Hello Syncrude;
NEWSRELEASE??
Crystallex six-month results
Crystallex International Corporation KRY
Shares issued 36,933,966 Aug 16 close $0.77
Tue 17 Aug 99 News Release
Mr. Marc Oppenheimer reports
Crystallex has had its second consecutive quarter of profitability and
growth.
Increased production, improved efficiencies and a successful hedge program
combined to generate record levels of revenue and net income in the second
quarter, which ended June 30, 1999. Sequentially, revenue increased 10 per
cent and net income increased 39 per cent over the profitable first quarter
of 1999.
Net income for the second quarter ended June 30, 1999, was $2,055,315 or
six cents per share on operating revenue of $9,864,001. This compares with
the 1998 second quarter loss of $1,805,538 or five cents per share on
operating revenue of $888,167. Total assets increased to nearly
$108-million, compared with $73-million in the second quarter of 1998, and
shareholder equity rose to more than $71-million, versus $70-million in the
comparable year-earlier period.
For the first six months ended June 30, 1999, operating revenue of
$18,848,984, generated a net income of $3,536,272 or 10 cents per share.
This represents a significant increase over the first six months of 1998
when the company reported a loss of $4,199,904 or 12 cents per share on
revenue of $1,553,643. Operating cash flow for the quarter ending June 30,
1999, was $4,902,368 or 13 cents per share, and for the six months of 1999,
operating cash flow was $9,092,948 or 24 cents per share.
During the second quarter, gold production at the San Gregorio mine was
20,588 ounces, a 9-per-cent increase over the 18,905 ounces produced in the
second quarter of 1998. The company shipped 21,288 ounces in the second
quarter 1999. Mining of ore and waste at the San Gregorio mine increased 21
per cent from 16,790 tonnes per day in the second quarter of 1998 to 20,331
tonnes per day in the second quarter of 1999. These results were achieved
with the mine operating six days a week compared with seven days a week in
the second quarter of 1998. Several training programs, improved human
resource management and better blasting practices contributed to this
increase in productivity.
In the second quarter of 1999 the company achieved an average realized
price per ounce of gold sold of approximately $300 (U.S.), compared with
the average spot market price for the quarter of approximately $274 (U.S.)
per ounce. The company's hedging program continued to enhance the average
price during the quarter. At June 30 1999, Crystallex's hedge program
consisted of forward sales contracts of approximately 40 per cent of San
Gregorio future gold production with a price floor of $310 (U.S.) per
ounce.
Commenting on the company's profitable second quarter and first six months,
Crystallex president and chief executive officer, Marc J. Oppenheimer,
pointed to increased productivity at the San Gregorio mine, which has
lowered the total cash cost per ounce of gold from $268 in the second
quarter of 1998 to $196 in the 1999 second quarter. "Our ability to reduce
the costs of gold production by 27 per cent, combined with our gold hedging
program has enabled Crystallex to maintain a relatively high level of
profitability and a positive operating cash flow throughout the first half
of the year despite the continued weakness in the gold market.
"We're pleased that the increasing production and shipment of gold from the
San Gregorio mine has enabled it to be recognized as the major exporter of
metals from Uruguay for the second year in a row," Mr. Oppenheimer said.
"We feel confident that the Crystallex team can bring the same level of
production efficiencies and productivity gains to other mining projects
that we decide to pursue."
Recently the company announced that it had launched legal proceedings in
Venezuela to enforce its ownership rights in relation to the Cristinas 4
and 6 concessions, believed to be the largest gold find ever in that
country. "Although such litigation involves risks and uncertainties," Mr.
Oppenheimer said, "if the outcome is favourable, there is little doubt that
the value of the Cristinas concessions to our shareholders would be
significant."
WARNING: The company relies on litigation protection for "forward-looking"
statements.
STATEMENT OF OPERATIONS
Six months ended June 30
1999 1998
Operating
revenue $18,848,984 $ 1,553,643
Operating
expenses
Operations 9,756,036 2,978,067
Amortization
and depletion 1,943,826 528,335
----------- -----------
Earnings (loss)
from operations 7,149,122 (1,952,759)
General
expenses 4,346,835 3,127,449
Income (loss)
before other
items 2,802,287 (5,080,208)
Other items
Interest and
other Income 898,493 453,218
Foreign exchange
(loss)/gain (164,508) 406,043
Gain on sale
of marketable
securities - 21,043
----------- -----------
733,985 880,304
Income (loss) $ 3,536,272 $(4,199,904)
=========== ===========
Earnings (loss)
per share 10 cents (12 cents)
STATEMENT OF OPERATIONS
Three months ended June 30
1999 1998
Operating
revenue $ 9,864,001 $ 888,167
Operating
expenses
Operations 4,961,633 1,624,130
Amortization
and depletion 978,036 281,050
----------- -----------
Earnings (loss)
from operations 3,924,332 (1,017,013)
General
expenses 2,212,206 1,619,014
Income (loss)
before other
items 1,712,126 (2,636,027)
Other items
Interest and
other Income 463,783 251,178
Foreign exchange
(loss)/gain (120,594) 578,585
Gain on sale
of marketable
securities - 726
----------- -----------
343,189 830,489
Income (loss) $ 2,055,315 $ (1,805,538)
=========== ===========
Earnings (loss)
per share 6 cents (5 cents)
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com
HMMM, wasn't it the charred one who was giving us all of those consternations regarding San Gregorio, as informed as he is??...hehehe
What a lousy deal huh?? production with cash flow?? Not bad for a bunch of claim jumping(with gazetted title) pump and dumpers EH??
With regards, Frank |
