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PIEDMONT MINING COMPANY REPORTS THIRD QUARTER RESULTS

       PIEDMONT MINING COMPANY REPORTS THIRD QUARTER RESULTS
    CHARLOTTE, N.C., Nov. 6 /PRNewswire/ -- Piedmont Mining Company, Inc. (NASDAQ: PIED), which is engaged in exploration and production of gold in the Southeast, reported a loss of $619,529 or $.04 per share, in the third quarter ended Sept. 30, 1991, compared with net income of $302,489, or $0.02 per share, in the third quarter of 1990.  This loss includes a $400,000 reduction of work in process inventory.  Net sales were $959,032, compared with $2,504,177 in the third quarter of 1990.
    For the first nine months of 1991, the company reported a loss of $1,279,031, or $.09 per share, compared with net income of $944,159, or $0.07 per share, in the first nine months of 1990.  This loss includes a $530,000 reduction of work in process inventory.  Net sales were $3,794,420, compared with $6,948,810 in the first nine months of 1990.  The company received an average of $353 per ounce of gold sold in the third quarter of 1991, compared with $365 per ounce in the second quarter of 1991 and $382 per ounce in the third quarter of 1990.
    Piedmont's financial condition continues to improve.  Accounts payable were reduced from $682,869 at Dec. 31, 1990 to only $68,273 at Sept. 30, 1991, and the outstanding principal balance on the notes payable were reduced from $1,967,780 at Dec. 31, 1990 to $1,297,700 at Sept. 30, 1991.  Cash and accounts receivable increased to $1,400,889 at Sept. 30, 1991, compared with $478,182 at Dec. 31, 1990.  Option payments from Amax Gold Exploration, Inc. (AGEI) totaling $1,703,776 through Sept. 30 are deferred revenue and are not reflected in the income statement.
    Gold production decreased to 9,065 ounces in the first nine months, compared with 18,068 ounces in the first nine months of 1990.  The company processed and stacked 235,461 tons of mineralized rock in the first nine months with an average grade of 0.029 ounces of gold per ton, compared with 334,170 tons with an average grade of 0.054 ounces per ton in the same period last year.  Consistent with the company's plans to suspend its heap leaching operation at the Haile property during 1991, mining and stacking ceased the first week of August, while leaching and gold recovery is expected to continue into 1992.
    The exploration program with AGEI at the Haile property is progressing well.  Four drill rigs are expected to continue operating on the property through November.  Over 80,000 feet of drilling has been completed during this initial drilling program and drilling results continue to be encouraging.  Numerous engineering and environmental studies now underway should be completed by year end.  Independent of AGEI, American Mine Services, Inc. of Aurora, Colo. is now completing an update of its 1990 "Preliminary Economic Evaluation" of the Haile property utilizing the new drilling data and analyses available through early September.  This updated evaluation is expected to show a significant increase in Piedmont's estimated mineable reserves.
    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.  On March 15, 1991 Piedmont entered into an option and earn-in agreement with AGEI, a wholly-owned subsidiary of Amax Gold Inc. (NYSE: AU), pursuant to which AGEI was granted an option until May 1, 1992 to earn a 62.5 percent interest in the Haile property.  AGEI has agreed to prepare a preliminary feasibility study for the Haile property prior to May 1, 1992 and to fund all the exploration costs during this option period.
              CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
                               (Unaudited)
                            Three Months Ended      Nine Months Ended
                                September 30,           September 30,
                              1991        1990        1991        1990
    NET SALES               $959,032  $2,504,177  $3,794,420  $6,948,810
    COST OF SALES:
     Mine operating costs    953,381   1,132,247   3,019,963   3,191,015
     Depreciation and
      amortization           360,094     531,692   1,145,463   1,347,360
                           1,313,475   1,663,939   4,165,426   4,538,375
    GROSS PROFIT (LOSS)
     FROM OPERATIONS        (354,443)    840,238    (371,006)  2,410,435
    OTHER (INCOME) EXPENSES:
     General and
      administrative         195,848     308,270     665,628     822,349
     Exploration              22,895     127,338      68,178     518,251
     Amortization of
      non-compete agreement   25,000      25,000      75,000      41,667
     Other expense (income)   21,343      67,141      99,219      74,009
                             265,086     527,749     908,025   1,456,276
    INCOME (LOSS) BEFORE
     INCOME TAXES AND
     EXTRAORDINARY ITEM     (619,529)    312,489  (1,279,031)    954,159
    Provision for federal
     and state income taxes     0        120,000         0       370,000
    INCOME (LOSS) BEFORE
     EXTRAORDINARY ITEM     (619,529)    192,489  (1,279,031)    584,159
    Extraordinary item -
     reduction of federal
     and state income
     taxes arising from
     utilization of
     operating loss
     carryforwards               0       110,000          0      360,000
    NET INCOME (LOSS)     $(619,529)    $302,489 $(1,279,031)   $944,159
    NET INCOME (LOSS) PER
     COMMON SHARE:
      Net income (loss)
       before extraordinary
       item                   $(.04)        $.01       $(.09)       $.04
      Extraordinary item         0           .01           0         .03
    NET INCOME (LOSS) PER
     COMMON SHARE             $(.04)        $.02       $(.09)       $.07
    CASH DIVIDENDS PER SHARE   None         None        None        None
    WEIGHTED AVERAGE NUMBER
     OF COMMON SHARES
     OUTSTANDING          14,323,290  14,300,913  14,319,317  14,295,070
    BALANCE SHEET DATA
    (at end of period)
    Working Capital       $1,959,021    $778,130
    Total Assets          10,741,198  12,516,676
    Notes Payable          1,297,700   2,108,750
    Shareholders' Equity   7,627,905   9,600,428
    -0-                            11/6/91
    /CONTACT:  Thomas L. Ross, III, Piedmont Mining Company, Inc., 704-523-6866/
    (PIED) CO:  Piedmont Mining Company, Inc. ST:  North Carolina IN:  MNG SU:  ERN DF -- CH015 -- 1901 11/06/91 16:51 EST
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No portion of this article can be reproduced without the express written permission from the copyright holder.
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Date:Nov 6, 1991
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