Attention Business Editors:
First Quantum Minerals Ltd. announces second quarter financial results
VANCOUVER, Aug. 3 /CNW/ - FIRST QUANTUM MINERALS LTD.
Trading Symbol: FM
Further to its news release of July 6, 1999 highlighting second quarter
production results, First Quantum Minerals Ltd. (the ''Company'') is pleased
to announce its second quarter financial results to May 31, 1999. Strong cash
flow from operations was maintained through the continued efficient, low cost
operation of the Bwana Mkubwa Copper Mine in Zambia and the Connemara Gold
Mine in Zimbabwe. All figures are in U.S. dollars.
2nd Qtr 2nd Qtr Year to Year to
Ended Ended Date Date
May 31, May 31, May 31, May 31,
1999 1998 1999 1998
------- ------- ------- -------
Revenues US$ 7,877,052 2,787,788 15,900,348 3,553,531
Costs of Sales 4,547,857 2,147,658 8,581,027 3,318,051
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Cash Flow From Operations 3,329,195 640,130 7,319,321 235,480
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Expenses:
Depreciation, depletion
and amortization 1,983,656 814,309 4,394,596 1,067,403
Exploration 121,678 49,228 306,771 604,023
General and administrative 685,900 773,559 1,446,206 1,604,715
Interest and
financing fees 2,464,133 1,159,679 3,388,330 1,335,456
Interest and other income (114,336) (111,179) (116,086) (258,693)
Net foreign
exchange loss (gain) (215,105) 94,753 (211,064) 43,294
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Total Expenses 4,925,926 2,780,349 9,208,753 4,396,198
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Loss before income taxes 1,596,731 2,140,219 1,889,432 4,160,718
Income tax expense 549 0 1,376 0
Loss for the period 1,597,280 2,140,219 1,890,808 4,160,718
Loss per share 0.07 0.10 0.08 0.20
The Company reported sales of $15,900,348 for the six months ended May
31, 1999 compared with $3,553,531 for the six months ended May 31, 1998.
After accounting for costs of sales, the Company reported a gross profit of
$7,319,321 or $0.32 per share in the first six months of 1999 compared to a
gross profit of $235,480 or $0.01 per share for the same period in 1998. The
Company reported a loss from continuing operations of $1,890,808 or $0.08 per
share for the six months ended May 31, 1999, compared with a loss of
$4,160,718 or $0.20 per share for the same period in 1998. Contributing to
the loss in the first six months of 1999 were non-cash items of depreciation,
depletion and amortization of $4,392,596 as well as interest and financing
fees of $3,388,330, $2,000,000 of which was a one-time charge attributed to
the CIBC loan facility. Excluding the one-time charge, the Company would have
reported a gain from continuing operations of $109,192 for the six months
ended May 31, 1999 and $402,720 for the three months ended May 31, 1999.
At the Bwana Mkubwa Copper Mine in Zambia, the Company realized gross
revenues of $3,720,357 from the sale of copper, representing 47% of total
revenues, down slightly from the first quarter when the Company realized gross
revenues of $3,835,948. Total operating costs year to date of copper
production is $0.40 per pound; net of acid credits, copper costs are $0.24 per
pound. Gross revenues from the sale of sulphuric acid totalled $2,573,370 for
the second quarter of 1999, representing 33% of total revenues. In
comparison, gross revenues from the sale of sulphuric acid totalled $3,011,848
for the first quarter of 1999. The reduction in acid sales was a result of
minor problems with the acid burner which have since been rectified.
At the Connemara Gold Mine in Zimbabwe, gold sales for the second quarter
of 1999 amounted to $1,399,264 compared with $985,740 for the first quarter of
1999. Year to date gold sales of $2,385,004 are significantly greater than
gold sales of $1,490,888 for the same period in 1998. Gold output increased
45% over the previous quarter due to a combination of higher head grades and
better recoveries. Operating cost for the second quarter was $224 per ounce.
Subsequent to the period under review, the Company announced the
restructuring of US $12 million of current loans into long term loans with a
syndicate of banks. This re-financing will give the Company a stronger
balance sheet and income statement as well as enable the Company to actively
pursue a number of exciting mining and development project opportunities which
have near term cash flow potential. |
