Pan American Silver Announces Third Quarter Results For The Periods Ended September 30, 2000.Business Editors VANCOUVER Vancouver, city, Canada Vancouver, city (1991 pop. 471,844), SW British Columbia, Canada, on Burrard Inlet of the Strait of Georgia, opposite Vancouver Island and just N of the Wash. border. , BRITISH COLUMBIA--(BUSINESS WIRE)--Nov. 14, 2000 Pan Am Silver (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :PAAS)(TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :PAA.) A conference call to discuss the third quarter results will be held on Wednesday Wednesday: see week. , November November: see month. 15 at 9:00 a.m. Pacific Time (12 noon ET). To access the call, dial 416-695-5801 and refer to call number 603594. To listen to a playback Playback could mean:
Highlights * Continued record setting production at Quiruvilca mine, Peru with silver production up 18% for the first nine months of 2000 and cash costs down 20% compared with 1999. * Began construction of 4.3 million ounce ounce, in zoology ounce, in zoology: see leopard. ounce, unit of measurement ounce: see English units of measurement. per year Huaron silver mine, Peru. * Resolved suspension at Dukat project, Russia Russia, officially the Russian Federation, Rus. Rossiya, republic (2005 est. pop. 143,420,000), 6,591,100 sq mi (17,070,949 sq km). through new joint venture between Pan American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of and Russian Russian associated in some way with Russia. Russian blue a breed of cats with short, dense, silver-tipped blue-colored coat and vivid green eyes. company Polymetal Primarily used in chemistry or mining, polymetal or polymetallic refers to a substance comprised of a combination of different metals. When the substance contains only two metals the term bimetal (bimetallic . * Selected International Finance Corporation to arrange financing for 4.2 million ounce per year La Colorada La Colorada is a small town and municipality in the Mexican state of Sonora. In 2005, the population of the municipality was 1,754, with 288 living in the municipial seat.[1] Formerly known as Minas Prietas, La Colorada became a municipality on June 28, 1934. silver mine, Mexico Mexico, city, Mexico Mexico or Mexico City, Span. Ciudad de México (Méjico), city (1990 pop. 8,236,960; 1991 met. area est. 20,899,000), central Mexico, capital and largest city of Mexico. . Financial (all amounts are expressed in US dollars) Revenue of $6.9 million for the three months ended September September: see month. 30, 2000 was similar to that in the third quarter of 1999, however operating costs operating costs npl → gastos mpl operacionales were 5% lower which resulted in an $870,000 contribution from mining operations - 59% higher than the third quarter of 1999. This improvement was due to increased productivity and tighter cost control. For the nine months ended September 30, revenue was 16% higher than for the same period of 1999. Mining contribution for the nine months was $2.1 million compared to $0.3 million last year. As announced on September 18, the Company wrote-off its $37.6 million investment in the Dukat mining project in Magadan Magadan (məgədän`), city (1989 pop. 152,000), capital of Magadan region, Russian Far East, a port on the Sea of Okhotsk. It has shipyards, canning factories, and a major airport. , Russia. Although a 20% carried interest in the project is retained, Pan American will neither operate nor exercise control over the mine and, consequently, the amount and timing of any cash flow from Dukat is uncertain. Excluding the Dukat write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. , the net loss for the third quarter was $425,000 compared to a loss of $625,000 for the third quarter of 1999. Excluding the Dukat write-off, the net loss for the nine months ended September 30, 2000 was $1.9 million compared to $4.1 million for 1999. Included in the third quarter accounts are assets and liabilities related to Pan American's March 2000 purchase of a 72% interest in the Huaron mine. In September, the Company took down the first $6 million tranche Tranche One of several related securities offered at the same time. Tranches from the same offering usually have different risk, reward, and/or maturity characteristics. tranche A class of bonds. of the $12 million Huaron loan facility. Work is underway on mine rehabilitation rehabilitation: see physical therapy. , mill construction and 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. impoundment An action taken by the president in which he or she proposes not to spend all or part of a sum of money appropriated by Congress. The current rules and procedures for impoundment were created by the Congressional Budget and Impoundment Control Act of 1974 (2 U.S.C.A. , and production start-up Start-up The earliest stage of a new business venture. is planned for March 2001. The Company's interest in Huaron increased from 71.8% to 72.7% through purchase of other shareholdings. Quiruvilca Mine, Peru The third quarter at Quiruvilca continued the mine's excellent performance in the first two quarters of 2000. New records for the nine month period were set for tonnes milled (462,672 tonnes) and silver produced (2,709,869 ounces). Year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. cash and total production costs per ounce of silver produced (net of 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. credits) were $3.12 and $3.94, respectively (1999-$3.91 and $4.78). Unit operating costs at Quiruvilca continue to decline, reflecting higher mill production and results of the Company's cost reduction program. Production for the first nine months was up 17.8% from 1999 and cash costs were 20% lower than in the corresponding period in 1999. No adverse effects have been felt on the mine's operation from Peru's recent political events. Huaron Mine, Peru At the beginning of September, Pan American began reconstruction of the Huaron mine. Annual planned production of 600,000 tonnes of ore, resulting in recovery of 4.3 million ounces of silver and 18,000 tonnes of 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. in concentrate form, is expected to begin in late March, 2001. Projected capital costs are approximately $10.7 million. Forecast cash operating costs per ounce of silver produced, net of by-product credits, are $3.46 and total production costs are estimated at $3.90 per ounce. Completion of this mine will nearly double Pan American's silver production in 2001 to almost 7 million ounces and will result in cost savings and operational synergies with the Quiruvilca mine in northern Peru. Huaron has a large proven and probable reserve base and excellent potential to expand its reserves for sustained future production. The 80,000 hectare hectare (hĕk`târ, –tär), abbr. ha, unit of area in the metric system, equal to 10,000 sq m, or about 2.47 acres. Huaron land package also includes several satellite mineral occurrences and many exploration targets. A drilling program is now in progress on two of these targets. La Colorada Mine, Mexico Activities at the La Colorada project during the third quarter focussed on arranging financing for the proposed new mine, and completing an 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 program to better define existing reserves and improve mine planning. Both objectives were achieved. In mid-October n. 1. the middle part of October. Noun 1. mid-October - the middle part of October period, period of time, time period - an amount of time; "a time period of 30 years"; "hastened the period of time of his recovery"; "Picasso's blue period" , Pan American signed an agreement with the International Finance Corporation, a member of the World Bank Group, under which IFC (Internet Foundation Classes) A class library from Netscape that provides an application framework and graphical user interface (GUI) routines for Java programmers. IFC was later made part of the Java Foundation Classes (JFC). See JFC, AFC and AWT. See also ICF. will structure a plan to finance the La Colorada project. The La Colorada mine is projected to produce 4.2 million ounces of silver annually at cash costs of $2.25 per ounce of silver and total production costs of $3.53 per ounce. Several potential lenders have now visited the project and an independent audit of 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 nearly complete. Once financing is arranged, construction will begin with estimated start-up of production 10 to 12 months later. All permits are in place for mine construction. In September, Pan American successfully completed a 14 hole infill drilling program, which increased confidence in reserves from the significant new zone discovered in January, 2000. Drill results include an intersection intersection /in·ter·sec·tion/ (-sek´shun) a site at which one structure crosses another. intersection a site at which one structure crosses another. of 24 meters (true width) grading 1014 g/t silver (79 feet grading 32.6 ounces of silver per tonne tonne measure of weight or mass; 1 tonne=1000 kg. See also ton. ) in hole PIC-67, the best drill intersection to date at the project. The Company also acquired, in a Mexican Mexican named after or originating in Mexico. Mexican axolotl see ambystomamexicanum. Mexican beaded lizard (Heloderma horridum government auction, a key piece of ground to the west of the new zone. Initial exploration results indicate a high probability for additional silver resources on this new ground. Dukat Project, Russia In mid-September, the suspension of the Dukat project in Russia was resolved through an agreement with the Russian mining company Polymetal to form a new company that will combine both companies' assets at the Dukat project. Pan American will hold a 20% interest in the new company with no funding or management obligations. Polymetal will hold the remaining 80% interest, fund all ongoing expenditures and operate the project. Although Pan American will retain a material interest in the Dukat project, the Company will neither operate nor exercise control over the mine development. Management is unable to determine the amount or timing of future cash flows from the project and, as announced on September 18, decided to follow the most conservative accounting treatment possible and write-off its full carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. for Dukat in the third quarter. The Company's ongoing interest in the mine will be accounted for as cash flow is realized. Exploration Projects In Bolivia, Pan American completed a total mineral resource study on the San Vicente San Vicente (sän vēsān`tā), city (1993 pop. 28,529), central El Salvador. Among its industries are textile manufacturing and sugar milling. San Vicente is the commercial center of a region that produces coffee and sugarcane. project, which