Hello Reg: :How are ya doing? I sounds like you are not doing that well..Take a look at this news release: Campbell Resources is currently trading at Approx .60 per share???????? Is this price justified in today's enviroment? I am not professing to be an expert by no means and I will confess that I am a Novice a such matters (Financial Statements etc.)There is alot of info in this report that would make this company very successful and profitable at gold prices ranging from $380 to $400 per oz...But the fact is the gold price is below $300/oz . The operating cost for this company is around $290 approx. BYG should come in at less than $225 per oz. IMHO. my point is: "Why should BYG be any better off than any other company in the gold mining sector. I would like to emphasize that there are companies trading currently at less than what they have in CASH PER SHARE IN THEIR TREASURY..Does this not tell you something...The Westmin takeover attempt recently in the news is another example of how "MARKETS ARE MADE-----THEY JUST DON'T HAPPEN". If thing are so terrible in the industry over the long term than why would Westmin be a takeover candidate..They lost money in the last nine months..I believe .07 to.09 pre share..Yet some one sees value there..Regardless of what happens someone will make money on this deal because that is the way things are contrived by people in places of influence and power....So don;t be so hard on BYG at this stage of the game. They are still a good company. Just my opinion..Good dayyyyyyy Ronald
PS: For what it is worth I bought more shares at these price levels and I still think the company is a better good buy at todays prices..If you care to comment please do. Perhaps I am way off base on these remarks and others. Always looking for another opinion from some one with the expertise I LACK!!!!!!
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Campbell Resources Inc -
9mo results
Campbell Resources Inc CCH
Shares issued 150357876 1997-11-12 close $0.8
Wednesday Nov 12 1997
Mr Steven Dawson reports
Lower than expected gold production, a lower average realized price of gold and significantly higher exploration expenses have all contributed to Campbell Resources reporting a loss of $7.9 million or $0.053 per share for the nine months ended September 30 1997. This compares with income of $8.2 million or $0.056 in the same period a year earlier. For the three months ended September 30 1997, Campbell recorded a loss of $3.4 million or $0.022 compared with net income $1.5 million or $0.01 in the same period of 1996. Cash flow from operations, before the change in operating working capital, was reduced to $1.2 million in the nine months compared to $17.7 million in 1996.
The loss is primarily attributable to the decrease in gold production for the nine months to 81,570 ounces from 98,760 in 1996, combined with a decrease in the average realized price of gold to US$346 per ounce from US$395 in 1996. Despite the lower gold price, Campbell continues to receive a higher price than the average Comex market gold price which was US$339 per ounce for the first nine month period in 1997. This compares to an average Comex market gold price of US$392 for the same period in the previous year. The company has hedged approximately 25% of its 1997 production at US$380 per ounce of gold.
Lower gold production resulted in an increase in the average cash operating cost to US$294 per ounce for the nine months and US$290 for the third quarter compared to US$240 and US$256, respectively in 1996.
Working capital at September 30 1997, was $54.1 million and consisted primarily of $43.3 million in cash and short term deposits. This compares to figures of $65.5 million and $55.3 million, respectively at December 31 1996.
Joe Mann Mine, Quebec
The Joe Mann mine produced 53,020 ounces of gold at a cash operating cost of US$268 per ounce compared with 54,620 ounces at a cash operating cost US$265 during the same period in 1996. Third quarter production figures were 17,420 ounces at a cash operating cost of US$250 per ounce in 1997, compared to 17,750 ounces at a cash operating cost of US$255 in 1996. The number of tons milled decreased to 195,200 tons in the first nine months of 1997, compared to 204,700 tons in 1996 while the mill head grade increased to 0.296 ounces of gold per ton compared to 0.290 in 1996. The mill recovery rate increased to 93.8% in the first nine months of 1997, from 93.3% for the same period in 1996.
