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LAC MINERALS LTD. YEAR-END RESULTS

 TORONTO, Feb. 2 /PRNewswire/ -- Lac Minerals Ltd. (NYSE: LAC) today reported its financial results for the year ended Dec. 31, 1992.
 Consolidated net earnings declined from $15.4 million in 1991 to $12.7 million in 1992. Operating cash flows amounted to $128 million compared to $145 million in 1991 (All amounts are expressed in United States Dollars).
 Gold production rose to 1.1 million ounces in 1992 from 1.0 million in 1991. Revenues remained at $486 million despite softening gold prices and lower copper production.
 Total ore reserves were steady at 10 million ounces of gold at the end of the year of which about 70 percent were proven and probable.
 The average price of gold for the year decreased to $344 per ounce from $362 in 1991 and Lac's gold revenue per ounce declined from $413 to $385. At Jan. 31, 1993, 3 million ounces were hedged at an average price of $341 per ounce.
 The company's average cash cost per ounce produced has been reduced from $245 in 1991 to $213 and the total mine level cost per ounce sold was reduced from $347 in 1991 to $320 in 1992. Cost reductions will continue in 1993 and 1994.
 Operating highlights included a reduction in cash cost per ounce at Bullfrog from $264 in 1991 to $182 in 1992 with higher volume and improved efficiencies. El Indio reduced its cash cost from $197 in 1991 to $183 in 1992 despite substantially reduced copper credits resulting from lower copper output. Bousquet No. 2 gold production under-performed due to grade overestimation and dilution. The company is projecting a return to normal this year.
 While cost reduction efforts mitigated much of the impact of lower gold prices, earnings from operations declined from $34 million in 1991 to $20 million in 1992. Lower base metals revenues, increased exploration expenditures and writedowns recorded earlier in 1992 contributed to this reduction. The company was advised in mid-January of the need for an extra provision for reclamation and post-closure costs plus fines at the Richmond Hill operation. This resulted from acid mine drainage occurring from the waste rock dump. A $5 million charge is thus reflected in the 1992 results.
 From cash flow in 1992, the company spent $44 million on capital expenditures and $17 million in dividends. Lac also reduced its debt by $65 million during 1992 and this program will continue in 1993. However, in October we took an existing credit facility and extended it by adding $100 million under favorable conditions. At Dec. 31, 1992, the company's cash position therefore was $401 million compared to $311 million at the end of 1991.
 A more comprehensive analysis of financial, operating and exploration results will be forthcoming in the company's annual report which will be distributed in mid-March.
 LAC MINERALS LTD.
 Financial and Operating Highlights
 (in millions of United States dollars except per share data)
 Periods ended Three months Year
 Dec. 31, 1992 1991 1992 1991
 FINANCIAL
 Revenues $125.3 $113.7 $486.4 $486.6
 Earnings from
 operations 2.2 5.0 20.1 34.3
 Net earnings 5.7 2.0 12.7 15.4
 Net earnings
 per share 0.04 0.01 0.09 0.12
 Dividends per share 0.07 0.09 0.11 0.19
 Cash and short-term
 investments -- -- 401.2 310.9
 Total assets -- -- 1,341.0 1,346.4
 Total debt -- -- 364.0 328.7
 Shareholders' equity -- -- 756.2 778.1
 PRODUCTION
 Gold (ounces) 287,000 273,000 1,135,000 1,040,000
 Average cash cost
 per ounce $197 $243 $213 $245
 Copper metal
 (tons) 8,200 8,200 31,800 35,000
 Zinc metal (tons) 6,600 7,700 31,400 30,300
 SALES
 Gold (ounces) 291,000 238,000 1,109,000 1,005,000
 Copper metal
 (tons) 12,000 6,700 33,100 32,100
 Zinc metals (tons) 5,600 6,400 29,500 29,200
 PER OUNCE (US$)
 Gold revenue $370 $414 $385 $413
 Spot market gold
 price 338 360 344 362
 Total cost 299 362 320 347
 LAC MINERALS LTD.
 Operating Statistics
 (100 percent basis unless otherwise noted)
 Periods ended Three months Year
 Dec. 31, 1992 1991 1992 1991
 PRODUCTION
 GOLD (OUNCES)
 CANADA
 Bousquet No. 1 18,704 14,990 62,382 63,036
 Bousquet No. 2 37,571 40,840 149,169 175,844
 Doyon (50 percent) 30,147 29,127 124,797 127,350
 Francoeur (50 percent) -- 2,742 2,318 9,654
 Golden Patricia 19,406 22,209 81,465 76,477
 Lake Shore Tailings 2,397 4,090 14,846 13,593
 Macassa 21,448 20,503 77,259 80,808
 UNITED STATES
 Bullfrog 89,575 53,263 323,825 198,863
 Colosseum 9,452 12,507 44,401 61,310
 Richmond Hill 4,491 10,414 30,373 41,815
 CHILE
 El Indio 53,333 62,012 223,688 191,342
 TOTAL COPPER METAL (TONS)
 Bousquet No. 2 1,044 1,156 4,437 5,682
 El Indio 7,161 7,009 27,323 29,272
 TOTAL 8,205 8,165 31,760 34,954
 LAC'S SHARE 6,984 6,970 27,101 24,194
 ZINC METAL (TONS)
 Toqui 6,614 7,733 31,385 30,299
 CASH COST PER OUNCE OF GOLD
 CANADA
 Bousquet No. 1 $249 355 $299 338
 Bousquet No. 2 209 219 216 186
 Doyon 205 235 198 218
 Francoeur -- 293 337 304
 Golden Patricia 216 220 215 254
 Lake Shore Tailings 407 246 203 248
 Macassa 206 354 273 349
 UNITED STATES
 Bullfrog 152 238 182 264
 Colosseum 257 323 321 282
 Richmond Hill 275 270 302 277
 CHILE
 El Indio 204 188 183 197
 AVERAGE CASH COST
 PER OUNCE $197 243 $213 245
 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 units sold.
 -0- 2/2/93
 /CONTACT: John W. Pearson, manager-investor relations of LAC Minerals, 416-777-2379/
 (LAC)


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

SH -- NY007 -- 1764 02/02/93 10:43 EST
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