From SEDAR:
DAYTON MINING CORPORATION - THIRD QUARTER 1998 RESULTS
Dayton Mining Corporation (AMEX, TSE: DAY) announces today its
results for the three and nine months ended September 30, 1998.
All amounts are in Canadian dollars unless otherwise stated.
Financial Review
Dayton today reported a net loss of $3,242,000 ($0.12 per share,
after recognizing the effect of the equity accretion on
convertible debentures) for the three months ended September 30,
1998, compared with a net profit as restated of $799,000 (a loss
of $0.01 per share) for the same period in 1997. Gold production
for the third quarter of 1998 was 25,077 ounces compared with
22,797 ounces over the same period in 1997.
Cash operating costs at the Andacollo Gold Mine were US$226 per
ounce in the third quarter of 1998 compared with US$206 per ounce
(as restated) in the same period in 1997.
Revenues were $11,873,000 for the third quarter of 1998 compared
with $12,249,000 in the same period in 1997. The average price
realized for gold sold during the third quarter of 1998 was
US$318 per ounce compared with US$401 per ounce for the same
period in 1997.
For the nine months ended September 30, 1998 Dayton Mining
Corporation had a net loss of $10,557,000 ($0.36 per share, after
recognizing the effect of the equity accretion on convertible
debentures), compared with net profit of $782,000 (a loss of
$0.05 per share) for the same period in 1997. Gold production at
the Andacollo Gold Mine for the first nine months of 1998 was
61,990 ounces compared with 70,232 ounces over the same period in
1997. Cash operating costs at the Andacollo Gold Mine were US$256
per ounce in the first nine months of 1998 compared with US$224
per ounce (as restated) in the same period in 1997
Revenues were $30,985,000 for the first nine months of 1998
compared with $37,466,000 in the same period in 1997. The
average price realized for gold sold during the first nine months
of 1998 was US$345 per ounce compared with US$397 per ounce for
the same period in 1997.
Operations Review
The Andacollo Gold Mine produced 25,077 ounces of gold, at a cash
operating cost of US$226 per ounce, for the quarter ending
September 30, 1998. This represents the highest quarterly gold
production since the Mine began commercial operation in January
1996. Gold production in September 1998 set a monthly record of
9,356 ounces and in October 1998 the mine achieved another record
of 9,484 ounces of gold.
Dayton Mining Corporation holds a 100% interest in the Andacollo
Gold Mine located in central Chile, and trades on both the
American Stock Exchange (AMEX) and Toronto Stock Exchange (TSE)
under the trading symbol DAY.
For further information please contact
Diane Thomas, Vice President, Investor Relations (604) 662-8383
Notice: The Company relies on litigation protection for "forward
looking" statements.
Consolidated Balance Sheets
in thousands of Canadian dollars
30 Sep 1998 31 Dec 1997
(unaudited) (audited)
------------- ------------
Assets
CURRENT ASSETS
Cash and short term investments 42,774 95,237
Investments in marketable securities 1,339 839
Bullion settlements receivable 2,023 2,950
Other receivables 2,254 3,841
Inventories 13,618 9,521
------------- ------------
Total current assets 62,008 112,388
PLANT, PROPERTY AND EQUIPMENT 118,697 105,729
OTHER ASSETS 5,597 4,826
----------- ----------
Total assets 186,302 222,943
=========== ===========
Liabilities
CURRENT LIABILITIES
Accounts payable and accrued liabilities 8,607 9,812
Bank loan - current 32,697 61,307
Capital lease obligation - current 5,151 3,596
Convertible debentures - liability - current 7,244 6,673
------------- ------------
Total current liabilities 53,699 81,388
------------- ------------
LONG-TERM LIABILITIES
Capital lease obligation 9,439 7,233
Convertible debentures - liability 18,617 19,605
Other accrued liabilities 1,927 1,540
------------- ------------
Total long-term liabilities 29,983 28,378
------------- ------------
Total liabilities 83,682 109,766
------------- ------------
Shareholders' Equity
SHARE CAPITAL 90,714 90,714
CONVERTIBLE DEBENTURES 72,219 67,904
DEFICIT (60,313) (45,441)
------------- ------------
Total shareholders' equity 102,620 113,177
------------- ------------
