Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : TVX Gold -- Ignore unavailable to you. Want to Upgrade?

To: Goldberry who wrote (722)	10/27/1999 9:26:00 AM
From: Alex	Read Replies (1) \| Respond to of 905

High River Reports Record 3Q Production Results At New Britannia And Buryatzoloto TORONTO, ONTARIO--High River Gold Mines Ltd. is pleased to report record gold production, at reduced cash costs per ounce, for the New Britannia Mine and for the mines of Buryatzoloto. The New Britannia Mine, located in Manitoba, is 50%-owned by High River and is operated by TVX Gold Inc [NYSE:TVX - news]. The Russian company, Buryatzoloto, in which High River is the largest shareholder with a 22.7% (26.5% voting) interest, operates two gold mines in southern Siberia. New Britannia Mine Results Gold production for the quarter was 26,050 ounces at a total cash cost per ounce of US $216, on a sold basis, compared to 25,825 ounces at a cost of US $230 for the corresponding period in 1998. For the nine month period, New Britannia produced 73,185 ounces at a total cash cost per ounce of US $220 compared to 73,855 ounces at a cost of US $240 for the 1998 period. Cash costs for the full year are expected to meet the plan of US $220 per ounce. The improved cash costs are the result of operating efficiencies and are sustainable; cash costs are expected to be in the range of US $210 - US $220 per ounce over the next several years. New Britannia realized an average of US $273 per ounce for gold sold during the quarter and US $308 for the first nine months. ------------------------------------------------------------- Operating Highlights: 1999 1998 ------------------------------------------------------------- New Britannia Mine 3 mths. 9 mths. 3 mths. 9 mths. (100%) ending ending ending ending Sept. 30 Sept. 30 Sept. 30 Sept. 30 ------------------------------------------------------------- Gold Production 26,050 73,185 25,825 73,855 (ounces) Cash Cost per Ounce 216 220 230 240 (US$) Tonnes Milled 205,606 585,740 186,522 551,293 Grade (grams/tonne) 4.30 4.23 4.72 4.58 Recovery 91.7% 91.9% 91.1% 91.1% ------------------------------------------------------------- At the end of September, the mine had 734,000 tonnes of developed reserves with 293,317 tonnes already drilled-off and ready for mining. High River is confident that the 1999 objective to replace reserves mined during the year will be achieved. Buryatzoloto Results Gold production for the quarter was 35,694 ounces compared to 32,951 ounces for the corresponding period in 1998. For the nine month period, Buryatzoloto produced 77,498 ounces compared to 76,453 ounces for the 1998 period. The third quarter production results benefit from the Irokinda operation, where mining occurs twelve months each year while milling is limited to the period May through November. Total cash costs, on a sold basis, are expected to be in line or better than the budget target of US $188 per ounce for the quarter. ------------------------------------------------------------- Operating Highlights: 1999 1998 ------------------------------------------------------------- Buryatzoloto (100%) 3 mths. 9 mths. 3 mths. 9 mths. ending ending ending ending Sept. 30 Sept. 30 Sept. 30 Sept. 30 ------------------------------------------------------------- Gold Production 35,694 77,498 32,951 76,453 (ounces) Cash Cost per Ounce < 188 < 181 171 203 (US$) Tonnes Milled 104,171 236,283 96,231 215,672 Grade (grams/tonne) 10.9 10.8 11.1 11.9 Recovery 91.9% 92.1% 91.0% 90.3% ------------------------------------------------------------- Gold Hedging Status High River is pleased to report that it has no hedging exposure and will benefit directly from increases in the gold price. New Britannia does not have a gold hedge in place. Buryatzoloto has a put option for 15,000 ounces at a strike price of US $375 per ounce in the fourth quarter of 1999. They also have a small hedging programme, from 2000 to 2004, consisting of forward sales of 7,220 ounces of gold per year reducing to 4,840 ounces per year at prices approximating US $401 per ounce. These forward sales are linked to the repayment schedule of the loan provided by the European Bank for Reconstruction and Development. Both put options and forward sales are financially settled with no requirement for physical delivery of gold. biz.yahoo.com

To: Goldberry who wrote (722)	10/30/1999 4:20:00 AM
From: darcy	Read Replies (1) \| Respond to of 905

Well, Graham, there you go helping me yet again to understand what an underinformed investor I am. I suppose it's true that Normandy would be helping TVX with financing, not the other way around. Either way, however, it seems to me that if Normandy got in big trouble with their hedging, then it could not be good for TVX, who might be relying on the financing of a troubled (or dead) company... I have to admit that I also find it somewhat disturbing that the company is not responding to the questions asked of them by the likes of Ed Lee. If they are reluctant to advertise their hedge position, it probably doesn't bode well... But then again, if TVX were hedged up to the eye sockets, they could just arrange a "standstill" agreement with all of its banks and hedging counterparties. I read an article, I think in the National Post, which described some such arrangement for Cambior (or was it Ashanti?) Slightly misinformed as always, D