VANCOUVER, British Columbia--(BUSINESS WIRE)--Aug. 14,1998--Royal Oak Mines Inc. Consolidated Balance Sheets
Royal Oak Mines Inc.
Consolidated Balance Sheets
(unaudited - (Cdn$ 000's)
June 30 December 31
1998 1997
(audited)
-----------------------------
ASSETS
Current Assets
Cash and cash equivalents $ 16,423 $ 568
Marketable securities 560 9,875
Receivables 8,891 30,923
Inventories 15,447 21,120
Prepaid expenses 4,933 3,967
-----------------------------
Total Current Assets 46,254 66,453
Property, Plant and Equipment,
net 787,740 730,314
Long-Term Investments 12,424 12,145
Reclamation and Other Deposits 14,346 14,332
Deferred Charges and Other
Assets 43,112 20,142
-----------------------------
TOTAL ASSETS $ 903,876 $ 843,386
-----------------------------
-----------------------------
LIABIL1TIES
Current Liabilities
Accounts payable $ 31,277 $ 123,586
Accrued payroll costs 3,087 2,599
Deferred revenue 12,865 20,085
Obligation under commodity
contracts 19,203 --
Capital leases 5,588 4,531
Taxes payable 1,207 1,723
Long-term debt interest
payable 11,437 10,326
Accrued unrealized loss on
derivatives 2,454 21,327
Other current liabilities 7,682 9,135
-----------------------------
Total Current Liabilities 94,800 193,312
Deferred Revenue 14,515 23,330
Other Liabilities 63,272 57,427
Long-Term Debt 426,764 250,338
Deferred Income Taxes 2,532 2,532
Minority Interest in Subsidiary
Companies 22 69
-----------------------------
TOTAL LIABILITIES 601,905 527,008
-----------------------------
SHAREHOLDERS' EQUITY
Share Capital
Authorized - unlimited
Outstanding - 148,940,263
(Dec. 31, 1997 - 138,940,263) 397,375 379,040
Deficit (95,404) (62,662)
-----------------------------
TOTAL SHAREHOLDERS' EQUITY 301,971 316,378
-----------------------------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 903,876 $ 843,386
-----------------------------
-----------------------------
Royal Oak Mines Inc.
Consolidated Statements of Income (Loss)
(unaudited - Cdn$000's except per share amounts)
Three months ended Six months ended
June 30 June 30
1998 1997 1998 1997
REVENUE $22,621 $58,872 $ 45,050 $ 106,846
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EXPENSES
Operating 17,016 50,930 35,247 93,908
Care and maintenance 974 76 2,311 150
Royalties and
marketing 312 447 603 871
Administrative and
corporate 2,214 3,544 4,460 6,196
Depreciation and
amortization 6,711 5,925 10,715 11,478
Reclamation 584 1,246 1,168 2,376
Exploration and other 472 1,319 919 2,666
Provision for loss on foreign
currency and commodity
contracts 11,390 7,250 3,496 10,258
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Total operating
expenses 39,673 70,737 58,919 127,903
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OPERATING LOSS (17,052) (11,865) (13,869) (21,057)
OTHER INCOME (EXPENSE)
Interest and other income
(expense), net (847) 314 (855) 2,027
Interest expense (346) (69) (643) (187)
Long-term debt
interest (10,400) (6,503) (18,608) (12,847)
Interest capitalized 9,977 5,544 18,185 9,964
Foreign currency translation loss
on long-term debt (964) 490 (1,256) (2,048)
Write-off of
financing costs (15,011) -- (15,011) --
Write-down of
mine assets -- (39,700) -- (39,700)
----------------------------------------
LOSS BEFORE
UNDERNOTED (34,643) (51,789) (32,057) (63,848)
Income and mining
taxes - current (421) (313) (841) (639)
Income and mining taxes
- deferred -- -- -- 4,221
Minority interest 16 (5) 47 31
Equity in income of
associated companies 46 18 109 33
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NET LOSS (35,002) (52,089) (32,742) (60,202)
RETAINED EARNINGS
(DEFICIT) - BEGINNING
OF PERIOD (60,402) 64,440 (62,662) 72,553
----------------------------------------
RETAINED EARNINGS
(DEFICIT) - END OF
PERIOD ($95,404) $12,351 $ (95,404) $ 12,351
----------------------------------------
LOSS PER SHARE $ (0.25) $ (0.38)$ (0.24) $ (0.43)
----------------------------------------
Weighted average number of common shares
outstanding (000's) 138,940 138,884 138,940 138,864
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Royal Oak Mines Inc.
Consolidated Statements of Cash Flow
(unaudited - Cdn$000's)
Three months Six months
ended June 30 ended June 30
---------------------------------------
1998 1997 1998 1997
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
Net loss for $(35,002) $(52,089) $(32,742) $(60,202)
the period
Items not affecting cash:
Depreciation and 6,711 5,925 10,715 11,478
Amortization
Amortization of 684 233 1,109 472
deferred finance
costs
Reclamation 584 1,246 1,168 2,376
Deferred income tax - - - (4,221)
Provision for 13,575 7,357 7,036 9,875
unrealized loss
on foreign currency and
commodity contracts
Foreign currency
translation on senior
subordinated notes 964 (490) 1,256 2,048
Write-down of mine - 39,700 - 39,700
Assets
Write-off of
deferred 15,011 - 15,011 -
finance costs
Deferred charges (46) 223 (142) 91
and other
-------------------------------------
Cash flow 2,481 2,105 3,411 1,617
Net change in other
operating items (45,965) (7,713) (82,162) (73,476)
-------------------------------------
Net cash used in (43,484) (5,608) (78,751) (71,859)
operating
activities
-------------------------------------
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES
Issue of share 18,335 65 18,335 177
capital
Capital lease (473) (249) (947) (527)
obligation
Issue of long-term 169,050 - 233,109 -
debt
Retirement of (64,232) - (64,232) -
long-term debt
Issue costs of (25,775) - (31,341) -
long-term debt
Deferred credits - (18) - (18)
and other
----------------------------------------
Net cash provided 96,905 (202) 154,924 (368)
by (used in)
financing
activities
----------------------------------------
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES
Increase in - (17,846) - (17,846)
long-term
investments
Proceeds from 8,606 - 12,873 -
asset sales
Investment in (43,700) (63,248) (80,146) (109,523)
other capital
assets, net
B. C. Government - 47,822 - 78,787
assistance
Investment in (540) (2,377) (814) (4,068)
exploration and
non-producing
properties, net
Change in other (1,427) (48) (1,546) (635)
Assets ---------------------------------------
Net cash used (37,061) (35,697) (69,633) (53,285)
in investing
activities
---------------------------------------
Increase (Decrease)$16,360 (41,507) 6,540 (125,512)
In cash and marketable
securities during the period
Cash and 623 114,351 10,443 198,356
Marketable ----------------------------------------
Securities at Beginning of Period
Cash and
Marketable $16,983 $72,844 $16,983 $72,844
Securities at
end of Period
----------------------------------------
----------------------------------------
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest $2,716 $69 $16,726 $13,386
Income taxes $ - $25 $ - $65
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