indicated 4.1 million tonnes grading 399 g/t silver and 4.72% zinc (48.3 million ounces of contained silver). (Norman Pitcher, P. Geol., Qualified Person.) Pan American is now conducting 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 on San Vicente mineralization Mineralization The process by which the body uses minerals to build bone structure. Mentioned in: Rickets mineralization, n the bioprecipitation of an inorganic substance. and has initiated a scoping study into future mine development. In Peru, a formal agreement was recently signed granting Barrick Gold Barrick Gold Corporation TSX: ABX NYSE: ABX is the largest pure gold mining company in the world, with its headquarters in Toronto, Ontario, Canada; and four regional business units (RBU's) located in Australia, Africa, North America and South America. Corp. exploration rights to certain lands held by Pan American. Barrick paid Pan American $100,000 at signing and, to maintain the agreement, will make annual cash payments of $100,000 to $200,000, a payment of $5.00 per ounce of gold reserves at completion of 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. and additional royalty payments from gold sales. Silver Markets Contrary to the expectations of many people close to the silver market, silver prices trended lower during most of the quarter with very low volatilities. However, silver demand and supply fundamentals remain very positive according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the annual briefing recently by Gold Fields Gold Fields Limited is one of the world’s largest unhedged producers of gold, providing investors with maximum leverage to the gold price. The company was formed in 1998 with the amalgamation of the gold assets of Gold Fields of South Africa Limited and Gencor Limited. Mineral Services on behalf of the Silver Institute. Industrial demand for silver is growing at double digit Noun 1. double digit - a two-digit integer; from 10 to 99 integer, whole number - any of the natural numbers (positive or negative) or zero; "an integer is a number that is not a fraction" rates, particularly in Asia within the electronics and computer sectors. In contrast, jewellery and silverware demand has declined to date in 2000, mostly due to devaluation devaluation, decreasing the value of one nation's currency relative to gold or the currencies of other nations. It is usually undertaken as a means of correcting a deficit in the balance of payments. of foreign currencies relative to the U.S. dollar. Chinese official sales appear to be much lower in 2000 than in 1999. Silver use in photography continues to climb in spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite the parallel growth in digital imaging, and it now appears that digital photography may be increasing the demand for silver film. Gold Fields now estimates that world demand for silver in 2000 will be more than 100 million ounces greater than world silver supply, which will further deplete de·plete v. 1. To use up something, such as a nutrient. 2. To empty something out, as the body of electrolytes. existing silver inventories. In much of the world, silver prices have increased considerably due to the strength of the U.S. dollar relative to local currencies. There is an almost perfect negative correlation Noun 1. negative correlation - a correlation in which large values of one variable are associated with small values of the other; the correlation coefficient is between 0 and -1 indirect correlation between silver prices and the U.S. dollar in recent years. Many analysts predict that the U.S. dollar will weaken relative to other currencies and this could result in a stronger U.S. dollar silver price. General It is important to remind our shareholders that, in spite of our great disappointment at Dukat this year, Pan American still holds proven and probable reserves of 163 million ounces of silver, and total silver reserves and resources of 656 million ounces. The Quiruvilca mine is on target to produce 3.6 million ounces of silver in 2000 and beyond. With the Huaron mine expected to begin operation in March 2001 and (subject to completion of financing) the 4.2 million ounce per year La Colorada mine scheduled to begin operation at the end of 2001, Pan American's low-cost, long-life silver production is expected to increase to 12 million ounces per year in the near future. Few other mining companies in the world have this growth profile. By 2002 Pan American should also be the purest large silver producer in the world, with about 65% of its revenues from silver. We will strive to maintain our existing full exposure to higher silver prices. While the present weak silver price and weaker mining equity markets are frustrating frus·trate tr.v. frus·trat·ed, frus·trat·ing, frus·trates 1. a. To prevent from accomplishing a purpose or fulfilling a desire; thwart: and difficult to endure, these markets are cyclical cyclical Of or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is subject to regular or irregular up-and-down movements. and we are confident that these will both turn around in the near future when we will be even better positioned to be rewarded from stronger markets. Ross Ross , Sir Ronald 1857-1932. British physician. He won a 1902 Nobel Prize for proving that malaria is transmitted to humans by the bite of the mosquito. J. Beaty, Chairman & CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board.
