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LAC MINERALS ANNOUNCES THIRD QUARTER RESULTS

 TORONTO, Oct. 29 /PRNewswire/ -- Lac Minerals Ltd. (NYSE: LAC) today reported a loss of $5.4 million or four cents per share for the three months ended September 30, 1993 compared to a loss of $1.1 million or one cent per share for the same quarter last year.
 The company said that, although its cost reduction program initiated earlier in the year is producing results, it registered a loss for the quarter largely because of a strategic decision to spend an additional $5.5 million for increased exploration at its Red Mountain project in British Columbia in order to maximize exploration activity during seasonable temperatures after the company's recent success in identifying expanded gold potential at the property.
 Despite the temporary negative impact on earnings resulting from the company's policy of expensing its exploration costs, Lac is committed to aggressively pursuing new exploration opportunities. The company announced last month that, in addition to the Red Mountain project, recent exploration activities at three other properties -- El Indio, Tambo and El Nevada -- have revealed the potential for a resource of greater than 5 million ounces of gold. These properties represent internally generated projects acquired in the 1989 purchase of Bond International Gold, Inc. Lac intends to dedicate approximately $60 million over the next three years to new exploration activities.
 For the first nine months of 1993, Lac reported a loss of $5.6 million or four cents per share, compared with net earnings of $7 million or five cents per share for the first nine months of 1992. Lower commodity prices in 1993, most notably gold, contributed to the decline in revenues and earnings compared to last year. Gold revenues averaged $355 per ounce in the first nine months of 1993, equivalent to the spot market average but below last year's gold revenue per ounce of $390. The company currently has no hedging commitments with respect to its future metals production.
 Lac expects pressure on earnings to continue in the near future as the company continues to focus on its improved exploration opportunities, particularly at El Nevada and Tambo. While management is not satisfied with the company's recent financial performance, it believes the steps it is taking are critical to providing for a strong revenue base for the future.
 However, the company successfully maintained its third quarter operating margins compared to last year, despite lower gold prices, due to significant improvements in operating costs. The shortfall in 1993's operating margin from last year's level occurred in the first half of the year because the impact of lower gold prices was not completely mitigated by lower operating costs and because of performance difficulties at El Indio. Actions taken in the second quarter are beginning to return El Indio's operating performance to expected levels.
 In order to achieve the objective of reducing its long-term cash cost per ounce of gold to $190, Lac recorded non-recurring costs in excess of $6 million, the equivalent of $7 per ounce, in the first half of 1993. The benefit of these cost reduction initiatives began to be realized in the third quarter as cash costs declined to $181 per ounce bringing the year to date average to $194, a reduction of 11 per cent from last year. Cash costs are expected to remain at this level for the balance of 1993. In addition to the cost reduction program, lower waste mining costs at the Bullfrog mine and the cessation of mining at Richmond Hill and Colosseum, two of Lac's higher cost operations, contributed to the improvement in 1993's cash costs.
 Third quarter gold production, at 273,000 ounces, was comparable to last year's levels. This brings gold production to 826,000 ounces for the nine-month period in 1993 compared to 848,000 ounces for the same period in 1992. Improved grades at Bullfrog helped offset some of the impact of lower grades at El Indio and the cessation of mining at Richmond Hill and Colosseum.
 In addition to reducing operating costs and selectively increasing exploration, Lac undertook several significant steps during the quarter to improve efficiently and position itself for enhanced future earnings and revenue growth. In September, the company announced that it was restructuring along operating lines to improve efficiency and productivity. Under the new structure, two regional business units -- Lac South America and Lac North America -- will operate as profit centers responsible for regional exploration, development and operations, as well as human resources, accounting and finance functions. Individual mines will be supervised on the business unit level instead of directly from corporate headquarters. Michael Richings, formerly senior vice-president, mine development at Lac, and Michael Bates, previously an executive with RTZ Corporation, were recently appointed presidents of the respective units.
 Lac's corporate office in Toronto, in addition to supporting these regional units, will focus on strategic planning, corporate development, senior finance and international exploration. In conjunction with the restructuring, Lac has created a new executive group comprised of Lac's president and chief executive officer, Peter A. Allen, a chief financial officer, the presidents of Lac South America and Lac North America, and Carl C. Straub, Lac's general counsel.
