Report on Activities for the Three Months Ended 31 March 2000.Business Editors ADELAIDE Adelaide, empress consort of Holy Roman Emperor Otto I Adelaide (ăd`əlād) or Adelheid (ä`dĕlhīt), c. , Australia--(BUSINESS WIRE)--April 19, 2000 Normandy Normandy (nôr`məndē), Fr. Normandie (nôrmäNdē`), region and former province, NW France, bordering on the English Channel. Mining
NET PROFIT Nine months - $92.9M (US$58.8M)
Three months - $26.4M (US$16.7M)
PRODUCTION Nine months - 1.43 million ounces
(attributable) Three months - 419,477 ounces
EXPLORATION New, high grade ore positions
at Golden Grove, and other success
CORPORATE Major restructuring initiatives
announced after period close
Australian Dollar Noun 1. Australian dollar - the basic unit of money in Australia and Nauru dollar - the basic monetary unit in many countries; equal to 100 cents Values are used in this report other than where specified. For convenience, some key financial figures have been translated at A$1.00 = US$0.6325. Enquiries concerning this report may be directed to: C G Jackson Jackson. 1 City (1990 pop. 37,446), seat of Jackson co., S Mich., on the Grand River; inc. 1857. It is an industrial and commercial center in a farm region. , Group Executive - Corporate 100 Hutt HUTT Hull-To-Torrent Transmitter Street, Adelaide 5000 South Australia South Australia, state (1991 pop. 1,236,623), 380,070 sq mi (984,381 sq km), S central Australia. It is bounded on the S by the Indian Ocean. Kangaroo Island and many smaller islands off the south coast are included in the state. , Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. Telephone: +61 8 8303 1703 Facsimile: +61 8 8303 1994 This report (with additional information) and previous reports available at web site: http://www.normandy.com.au. Board of Directors RJ Champion de Crespigny Chairman MS Hamson Non-Executive Director A non-executive director (NED, also NXD) or outside director is a member of the board of directors of a company who does not form part of the executive management team. He or she is not an employee of the company or affiliated with it in any other way. BG McKay Mc·Kay , Claude 1890-1948. Jamaican-born American writer who figured prominently in the Harlem Renaissance of the 1920s. His works include collections of poetry, such as Constab Ballads (1912), and novels, including Home to Harlem (1928). Non-Executive Director JB Prescott Prescott, town, Canada Prescott (prĕs`kət), town (1991 pop. 4,512), SE Ont., Canada, on the St. Lawrence River, opposite Ogdensburg, N.Y. Fort Wellington, built during the War of 1812, is now a military museum. AC Non-executive Director B Wheelahan Non-Executive Director Registered & Principal Office 100 Hutt Street, Adelaide 5000 South Australia, Australia Telephone +61 8 8303 1700 Facsimile +61 8 8303 1900 PF Carr CARR Carrier CARR Customer Acceptance Readiness Review CARR Carrollton Railroad CARR Corrective Action Request and Report CARR City Area Rural Rides (Texas) CARR Configuration Audit Readiness Review CARR Customer Acceptance Requirements Review Company Secretary Previous quarter figures in brackets brackets: see punctuation. and italics italics npl → italique m italics npl → Kursivschrift f Information in this report relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc ore reserves, mineral resources Noun 1. mineral resources - natural resources in the form of minerals natural resource, natural resources - resources (actual and potential) supplied by nature or mineralisation conforms to the reporting requirements of the "Australasian Aus·tral·a·sia 1. The islands of the southern Pacific Ocean, including Australia, New Zealand, and New Guinea. 2. Broadly, all of Oceania. Aus Code for Reporting of Identified Mineral Resources and Ore Reserves" (the JORC JORC Joint Ore Reserves Committee Code). It is based on information compiled by Competent Persons as defined by the Code, under the direction of Bruce Bruce, Scottish royal family descended from an 11th-century Norman duke, Robert de Brus. He aided William I in his conquest of England (1066) and was given lands in England. D Kay KAY Kick Ass Year KAY Kansas Association of Youth , Group Executive -- Exploration, a corporate member of the AusIMM with 27 years experience as a geologist. Overview FINANCE -- Normandy NFM -- interest increased to 84.86 percent -- EVENTS AFTER QUARTER END (5 April 2000) -- Great Central Mines, outstanding 42 percent interest acquired -- Australian Magnesium, equity to be sold to Queensland Metals Corp. -- Normandy Industrial Minerals, sale negotiations well advanced GOLD -- Normandy NFM -- interest increased to 84.86 percent -- EVENTS AFTER QUARTER END (5 April 2000) -- Great Central Mines, outstanding 42 percent interest acquired -- Australian Magnesium, equity to be sold to Queensland Metals Corp. -- Normandy Industrial Minerals, sale negotiations well advanced NON-GOLD -- Normandy NFM -- interest increased to 84.86 percent -- EVENTS AFTER QUARTER END (5 April 2000) -- Great Central Mines, outstanding 42 percent interest acquired -- Australian Magnesium, equity to be sold to Queensland Metals Corp. -- Normandy Industrial Minerals, sale negotiations well advanced CORPORATE -- Normandy NFM -- interest increased to 84.86 percent -- EVENTS AFTER QUARTER END (5 April 2000) -- Great Central Mines, outstanding 42 percent interest acquired -- Australian Magnesium, equity to be sold to Queensland Metals Corp. -- Normandy Industrial Minerals, sale negotiations well advanced Chairman's message Consolidated profit after tax and outside equity interests (including share of associate companies on a similar accounting basis) for the nine months ended 31 March 2000, was $92.9 million, a 20 percent improvement on the $77.3 million for the corresponding period last year. Profit for the three months was $26.4 million, a 101 percent improvement on the previous March quarter. Compared to the previous nine month period, gold production increased 19 percent, accompanied by a reduction in total cash cost to $304 per ounce ounce, in zoology ounce, in zoology: see leopard. ounce, unit of measurement ounce: see English units of measurement. . Protracted pro·tract tr.v. pro·tract·ed, pro·tract·ing, pro·tracts 1. To draw out or lengthen in time; prolong: disputants who needlessly protracted the negotiations. 