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SANTA FE PACIFIC COMPLETES COAL-FOR-GOLD SWAP WITH HANSON AND ESTIMATES SECOND QUARTER EARNINGS

 SCHAUMBURG, Ill., June 25 /PRNewswire/ -- Santa Fe Pacific Corporation (NYSE: SFX) today completed the previously announced coal- for-gold swap with Hanson Natural Resources Company, an affiliate of Hanson PLC. This transaction makes Santa Fe one of North America's top six gold producers with estimated production of 600,000 ounces in 1993 and 900,000 ounces in 1994. Combined reserves are estimated at more than 10 million ounces with almost four million ounces added as a result of this transaction.
 "Adding Hanson's assets to our company will more than double annual gold production and significantly increase reserves," said Robert D. Krebs, chairman, president and chief executive officer of Santa Fe Pacific Corporation. "This acquisition also augments our unique private land position in the western United States, creating additional growth opportunities."
 In the swap, Santa Fe receives the Chimney Creek and Mesquite gold mines in Nevada and California, two late-stage exploration projects in Nevada and Montana, and other gold prospects in the United States, Canada, Mexico and Chile.
 In return, Hanson receives Santa Fe's coal assets including the Lee Ranch Mine and undeveloped coal reserves in northwest New Mexico, and six crushed stone and aggregate quarries located in Oklahoma, Texas, New Mexico, Arizona and California.
 The transaction is structured as an asset exchange. Santa Fe will recognize an after tax, non-cash gain for financial reporting purposes of approximately $100 million or $.54 per share. Excluding the non-cash gain, Santa Fe anticipates that earnings for the second quarter will approximate $.21 per share versus $.14 per share in second quarter 1992.
 "We will continue to be one of the world's lowest cost gold producers," said Richard T. Zitting, president, Santa Fe Pacific Minerals, "benefiting from production efficiencies, reduced overhead and exploration savings."
 The advanced exploration projects at Elkhorn, Montana and Mule Canyon, Nevada as well as further possible orebody extensions at the combined Rabbit Creek/Chimney Creek Mine and Lone Tree Mine, provide opportunities to increase gold reserves and production, pending completion of detailed geologic and engineering evaluations. Santa Fe Pacific Minerals, headquartered at Albuquerque, is one of the largest private mineral land holders in the western United States, with more than seven million acres of fee mineral rights, including extensive holdings in northern Nevada where the majority of U.S. gold production is centered.
 The company intends to change the name of its minerals company to Santa Fe Pacific Gold Corporation (SFPG), reflecting its focus on the gold business. Although no decision has been made, management and the board of directors are continuing to review the possibility of SFPG becoming a publicly traded company as occurred with Santa Fe's former real estate and energy subsidiaries. The company recently filed a request with the Internal Revenue Service for a ruling that a spin-off of the minerals company would qualify as a tax-free distribution to Santa Fe Pacific Corporation shareholders.
 FACT SHEET
 SANTA FE PACIFIC MINERALS
 On June 25, 1993 Santa Fe Pacific Minerals (SFPM) emerged as a major North American gold company with the acquisition of certain of Hanson's Gold Fields Mining Company assets.
 -- Sixth largest North American gold producer based on annual production
 -- Anticipates 600,000 ounces in 1993
 -- Anticipates 900,000 ounces in 1994
 -- Proven and probable gold reserves of more than 10 million ounces with expansion potential
 -- One of the world's lowest cost producers
 -- $162 cash cost per ounce in 1992
 -- $175 - $185 cash cost per ounce estimated in 1993
 -- Portfolio of late stage exploration projects
 -- Private mineral land position of more than seven million acres in the western U.S.
 -- Proven success in finding and developing reserves
 ASSET EXCHANGE BETWEEN SANTA FE PACIFIC MINERALS CORPORATION
 AND HANSON NATURAL RESOURCES COMPANY
 SANTA FE PACIFIC MINERALS RECEIVED:
 Chimney Creek Mine: Located in Humboldt County, Nevada, adjacent to SFPM's Rabbit Creek Mine. Discovered in 1984; production began in 1987 from unpatented mining claims which will be owned by SFPM. Recognized as having one of the lowest production costs of any major U.S. gold mine.
 1991 1992
 Production (000s of ounces) 232 250
 Cash cost/ounce $121 $145
