Q2 financials for BHK Mining Partial
8/3/00 - Black Hawk Mining Announces A Significant Reduction In Costs And Improved Profitability For The Second Quarter Of 2000
> Business Editors
TORONTO--(BUSINESS WIRE)--August 3, 2000--BLACK HAWK MINING INC. (TSE:BHK.) announces a significant reduction in costs and improved profitability for the second quarter of 2000. All dollar amounts are stated in U.S. dollars.
Black Hawk's net income for the second quarter of 2000 was $1.0 million or $0.01 per share on revenue of $7.0 million, compared to a net loss of $0.8 million or $0.01 per share on revenue of $8.2 million for the same period in 1999. The increase in net income of $1.8 million was due to the reduction in cash operating expenses of $2.7 and other expenses of $0.2 million and was partially offset by a reduction in revenue of $1.1 million. Cash operating costs per ounce decreased from $237 in 1999 to $165 in 2000. Gold production decreased from 29,279 ounces in 1999 to 25,911 ounces in 2000. The realized gold price in the second quarter of 2000 was $272 which was $7 per ounce lower than in 1999.
Cash flow from operating activities, before working capital changes, for the second quarter of 2000 was $2.0 million or $0.01 per share, compared to $0.04 million or $0.00 per share in the comparable period in 1999.
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Three Months Six Months
Ended June 30 Ended June 30
2000 1999 2000 1999
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Net income (loss) for the
period (000's) $ 1,012 $ (780) $ 1,296 $(1,115)
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Cash flow from operating
activities before working
capital changes (000's) $ 1,969 $ 43 $ 3,246 $ 416
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Cash flow per common share
from operating activities
before working capital
changes $ 0.01 $ 0.00 $ 0.02 $ 0.00
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Total Gold Production
(ounces) 25,911 29,279 52,903 57,222
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- El Limon Mine (ounces) 23,981 15,543 42,592 30,486
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- Keystone Gold Mine
(ounces) 1,930 13,740 10,311 26,736
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Cash Operating Cost per Ounce $ 165 $ 237 $ 186 $ 230
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- El Limon Mine $ 158 $ 246 $ 175 $ 233
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- Keystone Gold Mine $ 258 $ 228 $ 232 $ 226
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Net income for the six months ended June 30, 2000 was $1.3 million or $0.01 per share on revenue of $14.8 million, compared with a net loss of $1.1 million or $0.01 per share on revenue of $16.3 million for the same period in 1999. The increase in net income of $2.4 million was due to a reduction in cash operating expenses of $3.3 million and other expenses of $0.6 million and was partially offset by a reduction in revenue of $1.5 million. Cash operating costs per ounce decreased from $230 in 1999 to $186 in 2000. Gold production decreased from 57,222 ounces in 1999 to 52,903 ounces in 2000. The realized gold price in the six months ended June 30, 2000 was $279 which was $6 per ounce lower than in 1999.
Cash flow from operating activities, before working capital changes, for the six months ended June 30, 2000 were $3.2 million or $0.02 per share compared with $0.4 million or $0.00 per share for the same period in 1999.
Black Hawk's hedge program, as at June 30, 2000 was as follows:
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2000 2001 2002 2003 Total
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Forward Sales
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Ounces 16,060 - - - 16,060
Price per ounce $285 - - - $285
Call Options Bought
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Ounces 20,800 4,160 - - 24,960
Price per ounce $290 $290 - - $290
Call Options Sold
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Ounces 24,960 49,920 49,920 4,160 128,960
Price per ounce $270 $270 $270 $270 $270
Ounces 2,800 5,600 - - 8,400
Price per ounce $320 $320 - - $320
Put Options Sold
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Ounces 27,000 50,004 38,997 - 116,001
Price per ounce $260 $260 $260 - $260
Ounces 3,000 6,000 - - 9,000
Price per ounce $275 $275 - - $275
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The Company and Standard Bank London Limited have entered into an amended loan agreement with respect to a US$1.85 million credit facility. The original facility, entered into in December 1996, has been extended to June 30, 2001 and is subject to a further extension to July 31, 2002, if certain conditions are satisfied. The interest rate was increased to LIBOR plus 2.75 per cent and the Company has agreed to make principal payments of US$75,000 per month. Additional security has been pledged by the Company. |