2. heavy rainfall and flooding hampered operations at several sites this quarter. With higher fuel costs and a weaker 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. exchange rate (leading to higher translation costs for overseas production), overall total cash cost increased $13 per ounce to $313 per ounce (US$198/oz). The second consecutive quarterly profit from our share of TVX TVx Target Vertex TVX Transmission Valid Timer (FDDI) TVX Valid Transmission Normandy Americas A·mer·i·cas , the See America. was pleasing. Two projects advanced markedly. The Boddington Basement This article is about the section of a building. For the foundation, see Basement rock. A basement is one or more floors of a building that are either completely or partially below the ground floor. Slab-on-grade buildings do not have basements. project progressed to final feasibility stage following process flowsheet selection -- a high pressure grinding grinding, process by which surface material is removed from an object, usually metal, by the abrasive action of a rotating wheel or a moving belt that contains abrasive grains. roll, ball mill circuit -- with design throughput The speed with which a computer processes data. It is a combination of internal processing speed, peripheral speeds (I/O) and the efficiency of the operating system and other system software all working together. 1. increasing from the original 11.7Mtpa to more than 20Mtpa and a corresponding increase in gold production to over 550,000ozpa. Similarly, 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. for the proposed 96,000tpa magnesium magnesium (măgnē`zēəm, –zhəm), metallic chemical element; symbol Mg; at. no. 12; at. wt. 24.305; m.p. about 648.8°C;; b.p. about 1,090°C;; sp. gr. 1.738 at 20°C;; valence +2. plant was completed, with the Normandy role of sponsorship nearing completion. Exploration The quarter has seen a continuation of exploration success, a testament to Normandy's sustained commitment. At Golden Grove
n. An exposed, oxidized portion of a mineral vein, especially a rust-colored outcrop of iron ore. [Cornish gossen, from g Hill encountered widespread, high grade zinc-copper-gold-silver mineralisation below the mine workings (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 prospect) and along strike towards Scuddles mine (Catalpa catalpa (kətăl`pə): see bignonia. catalpa Any of 11 species of trees in the genus Catalpa (family Bignoniaceae), native to eastern Asia, eastern North America, and the West Indies. prospect). The results are arguably ar·gu·a·ble adj. 1. Open to argument: an arguable question, still unresolved. 2. That can be argued plausibly; defensible in argument: three arguable points of law. among the best of their type reported for some time. Exploration is at an early stage, but the economic significance of both discoveries is readily apparent. Recent intersections more than 400 metres from the nearest drilling at each prospect indicate the potential for substantial extensions. Elsewhere, exploration continues to deliver positive results at Callie, with drilling confirming strong gold mineralisation at depth, whilst intercepts recorded from the northern sector of the Boddington Basement resource indicate a potentially substantial increase. Hedging Normandy-managed companies did not commit to any new or replacement hedging during the quarter. Consequently, the hedge book declined by 356,000 ounces through delivery into previously established contracts where the gold was sold in prior periods. Only 1,000 ounces of production for the quarter was sold into the physical market at spot. After period end, Normandy became responsible for Great Central Mines' hedge book, which will progressively be aligned with Normandy hedging policy. Given the substantial position, it is unlikely that any additional hedging will be established for the combined group next quarter. At current gold prices, the majority of production next quarter is expected to be delivered into maturing contracts. Profitable Growth in Gold The Company is repositioning repositioning Laparoscopic surgery The changing of a Pt's position during a procedure to improve access or visualization of the operative field, which may be linked to complications, as it changes anatomic planes of operation. Cf Laparoscopic surgery. itself for profitable growth in gold, announcing shortly after quarter end the planned divestment divestment to strip one's investment from an entity. of non-gold interests -- Normandy Industrial Minerals and equity in the magnesium project (to Queensland Queensland, state (1991 pop. 2,477,152), 667,000 sq mi (1,727,200 sq km), NE Australia. Brisbane is the capital; other important cities are Gold Coast, Toowoomba, Townsville, Rockhampton, Cairns, and Ipswich. Metals Corporation) -- and acquisition of the outstanding interest in Great Central Mines (owner and operator of the Yandal Belt gold assets) and an increased share in the Perama gold project in Greece. Under Australian accounting standards, Great Central Mines debt and the assets to which it relates will be consolidated in the Normandy accounts. The acquisition was previously factored into Rating Agency analysis and, as a consequence, debt rating assessments were affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. . The Yandal Operations are now a major Normandy asset, with production of 765,000 ounces and cash flow of $170 million forecast this year, a substantial resource-reserve position and exploration potential. With full Normandy ownership, significant reductions in administration costs can now be achieved, and reviews of asset carrying values 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. and the gold hedge book structure can be undertaken. Total attributable production is forecast to approach 2.3 million ounces in the coming year at a lower average total cash cost, and reserves and resources will grow to 18.4 million ounces and 52.5 million ounces respectively. 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 19 April 2000 Discussion on operations Gold Attributable production declined 13.5 percent, with the sale of Big Bell, closure of Kaltails and White Devil White devil can refer to:
The realised cash gold price of $512 per ounce (after hedge fees) exceeded the average spot price for the quarter by $53 per ounce. Including the deferred hedge gain, the net gold price achieved was $567 per ounce.