 In mid-October, Lac, in partnership with Cyprus Minerals, successfully bid for a 51 per cent stake in El Abra, one of the world's largest and highest quality copper properties. The project, utilizing the SX-EW extraction method, will produce copper cathode and have copper production costs that are among the lowest in the world. It is expected to be a very productive, cost-efficient operation once production begins in 1997 at an annual rate of 225,000 ton of copper cathode.
 Lac maintains a very strong balance sheet, with a large cash position and strong annual cash flows. At Sept. 30, 1993, Lac had a cash position of $438 million, compared with $401 million as of Dec. 31, 1992. Cash balances and operating cash flows are considered to be sufficient to internally finance not only Lac's expenditure requirements with respect to El Abra, but also its planned exploration activities and capital programs at its existing operations. As such, Lac has no immediate need to externally finance any of the aforementioned projects and would only do so when market conditions are beneficial to the company and the financing would meet Lac's long-term financial objectives.
 LAC MINERALS LTD.
 Operating Statistics
 (100 per cent basis unless otherwise noted)
 PRODUCTION
 Periods ended Sept. 30 Three Months Nine Months
 Gold (ounces) 1993 1992 1993 1992
 Canada
 Bousquet No. 1 9,577 12,306 44,185 43,678
 Bousquet No. 2 45,765 39,643 120,788 111,598
 Doyon
 (50 per cent) 35,928 28,154 93,958 94,650
 Francoeur
 (50 per cent) - - - 2,318
 Golden Patricia 19,628 20,277 57,919 62,059
 Macassa/Lake
 Shore 25,710 19,390 69,104 68,260
 United States
 Bullfrog 84,644 83,737 267,501 234,250
 Colosseum - 10,851 26,522 34,949
 Richmond Hill 2,268 7,561 7,602 25,882
 Chile
 El Indio 49,653 54,686 138,194 170,355
 Total 273,173 276,605 825,773 847,999
 Lac's share 264,707 267,281 802,211 818,953
 Copper Metal (tons)
 Bousquet No. 2 959 1,215 2,835 3,393
 El Indio 8,165 6,585 23,020 20,162
 Total 9,124 7,800 25,855 23,555
 Lac's share 7,732 6,677 21,930 20,117
 Zinc Metal (tons)
 Toqui 7,950 7,781 23,463 24,771
 CASH COST PER OUNCE OF GOLD
 Canada
 Bousquet No. 1 $425 $343 $292 $321
 Bousquet No. 2 197 194 227 218
 Doyon 152 218 191 196
 Francoeur - - - 342
 Golden Patricia 186 193 213 215
 Macassa/Lake Shore 243 286 279 274
 United States
 Bullfrog 130 162 131 193
 Colosseum - 271 151 339
 Richmond Hill 299 277 235 307
 Chile
 El Indio 186 192 215 176
 Average cash
 cost per ounce $181 $206 $194 $218
 SALES
 Gold (ounces) 248,000 264,300 817,800 818,000
 Copper metal
 (tons) 8,400 7,900 24,100 21,100
 Zinc metal
 (tons) 5,100 6,900 22,000 23,900
 Gold revenue
 per ounce $362 $377 $355 $390
 Spot market gold
 price per ounce $375 $347 $355 $346
 Total cost per ounce $313 $336 $315 $326
 CASH COST PER OUNCE includes all site operating expenses and royalties, net of silver, copper and other by-product credits, but excludes capital and exploration expenditures, post-closure restoration accruals, finance and corporate administrative expenses; divided by ounces produced.
 TOTAL COST PER OUNCE comprises cash cost plus amortization of mining interests, post-closure restoration accruals and inventory adjustments for differences in timing of production and sales; divided by ounces sold.
 LAC MINERALS LTD.
