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FMC GOLD REPORTS FOURTH QUARTER RESULTS

 CHICAGO, Jan. 26 /PRNewswire/ -- FMC Gold Company (NYSE: FGL) today reported fourth quarter net income of $1.1 million compared with net income of $1.2 million in the fourth quarter of 1991. A decline in precious metals prices was partially offset by slightly higher gold production, and lower operating and administrative costs. Earnings per share were $0.01 for the quarter compared with $0.02 last year.
 Sales for the fourth quarter of 1992 fell 10 percent to $35.1 million primarily due to lower precious metal prices. The average realized price of gold declined to $337 per ounce from $359 per ounce in the fourth quarter of 1991. The average realized price of silver declined to $3.77 per ounce compared with $4.06 in the year-ago period.
 In the fourth quarter, FMC Gold produced 101,000 ounces of gold compared with 100,000 ounces in the same period last year. At the Paradise Peak, Nev., mine, gold production rose to 62,000 ounces compared with 57,000 ounces in the fourth quarter of 1991. Silver production declined to 367,000 ounces compared with 601,000 ounces last year. The increase in gold production reflects slightly better mill ore grades and additional heap-leach production from the Ketchup Flat and County Line deposits. The decline in silver production reflects the expected decline in mill ore grades.
 At the Jerritt Canyon, Nev., mine (30 percent owned by FMC Gold), gold production declined, reflecting lower mill ore grades. FMC Gold's share of production declined to 22,000 ounces compared with 27,000 ounces in the fourth quarter of 1991. At FMC Gold's Royal Mountain King, Calif., mine, gold production rose slightly to 17,000 ounces compared with 16,000 ounces in the prior-year period.
 Average cash production costs decreased during the fourth quarter to $193 per gold equivalent ounce compared with $207 per gold equivalent ounce in the fourth quarter of 1991. The decline in cash production costs reflects increased gold production at Paradise Peak and improved operating efficiencies at Paradise Peak and Royal Mountain King, partially offset by higher costs at Jerritt Canyon.
 FMC Gold held $154.3 million in cash, cash equivalents and investments at the end of the quarter and realized interest income of $1.6 million during the fourth quarter compared with $1.9 million last year, reflecting lower interest rates in the current period.
 Full Year Results
 Sales for the full year rose 8 percent to $150.0 million as higher gold production was partially offset by lower precious metals prices. Gold production rose 17 percent to 418,000 ounces. The average realized price of gold declined to $343 per ounce from $361 per ounce in 1991. The average realized price of silver declined to $4.01 per ounce compared with $4.05 last year. Net income was $14.4 million compared with $7.0 million in 1991. Earnings per share were $0.20 compared with $0.10 last year.
 Cash production costs decreased to $180 per gold equivalent ounce compared with $220 per gold equivalent ounce last year. The decline in cash production costs primarily reflects increased gold production resulting from higher-than-expected gold mill ore grades at Paradise Peak and improved operating efficiencies at Royal Mountain King. Non-cash production costs were higher due to accelerated accruals for reclamation costs.
 Outlook
 "Despite the continued weakness in precious metals prices, improved operating performance and better-than-expected gold grades at Paradise Peak contributed to higher gold production and earnings for the year," said Larry D. Brady, FMC Gold chairman and chief executive officer. "With Paradise Peak entering its last year of production in 1993, we will continue to emphasize cost reduction at all of our operations. Successful cost reduction programs and operating efficiencies resulted in positive cash flow of $29 million this year," he noted.
 FMC GOLD COMPANY
 Consolidated Statements of Income
 (Unaudited, in millions, except per share amounts)
 Periods ended Three months Year
 Dec. 31 1992 1991 1992 1991
 Sales $35.1 $39.1 $150.0 $139.4
 Costs and expenses
 Cost of sales 30.8 32.5 120.0 117.9
 Exploration costs 3.7 3.0 12.2 12.6
 Selling, general and
 administrative expenses 1.6 2.2 7.7 7.5
 Total costs and expenses 36.1 37.7 139.9 138.0
 Earnings before interest
 and taxes (1.0) 1.4 10.1 1.4
 Interest income 1.6 1.9 6.0 7.8
 Income before income taxes 0.6 3.3 16.1 9.2
 Income tax provision
 (benefit) (0.5) 2.1 1.7 2.2
 Net income $ 1.1 $ 1.2 $ 14.4 $ 7.0
 Earnings per common share $0.01 $0.02 $ 0.20 $ 0.10
 Average number of shares
 used in earnings per
 share computations 73.5 73.5 73.5 73.5
 FMC GOLD COMPANY
 Operating Data
 (Unaudited)
 Periods ended Three months Year
 Dec. 31 1992 1991 1992 1991
 Tons of ore processed
 (thousands)
 Paradise Peak
 - Mill 421 446 1,727 1,558
 - Heap Leach 1,061 1,098 4,715 3,217
 Total 1,482 1,544 6,442 4,775
 Jerritt Canyon (FMC Gold
 share) 219 220 897 865
 Royal Mountain King 343 352 1,405 1,368
 Ore grade (ounces per ton milled)
 Paradise Peak
 - Gold 0.088 0.083 0.097 0.079
 - Silver 1.309 1.917 1.511 2.166
 Jerritt Canyon 0.092 0.140 0.097 0.145
 Royal Mountain King 0.056 0.060 0.060 0.058
 Mill recoveries
 (As a precent)
 Paradise Peak
 - Gold 93.6 92.2 93.3 92.2
 - Silver 59.1 61.8 62.5 62.6
 Jerritt Canyon 88.6 89.0 89.4 88.2
 Royal Mountain King 80.2 80.3 82.2 77.9
 Production (thousands of ounces)
 Gold
 Paradise Peak 62 57 251 182
 Jerritt Canyon 22 27 96 113
 Royal Mountain King 17 16 71 62
 Total 101 100 418 357
 Silver 386 623 1,926 2,337
 Cash cost of production ($ per gold
 equivalent ounce)
 Paradise Peak $138 $176 $134 $180
 Jerritt Canyon $269 $196 $230 $219
 Royal Mountain King $300 $338 $285 $353
 Average $193 $207 $180 $220
 -0- 1/26/93
 /CONTACT: Pat Brozowski, 312-861-6104, or (investors) Chuck Thomas, 312-861-6678, both of FMC Gold Company/
 (FGL)


CO: FMC Gold Company ST: Illinois IN: MNG SU: ERN

TS -- NY058 -- 9082 01/26/93 12:35 EST
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Publication:PR Newswire
Date:Jan 26, 1993
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