Printer Friendly

PIEDMONT MINING COMPANY REPORTS FIRST QUARTER RESULTS

 CHARLOTTE, N.C., May 12 /PRNewswire/ -- Piedmont Mining Company, Inc. (NASDAQ: PIED), which is engaged in gold exploration and development in the Southeast, reported a loss of $282,000, or $0.02 per share, in the first quarter ended March 31, 1993, compared with a loss of $586,000, or $0.04 per share, in the first quarter of 1992. The first quarter loss includes amortization to income of $415,000 of the deferred gain resulting from the sale of a 62.5 percent interest in the Haile property to a subsidiary of Amax Gold Inc. (NYSE: AU) in 1992. This deferred gain is being amortized to income in amounts equal to the sum of Piedmont's share of the costs and expenses and its other direct costs if participation in the Haile Mining Venture with Amax Gold.
 On May 1, 1992, a wholly owned subsidiary of Amax Gold Inc. exercised its option and acquired a 62.5 percent interest in Piedmont's Haile property. Piedmont is now participating with Amax Gold Inc. in the Haile Mining Venture to further explore and evaluate and, if warranted, develop and operate a mine producing at least 100,000 ounces of gold per year at the Haile property. Piedmont holds a 37.5 percent interest in the Haile Mining Venture which is managed by another wholly owned subsidiary of Amax Gold Inc. The Haile Mining Venture now controls about 3,700 acres of private or fee property, the most important 1,700 acres of which are either owned outright or controlled by purchase options which, when exercised, will enable operations to proceed without the payment of royalties.
 Piedmont's financial condition continues to be strong. The company has no long or short term debt. Cash and cash equivalents totalled $1,713,000 at March 31, 1993, and working capital totalled $1,538,000 at March 31, 1993. Piedmont also holds 1,000,000 unregistered shares of Amax Gold's common stock against which Amax Gold is obligated to lend up to $2,000,000 to Piedmont at Piedmont's request until May 1, 1994. These shares have "piggyback" registration rights until May 1, 1994 and demand registration rights thereafter until Dec. 31, 1996.
 Expenditures by the Haile Mining Venture totalled $3,000,000 in 1992, $1,484,000 less than budgeted, with Piedmont paying 37.5 percent of these expenditures. Expenditures by the Haile Mining Venture in the first quarter of 1993 were $1,096,000 and are expected to be about $1,600,000 in the second quarter and in the range of $4,000,000 to $5,000,000 for the whole year. Piedmont is expensing its 37.5 percent share of these expenditures and only carries $1,754,000 of deferred costs on its balance sheet against its 37.5 percent share of the mineable reserves.
 Drilling recommenced on the Haile property in February and numerous engineering and environmental studies are underway. Independent geological and mining engineers are still reviewing the Haile drilling and engineering data for Piedmont. Updated information on the mineralized tonnage and mineable ore reserves at the Haile property is expected to be announced by Piedmont shortly. A bankable feasibility study is expected in early 1994.
 At Piedmont's North Carolina properties reconnaissance mapping continued during the first quarter, and limited geophysical surveys were completed in April. A second phase of drilling will commence at the Russell-Coggins and Jones Keystone properties in June to test several of the geophysical anomalies that were identified.
 Piedmont pioneered the resumption of gold mining in the Southeast in early 1985 at its Haile Gold Mine near Kershaw, S.C., employing for the first time the heap leaching process in the humid southeastern climate. In addition, Piedmont controls four other gold exploration properties in North Carolina where it is currently conducting a gold exploration program.
 CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS:
 THREE MONTHS ENDED
 MARCH 31
 1993 1992
 Net Sales $ -- $ 426,000
 Cost Of Operations:
 Mine Operating Costs -- 523,000
 Depreciation And Amortization Of Other
 Deferred Items 27,000 185,000
 Haile Mining Venture Expense 415,000 --
 Amortization Of Deferred Gain (415,000) --
 Total Cost Of Operations 27,000 708,000
 Gross Profit (Loss) From Operations (27,000) (282,000)
 Other Expenses (Income):
 General And Administrative 141,000 178,000
 Stock Appreciation Rights/Awards 21,000 29,000
 Exploration 65,000 29,000
 Professional Fees 46,000 37,000
 Amortization Of Non-compete Agreement -- 25,000
 Other Expenses (Income) (24,000) 6,000
 Total Other Expenses 249,000 304,000
 Income (Loss) Before Income Taxes (276,000) (586,000)
 Provision For Income Taxes (6,000) --
 Net Income (Loss) $ (282,000) $ (586,000)
 Net Income (Loss) Per Common Share $ (0.02) $ (0.04)
 Cash Dividends Per Share None None
 Weighted Average Number Of Common Shares
 Outstanding 14,896,419 14,433,000
 Balance Sheet Data (At End Of Period):
 Cash and Cash Equivalents $1,713,000 $1,376,000
 Working Capital 1,538,000 1,122,000
 Total Assets 9,563,000 9,328,000
 Long Term Debt, Less Current Maturities -- 544,000
 Deferred Gain 5,302,000 --
 Shareholders' Equity 3,753,000 5,595,000
 -0- 5/12/93
 /CONTACT: Thomas L. Ross of Piedmont Mining Company, Inc., 704-523-6866/
 (PIED AU)


CO: Piedmont Mining Company, Inc.; Amax Gold Inc. ST: North Carolina IN: MNG SU: ERN

MM-SB -- CH001 -- 7361 05/12/93 08:06 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:May 12, 1993
Words:895
Previous Article:WAL-MART STORES, INC. REPORTS RECORD SALES AND INCOME FOR FIRST QUARTER
Next Article:ROYAL INSURANCE ANNOUNCES THREE MONTHS 1993 RESULTS
Topics:


Related Articles
PIEDMONT MINING COMPANY REPORTS FIRST QUARTER RESULTS
PIEDMONT MINING COMPANY REPORTS SECOND QUARTER RESULTS
PIEDMONT MINING COMPANY REPORTS THIRD QUARTER RESULTS
PIEDMONT MINING COMPANY REPORTS SECOND QUARTER RESULTS
PIEDMONT MINING COMPANY REPORTS THIRD QUARTER RESULTS
PIEDMONT MINING COMPANY REPORTS FIRST QUARTER RESULTS
PIEDMONT MINING COMPANY REPORTS SECOND QUARTER RESULTS
PIEDMONT MINING COMPANY REPORTS FIRST QUARTER RESULTS
PIEDMONT MINING COMPANY REPORTS SECOND QUARTER RESULTS
PIEDMONT MINING COMPANY REPORTS THIRD QUARTER RESULTS

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters