YUBA WESTGOLD REPORTS NET LOSS FOR
THIRD QUARTER AND FIRST NINE MONTHS OF 1991
MARYSVILLE, Calif., Nov. 8 /PRNewswire/ -- Yuba WestGold, Inc. (PSE: YWG) today reported a third quarter net loss of $1 million, or $.05 per share, compared with a $0.1 million net loss, or less than $.01 per share in the third quarter of 1990. Quarterly revenues were $2.3 million, compared with $1 million in 1990 when operations were adversely affected by an accident that rendered the company's dredging equipment inoperative from May 27 through the end of the year.
Nine month net losses applicable to common shares totaled $2.6 million, or $.12 per share, compared with a $0.2 million net loss, or less than $.01 per share, last year. Revenues for the nine month period were $6.7 million, compared with $4.3 million in 1990, also reflecting the May 1990 accident involving the dredge.
Financial results for 1991 are not directly comparable to 1990 due to the Aug. 9, 1990 acquisition by Yuba WestGold of all of the shares of WestGold Placer, Inc., which gave it a 100 percent ownership of Yuba Placer Gold Company, the operating unit of Yuba WestGold, and the 1990 dredge shutdown. Reported results for periods prior to Aug. 9, 1990 reflect WestGold Placer's two-thirds interest in Yuba Placer Gold Company.
Yuba WestGold net losses in 1991 reflect higher operating costs and interest expense related to the change in ownership. Yuba WestGold's year-to-date financial results reflect higher expenses attributable to the resumption of normal operations following the repair of the dredge and substantially lower average gold prices in 1991, compared with 1990.
Yuba WestGold vice president, William E. Brooks, commented: "During 1991, management has focused its efforts on operating efficiencies and cost reduction. These programs have met with some success. Unit operating availability increased to 84 percent, 4 percent above plan levels, resulting in gold production at 110 percent of plan. Capital spending in 1991 was reduced by approximately 50 percent. We intend to continue our efficiency programs and our rigorous attention to cost control; however, we cannot anticipate a return to profitability in 1992 with gold prices at current levels."
Yuba WestGold is engaged in the dredging of gold and other precious metals located along the Yuba River in Yuba County, Calif.
YUBA WESTGOLD, INC.
Summarized Results of Operations
(In thousands -- unaudited)
Three Months Nine Months
Periods ended Sept. 30; 1991 1990 1991 1990
Revenues $2,301 $ 989 $6,690 $4,281
Costs & expenses 3,069 964 8,653 4,344
Net (loss) income (768) 25 (1,963) (63)
Preferred dividend requirement (200) (113) (600) (113)
Net loss applicable
to common shares (968) (88) (2,563) (176)
Average no. of
shares outstanding 20,734 30,826 20,734 39,439
Net loss per common share (.05) -- (.12) --
/CONTACT: William E. Brooks, 916-742-7164, or Eileen H. Kirrane, 712-279-8787, for Yuba WestGold/
(YWG) CO: Yuba WestGold, Inc. ST: California, Iowa IN: MNG SU: ERN KD-JT -- NY039 -- 2607 11/08/91 13:00 EST