Total liabilities and equity 186,302 222,943
=========== ===========
Consolidated Statements of Income
for the periods ended September 30
in thousands of Canadian dollars
(unaudited)
Three months ended Nine months ended
September 30 September 30
1998 1997 1998 1997
(as restated) (as restated)
REVENUES
Sales 11,873 12,249 30,985 37,466
--------- -------- -------- --------
COST OF SALES
Operating costs 8,537 6,444 23,222 21,634
Depreciation, depletion
and amortization 3,145 2,677 7,783 8,073
--------- -------- -------- --------
Total cost of sales 11,682 9,121 31,005 29,707
--------- -------- -------- --------
191 3,128 (20) 7,759
--------- -------- -------- --------
EXPENSES
Amortization of deferred
financing costs 227 407 793 1,335
Exploration 39 277 849 955
Foreign exchange 882 101 (7) (650)
General and administrative 1,297 807 6,074 2,878
Interest expense 1,500 2,187 4,922 5,919
Interest income (512) (1,450) (2,094) (3,460)
--------- -------- -------- --------
Total expenses 3,433 2,329 10,537 6,977
--------- -------- -------- --------
NET INCOME (LOSS) (3,242) 799 (10,557) 782
======= ======= ======== ========
Weighted average shares
outstanding -
basic (000's) 40,857 40,857 40,857 40,853
Earnings (loss) per
share - basic $ (0.12) $ (0.01) $ (0.36) $ (0.05)
Consolidated Statements of Deficit
for the periods ended September 30
in thousands of Canadian dollars
(unaudited)
Three months ended Nine months ended
September 30 September 30
1998 1997 1998 1997
(as restated) (as restated)
DEFICIT, BEGINNING OF
PERIOD 55,538 16,537 45,441 14,880
Convertible debentures -
equity accretion 1,533 1,301 4,315 2,941
Net (income) loss for the
period 3,242 (799) 10,557 (782)
--------- -------- -------- --------
DEFICIT, END OF PERIOD 60,313 17,039 60,313 17,039
======= ======= ======== ========
Gold produced (oz) 25,077 22,797 61,990 70,232
Average price
realized (US$/oz) 318 401 345 397
Cash operating costs per
ounce (US$/oz) 226 206 256 224
Consolidated Statements of Cash Flows
for the periods ended September 30
in thousands of Canadian dollars
(unaudited)
Three months ended Nine months ended
September 30 September 30
1998 1997 1998 1997
(as restated) (as restated)
OPERATING ACTIVITIES
Net income (loss) for the
period (3,242) 799 (10,557) 782
Adjustment to reconcile
net income (loss) for
the period to cash
provided by operating
activities
Depletion, depreciation
and amortization 3,145 2,677 7,783 8,073
Amortization of deferred
financing costs 227 407 793 1,335
Amortization of deferred
foreign exchange 1,519 167 2,951 358
Amortization of other
assets 19 13 42 37
--------- -------- -------- --------
Cashflow from operations 1,668 4,063 1,012 10,585
Bullion sales receivable 490 164 928 (954)
Other receivables 605 (807) 1,586 (1,664)
Inventories (9) (1,000) (4,097) (642)
Accounts payable (1,363) 3,206 (3,206) 5,673
Bank loans - current
portion (5,314) - (31,003) 53,936
Capital lease obligation
- current portion 183 (181) 1,554 577
--------- -------- -------- --------
Cashflow provided by
(used for) operating
activities (3,740) 5,445 (33,226) 67,511
--------- -------- -------- --------
INVESTING ACTIVITIES
Property, plant and
equipment (2,811) (5,546) (13,850) (14,735)
Deferred stripping (2,338) (759) (6,900) (1,339)
Investments in marketable
securities - - (500) -
Other assets 265 26 392 (121)
--------- -------- -------- --------
Cashflow used for investing
activities (4,884) (6,279) (20,858) (16,195)
--------- -------- -------- --------
FINANCING ACTIVITIES
Bank loans - - - (58,766)
Capital lease obligation (1,417) (684) 1,233 899
Accrued liabilities 196 57 388 209
Share capital - 4 - 227
Convertible debentures - - - 90,869
--------- -------- -------- --------
Cashflow provided by
(used for) financing
activities (1,221) (623) 1,621 33,438
--------- -------- -------- --------
NET INCREASE (DECREASE)
IN CASH (9,845) (1,457) (52,463) 84,754
CASH, BEGINNING OF PERIOD 52,619 108,325 95,237 22,114
--------- -------- -------- --------
CASH, END OF PERIOD 42,774 106,868 42,774 106,868
======= ======= ======== ========
Cashflow from operations
per share - basic $ 0.04 $ 0.10 $ 0.02 $ 0.26
Cashflow from operations
per share - fully diluted $ 0.03 $ 0.07 $ 0.02 $ 0.20
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