Printer Friendly

ATLAS REPORTS FIRST QUARTER RESULTS

 ATLAS REPORTS FIRST QUARTER RESULTS
 DENVER, Nov. 13 /PRNewswire/ -- Atlas Corp. (NYSE: AZ) today


reported a net loss of $2,394,000, or $.38 per share, for its first quarter ended Sept. 30, 1992, compared to a net loss in the same quarter last year of $266,000, or $.04 per share.
 Total revenue for the first quarter of fiscal 1993 was $4,629,000, compared to $7,415,000 for the comparable quarter last year. Mining revenue was $4,618,000, compared to $7,397,000 for the first quarter of fiscal 1992. Mining revenue was adversely affected by lower production which resulted from the continued mining of low grade ore during the quarter. Operations produced 13,375 ounces of gold during the first quarter, compared to 19,967 ounces for the same quarter the previous year. Revenue for the quarter was also negatively affected by a $25 per ounce decrease in the average price realized, from $370 in the first quarter of fiscal 1992 to $345 for the same period in fiscal 1993.
 Mining on the Gold Ridge and Gold Pick deposits continued in low grade ore zones which led to a reduction in the number of ounces recovered, continuing the high costs per ounce experienced during the fourth quarter of fiscal 1992. During the month of November, the company anticipates completing the mining of these low grade ores and returning to a 7,000 to 8,000 ounce per month production level. The company continues to pursue permits for the timely development of the Gold Canyon deposit, located 5,000 feet northwest of Atlas' Gold Ridge deposit. With an average grade of .094 ounces per ton, the company anticipates production from this site will significantly reduce cash production costs from current levels.
 Subsequent to the end of the first quarter of fiscal 1993, Atlas concluded negotiations for the lease of its Grassy Mountain and Musgrove Creek properties for a 35-year period for $22.5 million. The company also received $7.5 million as an advance payment on a 5 percent net smelter royalty retained on all mineral production from both properties. Subsequent to the closing of the transaction, Atlas repaid its bank borrowings.
 In mid-October, President Bush signed "The Comprehensive National Energy Policy Act." This bill was significant to Atlas because of its provision for reimbursement of reclamation expenses related to uranium sites with tailings generated by Atomic Energy Commission contracts. At Atlas' Moab, Utah uranium site approximately 55 percent of the tailings were generated under these contracts. The Department of Energy has 180 days to develop the implementation regulations for this bill. At that time, the company will better understand which past and future expenses qualify for reimbursement.
 Richard R. Weaver, president and chief executive officer for Atlas Corp., stated, "As we anticipated, mining continued in the first quarter in low grade ores. We anticipate completing the mining of this ore in November and returning to higher grades in December. While operating results for the first quarter have been disappointing, the completion of the lease agreement on Grassy Mountain and Musgrove Creek properties, the repayment of the company's bank debt and the passage of the energy legislation will substantially improve fiscal 1993's outcome."
 Atlas Corp. is a mining company whose primary business is gold exploration and production. The company currently produces approximately 80,000 ounces of gold per year from its Gold Bar Mill in Nevada. The company currently has exploration efforts underway at several domestic and foreign locations.
 ATLAS CORP. AND ITS SUBSIDIARIES
 Condensed Statements of Operations
 (In Thousands, Except Per Share Data)
 (Unaudited)
 Three Months Ended
 Sept. 30,

 1992 1991
 Mining revenue $4,618 $7,397
 Other revenue 11 18
 Total revenue $4,629 $7,415
 Net loss ($2,394) ($266)
 Per share of common stock:
 Net loss ($.38) ($.04)
 Average number of common shares
 outstanding 6,336 6,094
 -0- 11/13/92
 /CONTACT: Robbin A. Lee of Atlas, 303-825-1200/
 (AZ) CO: Atlas Corp. ST: Colorado IN: MNG SU: ERN


EH -- DV002 -- 0605 11/13/92 10:24 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 13, 1992
Words:676
Previous Article:KODAK'S EDICON WINS INDONESIAN CONTRACT
Next Article:NATEC RESOURCES INC. ANNOUNCES THIRD QUARTER RESULTS
Topics:


Related Articles
ATLAS REPORTS FIRST QUARTER RESULTS
ATLAS REPORTS SECOND QUARTER RESULTS
ATLAS CONSOLIDATED MINING & DEVELOPMENT CORP., REPORTS SECOND QUARTER AND SIX MONTHS RESULTS
ATLAS REPORTS FINANCIAL RESULTS FOR FISCAL 1992
ATLAS REPORTS THIRD QUARTER RESULTS
ATLAS CONSOLIDATED MINING REPORTS 3 AND 6 MONTHS FINANCIAL RESULTS
ATLAS CORP. REPORTS SECOND QUARTER RESULTS
Atlas Corporation Reports Fourth Quarter and 1996 Results
Atlas Corporation Reports First Quarter 1997 Results
Atlas Corporation Reports Second Quarter 1997 Results

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters