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PIEDMONT MINING COMPANY REPORTS SECOND QUARTER RESULTS

 PIEDMONT MINING COMPANY REPORTS SECOND QUARTER RESULTS
 CHARLOTTE, N.C., Aug. 14 /PRNewswire/ -- Piedmont Mining Company, Inc. (NASDAQ: PIED), which is engaged in exploration and production of gold in the Southeast, reported a loss of $1,511,000, or $0.10 per share, in the second quarter ended June 30, 1992, compared with a loss of $266,000, or $0.02 per share, in the second quarter of 1991. The Amax Gold Inc. (NYSE: AU) pre-exercise option payments of $2,070,000 and the option exercise payments of $1,750,000 in cash and 1,000,000 unregistered shares of Amax Gold's common stock in the second quarter resulted in an $8,069,000 deferred gain, which has not been reflected in Piedmont's income statement as a result of Piedmont's intent to fund its 37.5 percent of the Haile Mining Venture. Net sales in the second quarter were $583,000, compared with $1,443,000 in the second quarter of 1991.
 For the first half of 1992, Piedmont reported a loss of $2,097,000, or $0.14 per share, compared with a loss of $660,000 or $0.05 per share, in the first half of 1991. Net sales were $1,009,000 compared with $2,835,000 in the first half of 1991. Gold production totalled 1,917 ounces in the first half, compared with 6,803 ounces in the first half of 1991.
 The first half loss and the drop in net sales and gold production were due to the suspension of mining activities in August 1991, an $865,000 reserve for the loss booked on the sale of the Mineralite(R) business on July 31, 1992 (see below) and the deferral of the large May 1, 1992 option exercise gain.
 Piedmont's financial condition remains strong. Accounts payable were only $215,000 at June 30, 1992, and Piedmont's share of the outstanding principal balance on the note payable to MMC Holding, Inc. was $345,000 at June 30, 1992, compared with $1,172,000 at December 31, 1991. Cash and accounts receivable totalled $3,273,000 at June 30, 1992.
 On July 31, 1992 Piedmont sold certain assets associated with its Mineralite or "sericite" business back to MMC Holding, Inc. for $909,250 in cash and retained the cash and accounts receivable relating to this business which totalled approximately $218,000, net of the accounts payable. In another transaction, Piedmont also prepaid its 37.5 percent share ($330,000) of the remaining principal balance on the note payable to MMC Holding using proceeds from the sale. These transactions increased Piedmont's available cash balances by $1,069,000 and resulted in a loss of $865,000 which is reflected in the second quarter loss reported above and will be netted against the option exercise gain for tax purposes.
 The exploration program at the Haile property is now managed by a wholly-owned subsidiary of Amax Gold Inc. Numerous engineering and environmental studies are in progress. The current drilling and evaluation program is expected to continue through December. A work plan and budget of $4,490,000 has been approved for the Haile Mining Venture for 1992, of which $1,886,000 is for exploration, primarily drilling. Piedmont's 37.5 percent share of this total budget is $1,684,000. The projected 1992 payments on the note payable to MMC Holding, Inc., are included in these budget numbers and the prepayment will be credited against Piedmont's share of expenditures.
 Piedmont pioneered the resumption of gold mining in the Southeast in early 1985 at the Haile Gold Mine near Kershaw, South Carolina, employing for the first time the heap leaching process in the humid southeastern climate. Through a wholly-owned subsidiary, Piedmont is now participating with a wholly-owned subsidiary of Amax Gold Inc. in the Haile Mining Venture to further explore and evaluate and, if warranted, develop and operate a large-scale gold mine at the Haile property. Piedmont also controls six other gold exploration properties in North Carolina, including its Russell-Coggins property, where drilling to date has developed a mineral inventory of over 4,000,000 tons with an average grade of 0.051 ounces of gold per ton. Piedmont is commencing a program of soil sampling and backhoe trenching this month at the Russell-Coggins property and core drilling will commence in early October.
 CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
 (Unaudited)
 Three Months Ended Six Months Ended
 June 30 June 30
 1992 1991 1992 1991
 NET SALES $583,000 $1,443,000 $1,009,000 $2,835,000
 COST OF SALES:
 Mine operating
 costs 610,000 931,000 1,133,000 2,067,000
 Depreciation &
 amortization 155,000 398,000 340,000 785,000
 Total cost of
 sales 765,000 1,329,000 1,473,000 2,852,000
 GROSS PROFIT (LOSS)
 FROM OPERATIONS (182,000) 114,000 (464,000) (17,000)
 OTHER EXPENSES (INCOME):
 General and
 administrative 304,000 301,000 519,000 470,000
 Stock appreciation
 rights and awards 143,000 -0- 172,000 -0-
 Exploration 37,000 24,000 66,000 45,000
 Amortization of non-
 compete agreement 25,000 25,000 50,000 50,000
 Estimated loss on sale
 of sericite mining
 operations 865,000 -0- 865,000 -0-
 Other expenses
 (income) (45,000) 30,000 (39,000) 78,000
 Total other expenses
 (income) 1,329,000 380,000 1,633,000 643,000
 NET INCOME (LOSS) $(1,511,000) $ (266,000) $(2,097,000) $(660,000)
 NET INCOME (LOSS)
 PER COMMON SHARE $ (0.10) $ (0.02) $ (0.14) $ (0.05)
 CASH DIVIDENDS PER
 SHARE None None None None
 WEIGHTED AVERAGE NUMBER
 OF COMMON SHARES
 OUTSTANDING 14,563,153 14,320,562 14,479,744 14,316,933
 BALANCE SHEET DATA: At June 30,
 1992 1991
 Working Capital $2,433,000 $1,606,000
 Total Assets 14,463,000 11,431,000
 Long Term Debt, less
 Current maturities -0- 920,000
 Shareholders' Equity 4,103,000 8,239,000
 -0- 8/14/92
 /CONTACT: Thomas L. Ross, Piedmont Mining, 704-523-6866/
 (PIED AU) CO: Piedmont Mining Company; AMAX Gold, Inc. ST: North Carolina IN: MNG SU: ERN


CM-JM -- CH003 -- 9901 08/14/92 09:24 EDT
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