Pegasus Gold reports first quarter results.SPOKANE Spokane, city, United States Spokane (spōkăn`), city (1990 pop. 177,196), seat of Spokane co., E Wash., at the spectacular falls of the Spokane River; inc. 1881. , Wash.--(BUSINESS WIRE)--April 25, 1995--Pegasus Gold Inc. (AMEX AMEX See: American Stock Exchange , TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). , ME: PGU PGU Phil's pyGame Utilities PGU Plant Growth Unit PGU Projectile Gun Unit PGU Previant Goldberg Uelmen (Milwaukee, WI law firm) PGU Programme de Gestion Ubrbain (University of Montreal) ) recorded a net loss of $1.8 million, or $0.05 per share, in the first three months of 1995, compared with a net loss of $1.7 million, or $0.05 per share in the same period of 1994. The Company's 1995 net income was negatively impacted by the increased emphasis on its international gold exploration program. Total gold production increased 41 percent to a first quarter record of 122,223 ounces. "We were pleased at how the domestic operations performed during the first quarter, they more than offset production shortfalls at Mt. Todd Todd , Sir Alexander Robertus 1907-1997. British chemist. He won a 1957 Nobel Prize for his study of nucleic acids and nucleotide structures. ," said Werner Werner is a name of Germanic origins that could refer to numerous people or entities.
The oldest known usage of the name was in the Habsburg family.
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. placed on the heap leach leach v. leached, leach·ing, leach·es v.tr. 1. To remove soluble or other constituents from by the action of a percolating liquid. 2. pads in late 1994 and the increased solution application rates. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. , excluding exploration and evaluation expenses in the first quarter increased dramatically to $3.5 million, compared to $279,000 last year, and we feel confident that this exploration program will add shareholder value in the future." "In addition, after the close of the quarter we commenced an effort to acquire the remaining shares of Zapopan Zapopan (zäpōpän`), city (1990 pop. 668,323), Jalisco state, SW Mexico; est. 1541. In close proximity to Guadalajara, Zapopan is a growing city. It is a commercial center for the surrounding region. , our 58 percent held 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. subsidiary. If completed this acquisition will add significantly to our reserves and longer-term growth potential," Nennecker added. Sales revenues increased to $55.4 million, compared with $41.1 million, while cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses rose to $10.1 million, compared with a use of cash of $576,000 in the first quarter of 1994. The Company's share of gold production increased to 116,039 ounces compared with 78,840 ounces, in the first three months of 1994. First quarter gold production increased at the Company's U.S. based mines by 37,300 ounces compared to last year. Record gold production was achieved at Black Pine due to higher grades (0.021 ounces per ton) and increased ore tons mined, as well as the continued recovery of gold placed on the pad in 1994. Florida Florida, state, United States Florida (flôr`ĭdə, flŏr`–), state in the extreme SE United States. A long, low peninsula between the Atlantic Ocean (E) and the Gulf of Mexico (W), Florida is bordered by Georgia and Canyon produced a record 29,822 ounces of gold. Upgrading the solution application system has accelerated the recovery of gold loaded on the pad in 1994. Also, the grade (0.022 ounces per ton) is up from last year. At Zortman, gold production was up 13 percent due to higher 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 (0.019 ounces per ton). Gold production at Montana Montana (mŏntăn`ə), Rocky Mt. state in the NW United States. It is bounded by North Dakota and South Dakota (E), Wyoming (S), Idaho (W), and the Canadian provinces of British Columbia, Alberta, and Saskatchewan (N). Tunnels was up 4,056 ounces as a result of processing higher grade ore (0.020 ounces per ton) and more ore tons. Mining of higher grade ore (0.059 ounces per ton) at Beal n. 1. (Med.) A small inflammatory tumor; a pustule. v. i. 1. To gather matter; to swell and come to a head, as a pimple. [ imp. & p. p. os> ( ) r>; p. pr. & vb. n. os> During the quarter, Montana Tunnels received its permit to raise its 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. dam generating sufficient capacity for the life of mine tailings. Also, subsequent to quarter end, Florida Canyon received its amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. plan of operation enabling it to expand the leach pad and waste dump facilities. Zapopan's Mt. Todd Mine produced 14,724 ounces of gold during the first quarter. The mine suffered a rain storm which exceeded a 1 in 100 year rain event in late January January: see month. and