Attributable Gold Production
periods ended 3 mths. 9 mths.
31 March '00 31 March '00
('000oz) ('000oz)
----------------------------------------------------------------------
Kalgoorlie 95.9 294.0
Yandal 90.0 322.8
Mt Leyshon 50.4 162.3
Tanami 60.9 184.9
Pajingo 25.2 62.4
TVX Normandy 48.6 142.0
Others 48.5 259.4
Total 419.5 1,427.8
----------------------------------------------------------------------
----------------------------------------------------------------------
Attributable Realised Price (1)
periods ended 3 mths. 9 mths.
31 March '00 31 March '00
($/oz) ($/oz)
----------------------------------------------------------------------
Kalgoorlie 629 632
Yandal 541 545
Mt Leyshon 545 543
Tanami 587 580
Pajingo 629 632
TVX Normandy 472 447
Others 550 554
Average 567 563
----------------------------------------------------------------------
----------------------------------------------------------------------
(1) (including deferred hedge gain)
Detailed Excel spread sheet at web site
Attributable Total Cash Cost
periods ended 3 mths. 9 mths.
31 March '00 31 March '00
($/oz) ($/oz)
----------------------------------------------------------------------
Kalgoorlie 340 347
Yandal 360 306
Mt Leyshon 299 281
Tanami 327 331
Pajingo 180 181
TVX Normandy 234 210
Others 318 329
Average 313 304
----------------------------------------------------------------------
Australia At Kalgoorlie Operations, the transition to owner-mining was completed, with improved scheduling and dispatch A dispatch or dispatches can refer to:
or froth flotation Most widely used process for extracting many minerals from their ores. The method separates and concentrates ores by altering their surfaces so that they are either repelled or attracted by water. capacity scheduled by June 2000), final contractor monthly management charges and eight days work lost in the pit due to wet weather. Mt Charlotte ore throughput was marginally lower due to the replacement of a ball mill girth GIRTH., A girth or yard is a measure of length. The word is of Saxon origin, taken from the circumference of the human body. Girth is contracted from girdeth, and signifies as much as girdle. See Ell. gear. Mine life will be extended to March 2001, providing current below budget costs and higher grades are maintained. At Yandal Operations, gold production declined 18 percent. Jundee open pit mining was hampered by heavy rainfall, although Barton BARTON, old English law. The demesne land of a manor; a farm distinct from the mansion. Deeps underground operations Underground Operations is a Toronto-based independent punk rock record label. Operated by Mark Spicoluk, former Closet Monster member, this label is one of the most cutting edge independent labels in Canada. performed to plan. 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. production continued to be affected by a 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, failure last quarter, with remedial REMEDIAL. That which affords a remedy; as, a remedial statute, or one which is made to supply some defects or abridge some superfluities of the common law. 1 131. Com. 86. The term remedial statute is also applied to those acts which give a new remedy. Esp. Pen. Act. 1. work expected to be completed before June. This, associated with contractor changeover (programming) changeover - The time when a new system has been tested successfully and replaces the old system. and 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). of the underground mining contract, resulted in lower than planned production. Wiluna production, however, was 16 percent above forecast. At Boddington, production improved slightly, as forecast. Average mined grade increased, with the mining schedule rationalised and treatment of low grade stockpiles completed. Current oxide oxide, chemical compound containing oxygen and one other chemical element. Oxides are widely and abundantly distributed in nature. Water is the oxide of hydrogen. Silicon dioxide is the major component of sand and quartz. reserves are scheduled for mid- mid- pref. Middle: midbrain. 2001 depletion depletion n. when a natural resource (particularly oil) is being used up. The annual amount of depletion may, ironically, provide a tax deduction for the company exploiting the resource because if the resource they are exploiting runs out, they will no longer be able , with options to extend operating life ahead of Boddington Basement production being developed. At Tanami Operations, heavy rainfall restricted site access, with fuel and consumables stocks approaching depletion. Operations were progressively 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. , except for milling which continued on low grade stockpiles. Gold production was consequently 15 percent lower. Replenishment replenishment the addition of an appropriate quantity of properly prepared solution containing the correct concentration of chemicals to the developer solutions used in radiography. of fuel and stocks commenced near period end. At Mt Leyshon, gold production was 6.7 percent lower, with average grade and recovery declining in line with life-of-mine projections. At Pajingo Operations, gold production at the expanded operation increased 16 percent (throughput up 15 percent to an annualised 600,000tpa, recovery improved to 97 percent). Mine movement is expected to match mill throughput by July. International At Martha, commissioning and 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 of the upgraded crusher/conveyer and treatment plant facilities continued. Mill throughput increased 4 percent and recovery achieved design levels of 94 percent, up 3 percent. Optimisation will continue next quarter, focusing on increased throughput and lower crushing crushing deaths of newborn animals, especially those in litters, caused by the mother lying on them