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FMC GOLD REPORTS FOURTH QUARTER RESULTS

 FMC GOLD REPORTS FOURTH QUARTER RESULTS
 CHICAGO, Jan. 28 /PRNewswire/ -- FMC Gold Company (NYSE: FGL) today


reported fourth quarter net income of $1.2 million compared with net income of $5.3 million in the fourth quarter of 1990. Earnings per share were $0.02 compared with $0.07 in the prior-year quarter.
 Gold production rose during the quarter, while, as expected, silver production declined. However, lower precious metal prices and higher operating costs contributed to the decline in profits.
 Sales for the fourth quarter of 1991 were $39.1 million compared with $37.2 million last year due to higher gold production. The average realized price of gold declined to $359 per ounce from $378 per ounce in the fourth quarter of 1990. The average realized price of silver declined to $4.06 per ounce compared with $4.18 in the year-ago period.
 In the fourth quarter, FMC Gold produced 100 thousand ounces of gold compared with 88 thousand ounces in the same period last year. At the Paradise Peak, Nev., mine, gold production increased to 57 thousand ounces compared with 48 thousand ounces in the fourth quarter of 1990. Silver production declined to 623 thousand ounces compared with 901 thousand ounces last year. The increase in gold production reflected higher mill throughput and additional heap-leach production from the Ketchup Flat and County Line deposits, partially offset by the expected decline in mill ore grades.
 At the Jerritt Canyon, Nev., mine, (30 percent owned by FMC Gold), increased throughput and improved operation of the ore-roasting circuit contributed to a slight increase in gold production. FMC Gold's share of gold production increased to 27 thousand ounces in the fourth quarter compared with 25 thousand ounces last year. At the Royal Mountain King, Calif., mine, increased mill throughput offset a decline in mill ore grades, and gold production totaled 16 thousand ounces in the quarter compared with 15 thousand ounces in the prior-year period.
 Average cash production costs increased modestly during the fourth quarter to $207 per gold equivalent ounce compared with $199 per gold equivalent ounce in the fourth quarter of 1990. The increase reflects the expected higher costs at Paradise Peak caused by lower grades and expanded heap-leach production, partially offset by lower cash costs at Jerritt Canyon and Royal Mountain King.
 FMC Gold held $125 million in cash and cash equivalents at the end of the quarter and realized interest income of $1.9 million during the fourth quarter, compared with $2.3 million last year, reflecting lower interest rates in the current period.
 Full Year Results
 Sales for the full year were $139.4 million compared with $153 million in 1990. Despite record gold production of 357 thousand ounces, profits declined, reflecting lower precious metals prices, reduced silver production and higher costs. The average realized price of gold declined to $361 per ounce from $381 per ounce in 1990. The average realized price of silver declined to $4.05 per ounce compared with $4.90 last year. Net income was $7 million compared with $39.4 million in 1990. Earnings per share were $0.10 compared with $0.56 last year.
 Cash production costs increased to $220 per gold equivalent ounce compared with $161 per gold equivalent ounce last year. The increase reflects higher costs at Paradise Peak caused by lower grades and the addition of costs associated with expanded heap-leach production. The inclusion in 1991 of a full year of higher-cost Royal Mountain King production also contributed to the increase in costs.
 Exploration spending totaled $12.6 million in 1991 compared with $14.7 million last year. Higher spending in 1990 reflected efforts to assess the potential of properties acquired as part of the Meridian Gold acquisition. Exploration efforts in 1991 continued to focus on areas in the vicinity of existing mines and grassroots exploration, and were recently expanded to include Mexico and Chile.
 Outlook
 "The continued strong operating performance at each of our mines offset the expected decline in mill ore grades at Paradise Peak and contributed to higher gold production for the quarter and the full year," said Larry D. Brady, FMC Gold chairman and chief executive officer. "Despite the decline in precious metals prices throughout the year, increased efficiencies resulted in positive operating profits and $24 million in cash flow," he noted.
 FMC GOLD COMPANY
 Consolidated Statements of Income
 (In millions, except per share amounts)
 Three Months Year
 Periods ended Dec. 31; 1991 1990 1991 1990
 Sales $ 39.1 $ 37.2 $139.4 $153.0
 Costs & Expenses
 Cost of sales 32.5 28.2 117.9 88.8
 Exploration costs 3.0 4.0 12.6 14.7
 Selling, general &
 administrative expenses 2.2 1.6 7.5 8.5
 Total costs & expenses 37.7 33.8 138.0 112.0
 Earnings before
 interest & taxes 1.4 3.4 1.4 41.0
 Interest income 1.9 2.3 7.8 8.0
 Income before income taxes 3.3 5.7 9.2 49.0
 Provision for income taxes 2.1 0.4 2.2 9.6
 Net income $ 1.2 $ 5.3 $ 7.0 $ 39.4
 Earnings per common share $0.02 $0.07 $0.10 $0.56
 Average number of shares
 used in earnings per
 share computations 73.5 73.5 73.5 70.5
 FMC GOLD COMPANY
 Operating Data (Unaudited)
 Periods ended Three Months Year
 Dec. 31; 1991 1990 1991 1990(A)
 Tons of ore processed (thousands)
 Paradise Peak
 - Mill 446 352 1,558 1,409
 - Heap Leach 1,098 469 3,217 803
 Total 1,544 821 4,775 2,212
 Jerritt Canyon
 (FMC Gold share) 220 192 865 754

 Royal Mountain King 352 284 1,368 659
 Ore grade (ounces per ton milled)
 Paradise Peak
 - Gold 0.083 0.122 0.079 0.136
 - Silver 1.917 3.716 2.166 5.599
 Jerritt Canyon 0.140 0.154 0.145 0.147
 Royal Mountain King 0.060 0.071 0.058 0.068
 Mill recoveries (in percent)
 Paradise Peak
 - Gold 92.2 94.1 92.2 94.4
 - Silver 61.8 66.9 62.6 68.3
 Jerritt Canyon 89.0 88.1 88.2 87.9
 Royal Mountain King 80.3 78.1 77.9 80.9
 Production (thousands of ounces)
 Gold
 Paradise Peak 57 48 182 199
 Jerritt Canyon 27 25 113 98
 Royal Mountain King 16 15 62 35
 Total 100 88 357 332
 Silver 623 901 2,337 5,481
 Cash cost of production ($ per gold equivalent ounce)
 Paradise Peak $ 176 $ 120 $ 180 $ 106
 Jerritt Canyon $ 196 $ 272 $ 219 $ 237
 Royal Mountain King $ 338 $ 381 $ 353 $ 365
 Average $ 207 $ 199 $ 220 $ 161
 (A) -- Includes Royal Mountain King from acquisition date of May 16, 1990.
 -0- 1/28/92
 /CONTACT: Pat Brozowski, 312-861-6104, or Chris Peterson, 312-861-5765, both of FMC/
 (FGL) CO: FMC Gold Company ST: Illinois IN: MNG SU: ERN


JT -- NY055 -- 4236 01/28/92 12:20 EST
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