigny
Chief Executive
18 January 2001
INVESTOR INFORMATION
Stock Exchange Listings
Australian Stock Exchange (Ticker Symbol NDY)
Toronto Stock Exchange (Ticker Symbol NDY)
ADS Depositary
The Bank of New York
101 Barclay Street, New York, NY 10286
Telephone +1 212 815 2204
Facsimile +1 212 571 3050
Issued Capital
At 31 December 2000, issued capital was 1,765,249,020 ordinary
shares. There are 248,537,609 listed options exercisable at $2.50 per
option until 30 April 2001.
Shareholders
At 31 December 2000, there were 61,612 shareholders in the
Company.
Major Shareholders
Westpac Custodian Nominees 15.3%
National Nominees 14.7%
Chase Manhattan Nominees 7.1%
ANZ Nominees 6.7%
Substantial Shareholders
Tiger Management Corporation 11.0%
Maple Brown Abbott 8.5%
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
E-Mail shareregistry@normandy.com.au
Share Price Movement
Quarter High Low
March 2000 $1.16 $0.82
June 2000 $0.98 $0.83
September 2000 $1.13 $0.89
December 2000 $1.03 $0.89
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