The program to deepen the main production shaft at the Joe Mann mine is proceeding on schedule and under budget. As of September 30 1997, the shaft had reached a depth of 3,500 ft below surface, leaving approximately 264 ft to be completed. Stations on all six new levels are now excavated and the shaft deepening program is on schedule to be completed by June 1 1998. In addition, a development heading to explore the down plunge potential of the West Zone on the 1650 ft level has been completed while other headings on the 1825 foot level and 2000 ft level are being driven.
Based on early exploration drilling and experience in mining the Main Zone, the West Zone has the potential to host up to 500,000 ounces of gold. Initial ore production from this zone, targeted for 1998, may lead to an incremental increase in production once the zone is fully delineated.
Santa Gertrudis Mine, Mexico
Gold production at Santa Gertrudis was 28,560 ounces in the first nine months of 1997 and 10,790 ounces in the third quarter of 1997, compared with 44,150 ounces and 12,710, respectively in 1996. This decrease in production led to increased cash operating costs of US$341 per ounce in the first nine months and US$353 in the third quarter compared to US$210 and US$256, respectively in 1996.
Mining will be suspended at the Santa Gertrudis mine at the end of November in order to focus on building ore reserves through exploration. Since acquiring the mine in 1994, Campbell has been successful in replacing ore mined through its exploration efforts in the immediate mine area. Commencing in 1996, increased emphasis was placed on exploring promising targets further from the current mine infrastructure in an effort to develop ore reserves for the longer term.
It had been anticipated that this exploration program would allow the mine to continue production at an economically viable rate while continuing the long-term exploration program. However, current low gold prices and insufficient developed ore renders mine production uneconomic at the forecast levels. Mining operations will resume when sufficient ore reserves have been discovered and developed to enable production at a rate that is economic at the then prevailing gold price.
Ore will be mined at Santa Gertrudis from the Dora, El Toro and La Trinidad pits through the end of November at which time the Dora and El Toro pits will be exhausted. The leach pads will continue to operate until the level of gold production becomes uneconomic, currently estimated at between six months and one year.
As a result of the suspension of mining operations at the end of this month and the less than expected production in the third quarter due to high rainfall resulting from the El Nino weather effect, the production estimate for Santa Gertrudis has been reduced to between 38,000 and 40,000 ounces of gold from the 48,000 forecast in the second quarter.
An exploration program is continuing and has led to the discovery of numerous priority targets southeast of the current mining operations. Follow up drilling of the Ontario zone in the Greta area, approximately 7km south east of the mine area continues to intersect significant near surface mineralization as indicated in the table below:
Hole Intersection Width Au Grade
(m downhole) (m) (g/t)
GR-246 54.0-58.5 4.5 13.65
GR-248 52.5-57.0 4.5 5.16
GR-249 78.0-79.5 1.5 3.58
99.0-103.5 4.5 0.62
GR-250 6.0-19.5 13.5 1.87
42.0-48.0 6.0 1.19
72.0-75.0 3.0 16.55
GR-253 58.5-61.5 3.0 11.15
In addition to the Ontario Zone, detailed work consisting of trenching, mapping, sampling and drilling is also being completed on the newly discovered Tracy prospect, 1km west of the Ontario Zone.
The Tracy prospect is in the central portion of the La Gloria shear zone, a prominent, southerly trending lineament identified through airborne geophysics and radar satellite imagery. Geological mapping has shown the La Gloria shear zone has a strike length in excess of 1km and varies in width from 20 to 100m. The La Gloria shear zone is composed of many sub-parallel structures that are filled with highly deformed and altered lamprophyre dykes and zones of tectonic breccia.
Several surface grab samples taken from the Tracy prospect have averaged between 12.40 g/t and 32.60 g/t gold. Elsewhere on the La Gloria shear zone, samples from several large bodies of skarn and hornfels mineralization returned values ranging from 1.10 g/t and 2.35 g/t gold.
Three trenches totalling 260m in length were excavated across the La Gloria shear. A channel sample taken from the southernmost trench, situated 10m north of the high-grade grab samples obtained at the Tracy prospect, returned an assay value of 3.30 g/t gold across 46.55m.
Two additional trenches totalling 45m in length were excavated 40m to the south of the Tracy prospect. Both exposed strongly sheared lamprophyre dykes and initial channel samples results included 7.76 g/t gold over 3.2m indicating a mineralized strike length at the Tracy prospect of 50m.
Reverse circulation drilling is also being completed to further evaluate the Tracy prospect and the La Gloria shear zone. Hole TY-101, drilled below the initial high-grade trench, intersected 1.03 g/t gold over 6.0m at a depth between 37.5m and 43.5m below surface. Another hole TY-103 drilled 80m to the south of TY-101, intersected 3.74 g/t gold over 4.5m at a depth between 52.5m and 57.0m below surface.The Tracy prospect remains open in all directions and additional trenching and drilling is planned to fully evaluate this prospect and the La Gloria shear zone.
Detailed exploration is also being completed on other priority targets while reconnaissance exploration is being initiated on 10 other target areas outside the mining operations.
Campbell is committed to a continuing exploration program at the Santa Gertrudis mine and believes that sufficient oxide ore reserves will be discovered to enable the resumption of profitable mining operations. The recent compilation of airborne geophysics, radar satellite imagery, ground geophysical and soil geochemical surveys, together with drill results have all contributed to a better understanding of the complex geology and have resulted in a more focused selection of near-surface oxide targets.
In addition to the near-surface targets, the company is beginning to examine the potential for deeper sulphide mineralization. The company recently commissioned independent mineral industry consultants, Behre Dolbear & Company of Denver, Colorado, to undertake a study of the deep sulphide potential at Santa Gertrudis. Their report concludes that the property contains potential for a deep, Carlin-type target from an examination of the property and presently available data from the project. The geology, structure, geochemistry, geophysics and mineralization are indicative of this type of system and the similarities to the Post-Betze deposit (in Nevada's Carlin Trend) are very striking".
Several senior companies are considering participation in programs to explore the deep potential at Santa Gertrudis.
Cerro Quema Gold Project, Panama
Gold prices have remained in the low US$300 per ounce range for the entire third quarter of 1997 and appear unlikely to increase significantly by year end. As discussed in the second quarter, the company will reassess the outlook for the gold price in December, the beginning of the dry season in Panama, to determine whether to proceed with the Cerro Quema gold project at this time.
The company has been advised by the Panamanian Ministry of Commerce that all remaining restrictions on construction activities will be lifted prior to the end of the rainy season.
EARNINGS STATEMENT
Three months ended September 30
($ 000s)
1997 1996
Metal sales $12,979 $16,191
------- -------
Expenses
Mining 11,857 11,067
General admin 774 673
Depreciation and
amortization 2,294 2,737
Exploration 1,704 877
------- -------
16,629 15,354
------- -------
Income (loss) from
operations (3,650) 837
Other income (expense)
Interest income 474 866
Foreign exchange loss (87) 127
Convertible debenture
interest expense (163) (123)
------- -------
224 870
------- -------
Income (loss) before
income taxes (3,426) 1,707
Income tax provision (58) 242
------- -------
Net income (loss) $(3,368) $ 1,465
------- -------
Earnings (loss)
per share $(0.022) $ 0.010
------- -------
EARNINGS STATEMENT
Nine months ended September 30
($ 000s)
1997 1996
Metal sales $38,837 $53,321
------- -------
Expenses
Mining 34,307 33,855
General admin 2,221 2,093
Depreciation and
amortization 6,778 8,460
Exploration 4,214 1,987
------- -------
47,520 46,395
------- -------
Income (loss) from
operations (8,683) 6,926
Other income (expense)
Interest income 1,421 2,529
Foreign exchange loss (172) (78)
Convertible debenture
interest expense (481) (508)
------- -------
768 1,943
------- -------
Income (loss) before
income taxes (7,915) 8,869
Income tax provision 6 711
------- -------
Net income (loss) $(7,921) $ 8,158
------- -------
Earnings (loss)
per share $(0.053) $ 0.056
------- -------
(c) Copyright 1997 Canjex Publishing Ltd. canada-stockwatch.com
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