Philex Gold Announces Third Quarter Results
Toronto, Ontairo --
(All financial results are unaudited and stated in U.S. dollars;
gold production and costs per ounce are stated in equivalent
ounces where appropriate)
PHILEX GOLD INC. (PGI-CDNX) reported a net loss of $2.1 million
or $0.05 per share in the third quarter of 2000, compared to a
net loss of $1.5 million or $0.04 per share for the comparable
period last year. Cash flow from operations during the quarter
was a deficit of $2.1 million or $0.05 per share, compared to a
surplus of $2.9 million or $0.07 per share in the prior year. An
average gold price of $298 per ounce was realized during this
quarter, compared to last year's corresponding average of $273
per ounce.
For the nine months ended September 30, 2000, a net loss of $8.0
million or $0.20 per share was incurred on revenues of $7.6
million. The comparable figures for 1999 were a net loss of $2.2
million or $0.06 per share on revenues of $18.0 million.
Operating cash flow was a deficit of $3.3 million or $0.08 per
share, compared to a surplus of $8.2 million or $0.20 per share
in the prior year. An average gold price of $296 per ounce was
realized during this period, compared to $286 per ounce last
year.
Key Operating and Financial Summary
For the three months ended September 30, 2000 and 1999
2000 1999
Operational Results
Bulawan gold production - ounces 6,257 16,209
Average realized price per ounce 298 273
Financial Results
Cash operating costs per ounce 275 232
Revenue from gold sales - (in '000) 1,695 4,572
Net loss for the period - (in '000) (2,140) (1,544)
Net loss per share (0.05) (0.04)
Operating cash flow - (in '000) (2,080) 2,947
Operating cash flow per share (0.05) 0.07
Common shares outstanding 40,181,818 40,181,818
As previously announced, milling operations were suspended for a
two-month period effective July 16, 2000, resulting in a low
metal output during the quarter in review. The suspension was
deemed necessary given the declining grades of ore from the
depleting South block, coupled with the mine's inability to
maximize tonnage at the new Central block. The latter is the
result of very loose ground conditions, requiring rehabilitation
of the first three production lines and related draw points
developed so far at the 70-metre level for block caving. This
work was accelerated and substantially completed during the shut
down period. Development work at the 85-metre undercut level in
preparation for mining by front caving was also accelerated and
a number of draw points were placed into production. To avoid
packing of the ore column and to relieve ground stresses,
approximately 50,000 tonnes of ore was extracted from the
underground, both from the rehabilitated draw points at the
70-metre level production lines and from the newly developed
front cave lines at the 85-metre level. This ore was stockpiled.
About 40% of the work force was temporarily laid off while all
costs, other than for on-going rehabilitation and development,
were expensed during this period.
Key Operating and Financial Summary
For the nine months ended September 30, 2000 and 1999
2000 1999
Operational Results
Bulawan gold production - ounces 26,869 61,190
Average realized price per ounce 296 286
Financial Results
Cash operating costs per ounce 334 186
Revenue from gold sales - (in '000) 7,606 18,046
Net loss for the period - (in '000) (8,043) (2,220)
Net loss per share (0.20) (0.06)
Operating cash flow - (in '000) (3,331) 8,234
Operating cash flow per share (0.08) 0.20
Common shares outstanding 40,181,818 40,181,818
Milling operations resumed mid-September. About one-half of the
work force that were laid off during the suspension period were
recalled. The balance was permanently separated on the basis of
an early voluntary retirement program, thus achieving an overall
20% reduction in manpower. During the 14-day period in the second
half of September, about 53,000 tonnes of ore sourced from the
stockpile and from the underground was processed. As expected,
the average grade of ore significantly improved to 3.2 grams per
tonne. A recovery rate of 90.5% was achieved, resulting in 5,054
ounces produced during this period.
Due to the increase in the grade of ore sourced from the Central
block and the satisfactory rehabilitation of the initial three
production lines at the 70-metre level, a decision has been made
to complete the fourth production line, already about 50%
developed, for block caving. Studies are also underway to
determine the feasibility of completing the balance of the block
for block caving given the expected higher ore recovery as
compared to front caving in loose ground conditions.
With respect to exploration, the updated drilling results in the
Boyongan prospect, under a joint venture with Anglo American
Exploration (Philippines), Inc., is covered under a separate
press release.
The Canadian Venture Exchange has not reviewed and does not
accept responsibility for the adequacy or accuracy of this
release.
For further information contact:
Paula Kember, Vice President Finance
Suite 420, 141 Adelaide Street West
Toronto, Ontario M5H 3L5
Telephone: (416) 861-1221
Fax: (416) 861-1226
Electronic Mail: paulak@philexgold.com |