Third Quarter Highlights
Three Months Ended Nine Months Ended
September 30, September 30,
2000 1999 2000 1999
Financial highlights (in thousands of US dollars)
Net income (loss) $ (38,026) $ (625) $ (39,515) $ (4,059)
Earnings (loss) per
share (1.11) (0.02) (1.16) (0.14)
Mining contribution 870 549 2,109 258
EBITDA (37,365) 5 (37,572) (2,218)
Capital spending 3,282 10,997 12,116 23,942
Exploration expense 292 443 1,001 1,608
Cash and cash
equivalents 9,557 15,873 9,557 15,873
Working capital $ 8,913 $ 20,855 $ 8,913 $ 20,855
Ore Milled & Metals Produced
Tonnes milled 158,401 149,163 462,672 407,250
Silver - ounces 899,350 878,123 2,709,869 2,299,723
Zinc - tonnes 6,442 6,181 18,423 17,326
Lead - tonnes 2,346 1,985 6,546 5,251
Copper - tonnes 284 269 886 779
Realized Metal Prices (net of refining costs)
Silver - per ounce $ 4.53 $ 4.84 $ 4.65 $ 4.83
Zinc - per pound $ 0.54 $ 0.51 $ 0.52 $ 0.48
Lead - per pound $ 0.20 $ 0.23 $ 0.20 $ 0.23
Copper - per pound $ 0.75 $ 0.64 $ 0.73 $ 0.57
Cost Per Ounce (net of by-product credits)
Cash cost per ounce
of silver recovered $ 2.82 $ 3.50 $ 3.12 $ 3.91
Production per ounce
of silver recovered $ 3.66 $ 4.28 $ 3.94 $ 4.78
PAN AMERICAN SILVER CORP.
Consolidated Balance Sheets
(Unaudited - in thousands of U.S. dollars)
September 30 December 31
2000 1999
ASSETS
Current
Cash and cash equivalents $ 9,557 $ 15,873
Accounts receivable 4,207 4,699
Concentrates inventory 2,823 1,771
Supplies inventory 3,148 2,828
Prepaids and deposits 3,214 1,619
-----------------------
22,949 26,790
Property, plant and equipment, net 35,002 24,179
Resource properties 24,685 55,925
Other 937 935
-----------------------
Total Assets $ 83,573 $ 107,829
-----------------------
LIABILITIES
Current
Accounts payable $ 10,940 $ 10,028
Current portion of bank loans 3,000 -
Current portion of severance indemnity 96 96
-----------------------
14,036 10,124
Deferred income 866 866
Other liabilities 109 177
Bank loans 4,665 -
Provision for reclamation 1,371 1,030
Severance indemnity and pension liability 1,655 748
-----------------------
Total Liabilities 22,702 12,945
-----------------------
SHAREHOLDERS' EQUITY
Share capital
Authorized:
100,000,000 common shares of no par value
Issued:
December 31, 1999 - 32,460,845
common shares
September 30, 2000 - 34,381,234
common shares 119,322 113,780
Cumulative foreign exchange adjustment 75 115
Deficit (58,526) (19,011)
-----------------------
Total Shareholders' Equity 60,871 94,884
-----------------------
Total Liabilities and Shareholders'
Equity $ 83,573 $ 107,829
-----------------------
PAN AMERICAN SILVER CORP.