 Consolidated Statements of Earnings


(Unaudited, in thousands of United States dollars except share
 and per share amounts)
 Periods ended Sept. 30 Three months Nine months
 1993 1992 1993 1992
 Revenues 98,608 112,341 322,357 354,528
 Expenses
 Operating 58,199 75,320 204,684 224,214
 Amortization of mining
 interests 30,322 27,783 90,815 83,131
 Corporate administration 5,000 3,973 13,413 12,319
 Mineral exploration 10,271 4,366 18,693 13,272
 Other 391 2,862 391 3,738
 104,183 114,304 327,996 336,674
 Earnings (loss) from
 operations (5,575) (1,963) (5,639) 17,854
 Interest income 4,016 4,053 11,889 14,308
 Interest expense (4,435) (3,393) (13,431) (10,659)
 Other income (expense), net 632 (913) (21) (1,431)
 213 (253) (1,563) 2,218
 Earnings (loss) before
 undernoted items (5,362) (2,216) (7,202) 20,072
 Income and mining taxes (682) 1,355 606 (12,445)
 Minority interest in
 (earnings) loss 644 (262) 1,032 (651)
 Net earnings (loss)
 for the period $ (5,400)$ (1,123) $(5,564) $ 6,976
 Earnings (loss) per share $(0.04) $(0.01) $(0.04) $0.05
 Weighted average number
 of shares
 outstanding (000) 147,435 147,073 147,311 147,001
 LAC MINERALS LTD.
 Consolidated Statements of Cash Flows
 (Unaudited, in thousands of United States dollars)
 Periods ended Sept. 30 Three months Nine months
 1993 1992 1993 1992
 Operating Activities
 Net earnings (loss)
 for the period $ (5,400) $ (1,123)$ (5,564) $ 6,976
 Items not involving
 cash, net 29,391 22,698 86,978 88,190
 Changes in non-cash
 operating assets and
 liabilities (3,879) 1,369 (20,150) (16,184)
 Net cash provided by
 operating activities 20,112 22,944 61,264 78,982
 Financing Activities
 Debt repayments, net (1,224) (11,803) (10,184) (27,481)
 Common shares issued 591 462 2,216 1,433
 Dividends paid - - (4,418) (6,230)
 Other (903) 2,176 (1,945) (4,790)
 Net cash used in financing
 activities (1,536) (9,165) (14,331) (37,068)
 Investing Activities
 Mining interests (7,759) (14,535) (21,917) (41,098)
 Proceeds on disposition
 of mining interests 7,293 99 7,699 7,026
 Other 1,357 334 4,953 (2,473)
 Net cash provided by
 (used in) investing
 activities 891 (14,102) (9,265) (36,545)
 Effect of exchange
 rate change on cash (622) (6,571) (619) (13,243)
 Increase (decrease) in cash
 and short-term investments 18,845 (6,894) 37,049 (7,874)
 Cash and short-term
 investments at beginning
 of period 419,453 309,945 401,249 310,925
 Cash and short-term
 investments at end
 of period $438,298 $303,051 $438,298 $303,051
 LAC MINERALS LTD.
 Consolidated Balance Sheets
 (in thousands of United States dollars)
 As at As at
 September 30, December 31,
 1993 1992
 (Unaudited)
 Assets
 Current Assets
 Cash and short-term investments $ 438,298 $ 401,249
 Other current assets 121,663 141,063
 Total Current Assets 559,961 542,312
 Mining Interests 694,512 775,058
 Other Assets 46,585 23,667
 Total Assets $1,301,058 $1,341,037
 Liabilities
 Current Liabilities
 Debt due within one year $ 123,862 $ 93,931
 Other current liabilities 46,004 50,736
 Total Current Liabilities 169,866 144,667
 Long-term Debt 228,970 270,100
 Other Liabilities 39,198 45,134
 Deferred Taxes 100,748 108,699
 Minority Interest 14,170 16,244
 Shareholders' Equity 748,106 756,193
 Total Liabilities and
 Shareholders' Equity $1,301,058 $1,341,037
 -0- 10/29/93
 /CONTACT: John W. Pearson, manager investor-relations of Lac Minerals, Ltd., 416-777-2379/
 (LAC)


CO: Lac Minerals Ltd. ST: Ontario IN: MNG SU: ERN

TM -- NY104 -- 8779 10/29/93 19:07 EDT
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