 Mesquite Mine: Located in Imperial County, California. Discovered in 1981; production began in 1986 from a combination of patented and unpatented mining claims which will be owned or controlled by SFPM. One of the first major heap leach operations in the U.S. Second largest gold mine in California.
 1991 1992
 Production (000s of ounces) 202 206
 Cash cost/ounce $196 $196
 Mule Canyon Exploration Project: Located east of Battle Mountain in northern Nevada. Mineralization reported by Gold Fields of more than 1.1 million ounces of gold which are not included in SFPM's announced reserves pending further drilling. The gold is contained primarily in sulfide mineralization with an average grade of more than 0.13 ounces per ton. In 1993 and 1994, SFPM will examine Mule Canyon's potential as a commercially viable project.
 Elkhorn Exploration Project: Located south of Helena, Montana. Mineralization reported by Gold Fields of 500,000 ounces of gold which are not included in SFPM's announced reserves. The gold is contained in sulfide mineralization with an average grade of more than 0.11 ounces per ton. In 1993, SFPM will continue drilling and evaluation.
 Other Exploration Projects: SFPM also received a portfolio of seven other gold exploration projects located in the United States, principally in Nevada; four gold exploration projects in Canada, two in northwestern Ontario and two in western Quebec; six exploration concessions in Chile; and an exploration program recently initiated by Gold Fields in Mexico.
 CONTINUING SFPM ASSETS:
 Rabbit Creek Mine: Located in Humboldt County, Nevada on SFPM-owned land. Discovered in 1987; production began in 1990. To be combined with Chimney Creek to become the new Twin Creeks Mine.
 1991 1992
 Production (000s of ounces) 123 161
 Cash cost/ounce $168 $182
 Lone Tree Mine: Located in Humboldt County, Nevada on SFPM-owned land. Discovered in 1990; production began in 1991. A $100 million expansion project is expected to be completed in 1994 to process sulfide ores and expand annual average production to approximately 230,000 ounces of gold.
 1991 1992
 Production (000s of ounces) 36 129
 Cash cost/ounce $103 $130
 Exploration Lands: SFPM is one of the largest fee mineral land holders in the western United States. It controls more than seven million acres including 2.4 million acres in northern Nevada, where the majority of U.S. gold production is located. SFPM conducts an extensive exploration program on these lands and lands controlled through leases or federal mining claims. SFPM typically maintains a portfolio of approximately 50 active gold exploration projects at various levels of investigation.
 HANSON RECEIVED:
 Lee Ranch Mine: A large surface coal mine located in northern New Mexico's San Juan Basin. Produced 3.6 million tons of coal in 1992 and 4.1 million tons in 1991.
 Recoverable coal reserves approximate 166 million tons as of Dec. 31, 1992.
 Undeveloped Coal Reserves: More than 550 million tons of undeveloped recoverable coal reserves, located principally in northwestern New Mexico, of which 260 million are leased.
 Quarries: Six crushed stone and aggregate quarries operated by SFPM's Western Rock Products, Inc. The quarries, located in Oklahoma, Texas, New Mexico, Arizona and California, produced 3.2 million tons in 1992 and 2.9 million tons in 1991.
 SFPM GOLD OUTLOOK FOR 1993
 -- Production and Gold Sales: Approximately 140,000 ounces in the first half, approximately 450,000 ounces in the second half.
 -- Sales Price and Hedging: Approximately $385/ounce in the first half, with approximately 255,000 ounces hedged at $371/ounce for the second half of 1993.
 -- Production Costs: First half cash cost and total cost per ounce should approximate $185 and $255/ounce, respectively. In the second half, cash cost per ounce should range between $175 and $185, with total cost per ounce ranging between $260 and $275, including approximately $15 per ounce related to the write up of assets included in the exchange.
 -- Exploration and General and Administrative Costs: Almost $10 million in the first half of which approximately $6 million was spent on exploration. Between $20 and $24 million total in the second half of which between $14 and $17 million will be spent on exploration.
 -- Capital Expenditures: Approximately $32 million in the first half, with $80 million planned for the second half primarily associated with the ongoing expansion of Lone Tree.
 -0- 6/25/93
 /CONTACT: Cathy Westphal of Santa Fe, 708-995-6263/
 (SFX)


CO: Santa Fe Pacific Corporation ST: Illinois IN: TLS SU:

LD -- NY058 -- 5960 06/25/93 20:58 EDT
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Date:Jun 25, 1993
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