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Attention Business Editors:
MIRAMAR MINING CORPORATION REPORTS IMPROVED THIRD QUARTER EARNINGS
VANCOUVER, Nov. 19 /CNW/ - Miramar Mining Corporation is pleased to
report significantly improved third quarter results for the period ended
September 30, 1996. For the third quarter of 1996, the Company earned
$3,235,000 or $0.06 per share which was significantly higher than earnings of
$1,774,000 or $0.04 for the third quarter in 1995. The improvement in the
third quarter results is primarily due to the significantly improved operating
results at the Con Mine. For the nine months ended September 30, 1996, the
Company had consolidated net earnings of $5,954,000, or $0.11 per share,
compared to earnings of $14,633,000, or $0.29 per share for the nine months
ended September 30, 1995. Sales for the quarter and nine-month period ended
September 30, 1996 were $17.3 million and $46.4 million. Other income (which
includes interest on cash balances) for the quarter and nine-month period
ended September 30, 1996 were $2.5 million and $8.9 million respectively. The
1996 earnings to date include a gain on dilution of $1,475,000, or $0.02 per
share compared with $9,097,000, or $0.18 per share for the same period in
1995. Consolidated working capital at the end of the period was $158.4
million.
The Company's total gold production during the third quarter of 1996 was
31,993 ounces of gold, compared to 31,019 in the same period last year. During
the first nine months of 1996, the Company produced 85,395 ounces of gold
compared to 94,779 ounces of gold in the same period of 1995.
Cash operating costs per ounce for the third quarter were US$275, making
the third quarter the second lowest cost quarter since Miramar acquired the
Con Mine in 1993. This quarter's results brings cash costs for the nine months
ended September 30, 1996 to US$330 from US$353 in the first six months of
1996. The drop in operating costs for the quarter is due in part to power cost
savings generated by the Bluefish Hydroelectric facility. The expanded
Bluefish hydroelectric facility is currently operating at near capacity,
significantly reducing the Con Mine's operating costs and it is expected to
continue to contribute to reduced operating costs during the remainder of the
year.
Gold production at the Con Mine for the third quarter was 31,569 ounces
and 83,499 ounces for the nine months ended September 30, 1996. During the
first nine months of 1996, the Con Mine milled 303,989 tons of ore grading
0.304 oz. per ton compared with 335,741 tons averaging 0.309 oz/ton in the
same period of 1995. During the quarter, Miramar announced the discovery of a
significant new mineralized trend, on the southern extension of the Con Mine.
Miramar Mining is a mid-sized, growth oriented, Canadian mining company
actively involved in the acquisition and development of gold projects. Miramar
operates the Con Mine in Yellowknife, N.W.T., and is continuing feasibility
test work for a heap leach mine in Nevada. Through its 54% owned subsidiary,
Northern Orion Explorations Ltd. (NNO - TSE), Miramar has four advanced
projects at or nearing final feasibility, as well as exploration underway on
several properties in Latin America, ensuring significant growth opportunities
in the years to come.
Miramar Mining Corporation
Consolidated Balance Sheets
(Cdn$ 000's)
(Unaudited)
September 30, December 31,
1996 1995
------------- ------------
Assets
Current Assets
Cash and Short-term Investments $ 146,437 $ 167,014
Accounts Receivable 12,556 2,936
Inventory and Settlements
Receivable 12,516 11,340
Prepaid Expenses 662 1,106
--------- ---------
Total Current Assets 172,171 182,396
Property, Plant, and Equipment 201,927 175,285
Other Assets 4,661 3,459
--------- ---------
Total Assets $ 378,759 $ 361,140
--------- ---------
--------- ---------
Liabilities and Shareholders' Equity
Current Liabilities
Accounts Payable and Accrued
Liabilities $ 9,067 $ 8,249
Current Portion of Non-Current
Liabilities 4,692 4,728
--------- ---------
Total Current Liabilities 13,759 12,977
Reclamation Liability 4,962 5,565
Deferred Gain 1,524 3,931
Convertible Debentures 22,000 22,000
Other Long-term Debt 1,480 1,454
Non-controlling Interest 72,761 59,960
--------- ---------
Total Liabilities 116,486 105,887
--------- ---------
Shareholders' Equity
Share Capital 229,401 228,335
Retained Earnings 32,872 26,918
--------- ---------
Total Shareholders' Equity 262,273 255,253
--------- ---------
Total Liabilities and
Shareholders' Equity $ 378,759 $ 361,140
--------- ---------
--------- ---------
Miramar Mining Corporation
Consolidated Statements of Earnings
(Cdn$ 000's, except per share amounts)
(Unaudited) (Unaudited)
Nine Months Nine Months
Ended Ended
September 30, September 30,
1996 1995
------------- -------------
Revenue
Sales $ 46,382 $ 50,715
Other Income 8,906 7,705
Gain on Dilution 1,475 9,097
--------- ---------
56,763 67,517
Expenses
Cost of sales 38,799 44,598
General and Administration 5,786 4,956
Depreciation and Depletion 4,915 3,454
Interest 621 -
Other Expenses 1,143 168
--------- ---------
51,264 53,176
--------- ---------
Earnings before Non-controlling
Interest 5,499 14,341
Non-controlling Interest 455 292
--------- ---------
Earnings for the period $ 5,954 $ 14,633
--------- ---------
--------- ---------
Earnings per share $ 0.11 $ 0.29
Weighted average number of
common shares outstanding 56,615,494 50,100,000
Consolidated Statements of Retained Earnings
(Cdn$ 000s)
(Unaudited) (Unaudited)
Nine Months Nine Months
Ended Ended
September 30, September 30,
1996 1995
------------- -------------
Opening Retained Earnings $ 26,918 $ 8,666
Earnings for the period 5,954 14,633
--------- ---------
Closed Retained Earnings $ 32,872 $ 23,299
--------- ---------
--------- ---------
Miramar Mining Corporation
Consolidated Statements of Changes in Financial Position
(Cdn$ 000's)
(Unaudited) (Unaudited)
Nine Months Nine Months
Ended Ended
September 30, September 30,
1996 1995
------------- -------------
Cash provided by (used in):
Operating Activities
Earnings for the period $ 5,954 $ 14,633
Items not involving cash:
Depreciation and Depletion 4,915 3,454
Gain on Dilution (1,475) (9,097)
Other (2,984) 165 |
