All>>>Wednesday August 6 8:05 AM EDT
Company Press Release
Alta Gold Co. Reports 13th Consecutive Profitable
Quarter
HENDERSON, Nev.--(BUSINESS WIRE)--Aug. 6, 1997--Alta Gold Co.
(Nasdaq/NM:ALTA) Wednesday announced financial results for the second quarter and the six
months ended June 30, 1997.
For the second quarter of 1997, the company reported net income of $944,000, or $0.03 per
share, from revenue of $2,991,000.
For the second quarter of 1996, net income totaled $975,000, or $0.04 per share, from revenue
of $5,186,000. Net income for the second quarter of 1997 included an extraordinary gain of
$784,000, or $0.02 per share, from a gain on extinguishment of debt.
For the six months ended June 30, 1997, the company reported net income of $1,023,000, or
$0.03 per share, from revenue of $5,849,000. For the six months ended June 30, 1996, net
income totaled $1,708,000, or $0.06 per share, from revenue of $10,371,000. Net income for
the first six months of 1997 also included an extraordinary gain of $784,000 from a gain on
extinguishment of debt.
The decrease in both net income and revenue for both the second quarter and the first half of
1997, as compared with the second quarter and the first half of 1996, is attributed to the drop in
the price of gold, the completion of gold production at Easy Junior in the fourth quarter of 1996,
and slower gold recoveries at Kinsley in the first half of 1997 due to both weather conditions and
the increased elevation of the leach pad.
Robert N. Pratt, president and chief executive officer of Alta Gold, stated: ``I find it impressive
that the company is able to continue to generate profits during a period of depressed gold prices
and temporary production constraints. In regard to the price of gold, we have in place hedges
which guarantee us a minimum gold price of $335/oz through the end of 1998.
``In regard to the recent decline in production, we have not only built a new leach pad at Kinsley,
which is expected to help increase production in the second half of 1997, but have also begun
construction at Griffon, which is expected to increase production even further in 1998. The fact
that we have been able to generate profits in spite of low gold prices and reduced production is a
good indicator of what the company can really do as production increases and when gold prices
improve.''
Production statistics at Kinsley were as follows for the following periods:
Three Months Ended Six Months Ended
June 30 June 30
1997 1996 1997 1996
Total Tons Mined 1,647,263 2,128,278 2,870,687 3,872,644
Ore Tons Mined 453,245 381,072 870,311 643,555
Average grade 0.0337 0.0401 0.0326 0.0387
Oz gold mined 15,283 15,294 28,334 24,930
Oz gold refined 8,751 11,575 16,843 22,667
Cash Cost per Oz $207 $225 $214 $234
The company is engaged in the exploration, development, mining and production of gold on
properties in Nevada. The company also has three base metals properties in the western United
States which are in various stages of development.
THIS NEWS RELEASE CONTAINS STATEMENTS THAT MAY BE CONSIDERED
FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE
SECURITIES LITIGATION REFORM ACT OF 1995, SUCH AS MANAGEMENT'S
EXPECTATIONS REGARDING THE PLANNED DATES FOR COMMENCEMENT OF
GOLD PRODUCTION AT THE COMPANY'S MINING PROPERTIES AND THE SCOPE
OF ANTICIPATED DRILLING PROGRAMS. SUCH FORWARD-LOOKING
STATEMENTS ARE INHERENTLY UNCERTAIN, AND THE ACTUAL RESULTS MAY
DIFFER FROM MANAGEMENT'S EXPECTATIONS. FURTHER INFORMATION ON
POTENTIAL FACTORS WHICH COULD AFFECT THE FINANCIAL CONDITION AND
RESULTS OF OPERATIONS OF THE COMPANY ARE INCLUDED IN THE FILINGS
OF THE COMPANY WITH THE SECURITIES AND EXCHANGE COMMISSION,
INCLUDING, BUT NOT LIMITED TO, THE COMPANY'S ANNUAL REPORT ON
FORM 10-K FOR THE FISCAL YEAR ENDED DEC. 31, 1996.
ALTA GOLD CO.
