News Out for 1/4.
HENDERSON, Nev.--(BUSINESS WIRE)--May 9, 1997--Alta Gold Co.
(Nasdaq/NM:ALTA) Friday announced financial results for the first
quarter ended March 31, 1997.
For the three months ended March 31, 1997, the company reported
net income of $79,000 from revenue of $2,858,000. For the first
three months of 1996, net income totaled $733,000 from revenue of
$5,185,000.
The decrease in both net income and revenue is attributed to the
drop in the price of gold, an unusually cold winter at Kinsley and
the completion of gold production at Easy Junior in the fourth
quarter of 1996.
Robert N. Pratt, president and chief executive officer of Alta
Gold, stated: ``We are pleased to be able to continue to generate
profits, especially during a period of time when many factors were
working against both Alta and the gold-mining industry in general --
including an unusually frigid winter at Kinsley and the depression
in gold prices.
``In addition to maintaining profitability, we also went from
negative working capital as of Dec. 31, 1996, to positive working
capital as of March 31, 1997.
``In April 1997, liquidity further improved through the issuance
of $10.0 million in long-term debt, thereby better positioning Alta to
put both Olinghouse and Griffon into production in the very near
future and to continue our aggressive 1997 reserve-expansion program.
Although we cannot control the price of gold, we can and are doing
something about increasing production and reserves.''
During the first quarter of 1997, the company mined 13,051
ounces of gold from Kinsley -- a 35 percent improvement over the
9,636 ounces mined in the first quarter of 1996.
Physical gold production at Kinsley decreased, however, from
11,092 ounces to 8,092 ounces because unusually cold weather caused
the leach pad to freeze over during the first quarter of 1997,
thereby causing a temporary buildup of in-process gold.
As weather conditions improve, gold production is expected to
increase through both regularly scheduled production and the
drawdown of the in-process gold that was ``frozen in'' during the
first quarter of 1997.
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.
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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 company's receipt of required permits,
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 that 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.
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ALTA GOLD CO.
Condensed Statements of Operations
(Unaudited)
Three months ended
March 31,
1997 1996
Revenue:
Sales of gold and other metals $2,858,000 $5,185,000
Operating costs and expenses:
Direct mining, production, reclamation
and maintenance costs 2,384,000 4,034,000
General and administrative 399,000 373,000
Exploration 26,000 2,000
2,809,000 4,409,000
Income from operations 49,000 776,000
Other income (expense), net:
Interest income and other 30,000 28,000
Interest expense and other -- (71,000)
30,000 (43,000)
Income before provision for income taxes 79,000 733,000
Provision for income taxes -- --
Net income $ 79,000 $ 733,000
Net income per share:
Primary $ 0.0026 $ 0.0234
Fully diluted $ 0.0026 $ 0.0233
Weighted average shares outstanding:
Primary 30,606,219 31,335,582
Fully diluted 30,606,219 31,509,315
ALTA GOLD CO.
Condensed Balance Sheets
(Unaudited)
March 31, Dec. 31,
1997 1996
Assets:
Current assets:
Cash and cash equivalents $ 294,000 $ 518,000
Inventories 5,056,000 4,568,000
Prepaid expenses and other 360,000 133,000
Total current assets 5,710,000 5,219,000
Property and equipment, net:
Mining properties and claims 20,515,000 20,500,000
Buildings and equipment 13,903,000 13,851,000
34,418,000 34,351,000
Less -- accumulated depreciation (10,583,000)(10,237,000)
Total property and equipment, net 23,835,000 24,114,000
Deferred mine-development costs, net 17,488,000 16,037,000
Other assets 1,045,000 1,251,000
Total assets $48,078,000 $46,621,000
Liabilities and stockholders' equity:
Current liabilities:
Accounts payable $ 1,816,000 $ 1,378,000
Accrued liabilities 856,000 1,058,000
Current portion of long-term debt 2,877,000 5,417,000
Total current liabilities 5,549,000 7,853,000
Long-term debt, net of current portion 5,642,000 1,993,000
Deferred income taxes 662,000 662,000
Other long-term liabilities 522,000 509,000
Total liabilities 12,375,000 11,017,000
Stockholders' equity:
Common stock 29,000 29,000
Additional capital 44,348,000 44,328,000
Accumulated deficit (8,674,000) (8,753,000)
Total stockholders' equity 35,703,000 35,604,000
Total liabilities and stockholders' equity $48,078,000 $46,621,000
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CONTACT:
Alta Gold Co., Henderson
Margo Bergeson, 702/433-8525 |