flooding damaged the 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. system. Repairs were completed promptly, limiting the down time to only 11 days. During the first quarter, the Tanami mill, equipment and mineral leases were sold for $7 million, subject to a 12 month due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. period and adjustments for inventory changes. Pegasus Pegasus, in astronomy Pegasus (pĕg`əsəs), in astronomy, northern constellation lying SW of Andromeda and SE of Cygnus. It is named for the mythological winged horse Pegasus. continued to receive an average gold price superior to the spot market. For the quarter, the Company received $391 per ounce ounce, in zoology ounce, in zoology: see leopard. ounce, unit of measurement ounce: see English units of measurement. , compared to a COMEX COMEX A division of the New York Mercantile Exchange (NYMEX). Formerly known as the Commodity Exchange, COMEX is the leading US market for metals futures and options trading. COMEX See New York Mercantile Exchange (NYM). three-month average of $380. During the first three months of 1994, the Company received an average price of $389, versus the corresponding COMEX average of $384. 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. revenue was unchanged for the first quarter of 1995 compared to 1994, as increased 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. production was offset by decreases in silver production and zinc and silver prices. The cash cost of production averaged $251 per ounce, compared to $250 per ounce a year earlier. Cash costs increased at Zortman because of a higher stripping ratio and lower ore tons mined; at Florida Canyon due to higher processing costs and waste stripping; and at Mt. Todd due to the flooding. Cash costs declined at Montana Tunnels, Beal Mountain and, most noteably at Black Pine, as a result of the increased gold production. During the first quarter, exploration and development expenses increased by $2.4 million to $5.4 million, as compared to 1994. Ongoing resource delineation work at Diamond Hill and Pullalli accounted for $2.1 million of the increase. During the quarter, Pegasus concluded a new agreement with Goldbelt Resources Ltd. of 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. regarding the Kazgold project. The Company and Goldbelt agreed to form a 50/50 joint venture, effective March 1, 1995. Under the terms of the new agreement, Pegasus will be manager of the joint venture. Once the project is finalized See finalization. , this joint venture, through Kazgold, a Kazakhstan Kazakhstan or Kazakstan (kä'zäkstän`), officially Republic of Kazakhstan, republic (2005 est. pop. 15,186,000), c.1,050,000 sq mi (2,719,500 sq km), central Asia. company, will develop the gold tailings project at Leninogorsk in the Republic of Kazakhstan with the Leninogorsk Polymetallic Combinat (LPC (language) LPC - A variant of C designed ca 1988 to program LP MUDs. ), a Kazakhstan company. On March 21, 1995 the Company announced that its attributable proven and probable reserves had increased from year-end 1994 by almost 14 percent, to 5.3 million ounces of gold. Total proven and probable reserves increased by 17 percent, to 6.8 million ounces of gold. Mineralized min·er·al·ize v. min·er·al·ized, min·er·al·iz·ing, min·er·al·iz·es v.tr. 1. To convert to a mineral substance; petrify. 2. To transform a metal into a mineral by oxidation. 3. material, a category which under Pegasus' definition requires a conceptual mine plan and preliminary economics, increased by 23 percent, to 2.2 million ounces of gold. The Company has 5.0 million ounces of additional 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. attributable to Pegasus (6.2 million ounces of gold in total) at its mines and from its advanced exploration projects at Pullalli and Diamond Hill. In order to keep the reporting and disclosure of results consistent with those reported by Zapopan, the Company has expanded its disclosure to include additional mineralization. Australian companies This is a list of companies from Australia. Many Australian companies have been taken over by foreign interests in recent years, so some of the formerly 'quintessentially Australian' brand names are in fact owned by American or Japanese mega corporations. are required to report inferred mineralization under Australian Stock Exhange guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. . Pegasus' definition of proven and probable reserves, mineralized material, and additional mineralization, is equivalent to the total of Australia's measured, indicated and inferred categories. Subsequent to the end of the first quarter, Pegasus sold $115 million 6 1/4% Convertible Subordinated Notes, due in 2002. The proceeds of the Notes will be used for the acquisition of the remaining 42 percent of outstanding Zapopan shares. Pegasus announced