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YEAR-END RESULTS FOR AMAX GOLD EARNINGS DOWN 25 PERCENT - RESERVES INCREASE 78 PERCENT

 YEAR-END RESULTS FOR AMAX GOLD
 EARNINGS DOWN 25 PERCENT - RESERVES INCREASE 78 PERCENT
 GOLDEN, Colo., Feb. 6 /PRNewswire/ -- AMAX GOLD INC. (NYSE: AU; Toronto: AXG) reported a 25 percent decline in earnings for the year ended Dec. 31, 1991. Net earnings were $21.2 million, $.35 per share, compared to $28.3 million, $.47 per share, for the like period in 1990.
 Earnings were impacted by lower production at the Sleeper Mine, a result of a decline in mill head grade. The average mill grade for 1991 was 0.219 ounce of gold per ton of ore compared to a grade of
0.381 for the like period in 1990 -- a 42 percent decline. Also contributing to the lower earnings were a 49 percent increase in exploration expense -- $14 million compared to $9.4 million in 1990 and higher operating costs at Sleeper and Wind Mountain. Amax Gold realized an average price of $427 per ounce of gold sold, $65 higher than the average COMEX price per ounce, which offset the decline somewhat.
 In January, Amax Gold consummated the share exchange offer and merger for the Fort Knox gold deposit in Alaska which added 3.2 million ounces to year-end reserves. With this acquisition, total mineable reserves for 1992 increased 78 percent to 6.178 million ounces and are as follows:
 TONS GRADE OZ
 (000) OZ/TON (000)
 Fort Knox(a) 122,500 0.026 3,210
 Hayden Hill
 Mill 9,385 0.086 811
 Heap Leach 35,538 0.017 618
 Sleeper
 Mill 3,508 0.148 518
 Heap Leach 38,551 0.022 831
 Waihi(a) 1,956 0.088 172
 Wind Mountain(a) 1,195 0.015 18
 TOTAL --- --- 6,178
 (a) Fort Knox and Waihi are mill only operations;
 Wind Mountain is heap leach only.
 "We have moved into 1992 with great expectations for the future of Amax Gold," said Timothy J. Haddon, President and Chief Executive Officer. "We are anticipating the smooth start-up of the Hayden Hill Mine in the second quarter and have begun the environmental and engineering work necessary to bring the Fort Knox project on line in late 1994 or early 1995. In addition, we have targeted a number of advanced-stage exploration properties on which we will make investment decisions during the year."
 Production for the year was 300,233 ounces of gold. This was down 15 percent from 1990's production of 354,859 ounces due to lower production from the Sleeper Mine. Production from both Wind Mountain and Waihi was higher than in 1990. Productivity at Wind Mountain contributed to its production increase, and the increase at Waihi was due to an increase in Amax Gold's ownership from 28.35 percent to 33.53 percent in the second quarter of 1991.
 Sales for 1991 were $128.2 million compared to $149.8 million for 1990. Cash operating costs increased to $195 per ounce compared to $147 per ounce for 1990. Income tax for the year was 52 percent lower primarily as a result of lower earnings. In addition, 1990 earnings included a write-down and equity losses associated with a foreign investment which were not tax deductible.
 Fourth quarter 1991 earnings were $300,000, $.01 per share, compared to $12.2 million, $.21 per share, for the fourth quarter of 1990. Sales for the quarter were $26.5 million compared to $40.7 million in 1990. Cash operating costs were $231 per ounce compared to $157 per ounce for the like period in 1990.
 Amax Gold produces and explores for gold in North and South America and New Zealand and is listed on the New York, American and Toronto stock exchanges. Amax Gold warrants trade on the American Stock Exchange under the symbol AUWT and the Toronto Stock Exchange under the symbol AXGWT.
 AMAX GOLD INC.
 CONSOLIDATED STATEMENTS OF EARNINGS
 UNAUDITED
 (in thousands except per share amounts)
 Three Months Ended Year Ended
 Dec. 31, Dec. 31,
 1991 1990 1991 1990
 Sales $ 26,500 $ 40,700 $128,200 $149,800
 Costs and operating
 expenses-
 Costs applicable
 to sales 13,800 14,900 57,500 53,100
 Depreciation and
 depletion 6,200 6,800 24,700 26,000
 Selling, general and
 administrative
 expenses 2,100 2,300 8,000 7,600
 Total costs and
 operating expenses 22,100 24,000 90,200 86,700
 Gross operating
 margin 4,400 16,700 38,000 63,100
 Exploration and
 resource development
 expenses, net (4,300) (3,200) (14,000) (9,400)
 Equity in loss of
 Canamax Resources Inc. - - - (5,000)
 Write-down of Canamax
 Resources Inc.
 investment - - - (12,600)
 Earnings from
 operations 100 13,500 24,000 36,100
 Interest income, net 200 400 1,300 800
 Earnings before income
 income taxes 300 13,900 25,300 36,900
 Income taxes, net
 of benefit from
 tax sharing
 agreement - (1,700) (4,100) (8,600)
 Net earnings $ 300 $ 12,200 $ 21,200 $ 28,300
 Net earnings per
 common share $ .01 $ .21 $ .35 $ .47
 Weighted average
 common shares
 outstanding 59,995 59,995 59,995 59,995
 AMAX GOLD INC.
 KEY FACTORS
 UNAUDITED
 Three Months Ended Year Ended
 Dec. 31, Dec. 31,
 1991 1990 1991 1990
 Sleeper Mine:
 Ounces of gold
 produced 36,151 62,620 183,346 250,131
 Average cost per
 ounce produced:
 Cash production
 cost(1)(2) 245 131 188 125
 Depreciation and
 depletion(1) 83 68 71 60
 Total production
 cost(1) 328 199 259 185
 Wind Mountain Mine:
 Ounces of gold
 produced 23,623 18,630 91,063 81,733
 Average cost per
 ounce produced:
 Cash production
 cost(1)(2) 217 238 210 197
 Depreciation and
 depletion(1) 119 112 109 113
 Total production
 cost(1) 336 350 319 310
 Waihi Mine:
 Ounces of gold
 produced(3) 5,990 5,715 25,824 22,995
 Average cost per
 ounce produced:
 Cash production
 cost(1)(2) 195 187 184 203
 Depreciation and
 depletion(1) 67 74 67 73
 Total production
 cost(1) 262 261 251 276
 Total:
 Ounces of gold
 produced 65,764 86,965 300,233 354,859
 Ounces of gold sold 62,560 93,078 300,418 359,146
 Average price per
 ounce sold(1) 423 437 427 417
 Average cost per
 ounce produced(4):
 Cash production
 cost(1)(2) 231 157 195 147
 Depreciation and
 depletion(1) 95 78 82 73
 Total production
 cost(1) 326 235 277 220
 (1) Dollars per ounce.
 (2) Cash production costs include all operating costs at
 the mine sites, including overhead, and, where
 applicable, Nevada net proceeds tax, royalties and
 credits for silver by-products.
 (3) Represents the Company's share, which increased from
 28.35 percent to 33.53 percent on April 1, 1991.
 (4) Average costs weighted by ounces of gold produced at
 each mine.
 -0- 2/6/92
 /CONTACT: Gina Wilson of Amax Gold, 303-273-0623/
 (AU) CO: Amax Gold Inc. ST: Colorado IN: MNG SU: ERN


BB -- DV011 -- 7977 02/06/92 18:36 EST
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