Consolidated Statements of Operations and Deficit
(Unaudited - in thousands of U.S. dollars,
except for per share amounts)
Nine months ended Three months ended
September 30, September 30,
2000 1999 2000 1999
Revenue $ 21,295 $ 18,340 $ 6,953 $ 6,937
Expenses
Operating 19,186 18,082 6,083 6,388
Depreciation and
amortization 1,884 1,712 642 458
Reclamation 341 316 118 114
Exploration 1,001 1,608 292 443
General and administration 1,703 1,670 561 509
Exchange loss (gain) (2) 3 (3) (6)
------------------------------------------
24,113 23,391 7,693 7,906
------------------------------------------
Net loss before
undernoted items (2,818) (5,051) (740) (969)
Write-off of resource
property (37,601) - (37,601) -
Investment income, net 904 992 315 344
------------------------------------------
Net loss for the period (39,515) (4,059) (38,026) (625)
Deficit, beginning
of period (19,011) (13,174) (20,500) (16,608)
------------------------------------------
Deficit, end of period $ (58,526) $ (17,233) $ (58,526) $ (17,233)
------------------------------------------
Loss per share $ (1.16) $ (0.14) $ (1.11) $ (0.02)
Weighted average shares
outstanding 33,987,958 28,979,669 34,309,892 29,529,627
PAN AMERICAN SILVER CORP.
Consolidated Statements of Cash Flows - Direct Method
(Unaudited - in thousands of U.S. dollars)
Nine months ended Three months ended
September 30, September 30,
2000 1999 2000 1999
Operating activities
Sales proceeds $ 22,769 $ 19,634 $ 7,778 $ 7,231
Investment, other
income and expenses 894 1,290 316 338
Products and services
produced (20,475) (18,850) (6,577) (6,232)
Exploration (1,001) (1,830) (295) (665)
General and administration (1,849) (1,727) (632) (472)
------------------------------------------
338 (1,483) 590 200
------------------------------------------
Financing activities
Shares issued for cash 2,795 32,605 2,795 10,539
Shares issue costs - (1,839) - (626)
Bank loan proceeds 5,445 - 6,055 -
------------------------------------------
8,240 30,766 8,850 9,913
------------------------------------------
Investing activities
Resource property
expenditures (8,788) (21,150) (1,153) (10,311)
Property, plant and
equipment expenditures (3,328) (2,792) (2,129) (686)
Proceeds from sale
of investments 16 40 - 4
Acquisition of subsidiary (2,792) - (2,786) -
Other (2) 28 34 (1)
------------------------------------------
(14,894) (23,874) (6,034) (10,994)
------------------------------------------
Increase (decrease) in cash
and cash equivalents for
the period (6,316) 5,409 3,406 (881)
Cash and cash equivalents,
beginning of period 15,873 10,076 6,151 16,366
------------------------------------------
Cash and cash equivalents,
end of period $ 9,557 $ 15,485 $ 9,557 $ 15,485
------------------------------------------
PAN AMERICAN SILVER CORP.