a takeover bid Noun 1. takeover bid - an offer to buy shares in order to take over the company two-tier bid - a takeover bid where the acquirer offers to pay more for the shares needed to gain control than for the remaining shares for all the outstanding shares of Zapopan which the Company does currently own on April 10, 1995. The Company has offered A$2.00 cash for each ordinary share which values the Zapopan transaction at approximately A$135 million. Pegasus Gold Inc. is an international gold mining company. Headquartered in Spokane, Washington Spokane (pronounced [spoʊ̯ˈkæn]) is a city located in Eastern Washington. The seat of Spokane County, Spokane is the metropolitan center of the Inland Northwest, the second largest city in Washington state, and , Pegasus currently produces a total in excess of 500,000 ounces of gold annually from its properties in the 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. and Australia. The Company carries out exploration interationally through offices located in Miami, Florida “Miami” redirects here. For the Native American tribe, see Miami tribe. Miami is a major city in southeastern Florida, in the United States. It is the county seat of Miami-Dade County. Miami is a gamma world city with an estimated population of 404,048. ; Santiago, Chile Santiago, officially Santiago de Chile (Spanish: (helpinfo)), is the capital of Chile, and the center of its largest conurbation (Greater Santiago). ; Mendoza, Argentina Mendoza is a city in the west of Argentina, and the capital of Mendoza Province. As per the 2001 census INDEC] it has about 111,000 inhabitants, plus 848,660 in its metropolitan area, making it the fourth-largest conurbation in Argentina. ; and Georgetown, Guyana Georgetown, estimated population 213,705 (2002 Guyana census), is the capital and largest city of Guyana, located in the Demerara-Mahaica region. It is situated on the Atlantic Ocean coast at the mouth of the Demerara River and it was nicknamed 'Garden City of the Caribbean. . The common shares of Pegasus are traded under the symbol PGU on the American, the Toronto, and the Montreal exchanges Montreal Exchange A Canadian derivatives exchange that facilitates the trading of stock options, interest rate futures and options, as well as index options and futures. Located in Montreal, Quebec, it is the country's main financial derivative market, while the Winnipeg . Options on the Company's common shares are traded on the Chicago Board Options Exchange Chicago Board Options Exchange (CBOE) A securities exchange created in the early 1970s for the public trading of standardized option contracts. Primary place for the trading of stock options, foreign currency options, and index options (S&P 100, 500, and OTC 250 index) and the Montreal Exchange. -0-
PEGASUS GOLD INC.
OPERATIONS STATISTICS -- MARCH 31, 1995
Three months ended
1995 1994
ZORTMAN
Production: Gold (ounces) 19,170 16,950
Silver (ounces) 55,071 87,723
Cash cost of production (1) $289 $251
Royalty per ounce $11 $19
Total cost of production (2) $382 $332
Ore tons mined (000's) 2,528 3,694
MONTANA TUNNELS
Production: Gold (ounces) 22,443 18,387
Silver (ounces) 232,135 282,474
Lead (tons) 2,237 2,116
Zinc (tons) 5,661 4,359
Cash cost of production (1) $175 $196
Royalty per ounce $10 $12
Total cost of production (2) $317 $348
Ore tons mined (000's) 1,418 1,349
FLORIDA CANYON
Production: Gold (ounces) 29,822 21,322
Silver (ounces) 13,818 6,030
Cash cost of production (1) $255 $232
Royalty per ounce $10 $14
Total cost of production (2) $315 $297
Ore tons mined (000's) 1,801 1,772
BEAL MOUNTAIN
Production: Gold (ounces) 7,318 5,759
Silver (ounces) 1,542 1,294
Cash cost of production (1) $249 $257
Royalty per ounce $19 $(2)
Total cost of production (2) $386 $362
Ore tons mined (000's) 277 182
BLACK PINE
Production: Gold (ounces) 28,746 7,754
Silver (ounces) 15,257 7,950
Cash cost of production (1) $243 $339
Royalty per ounce $20 $25
Total cost of production (2) $291 $450
Ore tons mined (000's) 1,738 1,046
ZAPOPAN (3)
Production: Gold (ounces)-100% 14,724 16,354
Gold (ounces)-
Pegasus' share 8,540 8,668
Cash cost of production (1) $323 $259
Royalty per ounce $0 $29
Total cost of production (2) $391 $326
Ore tons mined (000's) 1,061 81
CONSOLIDATED TOTALS (4)
Production: Gold (ounces) -
100% 122,223 86,526
Gold (ounces)-
Pegasus' share 116,039 78,840
Silver (ounces) 317,823 385,471
Lead (tons) 2,237 2,116
Zinc (tons) 5,661 4,359
Cash cost of production (1) $251 $250
Royalty per ounce $12 $17
Total cost of production (2) $333 $344
Ore tons mined (000's) 8,823 8,124
(1) Cash cost of production is net of by-product credits (2) Total cost of production includes cash cost of production, royalties, and depreciation/amortization (3) Pegasus ownership percentage in Zapopan was 58 percent for 1995 and 53 percent in 1994 (4) Basin Creek has been excluded
PEGASUS GOLD INC.
