Philex Gold loses $358,000 (U.S.) during second quarter
Fri 10 Aug 2001
News Release
Ms. Paula Kember reports
(All financial results are unaudited and stated in U.S. dollars; gold
production and costs per ounce are stated in equivalent ounces where
appropriate.)
Philex Gold had a net loss of $358,000 or one cent per share, inclusive of
a translation gain of $2.8-million, for the second quarter ended June 30,
2001, compared with a net loss of $3.2-million or eight cents per share,
inclusive of a translation gain of $866,000, for the comparable period last
year. Cash flow from operations during the quarter was $3.2-million or
eight cents per share compared with $544,000 or one cent per share in the
prior year. An average gold price of $267 per ounce was realized, 9 per
cent lower than the realized price of $293 per ounce in the prior year.
For the six months ended June 30, 2001, a net loss of $2.9-million or seven
cents per share, inclusive of a translation gain of $2.2-million, was
incurred on revenues of $8.1-million. The comparable figures for 2000 were
a net loss of $5.9-million or 15 cents per share, inclusive of a
translation gain of $1.4-million, on revenues of $5.9-million. Operating
cash flow amounted to $4.3-million or 11 cents per share, compared with a
deficit of $1.3-million or three cents per share in the prior year. An
average gold price of $265 per ounce was realized during this first half,
compared with $295 per ounce last year.
KEY OPERATING AND FINANCIAL SUMMARY
Three months ended June 30
2001 2000
Operational results --
Bulawan mine
Gold production --
ounces 12,605 9,057
Average realized
price per ounce $267 $293
Financial results
Cash operating
costs per ounce $ 245 $ 412
Revenue from gold
sales (in '000) 3,288 2,564
Net loss for the
period (in '000) 358 3,246
Net loss per share 0.01 0.08
Operating cash flow
(in '000) 3,197 544
Operating cash flow
per share 0.08 0.01
Gold output from the company's Bulawan operation amounted to 12,605 ounces
during this quarter and 30,670 ounces during the first half. This compares
favourably with output of 9,057 ounces and 20,612 ounces for the comparable
periods last year. While tonnage remained largely unchanged, the higher
output was the result of improved ore grades, which averaged 2.0 grams per
tonne for the quarter compared with the prior year's 1.5 grams per tonne,
and 2.3 grams per tonne for the first half of 2001 compared with 1.6 grams
per tonne last year.
KEY OPERATING AND FINANCIAL SUMMARY
Six months ended June 30
2001 2000
Operational results --
Bulawan mine
Gold production --
ounces 30,670 20,612
Average realized
price per ounce $265 $295
Financial results
Cash operating costs
per ounce $ 206 $ 353
Revenue from gold
sales (in '000) 8,095 5,911
Net loss for the
period (in '000) 2,894 5,903
Net loss per share 0.07 0.15
Operating cash flow
(in '000) 4,265 (1,251)
Operating cash flow
per share 0.11 (0.03)
The Bulawan operation continues to be evaluated in the light of the
persistently low price of gold and the expensive support system required
for development of the Central block. The main focus of the development
work is to complete the first four production lines and related draw
points, which would constitute about 60 per cent of the block and which is
nearing completion. A decision will be made next quarter on whether to
develop the remainder of the block. In the meantime, mining is taking place
from the developed draw points by block caving and from the undercut level
by front caving. In order to further lower costs, the work force is being
reduced by about one-third through a voluntary retirement program, which
has been launched during the quarter in review. The necessary retrenchment
funds are being sourced from the parent company's retirement trust fund,
which covers the Bulawan employees.
With respect to exploration, the drilling program at the Boyongan
copper-gold deposit, under a joint venture with Anglo American PLC,
continues to provide encouraging results. A drilling update was reported
under a separate release announced in Stockwatch July 18, 2001, in which
the company disclosed assay results from hole TSD-18 containing the deepest
mineralized intercept to date, 856 metres with an average grade of 0.49 per
cent copper and 1.57 grams per tonne gold. In June Anglo added a large
capacity drill rig, temporarily increasing the number of currently active
drill rigs to four, as one medium-sized rig is expected to be demobilized
shortly. The focus of the current drilling is to delineate the lateral
extent of the deposit as well as to probe the deposit at depth, with 10,000
metres of drilling planned to be accomplished this year |