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended June 30,
1997 1996
REVENUE $2,991,000 $5,186,000
OPERATING COSTS AND EXPENSES:
Direct mining, production,
reclamation and maintenance
costs 2,472,000 3,793,000
General and administrative 386,000 377,000
Exploration 61,000 14,000
2,919,000 4,184,000
Income from operations 72,000 1,002,000
OTHER INCOME (EXPENSE), net:
Interest income and other 90,000 30,000
Interest expense and other (2,000) (57,000)
88,000 (27,000)
INCOME BEFORE PROVISION FOR INCOME
TAXES AND EXTRAORDINARY ITEM 160,000 975,000
PROVISION FOR INCOME TAXES - -
INCOME BEFORE EXTRAORDINARY ITEM 160,000 975,000
EXTRAORDINARY ITEM:
Gain on extinguishment of debt 784,000 -
NET INCOME $ 944,000 $ 975,000
NET INCOME PER SHARE
(Primary and fully diluted):
Income before extraordinary item $ 0.01 $ 0.04
Extraordinary item 0.02 -
Net income per share $ 0.03 $ 0.04
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING
(Primary and fully diluted): 34,868,975 31,319,906
-0-
ALTA GOLD CO.
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
Six Months Ended June 30,
1997 1996
REVENUE $ 5,849,000 $10,371,000
OPERATING COSTS AND EXPENSES:
Direct mining, production,
reclamation and
maintenance costs 4,856,000 7,827,000
General and administrative 785,000 750,000
Exploration 87,000 16,000
5,728,000 8,593,000
Income from operations 121,000 1,778,000
OTHER INCOME (EXPENSE), net:
Interest income and other 120,000 58,000
Interest expense and other (2,000) (128,000)
118,000 (70,000)
INCOME BEFORE PROVISION FOR INCOME
TAXES AND EXTRAORDINARY ITEM 239,000 1,708,000
PROVISION FOR INCOME TAXES - -
INCOME BEFORE EXTRAORDINARY ITEM 239,000 1,708,000
EXTRAORDINARY ITEM:
Gain on extinguishment of debt 784,000 -
NET INCOME $1,023,000 $1,708,000
NET INCOME PER SHARE (Primary and
fully diluted):
Income before extraordinary item $0.01 $0.06
Extraordinary item 0.02 -
Net income per share $0.03 $0.06
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING (Primary and fully
diluted): 34,782,969 30,240,811
-0-
ALTA GOLD CO.
CONDENSED BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
1997 1996
CURRENT ASSETS:
Cash and cash equivalents $ 6,713,000 $ 518,000
Inventories 5,778,000 4,568,000
Prepaid expenses and other 571,000 133,000
Total current assets 13,062,000 5,219,000
PROPERTY AND EQUIPMENT, net
Mining properties and claims 20,567,000 20,500,000
Buildings and equipment 15,202,000 13,851,000
35,769,000 34,351,000
Less - accumulated depreciation (10,916,000) (10,237,000)
Total property and equipment, net 24,853,000 24,114,000
DEFERRED MINE DEVELOPMENT
COSTS, net 20,103,000 16,037,000
OTHER ASSETS 1,272,000 1,251,000
Total Assets $59,290,000 $46,621,000
-0-
ALTA GOLD CO.
CONDENSED BALANCE SHEETS (continued)
(Unaudited)
LIABILITIES AND STOCKHOLDERS' EQUITY
June 30, December 31,
1997 1996
CURRENT LIABILITIES:
Accounts payable $ 590,000 $ 1,378,000
Accrued liabilities 832,000 1,058,000
Current portion of
long-term debt 4,513,000 5,417,000
Total current liabilities 5,935,000 7,853,000
LONG-TERM DEBT, net of current portion 14,233,000 1,993,000
DEFERRED INCOME TAXES 662,000 662,000
OTHER LONG-TERM LIABILITIES 1,648,000 509,000
Total liabilities 22,478,000 11,017,000
STOCKHOLDERS' EQUITY:
Common stock, $.001 par value;
authorized 60,000,000 shares,
issued 29,204,092 and
29,022,371 shares, respectively 29,000 29,000
Additional capital 44,513,000 44,328,000
Accumulated deficit (7,730,000) (8,753,000)
Total stockholders' equity 36,812,000 35,604,000
Total liabilities and
stockholders' equity $59,290,000 $46,621,000
Contact:
Alta Gold Co., Henderson
Margo Bergeson, 702/433-8525 |