Consolidated Statements of Cash Flows - Indirect Method
(Unaudited - in thousands of U.S. dollars)
Nine months ended Three months ended
September 30, September 30,
2000 1999 2000 1999
Net loss for the period $ (39,515) $ (4,059) $ (38,026) $ (625)
Items not involving cash
Write-off of resource
Property 37,601 - 37,601 -
Depreciation and
amortization 1,884 1,712 642 458
Reclamation 341 316 118 114
Other (212) (242) (172) 175
------------------------------------------
99 (2,273) 163 122
Changes in non-cash
operating working capital 239 130 427 (583)
------------------------------------------
Cash provided (used in)
by operations 338 (2,143) 590 (461)
------------------------------------------
Financing activities
Shares issued for cash 2,795 32,605 2,795 10,539
Share issue costs - (1,839) - (626)
Bank loan proceeds 5,445 - 6,055 -
------------------------------------------
8,240 30,766 8,850 9,913
------------------------------------------
Investing activities
Resource property
expenditures (6,361) (20,766) (1,818) (10,006)
Property, plant and
equipment expenditures (3,328) (2,132) (2,129) (26)
Changes in non-cash
working capital (2,427) (369) 665 (295)
Acquisition of subsidiary (2,792) - (2,786) -
Proceeds from sale
of investments 16 25 - (4)
Other (2) 28 34 (2)
------------------------------------------
(14,894) (23,214) (6,034) (10,333)
------------------------------------------
Increase (decrease) in cash
and cash equivalents
for the period (6,316) 5,409 3,406 (881)
Cash and cash equivalents,
beginning of period 15,873 10,076 6,151 16,366
------------------------------------------
Cash and cash equivalents,
end of period $ 9,557 $ 15,485 $ 9,557 $ 15,485
------------------------------------------
Supplemental disclosures of cashflow information
Interest income
received $ 472 $ 785 $ 137 $ 235
Interest paid (Note 1) (64) (71) (52) (45)
Taxes paid $ (36) $ (58) $ (8) $ (14)
Note (1): Interest expense of $41 was capitalized during the third
quarter 2000
Supplemental disclosure of non-cash investing and financing activities
Shares issued for
property $ - $ 3,099 $ - $ -
Shares issued for
royalty 577 - 577 -
Current assets (1,589) - (1,589) -
Property, plant and
equipment (4,846) - (4,846) -
Resource property - (3,099) - -
Current liabilities 3,307 - 3,307 -
Bank loans 1,551 - 1,551 -
Pension liability 1,000 - 1,000 -
------------------------------------------
$ - $ - $ - $ -
------------------------------------------
Pan American Silver Corp. Notes to Interim Consolidated Financial Statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge as at September 30, 2000 and 1999 and for the three month and nine month periods then ended. Significant Accounting Policies and Basis of Presentation These interim consolidated financial statements are prepared 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 accounting principles generally accepted in Canada and as more fully described in the Company's annual audited consolidated financial statements as at December 31, 1999 and 1998 and for each of the years in the three year period ended December 31, 1999. These interim consolidated financial statements are expressed in United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. dollars. Mineral Properties During the quarter ended September 30, 2000 Pan American wrote off its investment in the Dukat project in Russia. The write-off amounted to $37,601,000, which includes an estimate for future costs to effect an orderly orderly /or·der·ly/ (or´der-le) an attendant in a hospital who works under the direction of a nurse. or·der·ly n. An attendant in a hospital. 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 of operations and employee severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when payments. Acquisition of Subsidiary On March 6, 2000, Pan American acquired a 72% interest in Cia Minera Huaron ("Huaron"). From March 6 until October 6 the final purchase price adjustments were determined and the purchase of Huaron was concluded. Since the October 6 closing confirmed circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or existing prior to September 30, 2000 the accounts for the three and nine months ended September 30, 2000 have been adjusted accordingly.
The consideration paid was:
Cash $ 4,073,176
Net liabilities assumed 4,268,810
------------
$ 8,341,986
------------
The allocation of the purchase price was:
Cash acquired $ 9,017
Accounts receivable 97,429
Inventories 453,160
Prepaid taxes and deposits 1,029,590
Property, plant and equipment 12,610,797
Accounts payable (3,307,007)
Defined pension benefits (1,000,000)
Other liabilities (1,551,000)
------------
Net Assets Acquired $ 8,341,986
------------
In addition to the consideration set out above Pan American granted a 2.16% net smelter return royalty on production from Huaron. This royalty becomes payable after Pan American has produced 4,300,000 tonnes of ore from Huaron. |
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