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 DENVER, Nov. 15 /PRNewswire/ -- Atlas Corp. (NYSE: AZ) today reported a net loss of $913,000 or 13 cents per share, for its first quarter ended Sept. 30, 1993, compared to a net loss in the like quarter last year of $2,394,000, or 38 cents per share. Included in the loss for the quarter ended Sept. 30, 1993 was an expense of $385,000 related to the recently imposed $100 federal holding fee for each claim located on public land and $490,000 of severance expenses associated with the Sept. 20, 1993 change of control.
 Mining revenue for the first quarter of fiscal 1994 was $6,979,000, compared to $4,618,000 for the comparable quarter last year. This increase was attributable to a 42 percent increase in gold production and a $23 higher average gold price for the quarter.
 Three Months Ended
 Sept. 30,
 1993 1992
 Gold production (ozs) 18,928 13,375
 Average gold price realized $368 $345
 Production costs per ounce
 Cash cost per ounce $238 $256
 Mine site non-cash cost per ounce 80 168
 Head office cost per ounce 58 66
 $376 $490
 The company's performance during the quarter was adversely affected by a six week interruption of ore flow between the completion of mining the Goldstone North deposit and the accessing of sustainable ore at the Gold Canyon deposit. During this time the company milled stockpiled ore that consisted of both low-grade oxide and higher grade, but refractory ore. This practice resulted in a lower average grade and lower recoveries during the second half of the quarter. Additional costs were also incurred during the quarter due to a required redesign of the Gold Canyon pit. This modification, which resulted in the movement of additional pre-stripping waste material, was required in order to push back the pit wall to avoid a major shear zone encountered at the top of the pit.
 During the quarter, Atlas completed the sale of certain securities for $8,375,000 to Phoenix Financial Holdings Inc., a Toronto-based firm. As part of this transaction, Phoenix designees were appointed to four of the six positions on the board of directors and to the top three executive positions within the company. As of Sept. 21, 1993, David Birkenshaw became Atlas' new chairman and chief executive officer, Steve Manz became president and chief financial officer, and Michael Gross became the senior vice president and chief operating officer. Manz and Gross both previously held executive positions at Royal Oak Mines Inc. and were actively involved in that company's acquisition and profitable turnaround of three high cost 100,000 ounce per year gold mines.
 Birkenshaw stated, "Despite the interruption in higher grade ore flow, the Gold Bar Project was still able to generate both positive income and cash flow during the quarter. Had the company not incurred the extraordinary severance payments relating to the change in control of the corporation and the high federal holding fees, the company would have operated near break-even. After three years of continuous losses, we feel this quarter represents a major turning point. Since taking over management of Atlas, we have been aggressively pursuing programs to cut costs at both the corporate and minesite level. Operating changes include raising the cutoff grade at Gold Bar and instituting a screening program to simultaneously improve the grade of ore milled and reduce hauling costs. We are also examining various underground mining plans which could enhance the mine's performance in areas where high open pit stripping ratios are expected."
 (In thousands, except per share data)
 Condensed Statement of Operations
 Three Months Ended
 Sept. 30,
 1993 1992
 Mining revenue $6,979 $4,618
 Production cash costs 4,501 3,422
 Non-cash costs 1,535 2,249
 Minesite profit (loss) $943 $(1,053)
 Other expenses 1,856 1,341
 Net loss $(913) $(2,394)
 Per share of common stock:
 Net loss $(.13) $(.38)
 Average number of common
 shares outstanding 6,836 6,336
 Comparative Balance Sheet
 Sept. 30, June 30,
 1993 1993
 Current assets $10,192 $6,333
 Property, plant and equipment, net 6,674 5,376
 Other assets 8,158 7,840
 $25,024 $19,549
 Liabilities and shareholders' deficit:
 Current liabilities $7,688 $9,149
 Long-term liabilities 18,119 14,807
 Shareholders' deficit (783) (4,407)
 $25,024 $19,549
 -0- 11/15/93
 /CONTACT: Robbin A. Lee of Atlas, 303-825-1200/

CO: Atlas Corp. ST: Colorado IN: MNG SU: ERN

MC -- DV002 -- 4343 11/15/93 11:08 EST
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Publication:PR Newswire
Date:Nov 15, 1993

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