Philex Gold Announces First Quarter Results
Toronto, Ontario --
(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 -TSX) reported a net income of $17.8 million
or $0.44 per share in the first quarter of 2002, compared to a net
loss of $2.5 million or $0.06 per share for the comparable period
last year. Included in the 2002 result is a gain of $18.0 million,
net of a 10% capital gains tax, on the sale of the Company's 10%
equity in the Boyongan discovery and surrounding tenements to its
joint venture partner, Anglo American Exploration (Philippines) B.
V. ("Anglo"). Cash flow from operations during the quarter was a
deficit of $593,000 or $0.01 per share, compared to positive
operating cash flow of $1.1 million or $0.03 per share last year,
as a substantial amount of payments were made to suppliers from the
proceeds of the aforementioned sale. Part of the proceeds were also
applied to repay in full the Company's bank debts of $13.7 million.
Given the decision to terminate all development work at the Bulawan
operation, as announced in a prior release on November 23, 2001,
the quarter in review will be the final full quarter of production.
A total of 11,920 ounces of gold was mined with a cash operating
cost of $197 per ounce, compared to 18,065 ounces with a cash
operating cost of $179 per ounce in the comparable quarter last
year. The average gold price was $294 per ounce compared to $263
per ounce last year.
Key Operating and Financial Summary
For the three months ended March 31, 2002 and 2001
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2002 2001
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Operational Results
Bulawan gold production - ounces 11,920 18,065
Average realized price per ounce 294 263
Financial Results (Bulawan Mine)
Cash operating costs per ounce 197 179
Revenue from gold sales
- in ('000) 3,557 4,807
Net income (loss) for the period
- in ('000) 17,811 (2,536)
Net income (loss) per share 0.44 (0.06)
Operating cash flow - (in '000) (593) 1,068
Operating cash flow per share (0.01) 0.03
Common shares outstanding 40,382,935 40,260,987
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Production at Bulawan is expected to terminate in May. Closure
costs are not substantial and have been estimated at $471,000. This
has been provided for together with the $41.6 million provision for
write down in the Bulawan assets and deferred exploration costs at
year-end 2001. Plant and equipment will be placed on care and
maintenance and will be sold when feasible. The rehabilitation of
the mine site will be accomplished over a 2 to 3 year period. The
remaining manpower will be reduced to a level required to
accomplish the foregoing activities; the retrenchment cost will be
funded by the parent company's retirement trust fund.
The drilling program at the Boyongan copper-gold deposit, in joint
venture with Anglo, continued during the quarter. Four drill rigs
are conducting resource definition drilling of the deposit while
two drill rigs are undertaking scout drilling south and west of the
deposit to locate a possible second porphyry system. An update of
the drilling progress was issued in a separate release on May 1,
2002. |
