Well the news is very good and the cash flow was close to the stock price awhile back. Here is the news.Regards, Markham
Wheaton River Reports Record Earnings in 2000
TORONTO, ONTARIO--Wheaton River Minerals Ltd. today reported record net earnings of $12,305,350 or $0.24 per share
for the year ended December 31, 2000. Net earnings increased by $4,689,670 million in 2000 compared with the $7,615,680 or $0.19 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 $0.31 per share in 2000 compared with $13,193,783 or $0.33 per share in 1999.
Gold production from the Golden Bear Mine increased by 23,233 ounces in 2000 to 94,522 ounces compared to the prior year. Realized prices also increased to
US$325 per ounce in 2000, from US$314 per ounce in 1999. The higher production resulted in a 37% increase in sales revenue to $45,587,448, from
$33,303,499 in 1999.
Total cash costs in 2000 were US$187 per ounce compared with US$162 in 1999. Total cash costs for both years were significantly lower than the US$203
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.
2000 1999
Gold Sales (oz) 94,522 71,289
Realized prices per oz US$325 US$314
Cash operating costs per oz US$176 US$152
Total cash costs per oz US$187 US$162
Earnings per share C$0.24 C$0.19
Cash flow from operating activities
per share C$0.32 C$0.33
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 ongoing expenses at the Bellavista project. At
current gold prices, the Company expects the cash balance to be in the $18-$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
US$219 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 takes place.
Wheaton River received the final environmental approvals required to proceed with construction of the Bellavista gold mine in Costa Rica. As previously announced,
further development of the mine is on hold pending a more favorable gold price. Wheaton River would prefer to hedge a significant portion of Bellavista gold
production at a price of no less than US$350 per ounce before beginning construction. Depending on forward sales prices for gold, a spot price of approximately
US$300 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 ongoing.
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% 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% interest by spending an additional $17 million before November 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.
Wheaton River Minerals Ltd.
Consolidated Statements of Operations and Retained Earnings (Deficit)
Years Ended December 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
----------------------------------
----------------------------------
Consolidated Balance Sheets
December 31
2000 1999
Assets
Current
Cash and equivalents $ 17,581,472 $ 12,336,542
Marketable securities 48,000 18,960
Accounts receivable and prepaids 528,071 373,846
Product inventory 2,094,067 1,891,036
Supplies 301,130 544,206
----------------------------------
20,552,740 15,164,590
Investment in associated company -- 1,292,694
Reclamation deposits 2,485,036 1,027,095
Resource assets 26,294,172 17,022,304
----------------------------------
$ 49,331,948 $ 34,506,683
----------------------------------
----------------------------------
Liabilities
Current
Accounts payable and accrued
Liabilities $ 1,089,576 $ 480,100
Income taxes payable 49,474 133,092
----------------------------------
1,139,050 613,192
Deferred revenue 602,498 6,660,991
Provision for reclamation 4,162,000 2,900,000
----------------------------------
5,903,548 10,174,183
----------------------------------
Shareholders' Equity
Contributed surplus 911,599 904,502
Share capital 40,290,203 33,506,750
Retained earnings (deficit) 2,226,598 (10,078,752)
----------------------------------
43,428,400 24,332,500
----------------------------------
$ 49,331,948 $ 34,506,683
----------------------------------
----------------------------------
Consolidated Statements of Cash Flow
Years Ended December 31
2000 1999
Operating Activities
Net earnings $ 12,305,350 $ 7,615,680
Deferred revenue -- 1,166,965
Provision for reclamation (238,000) --
Items not affecting cash
Depreciation and depletion 5,297,833 4,779,460
Deferred development and stripping
Amortized 3,928,461 1,238,868
Deferred revenue amortized (6,058,493) (2,587,569)
Resource assets written down 300,897 1,495,087
Gain on sale of resource assets (216,767) --
Equity earnings in associated company (3,309) (42,665)
Foreign exchange 39,993 142,982
----------------------------------
15,355,965 13,808,808
Change in non-cash working capital 463,550 (615,025)
----------------------------------
15,819,515 13,193,783
----------------------------------
Financing activities
Common shares issued (repurchased) 271,526 (167,813)
Common share issue costs (212,527) (5,101)
----------------------------------
58,999 (172,914)
----------------------------------
Investing activities
Resource assets (10,162,011) (5,534,260)
Acquisition of Red Mountain Project (522,568) --
Cash acquired on acquisition of Kit
Resources Ltd. 77,969 --
Investment in associated company -- (717,087)
Reclamation deposits 42,059 (36,937)
Marketable securities (29,040) (3,960)
----------------------------------
(10,593,591) (6,292,244)
----------------------------------
Foreign exchange (39,993) (142,982)
----------------------------------
Increase in cash and equivalents 5,244,930 6,585,643
Cash and equivalents, beginning
of year 12,336,542 5,750,899
----------------------------------
Cash and equivalents, end of year $ 17,581,472 $ 12,336,542
----------------------------------
---------------------------------- |
