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Gold/Mining/Energy : first quantum minerals FM on TSE -- Ignore unavailable to you. Want to Upgrade?

To: len seabrook who wrote (258)	10/25/1999 1:55:00 PM
From: keith schaefer	Read Replies (1) \| Respond to of 385

RECORD NET PROFIT, THIRD QUARTER EARNINGS US $0.06 PER SHARE FROM REVENUES OF US $9.0 MILLION (All figures in United States dollars) First Quantum Minerals Ltd. (VSE Symbol "FM") today announced financial results for the third quarter and nine months ending August 31, 1999 (see attached financial statement). First Quantum had third quarter 1999 revenues of $9.0-million compared with $5.9-million in the third quarter of 1998. Cash flow from operations totaled $4.5-million or $0.18 per share versus $1.8-million or $0.08 per share in 1998. Net earnings for the quarter amounted to $1.5 million or $0.06 per share compared with a loss of $2.7-million or $0.12 per share in 1998. Revenues for the first nine months of 1999 totaled $24.9-million, compared with $9.9-million for the first nine months of 1998. Cash flow from operations amounted to $11.8-million or $0.48 per share, compared with $3.6-million or $0.16 per share in the corresponding period of 1998. A net loss of $381,213 or $0.02 per share was realized during the first nine months compared to a net loss of $6.8-million or $0.32 per share in 1998. Bwana Mkubwa Copper Mine, Zambia During the third quarter, the Bwana Mkubwa mine and sulphuric acid plant produced 5.5 million pounds of copper cathode and 17,871 tonnes of surplus acid. Cash operating costs were $0.35 per pound of copper and $(0.02) per pound of copper net of surplus acid revenue. For the first nine months of 1999, copper production was 15.5 million pounds of copper cathode and 49,128 tonnes of surplus acid. Cash operating costs were $0.39 per pound of copper and $0.04 per pound of copper net of surplus acid revenue. Bwana Mkubwa is expected to produce 21 million pounds of copper and 70,000 tonnes of surplus acid in 1999. Connemara Gold Mine, Zimbabwe The Connemara open pit-heap leach mine produced 6,671 ounces of gold at a cash operating cost of $172 per ounce in the third quarter. During the full nine month period gold production was 15,081 ounces. There was a miscalculation of cash operating costs during the second quarter of 1999. As a result, cash operating costs for the first six months and the first nine months of 1999 have been restated to $243 per ounce from $326 per ounce and to $206 per ounce from $251 per ounce, respectively. Connemara is expected to produce 21,000 ounces in 1999. Outlook Philip Pascall, Chairman of First Quantum Minerals Ltd. commented "The third quarter represents the continuation of improved financial performance for First Quantum. For the first time, our strong cash flow from operations has been reflected in the bottom line. Our copper production in 2000 and subsequent years is largely unhedged while gold production is also unhedged which will allow the Company to significantly benefit from any increase in commodity prices. Having successfully restructured our financial obligations, we will pursue an aggressive debt reduction program that will result in rapid bottom line earnings growth. Capitalizing upon the infrastructure at Bwana Mkubwa, we will aggressively pursue opportunities within the Zambian copper belt. Furthermore, we will continue to evaluate projects that offer attractive returns elsewhere in Africa." Gerald Metals Loan Facility Extended First Quantum and Gerald Metals have agreed, subject to regulatory approval, to extend the term of the Gerald convertible loan for a period of one year, from September 30, 1999 to September 30, 2000. First Quantum will retire the balance of principal outstanding through payments of $83,333 per month commencing November 9, 1999 and on the 9th day of each subsequent month, ending on September 9, 2000. Interest on the outstanding balance will be paid monthly at a rate of LIBOR plus 3.25%. As consideration for the extension, First Quantum has agreed to issue Gerald a bonus of 150,000 warrants exercisable at a price of Cdn. $1.25 on or before September 9, 2001. Any shares issuable upon exercise of the Gerald warrants will be subject to a hold period expiring one year from closing. On Behalf of the Board of Directors 12g3-2b-82-4461 of First Quantum Minerals Ltd. Listed in Standard and Poor’s "G. Clive Newall" Sedar Profile #00006237 G. Clive Newall