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St Andrew Goldfields Ltd -
St Andrew Goldfields first quarter results
St Andrew Goldfields Ltd
SAS
Shares issued 22,704,426
1999-06-01 close $1.05
Wednesday Jun 2 1999
Mr. Charles Gryba reports
The company has released its results for the first quarter ended March 31, 1999.
First quarter highlights
Custom milled 72,465 tonnes of ore generating $1,626,000 of revenue.
Roscoe Postle Associates Inc. completed report on St Andrew's Timmins properties
including the Taylor property and its 1,031,000 ounce gold resource.
Drilling shows high-grade gold values in the Hislop open pit area.
Commenced planning for open pit mining at Hislop property.
Operations overview
For the first quarter ended March 31, 1999, the company's revenue of $1,626,000
was generated from custom milling 72,465 tonnes of ore compared with $1,538,000
from milling 72,648 tonnes of ore in the quarter ended March 31, 1998. In the
quarter ended March 31, 1999, revenue includes the profit sharing income for
achieving a 97.6 per cent recovery, which was in excess of 93 per cent base.
Although revenue in the first quarter of 1999 was higher than in the same quarter in
1998, the mill feed tonnage provided by its primary customer fell short of that for the
fourth quarter of 1998 when 83,295 tonnes were milled. The company is seeking to
improve utilization of the mill capacity with additional custom mill feed from other
shippers and the commencement of production from an open pit on the Hislop
property.
Milling costs in the quarter ended March 31, 1999, were $1,159,000 or $16.00 per
tonne versus $1,138,000 or $15.66 in the first quarter of 1998. The higher milling
costs were a result of higher electric power usage primarily for heat, above average
mill repair and maintenance costs, and slightly higher labour costs as a result of
wage increases. The company anticipates unit-milling costs to be reduced
substantially when a greater percentage of the mill capacity is used. Site services
and administration costs increased when comparing the quarters ending March 31,
1999 and 1998. The increase relates to the additional salary, consultant and repair
costs incurred to manage the operations and prepare the site facilities to achieve
successful mine production as well as to increase the company's marketing efforts.
Due to the higher operating and administration costs the company incurred a loss of
$454,000 or two cents per share for the quarter ended March 31, 1999 versus a loss
of $264,000 or one cent per share for the same period in 1998.
The company's cash position was $940,000 at the quarter ended March 31, 1999.
Use of finances during the quarter was $1,005,000. The primary use was $1,009,000
for exploration expenditures. The company drilled 24,700 feet in 77 surface holes
mainly on the Hislop, Taylor and Stock properties. In addition, six underground holes
were drilled for a total of 2,175 feet on the Stock property. The exploration
expenditures in the first quarter of 1998 were substantially higher at $2,378,000. The
focus in early 1999 was on identifying gold resources that could be developed and
brought into production easily. The Hislop open pit was identified and the company
anticipates production will be achieved prior to the end of the second quarter. The
cash used from operations in the first quarter was $116,000 and was financed by the
scheduled release of a $257,000 long-term security deposit.
Despite volatile gold prices and stock markets, the company believes it is on track to
accomplish its 1999 objectives of commencing profitable mine production, expanding
the mill capacity to 1,500 tonnes per day, reducing the average annual milling cost to
$13.00 per tonne and custom mill a minimum of 325,000 tonnes of ore.
STATEMENT OF OPERATIONS AND DEFICIT
Three months ended March 31
1999 1998
Revenue
Custom milling
revenue $1,626,176 1,537,758
--------- ---------
Expenses
Milling 1,159,382 1,137,910
Site services 342,014 202,152
Administration 320,153 212,853
Depreciation 243,825 252,742
--------- ---------
2,065,374 1,805,657
--------- ---------
Operating loss (439,198) (267,899)
Interest and
other income
(expense), net (6,229) 10,377
Interest expense (8,249) (6,010)
--------- ---------
Loss for the
period (453,676) (263,532)
Deficit,
beginning of
period (75,549,821) (75,127,673)
---------- ----------
Deficit, end
of period $(76,003,497) (75,391,205)
========== ==========
(Loss) per
share (2 cents) (1 cent)
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com
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