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ATLAS REPORTS THIRD QUARTER RESULTS

 DENVER, May 17 /PRNewswire/ -- Atlas Corp. (NYSE: AZ) today reported a net loss of $5,017,000, or 79 cents per share, for the third quarter ended March 31, 1993. This loss includes a charge to adjust certain inventories to market value in the amount of $1,658,000 resulting from depressed gold prices during the quarter and a $670,000 charge to discontinued operations for obligations under sales agreements for the Atlas Building Systems division. This loss compares to a net loss of $900,000, or 15 cents per share, in the third quarter of the prior fiscal year. For the nine months ended March 31, 1993, Atlas had net income of $6,197,000, or 98 cents per share. This includes a gain of $17,803,000, reported in the second quarter, from the lease of the Grassy Mountain and Musgrove Creek properties. For the like period in fiscal 1992, Atlas had a net loss of $1,573,000, or 26 cents per share.
 Mining revenue for the quarter ended March 31, 1993 was $4,895,000, compared to $8,068,000 for the third quarter of fiscal 1992. Mining revenue was adversely affected by a lower average gold price realized, $339 per ounce compared to $357 per ounce in the like quarter of fiscal 1992, and by lower gold production, 14,400 ounces compared to 22,600 ounces in the like period, prior year. Both the processing of lower grade ores and a reduction in the ounces of gold recovered from the Gold Pick East deposit compared to estimates, contributed to lower production and higher costs for the quarter. The reduction in contained ounces at the Gold Pick East deposit was the result of geologically controlled structures, which restricted the dissemination of gold into the host rock. This condition was less widespread than anticipated, with a loss of 8,000 ounces as compared to the company's initial estimate of 12,400 ounces.
 In late April, Atlas reached definitive agreements with the independent contract mining firm who performed the prestripping on the Goldstone North deposit for the orderly repayment of $3.5 million for that work. The repayment period extends through February 1994. The agreements also provide for the contractor to mine the Goldstone North deposit and to develop and mine the Gold Canyon deposit. Ore production from the Goldstone North deposit began in April and is scheduled to continue into July 1993. Permits were received for the development of the Gold Canyon deposit on March 26, 1993, and preproduction work is expected to be completed and ore available for processing in June or July of 1993. Prior to beginning development of the Gold Canyon deposit, Atlas performed additional drilling and revised its mine plan to optimize cash flows which resulted in the current estimated proven and probable gold reserve of 57,000 ounces. The new pit design reduces the amount of preproduction stripping and waste removal required by approximately 4 million tons. Further exploration drilling is currently being conducted on adjacent geologically favorable structures, and any additional reserves delineated will be incorporated into the mine plans.
 While mining the Goldstone North deposit, certain conditions resulted in occurrences of waste material from an upper portion of the pit wall dislodging and coming to rest on the benches below. Due to concern for the safety of personnel working in this area, mining operations were curtailed on May 4, 1993. The company and outside technical consultants are addressing the issue and working to reestablish a safe working environment. Barring any unforeseen delays, the company anticipates that this program will be completed within two weeks. Stockpiled ore continues to be hauled to the mill and this, together with stockpiled ore already at the mill, should be sufficient to maintain processing of mill grade ore.
 Gary E. Davis was appointed to the position of chief operating officer for Atlas by the board of directors in May 1993. In this capacity, Davis stated, "The reduction in the recoverable ounces at the Gold Pick East deposit significantly impacted Atlas' financial performance in the third quarter. We have undertaken additional drilling to determine if similar conditions exist with any of the company's other deposits. Initial drilling results have been favorable. The agreement with the contract mining firm has allowed us to continue with production from the Goldstone North deposit and with our plans to bring the Gold Canyon deposit into production. We anticipate returning to normal levels of production, approximately 6,000 to 8,000 ounces per month, with the recommencement of production from the Goldstone North deposit. I am encouraged by the strength we are seeing in the gold price and will continue to pursue opportunities for Atlas to benefit from these improving conditions."
 Atlas is a mining company whose primary business is gold exploration and production. The company owns and operates the Gold Bar Project in Nevada and has exploration efforts underway at several domestic and foreign locations.
 ATLAS CORP. AND ITS SUBSIDIARIES
 (Unaudited)
 Condensed Statement of Operations
 (In Thousands, Except Per Share Data)
 Three Months Ended Nine Months Ended
 March 31, March 31,
 1993 1992 1993 1992
 Mining revenue $ 4,895 $8,068 $ 13,745 $23,865
 Loss from operations $(4,230) $ (901) $(10,215) $(1,467)
 Gain on disposition
 of property -- -- 17,803 --
 Other income (expense) (87) 1 (91) (106)
 Income tax (expense)
 credit 323 -- (3,407) --
 Income (loss) from
 continuing operations $(3,994) $ (900) $ 4,090 $(1,573)
 Loss from discontinued
 operations (net of tax) (670) -- (670) --
 Extraordinary credit
 (expense)- utilization of
 tax loss carryforwards (353) -- 2,777 --
 Net income (loss) $(5,017) $ (900) $ 6,197 $(1,573)
 Per share of common stock:
 Income (loss) from continuing
 operations $(.63) $(.15) $.65 $(.26)
 Loss from discontinued
 operations (net of tax) (.11) -- (.11) --
 Extraordinary credit (expense)-
 utilization of tax
 loss carryforwards (.05) -- .44 --
 Net income (loss) $(.79) $(.15) $.98 $(.26)
 Average number of common
 shares outstanding 6,336 6,098 6,336 6,096
 -0- 5/17/93
 /CONTACT: Robbin A. Lee of Atlas, 303-825-1200/
 (AZ)


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

BB -- DV006 -- 9304 05/17/93 14:34 EDT
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Date:May 17, 1993
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