accidentally. Contributed to by weakness of the neonate or awkward accommodation. A problem in piglets and puppies. Called also overlying. and conveying costs. At Ity, with the dry season prevailing, record plant throughput was achieved and gold production was 15 percent higher than last quarter. TVX Normandy Americas attributable production was 48,639 ounces at a total cash cost of $234 per ounce. At Paracatu, gold production was higher, largely due to a 5.8 percent improvement in recovery. At Crixas, gold production increased 24 percent, with the annualised mining rate exceeding 700,000tpa. At La Coipa, a wall failure in Coipa Norte pit forced a change to the mining sequence and the processing of much lower grade, harder ore. A return to normal production levels is expected next quarter. At Musselwhite, record gold production was achieved on a head grade 16 percent higher. At New Brittania, average head grade improved 12 percent, reflecting successful efforts to reduce dilution Dilution A reduction in earnings per share of common stock that occurs through the issuance of additional shares or the conversion of convertible securities. Notes: Adding to the number of shares outstanding reduces the value of holdings of existing shareholders. . Development & exploration Development Gold At Kalgoorlie, a $19 million upgrade of the Fimiston flotation circuit is scheduled for commissioning in June 2000. At Boddington, a flowsheet comprising high pressure grinding rolls and ball mills has been selected as the basis for the final stage of the feasibility study. Process flexibility and lower unit operating and capital costs were integral in the selection, with annualised design throughput now in excess of 20Mtpa. Reserves and resources within the current pit envelope provide in excess of 20 years mine life, at an anticipated total cash cost below $300 per ounce. At Ity, a relocation RELOCATION, Scotch law, contracts. To let again to renew a lease, is called a relocation. 2. When a tenant holds over after the expiration of his lease, with the consent of his landlord, this will amount to a relocation. and expansion of the plant is well advanced and should be operational next quarter end. At Perama (Greece, 80 percent), the first step in the environmental permitting process was completed, with the Ministry of Environment approving the Pre-approval of Site Location application. This followed positive support from local communities. The Environmental Impact Assessment will be submitted shortly. A detailed feasibility study has confirmed the project's robust economics. At Yamfo-Sefwi (Ghana, 90 percent), the feasibility study is on schedule for completion in August 2000. The Environmental Impact Assessment has been submitted to the authorities, and permitting is progressing. Exploration Expenditure on direct interests worldwide was $17.36 million, bringing the nine month total to $53.42 million. Gold -- Australia Unusually heavy rainfall and flooding reduced exploration activity, particularly in central and northern Australia The term northern Australia is generally considered to include the States and territories of Australia of Queensland and the Northern Territory. The part of Western Australia (WA) north of latitude 26° south — a definition widely used in law and State government policy . At Yandal Operations, drilling of the Hughes structure at Jundee returned best intercepts of 8.8m at 122g/t from 380m and 7m at 18.6g/t from 352m. The mineralisation is open down dip and along strike and is potentially accessible from the Barton Deeps decline. A new zone of mineralisation was intersected in the Nim 3 - Lyons structure hanging wall (6.5m at 180g/t from 557m). Two high-grade High-grade Credit quality of AAA or AA. high-grade Of, relating to, or being a bond with little risk of default on the part of the issuer. High-grade is usually reserved for bonds rated AAA or AA by the rating services. zones were intersected on the Cardassian structure (12m at 22.2g/t from 76m, 4m at 39.6g/t from 92m), increasing the likelihood of this mineralisation continuing northwards north·ward adv. & adj. Toward, to, or in the north. n. A northern direction, point, or region. north . At McClure, a drillhole below the laterite laterite Soil layer rich in iron oxide and sometimes aluminum, derived from a wide variety of rocks by leaching. It forms in tropical and subtropical regions where the climate is humid. pit intersected 4m at 15.8g/t from 240m in the Lotus structure. RAB Rab (räb), Ital. Arbe, island (1991 pop. 9,205), 40 sq mi (104 sq km) off Croatia, in the Adriatic Sea. One of the Dalmatian islands, it is a popular seaside resort. Fishing and agriculture are the main occupations. drilling at Karra, south of McClure, defined a 1,500m 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. , and RC drilling is planned. At Dragon dragon, mythical beast usually represented as a huge, winged, fire-breathing reptile. For centuries the dragon has been prominent in the folklore of many peoples; thus, its physical characteristics vary greatly and include combinations of numerous animals. , 18km south, drilling beneath the pit intersected 17m at 4.2g/t and 15m at 3.0g/t. At Wiluna, drilling in the north of East lode delineated de·lin·e·ate tr.v. de·lin·e·at·ed, de·lin·e·at·ing, de·lin·e·ates 1. To draw or trace the outline of; sketch out. 2. To represent pictorially; depict. 