CONSOLIDATED BALANCE SHEETS
March 31, 1995, and December 31, 1994
(In Thousands of U.S. Dollars)
1995 1994
ASSETS
Current assets:
Cash and cash equivalents $ 12,494 $ 89,316
Short-term investments 39,440 --
Due from sales of products 19,710 33,211
Inventories 39,787 37,041
Other current assets 8,893 8,710
Total current assets 120,324 168,278
Investments 26,795 22,252
Property, plant, and equipment, net 256,432 259,448
Other assets 3,146 3,301
Total assets $406,697 $453,279
LIABILITIES
Current liabilities:
Accounts payable and other
current liabilities $ 16,341 $ 21,287
Accrued salaries, wages, and benefits 5,121 6,336
Mining taxes payable 4,098 4,878
Current portion of long-term debt 12,368 39,151
Total current liabilities 37,928 71,652
Long-term debt 11,876 19,038 Deferred site closure and remediation 34,561 33,618 Deferred revenue 9,123 9,357 Other deferred liabilities 3,278 2,940
Total liabilities 96,766 136,605
Minority interest in consolidated subsidiary 22,718 24,332 Commitments and contingencies
SHAREHOLDERS' EQUITY
Class A preferred stock, Series 1, $10 par value:
Authorized - 20,000,000 shares; none issued
Common stock, no par value:
Authorized - 200,000,000 shares; issued
and outstanding, 1995 - 34,665,211 shares
and 1994 - 34,629,523 shares 332,471 332,110
Accumulated deficit (47,988) (46,178)
Foreign currency translation adjustment 2,730 6,410
Total shareholders' equity 287,213 292,342
Total liabilities and
shareholders' equity $406,697 $453,279
PEGASUS GOLD INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended March 31, 1995 and 1994
(In Thousands of U.S. Dollars, Except Per Share Amounts)
1995 1994
Sales $ 55,360 $ 41,079
Cost of sales 38,171 28,997
Depreciation and amortization 8,688 6,655
------ ------
46,859 35,652
Gross profit 8,501 5,427
Operating expenses:
General and administrative 3,193 3,669
Royalties 1,428 1,479
Exploration and evaluation 5,426 3,048
Care and maintenance 370 --
----- -----
10,417 8,196
Loss from operations (1,916) (2,769)
Other income (expense):
Interest and other income 976 1,574
Interest expense, net of
amounts capitalized (1,137) (501)
----- -----
(161) 1,073
Minority interest in
consolidated subsidiary 267 (523)
Loss before income taxes (1,810) (2,219) Income tax benefit -- (475) Net loss $(1,810) $(1,744) Net loss per share $ (0.05) $ (0.05) Weighted average common shares outstanding 34,658 34,928
PEGASUS GOLD INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Three Months Ended March 31, 1995, and 1994
(In Thousands of U.S. Dollars)
1995 1994
--------- --------
Operating activities:
Net loss $(1,810) $(1,744)
Adjustments to reconcile net loss to
net cash provided (used) by operating
activities:
Depreciation and amortization 8,649 6,778
Other, net (125) 623
Change in due from sales of products 13,468 1,753
Change in inventories (2,968) (5,923)
Change in other current assets (472) (114)
Change in accounts payable and accrued
liabilities (6,619) (1,949)
Net cash provided by (used in)
operating activities 10,123 (576)
Investing activities: Additions to property, plant, and equipment, net (5,261) (8,593) Acquisition of additional investment in subsidiary (4,792) --- Purchase of short-term investments (39,440) --- Purchase of other investments (5,000) (8,000) Net cash used in investing activities (54,493) (16,593) Financing activities: Dividend paid --- (3,456) Proceeds from issuance of long-term debt --- 2,545 Proceeds from issuance of common stock 361 158 Payments of long-term debt (32,674) (7,769) Net cash used in financing activities (32,313) (8,522) Effect of exchange rate changes on cash and cash equivalents (139) --- Net increase in cash and cash equivalents (76,822) (25,691) Cash and cash equivalents, beginning of period 89,316 149,313 Cash and cash equivalents, end of period $12,494 $123,622 Supplemental disclosures of cash flow information: Cash paid during the period for: Interest (net of amounts capitalized) $1,212 $494 Income tax (net of refunds) $(828) ---
PEGASUS GOLD INC.
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
For the Three Months Ended March 31, 1995, and
the Year Ended December 31, 1994
(In Thousands of U.S. Dollars)
Foreign
Common Stock Currency
Number of Retained Translation
Shares Amount Earnings Adjustment
Balance, December 31, 1993 34,555,652 $331,193 $ 12,557 $(1,753) Net loss (58,735) Common stock issued for: Stock option plan 53,034 630 Employee savings plan and other 20,837 287 Foreign currency translation adjustment ------ ------- ------- 8,163 Balance, December 31, 1994 34,629,523 332,110 (46,178) 6,410 Net loss (1,810) Common stock issued for: Stock option plan 6,000 59 Employee savings plan and other 29,688 302 Foreign currency transaction adjustment ----- ------ ------- (3,680) Balance, March 31, 1995 34,665,211 $332,471 $(47,988) $2,730 CONTACT: Pegasus Gold, Inc., Spokane John W. Pearson, 509/624-4653 |
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