Sunshine Mining & Refining Co. announces financial results.BOISE, Idaho--(BUSINESS WIRE)--Nov. 11, 1994--Sunshine Mining & Refining refining, any of various processes for separating impurities from crude or semifinished materials. It includes the finer processes of metallurgy, the fractional distillation of petroleum into its commercial products, and the purifying of cane, beet, and maple sugar Co. (NYSE NYSE See: New York Stock Exchange :SSC SSC Secondary School Certificate SSC Standard Systems Center (USAF) SSC State Services Commission (New Zealand) SSC Swedish Space Corporation SSC Salem State College (Massachusetts) ) announced a net loss of $692,000 for the first nine months of 1994, an improvement of $26.4 million over the corresponding 1993 period. The net loss for the third quarter was $2.8 million, vs. a $17.4 million loss for the 1993 period. Operating revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. increased $1.9 million primarily due to higher average silver prices for the quarter ($5.36 per ounce vs. $4.67 in the same period of 1993), higher sales of custom refined material, and mark-to-market adjustments on in-process inventories and investment bullion BULLION. In its usual acceptation, is uncoined gold or silver, in bars, plates, or other masses. 1 East, P. C. 188. 2. In the acts of Congress, the term is also applied to copper properly manufactured for the purpose of being coined into money. . The losses in both 1993 periods included a $12.5 million charge reflecting the company's decision to induce early retirement of its then-outstanding Silver Indexed Bonds. A $6.9 million gain is included in the first nine months of 1994 relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the exchange of retiree medical benefits for pension improvements for Sunshine employees. Aggregate silver production for the first nine months of 1994 declined to 1.6 million ounces vs. 1.8 million ounces during the same period in 1993, and for the quarter it declined to 469,000 ounces vs. 605,000 ounces in 1993. The decline in production is primarily a result of rockburst activity in some of the more productive areas of the Sunshine Mine, which have negatively impacted productivity. As a result, the company's year-to-date net cash cost of production has increased to $5.72 per ounce vs. $4.87 per ounce for the same period in 1993. At Sept. 30, 1994, the company had $41 million of working capital, including $34 million of cash and silver bullion held for investment. Total debt has been reduced to $9 million. Interest expense for the 1994 third quarter and nine month periods decreased 67 percent ($646,000) and 75 percent ($2.9 million), respectively due to the debt reduction accomplished in the last half of 1993. Interest income for the first nine months increased $.5 million from the year-earlier period primarily due to the increase in cash investments. As a result of the company's improving financial condition, the company is emphasizing new mine acquisition and development, as well as exploration at the Sunshine Mine. In that regard, Sunshine has entered into an agreement with Empresa Argentina de Cemento Armado, S.A. ("EACA EACA European Association of Communications Agencies (Brussels, Belgium) EACA Epsilon Amino-Caproic Acid (aka 6-amino hexanoic acid) EACA Exhibitor Appointed Contractor Association ") whereby the company will earn a 50 percent interest in the Huemules mineral concessions in the Chubut province Chubut is a province in the southern part of Argentina, that lies between the 42nd Parallel South (forming the border with the Río Negro Province) and 46th Parallel South (bordering Santa Cruz Province), the Andes range separating Argentina from Chile, and the Atlantic ocean. of Argentina by providing $2.1 million for exploration and development on the concessions during the next three years. EACA has mined the property on a limited basis, shipping 4,000 tons of ore directly to a smelter, at an average grade in excess of 3.0 ounces of gold per ton. Sunshine will commence a drilling program on the property as soon as logistical lo·gis·tic also lo·gis·ti·cal adj. 1. Of or relating to symbolic logic. 2. Of or relating to logistics. [Medieval Latin logisticus, of calculation arrangements can be made. Sunshine recently completed drilling for the season at its newly acquired Revenue Virginius property in Colorado. The Revenue Virginius contains an underground silver ore body with ore mineralogy mineralogy Scientific study of minerals, including their physical properties, chemical composition, internal crystal structure, occurrence and distribution in nature, and origins or conditions of formation. similar to the Sunshine Mine. Seven holes were drilled before the onset of winter. Results of this drilling are expected to increase the current ore reserve of 4.9 million ounces of silver. Surface mapping was also successful in discovering extensions of veins which will provide new drilling targets for the spring, and will significantly increase the reserve potential of the area. In the West Chance area of the Sunshine Mine, the company reports that the 3,100 level exploration drift has encountered significant 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. in the area expected, and the company will continue advancing the drift heading. The company also announced that the Supreme Court of the State of Delaware has recently 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 decision of the trial court supporting the company's position in the case of Giammalvo vs. Sunshine. At issue was the question of whether the company should be compelled to pay dividends and make annual redemptions of its $11.94 Stated Value Stated Value A value that, instead of being par value, is assigned to a corporation's stock for accounting purposes. Stated value has no relation to market price. Notes: Cumulative Redeemable Preferred Stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. . Sunshine, through its Sunshine Precious Metals Precious Metals Valuable metals such as gold, iridium, palladium, platinum, and silver. Notes: Investing in precious metals can be done either by purchasing the physical asset, or by purchasing futures contracts for the particular metal. Inc. subsidiary, owns and operates the Sunshine Mine and Refinery Complex in the Coeur d'Alene Coeur d'Alene, city, United States Coeur d'Alene (kûrdəlān`), city (1990 pop. 24,563), seat of Kootenai co., N Idaho, near the Wash. line; inc. 1907. Mining District in northern Idaho. The Sunshine Mine has been in operation for over 100 years, over which time it has been the largest primary silver producing mine in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . -0-
SUNSHINE MINING AND REFINING CO.
Financial Information
(In thousands, except for share amounts)
Quarter ended Nine months ended
Sep 30, Sep 30,
1994 1993 1994 1993
Operating revenues: $ 5,009 $ 3,150 $ 12,492 $ 10,470
Costs and expenses:
Operating costs 4,977 4,029 12,035 12,114
Depreciation, depletion
and amortization 970 1,528 3,232, 4,606
Exploration 563 449 1,408 1,060
Metallurgical research 71 53 164 144
Selling, general and
administrative expense 1,322 1,248 3,950 3,685
Curtailment gain on
postretirement
benefits -- -- (6,936) --
Operating loss (2,894) (4,157) (1,361) (11,139)
Other income (expense):
Interest income 363 97 792 276
Interest expense (322) (968) (953) (3,874)
Other, net 25 81 830 102
Loss on induced conversion
of Silver Indexed Bonds -- (12,466) -- (12,466)
Net loss (2,828) (17,413) (692) (27,101)
Preferred dividend
requirements (2,591) (2,692) (7,902) (8,164)
Loss applicable to common
shares (5,419) (20,105) (8,594) (35,265)
Loss per common share (3 cents) (13 cents) (5 cents) (23 cents)
Weighted average common
shares outstanding 189,072 158,709 184,188 152,304
PRICE AND PRODUCTION STATISTICS
Average silver
prices received $ 5.36 $ 4.67 $ 5.35 $4.22
Cash cost per ounce 6.57 4.99 5.72 4.87
Tons 25,599 27,564 78,655 77,810
Silver grade 18.92 22.52 21.44 24.85
Silver ounces 468,711 604,748 1,631,007 1,823,100
At Sep 30,
1994 1993
BALANCE SHEET DATA
Cash and cash investments 25,270 4,304
Working capital 41,018 15,651
Total assets 120,874 100,360
Long-term debt and capital lease
obligations 8,936 9,493
CONTACT: Sunshine Mining & Refining Co. William W. Davis, 214/265-1377 |
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