3. two mineralised zones above old 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. , and defined mineralisation in an untested area at the southern end of West Lode (70m at 3.8g/t from 172m). Drilling in West Lode improved confidence in the existing model and indicated a potential resource increase. Modelling is in progress. At Boddington, drilling confirmed potential increases to the northern Boddington Bedrock Bedrock - A C++ class library for Macintosh user interface portability. resource at depth (including 50m at 1.0g/t from 278m, 72m at 0.7g/t from 451m, and 58m at 1.2g/t from 588m). At Southern Diorite diorite Medium- to coarse-grained igneous rock that commonly is composed of about two-thirds plagioclase feldspar and one-third dark-coloured minerals, such as hornblende or biotite. Deeps, an intercept intercept in mathematical terms the points at which a curve cuts the two axes of a graph. of 90m at 1.1g/t from 257m was encouraging. Results from Hedges E8 indicate addition oxide resources (9m at 13.2g/t, 7m at 4.9g/t). At Pajingo, RC precollar drilling at Vera South intersected 3m at 8.8g/t in the hanging wall of V1 vein. At Anne, intersections on the Janet Janet: see Clouet, Jean. JANET - Joint Academic NETwork B and Anne 2 structures included 3m at 15.1g/t. Results are awaited a·wait v. a·wait·ed, a·wait·ing, a·waits v.tr. 1. a. To wait for. See Synonyms at expect. b. from several holes. At Callie, 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 on 60,700E, the deepest section drilled on Wilson Shoot to date, intersected 39m at 8.0g/t (11.0g/t uncut) from 1,339m downhole. Gold -- International At Martha, an initial diamond drillhole intersected quartz quartz, one of the commonest of all rock-forming minerals and one of the most important constituents of the earth's crust. Chemically, it is silicon dioxide, SiO2. veining vein·ing n. Distribution or arrangement of veins or veinlike markings. 1,200m along strike from Gladstone Hill on the Favona prospect. Several intervals exceeded 1g/t, with a best 4m at 7.6g/t. This is encouraging, given the large stepout from known mineralisation. At Perama South, intersections of moderate thickness and grade confirmed and extended the mineralisation, which is variable but persistent. RC drilling will test between Perama South and Perama. On the Yamfo-Sefwi Belt, Ghana, at Ntotoroso (earning 50 percent), 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 at Area E was confirmatory (42m at 3.4g/t from 35m, 77m at 2.9g/t from 38m and 75m at 3.3g/t from surface). Resource estimation estimation In mathematics, use of a function or formula to derive a solution or make a prediction. Unlike approximation, it has precise connotations. In statistics, for example, it connotes the careful selection and testing of a function called an estimator. is in progress. At Kenbert (Ghana, 72 percent), drilling extended the mineralised zone to more than 1,500m strike length (best - 28m at 3.8g/t, 38m at 2.8g/t, 34m at 2.9g/t). The deposit remains open along strike and at depth. Preliminary resource estimation is in progress. At Tasiast (Mauritania), a further 7,000km2 of tenements was granted over prospective Archaean greenstone green·stone n. Any of various altered basic igneous rocks colored green by chlorite, hornblende, or epidote. greenstone Noun NZ a type of green jade used for Maori carvings and ornaments terrain. At Aek Pahu (Sumatra, NAAL NAAL National Assessment of Adult Literacy NAAL North American Academy of Liturgy 90 percent), drilling tested mineralisation over 1,500m strike length on the Monyet prospect. At Calcatreu (Argentina), drilling recommenced on Vein 49, with grades generally lower at depth (3m at 6.6g/t, 25m at 2.5g/t). In the Nelson sector to the south, assay results are awaited for two strong intersections of vein quartz 1. Quartz occurring as gangue in a vein. . At the Musselwhite mine (Canada), 1999 exploration added a net 605,000 ounces to reserves, which now total an estimated 2,573,000 ounces at 5.79g/t (using a $US290 per ounce gold price).
Production, Costs, Hedging
PRODUCTION & COSTS
Equity Ore Head Gold
Interest Treated Grade Produced(1)
(%) ('000t) (g/t) (oz)
----------------------------------------------------------------------
Three months to 31 March 2000
Australia
Kalgoorlie Operations (50)
Super Pit -- 2,483.0 2.36 160,965
Mt Charlotte -- 319.2 3.24 30,767
Yandal Operations (57.57)(2)
Bronzewing -- 416.9 4.22 55,153
Jundee -- 668.0 3.65 71,865
Wiluna -- 147.2 7.25 29,260
Boddington (44.44) 2,274.0 0.87 58,939
Tanami Operations (84.86) 604.2 4.05 73,189
Mt Leyshon (76.36) 1,430.5 1.62 65,944
Pajingo Operations (50) 149.1 10.97 50,474
International
Martha
(New Zealand)(3) (67.06) 254.2 3.13 24,149
Ity (Cote
d'Ivoire) (4,6) (51) 86.3 6.03 12,096
TVX Normandy
Americas (4,5) (49.9) -- -- --
Paracatu,
Brazil (49%) 4,975.8 0.47 58,690
Crixas,
Brazil (50%) 180.8 8.62 48,076
La Coipa,
Chile (50%)(3) 1,430.0 0.53 19,613
Musselwhite,
Canada (32%) 303.1 6.68 62,450
New Britannia,
Canada (50%) 191.2 5.23 29,770
ATTRIBUTABLE (7) -- -- 419,477
---------------------------------------------------------------------------
Nine months to 31 March 2000
ATTRIBUTABLE (7,8) 1,427,784
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Total Cash Total Prod.
Cost(2) Cost(2)
($/oz) ($/oz)
--------------------------------------------------------------------------
Kalgoorlie Operations
Super Pit 351 401
Mt Charlotte 282 282
Yandal Operations
Bronzewing 328 433
Jundee 399 499
Wiluna 324 458
Boddington 371 483
Tanami Operations 327 404
Mt Leyshon 299 350
Pajingo Operations 180 285
International
Martha (New Zealand)(3) 245 380
Ity (Cote d'Ivoire) (4,6) 281 337
TVX Normandy
Americas (4,5)
Paracatu, Brazil (49%) 262 335
Crixas, Brazil (50%) 165 262
La Coipa, Chile (50%)(3) 173 564
Musselwhite, Canada (32%) 248 339
New Britannia, Canada (50%) 312 417
ATTRIBUTABLE (7) 313 396
---------------------------------------------------------------------------
Nine months to 31 March 2000
ATTRIBUTABLE (7,8) 304 382
---------------------------------------------------------------------------
---------------------------------------------------------------------------
PRODUCTION & COSTS
Detailed Excel spread sheet at web site
(1) 100 percent for each operation.
