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 CHARLOTTE, N.C., Nov. 4 /PRNewswire/ -- Piedmont Mining Company, Inc. (NASDAQ: PIED), which is engaged in gold exploration and development in the Southeast, reported a loss 0f $130,000, or $0.01 per share, in the third quarter ended Sept. 30, 1993, compared with a loss of $784,000, or $0.05 per share, in the third quarter of 1992. The third quarter results included amortization to income of $507,000 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.
 Piedmont reported a loss of $814,000, or $0.06 per share, for the first nine months of 1993, compared with a loss of $2,881,000, or $0.20 per share, for the first nine months of 1992. The first nine months results in 1993 included amortization to income of $1,425,000 of the deferred gain.
 Piedmont is participating with Amax Gold 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. The Haile Mining Venture 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 healthy. The company had no long or short term debt at Sept. 30, 1993. Cash and cash equivalents totalled $319,000 at Sept. 30, 1993, and working capital totalled $5,630,000 with reclassification of the investment in Amax Gold common stock as a current asset. Piedmont holds 1,000,000 unregistered shares of Amax Gold 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. In October 1993, Piedmont elected to commence borrowing against this $2,000,000 commitment to fund its share of expenditures into 1994. The borrowings are to be repaid from the proceeds of any registered offering or related sale of the shares or upon expiration of the registration rights.
 Expenditures by the Haile Mining Venture in the first nine months of 1993 were $3,770,000, $422,000 less than budgeted, and are expected to be about $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 share of the mineable reserves. A preliminary budget of $6,300,000 for 1994 has just been approved for the Haile Mining Venture. This budget includes funding for a bankable feasibility study, completion of the required environmental baseline studies and documents and all permit applications. This budget is expected to be reviewed in January after the year end progress report and updated ore reserve calculations have been completed.
 Drilling, engineering, mine planning and environmental studies are all progressing at the Haile property. Three drill rigs are now operating on the property, and three to four core rigs are expected to be operating through the first half of 1994. Approximately 57,300 feet of drilling were completed from late February through the end of October. Recent drilling results have been especially encouraging. The optimal processing method for treating the ore should be selected by January and will probably involve either grinding and flotation followed by a concentrated leach or grinding, flotation, roasting and then leaching with production and sale of gold, silver and sulfuric acid thereby recovering the sulfur in the ore as well.
 Robert A. McCallum has just resigned as a director of Piedmont. He has accepted a senior position with a large mining company and has moved permanently to the Far East.
 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.
 Three Months Ended Nine Months Ended
 Sept. 30, Sept. 30,
 1993 1992 1993 1992
 Net Sales $ -- $118,000 $ -- $1,127,000
 Cost of Operations:
 Mine Operating Costs -- 90,000 -- 1,085,000
 Haile Mining Venture
 Expense 507,000 514,000 1,425,000 728,000
 Amortization of
 Deferred Gain (507,000) (728,000) (1,425,000) (728,000)
 Depreciation and
 Amortization of Other
 Deferred Items 12,000 45,000 53,000 385,000
 Total Cost of
 Operations 12,000 (79,000) 53,000 1,470,000
 Gross Income (Loss)
 From Operations (12,000) 197,000 (53,000) (343,000)
 Other Expenses (Income):
 General and
 Administrative 165,000 79,000 467,000 363,000
 Professional Fees 27,000 64,000 143,000 223,000
 Stock Appreciation
 Rights/Awards 5,000 273,000 158,000 445,000
 Exploration 7,000 56,000 151,000 122,000
 Amortization of Non-
 Compete Agreement -- 8,000 -- 58,000
 Loss on Sale of
 Sericite Operations -- 10,000 -- 875,000
 Other Expenses (Income) (66,000) (32,000) (144,000) (71,000)
 Total Other Expenses 138,000 458,000 775,000 2,015,000
 Loss Before Income Taxes 150,000 261,000 828,000 2,358,000
 Provision For Income Taxes (20,000) 523,000 (14,000) 523,000
 Net Loss $130,000 $784,000 $814,000 $2,881,000
 Net Loss Per Common Share $0.01 $0.05 $0.06 $0.20
 Cash Dividends Per Share None None None None
 Weighted Average Number
 of Common Shares
 Outstanding 14,923,022 14,716,432 14,903,330 14,591,444
 Balance Sheet Data
 (At End of Period):
 Cash and Cash
 Equivalents $319,000 $3,229,000
 Working Capital 5,630,000 2,805,000
 Total Assets 8,144,000 11,104,000
 Long Term Debt -- --
 Deferred Gain 4,292,000 6,241,000
 Shareholders' Equity 3,271,000 4,092,000
 -0- 11/4/93
 /CONTACT: Thomas L. Ross of Piedmont Mining Company, 704-523-6866/

CO: Piedmont Mining Company, Inc. ST: North Carolina, South Carolina IN: MNG SU: ERN

SB-MM -- CH011 -- 0911 11/04/93 16:13 EST
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Publication:PR Newswire
Date:Nov 4, 1993

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