Wheaton River Minerals Ltd - News Release
Wheaton earns 24 cents per share in 2000
Wheaton River Minerals Ltd WRM
Shares issued 52,746,746 2001-03-09 close $0.55
Friday Mar 9 2001 News Release
Mr. Ian McDonald reports
Wheaton River Minerals Ltd. today reported record net earnings of $12,305,350 or 24 cents per share for the year ended Dec. 31, 2000. Net earnings increased by $4,689,670 in 2000, compared with the $7,615,680 or 19 cents per share recorded in 1999. The 2000 earnings increase resulted mainly from significantly increased gold production at the Golden Bear mine. The company generated cash flow from operating activities of $15,819,575 or 31 cents per share in 2000 compared with $13,193,783 or 33 cents per share in 1999.
Gold production from the Golden Bear mine increased by 23,233 ounces in 2000 to 94,522 ounces compared with the prior year. Realized prices also increased to $325 (U.S.) per ounce in 2000, from $314 (U.S.) per ounce in 1999. The higher production resulted in a 37-per-cent increase in sales revenue to $45,587,448, from $33,303,499 in 1999.
Total cash costs in 2000 were $187 (U.S.) per ounce compared with $162 (U.S.) in 1999. Total cash costs for both years were significantly lower than the $203 (U.S.) estimated in the original feasibility study. This was mainly because of higher grades mined from the Ursa deposit and better than expected recoveries. The 2000 costs were slightly higher costs for drilling and blasting at both the Ursa and Kodiak B deposits.
PRODUCTION AND FINANCIAL DATA
Year ended Dec. 31
2000 1999
Gold sales
(per ounce) 94,522 71,289
Realized
prices
(per ounce) $325 $314
(U.S.)
Cash
operating
costs
(per ounce) $176 $152
(U.S.)
Total cash
costs
(per ounce) $187 $162
(U.S.)
Earnings
per share $0.24 $0.19
(Canadian)
Cash flow
from
operating
activities
per share $0.32 $0.33
(Canadian)
Cash at the end of the year was $17.6-million compared with $12.3-million at the end of 1999. Working capital at year-end increased to $19.4-million, compared with $14.6-million at the end of the previous year. The decrease in cash during the fourth quarter was mainly due to the continuation of the mining and stockpiling of ore from the Kodiak B deposit through to mid-November and losses on foreign exchange contracts, as well as continuing expenses at the Bellavista project. At current gold prices, the company expects the cash balance to be in the $18-million to $19-million range at the end of 2001.
The last year of commercial production at the Golden Bear mine will be 2001. Output is estimated at 30,000 ounces and total cash costs are expected to be $219 (U.S.) per ounce. All mining operations at Golden Bear were completed late in 2000 and operations this year will be restricted to crushing, stacking and heap leaching of the stockpiled ore. Minimal gold production will take place in 2002, as cleanup and reclamation of the Golden Bear mine site take place.
Wheaton River received the final environmental approvals required to proceed with construction of the Bellavista gold mine in Costa Rica. As previously reported, further development of the mine is on hold pending a more favourable gold price. Wheaton River would prefer to hedge a significant portion of Bellavista gold production at a price of no less than $350 (U.S.) per ounce before beginning construction. Depending on forward sales prices for gold, a spot price of approximately $300 (U.S.) is needed to build this hedge book.
A prefeasibility study on the Red Mountain gold project in British Columbia is being prepared by company staff and is expected to be completed later this spring. Upon completion of the study the project will be put on hold until gold prices improve, although optimizations of the plan will be continuing.
Kinross has begun mobilizing for the spring drilling campaign at George Lake in Nunavut. The 9,000-metre program will be sufficient for Kinross to maintain its expenditure obligations on the project, which is currently 100-per-cent owned by Wheaton River. The proposed 2001 drilling program will be divided between a winter campaign at the Goose Lake deposit, which was the focus of last year's program and a summer phase of testing some high-priority outlying targets. Kinross has spent approximately $3-million on the project so far, and can earn a 70-per-cent interest by spending an additional $17-million before Nov. 30, 2004.
Wheaton River continues to examine several potential alternatives to replacing the Golden Bear cash flow, both within and outside of the mineral sector. The company has also examined a number of merger and acquisition proposals. Wheaton River's goal is to either purchase a new project or acquire one through a merger or acquisition of another company, with the target of bringing the company significant near-term cash flow while at the same time maximizing shareholder value.
CONSOLIDATED STATEMENT OF OPERATIONS
Year ended Dec. 31
2000 1999
Sales $ 45,587,448 $ 33,303,499
Cost of
sales 24,733,248 16,003,617
Royalties 1,461,257 1,107,028
Depreciation
and depletion 5,232,377 4,722,779
------------ ------------
31,426,882 21,833,424
------------ ------------
Earnings
from mining
operations 14,160,566 11,470,075
Expenses and
other income
Interest and
finance fees 42,211 279,363
General and
administrative 2,196,733 2,033,357
Depreciation 65,456 56,681
Resource assets
written down 300,897 1,495,087
Other income (1,063,165) (140,720)
------------ ------------
1,542,132 3,723,768
------------ ------------
Earnings before
the following 12,618,434 7,746,307
Income taxes 316,393 173,292
Equity earnings
in associated
company (3,309) (42,665)
------------ ------------
Net earnings $ 12,305,350 $ 7,615,680
============ ============
Deficit,
beginning of
year (10,078,752) (17,694,432)
Retained
earnings
(deficit),
end of year $ 2,226,598 $ (10,078,752)
Earnings
per share $ 0.24 $ 0.19
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