(2) Great Central Mines direct & indirect interest.
100 percent direct interest from 5 April 2000.
(3) Average head grade was 3.14g/t gold and 37.76g/t silver for
24,149oz gold and 216,129oz silver for Martha; and 0.54g/t gold
and 105.17g/t silver for 19,613oz gold and 2,959,451oz silver for
La Coipa.
(4) US$ costs converted at exchange rate for March '00 quarter of
$0.6325 (31 December '99, $0.6440).
(5) Production attributable from 1 July 1999.
(6) Tonnes stacked on heaps, not under irrigation.
(7) Includes production from operations closed or divested
(Kaltails, White Devil and Big Bell).
(8) First quarter total adjusted to reflect La Coipa silver
production using by-product accounting.
ADDITIONAL GOLD INSTITUTE STANDARD DISCLOSURE
Martha and La Coipa are reported using by-product accounting, with
silver revenues deducted in the calculation of total cash cost per
ounce. If silver production was accounted as gold equivalent, gold
total cash cost and production would be $278 per ounce and 27,890
ounces for Martha and $354 per ounce and 73,376 ounces for La Coipa.
ATTRIBUTABLE PRODUCTION COST
Gold Institute Standard
periods ended 31 March 2000 3 mths. 9 mths.(1)
(unaudited) ($/oz) ($/oz)
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Direct mining expenses 315 315
Stripping & mine
development adjustments 9 2
By-product credits (18) (17)
Sundry expenditure (income) - (2)
Cash operating cost 306 298
Royalties 7 6
Total cash cost 313 304
Depreciation 41 40
Amortisation 33 30
Mine closure 9 8
Total production cost 396 382
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HEDGING POSITIONS
at 31 March 2000 Normandy(1)
('000oz) ($/oz)
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Forward Contracts
1999-00 38 470
2000-01 449 490
2001-02 592 510
2002-10 2,881 617
Total 3,960 585
Put Options
1999-00 222 477
2000-01(2) 372 476
2001-02 133 466
2002-09 606 489
Total 1,333 481
Subsidiaries Associate
('000oz) ($/oz) ('000oz) ($/oz)
Forward Contracts
1999-00 161 562 22 459
2000-01 396 543 384 536
2001-02 362 569 236 532
2002-08 897 597 1,371 493
Total 1,816 576 2,013 505
Put Options
1999-00 12 455 9 563
2000-01 140 430 16 554
2001-02(3) 69 450 234 541
2002-10 - - 1,312 553
Total 221 438 1,571 551
Convertible Puts
1999-00 16 556
2000-01 65 557
2001-02 74 556
2002-12 2,250 573
Total 2,405 572
Call Options
1999-00 4 586
2000-01 4 614
2002-08 571 545
Total 579 546
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(1) Normandy wholly-owned, including TVX Normandy Americas
attributable production but excluding share of subsidiaries (Normandy
Mt Leyshon Limited and Normandy NFM Limited) and associate (Great
Central Mines Limited/Yandal Gold).
(2) Upside participation on 12,650 ounces capped at $529/oz.
(3) Upside participation on 45,000 ounces capped at $545/oz.
Note: Exercise prices are net of actual or estimated fees.
Assumes 2 percent lease rate for calculation of net prices.
Exchange rates used, A$:US$ - 0.6070 (0.6587), A$:EUR - 0.6377
(0.6488).
MARK-TO-MARKET
at 31 March 2000 $M(1) $/oz(1)
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Normandy (2) (19) (4)
Normandy Mt Leyshon (3) 7 20
Normandy NFM (3) 74 44
Yandal Operations (3) (155) (24)
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(1) Spot price at 31 March 2000, $459/oz.
(2) Wholly-owned, including TVX Normandy Americas.
(3) 100% of subsidiaries and associate.
Finance
SIMPLIFIED FINANCIAL RESULTS
unaudited, periods ended 3 mths. 9 mths.
31 March '00 31 March '00
($M) ($M)
---------------------------------------------------------------------------
Gold (1) 88.5 282.8
Non-Gold (2) 12.8 52.0
Total operations 101.3 334.8
Amortisation & depreciation (34.4) (92.3)
Mine completion provisions & costs (2.8) (20.2)
Exploration provisions & write-offs (8.4) (31.0)
Financing (net) (6.5) (22.5)
Corporate costs, administration
& other (3) (9.8) (40.4)
Share of associated company profits
- net (4) 0.4 8.2
Profit before tax & outside equity
interests 39.8 136.6
Income tax expense (10.0) (30.8)
Outside equity interests (3.4) (12.9)
Profit after tax & outside equity
interests 26.4 92.9
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(1) Consolidated Operations
Kalgoorlie Operations 30.0 82.5
Boddington 6.8 21.6
Big Bell Consolidated 0.1 9.3
Kaltails - 3.5
Tanami Operations (i) 19.4 55.6
Tennant Creek Operations (0.6) 12.6
Mt Leyshon (i) 16.3 55.7
Pajingo Operations 10.7 27.1
Martha 3.8 9.1
Ity 2.0 5.8
(2) Industrial Minerals 5.1 15.4
Golden Grove 8.3 36.9
Discontinued businesses (ii) (0.6) (0.3)
(3) Corporate administration
(Australia) (12.3) (33.4)
(Overseas) (1.5) (6.6)
Other income/(expenses) 4.0 (0.4)
(4) Yandal Operations (iii) (2.4) 10.4
TVX Normandy Americas 2.3 (0.6)
QMC (iv) (0.4) (1.5)
NIML Australia (v) 0.9 2.4
BRGM Perou / Mine Or - (2.5)
(i) Contributions from Normandy Mt Leyshon Limited and Normandy NFM
Limited (Tanami Operations) have been consolidated at 100 percent,
with minority interest deducted as outside equity interest.
(ii) Comprises Woodcutters, Gecko and Goldfields Gas Pipeline.
(iii) 27.8 percent direct interest and 29.7 percent indirect
interest, adjusted for dissimilar accounting policies and
amortisation charges.
(iv) 36.9 percent interest.
(v) 50 percent interest (includes Australian Magnesium investment).
SIMPLIFIED CONSOLIDATED BALANCE SHEET
unaudited, as at 31 March '00 31 Dec. '99
($M) ($M)
---------------------------------------------------------------------------
Cash, bank bills & gold bullion 234.4 261.8
Receivables 433.3 445.3
Inventories 136.9 144.6
Mining property & plant 1,018.3 1,001.1
Development projects 312.1 303.8
Exploration expenditure 160.9 149.4
Investments 688.5 699.6
Other 244.5 238.3
Total assets 3,228.9 3,243.9
Creditors & provisions 856.2 918.9
Borrowings 910.3 901.6
Net assets (1) 1,462.4 1,423.4
Share capital & reserves 1,189.2 1,174.6
Retained profits 184.9 154.2
Outside equity interests 88.3 94.6
Total shareholders' equity 1,462.4 1,423.4
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(1) Current assets $563M, current liabilities $688M Note: Excludes
Great Central Mines - effective date of consolidation 5 April
2000.
SIMPLIFIED CASH FLOWS
unaudited, for the periods 3 mths. 9 mths.
31 March '00 31 March '00
($M) ($M)
---------------------------------------------------------------------------
Net cash flow from mining operations 97.6 250.4
Expenditure on mining property
& plant (1) (30.7) (117.3)
Exploration expenditure (19.1) (51.6)
Proceeds/(payments) for investments 0.8 41.0
Movement in borrowings & receivables 3.0 (145.0)
Administration, tax & dividends paid (70.4) (180.6)
Net (decrease)/increase in cash
holding (18.8) (203.1)
Cash at beginning of period 252.1 439.9
Exchange rate effect on cash
held in foreign currencies 1.1 (2.4)
Cash at period end 234.4 234.4
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(1) Includes expansion capital expenditure of $21.8M for 3 months
($82.4M for 9 months).
RETAINED EARNINGS
unaudited, for the periods 3 mths. 9 mths.
31 March '00 31 March '00
($M) ($M)
---------------------------------------------------------------------------
Retained earnings at beginning of
period 154.2 124.4
Net income 26.4 92.9
Dividends (1) 4.3 (32.4)
Retained earnings at period end 184.9 184.9
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(1) Adjustment in current quarter for over provision arising from
shareholders electing to take shares under the parent entity Share
Investment Plan
Non-gold activities
GOLDEN GROVE PRODUCTION
periods ended 31 March 2000
3 mths. 9 mths.
---------------------------------------------------------------------------
Ore mined ('000t) 293.8 933.5
Ore milled ('000t) 282.4 907.5
Zinc grade (%) 6.8 9.9
Copper grade (%) 0.3 0.5
Lead grade (%) 0.5 0.7
Zinc concentrate (t) 51,016 170,323
Grade (%) 52.2 51.3
Contained metal (t) 26,651 87,514
Cash cost (1,2) (cents/lb) 57 56
Copper concentrate (t) 2,263 15,429
Grade (%) 14.0 14.1
Contained metal (t) 316 2,175
Silver grade (g/t) 1,706 1,377
Gold grade (g/t) 20.1 15.6
Lead concentrate (t) 2,162 6,935
Grade (%) 29.0 27.3
Contained metal (t) 628 1,895
Zinc sales (3)
Payable metal (t) 23,864 68,454
Est. price (4) (cents/lb) 74.7 79.0
Copper sales (3)
Payable metal (t) 1,002 4,765
Est. price (5) (cents/lb) 110 131
----------------------------------------------------------------------
----------------------------------------------------------------------
(1) Includes smelting, refining, freight charges and insurance, net
of by-product revenue.
(2) Copper by-product credit on zinc concentrate.
(3) Revenues on provisionally priced "open" pounds adjusted monthly,
based on then-current prices with settlement generally on average
LME price for specified future month.
(4) Includes hedged zinc sales, 19.17Mlb of payable zinc provisionally
priced at 78.6 cents/lb.
(5) Includes hedging benefits.
ZINC PRODUCTION COST
periods ended 31 March 2000 3 mths. 9 mths.
(unaudited) (cents/lb) (cents/lb)
---------------------------------------------------------------------------
Direct mining expenses 29 28
Transport & smelter charges 38 39
Mine development (6) (5)
By-product credits (6) (8)
Cash operating cost 55 54
Royalties 2 2
Total cash cost (1) 57 56
Depreciation 5 5
Amortisation 7 7
Mine closure 1 1
Total production cost (2) 70 69
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(1) US36 cents/lb (US35 cents/lb) at period avg. exchange rate.
(2) US44 cents/lb (US42 cents/lb) at period avg. exchange rate.
Zinc At Golden Grove (Western Australia Western Australia, state (1991 pop. 1,409,965), 975,920 sq mi (2,527,633 sq km), Australia, comprising the entire western part of the continent. It is bounded on the N, W, and S by the Indian Ocean. Perth is the capital. , 100 percent), zinc ore production was 10 percent lower, the result of a hanging wall failure at Scuddles and consequent con·se·quent adj. 1. a. Following as a natural effect, result, or conclusion: tried to prevent an oil spill and the consequent damage to wildlife. b. 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. ore. Mill throughput declined 5.8 percent, a consequence of materials flow issues and reduced stockpiles arising from the lower ore production. Milled grade and concentrate production were lower, in line with the mine plan and as forecast. Drilling at Catalpa, between Gossan Hill and Scuddles, met with increasing success. Assays were received for the hole reported last period (2.2m at 18% zinc and 5m at 6.9% zinc). A hole 100m north and 130m deeper intersected 23m at 27.5% zinc, 4.3g/t gold and 9.5oz/t silver. Further mineralisation was intersected more than 400m below previous drilling, and assays are awaited. Drilling at Amity, below the Gossan Hill mine workings, returned highly encouraging results in several holes (13m at 5.1% copper, 1.3g/t gold; 15m at 13.5% copper, 3.5g/t gold; 18m at 12.5% zinc; 10m at 24.7% zinc, 1.9g/t gold; 60m at 16.7% zinc, 3.1g/t gold, 4.6oz/t silver). Several new ore positions are indicated. A hole more than 400m below the deepest recorded to date intersected 1.8m at 34.5% zinc, 21.1% lead, 3.3g/t gold and 60oz/t silver. Cobalt At Kasese (Uganda, Banff Resources 63 percent), initial retrofitting of turbines in the bioreactor bioreactor a container in which living organisms carry out a biological reaction. tanks to increase oxygen dispersal dis·per·sal n. The act or process of dispersing or the condition of being dispersed; distribution. Noun 1. dispersal was completed, with a significant increase in production (153,000lbs of cobalt metal averaging 99.5 percent purity Purity: see Pearl, The. Purity See also Modesty. almond symbol of the Virgin Mary’s innocence. [O.T.: Numbers 17: 1–11; Art: Hall, 14] crystal its transparency symbolizes pureness. , compared with 59,000lbs at 99.1 percent last quarter). Additional changes to the sparge sparge tr.v. sparged, sparg·ing, sparg·es 1. To spray or sprinkle. 2. To introduce air or gas into (a liquid). n. A sprinkle. systems to further improve oxygen dispersal will occur in the June quarter. Redesign re·de·sign tr.v. re·de·signed, re·de·sign·ing, re·de·signs To make a revision in the appearance or function of. re , manufacture and testing of replacements for the failed hydroelectric generator Hydroelectric generator A low-speed generator driven by water turbines. Hydrogenerators may have a horizontal or vertical shaft. The horizontal units are usually small with speeds of 300–1200 revolutions per minute (rpm). components is on schedule for the June quarter. Electricity is currently sourced 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 and four on-site generators. Magnesium At Gladstone (Queensland, effective 65 percent), the economic and technical attributes of the proposed 96,000tpa magnesium project were confirmed in the feasibility study, with operating cash cost estimated at US64 cents/lb. Financing negotiations are progressing for the $1.13 billion project, and a commercial commitment is expected in the third quarter of calendar 2000. Industrial Minerals Earnings before interest and tax were 31 percent above last year. Moderate growth was achieved in Australia, with building sector activity higher ahead of introduction of the Goods and Services Tax The Goods and Services Tax is a Value-added tax that exists in a number of countries. Please see:
Robert Champion de Crespigny Chief Executive Officer 19 April 2000
INVESTOR INFORMATION
Stock Exchange Listings
Australian Stock Exchange (Ticker Symbol NDY) Toronto Stock Exchange
(Ticker Symbol NDY) Issued Capital At 31 March 2000, issued capital
was 1,751,559,021 shares. There are 248,537,609 listed options
exercisable at $2.50 per option until 30 April 2001.
Major Shareholders
Westpac Custodian Nominees 17.14%
National Nominees 11.09%
Chase Manhattan Nominees 8.94%
ANZ Nominees 8.05%
Substantial Shareholders
Tiger Management Corporation 11.06%
Maple Brown Abbott 8.51%
ADS Depositary
The Bank of New York
101 Barclay Street, New York, NY 10286
Telephone +1 212 815 2204
Facsimile +1 212 571 3050
Shareholder Enquiries
Matters relating to shares held, change of address, tax file number
and dividends should be directed to:
National Shareholder Services Pty Limited
100 Hutt Street, Adelaide 5000
South Australia, Australia
Telephone +61 8 8232 0003
Facsimile +61 8 8232 0072
Share Price Movement
Quarter High Low
June 1999 $1.54 $0.96
September 1999 $1.40 $0.99
December 1999 $1.45 $1.01
March 2000 $1.16 $0.82
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