Wheaton River increases year-end earnings
Wheaton River Minerals Ltd WRM
Shares issued 40,614,132 Feb 16 close $0.30
Wed 17 Feb 99 News Release
Mr. Ian McDonald reports
Wheaton River had net earnings of $1.8-million or five cents per share for
the year ended Dec. 31, 1998. Net earnings increased by $3.4-million in
1998 compared with the loss of $1.6-million or four cents per share
recorded in 1997. The 1998 earnings increase resulted from significantly
lower operating costs at its Golden Bear mine and reduced financing costs.
The company generated cash flow from operations of $4.3-million or 11 cents
per share in 1998 compared with $2.1-million or six cents per share in
1997.
Gold production from the Golden Bear mine increased by 5,500 ounces or 18
per cent in 1998 to 36,100 ounces. However, realized prices declined to
$432 per ounce in 1998 from $522 per ounce in 1997. The decline in prices
resulted in a drop in sales to $15.7-million in 1998 from $15.8-million in
1997.
Total cash costs, including royalties, were reduced by 30 per cent in 1998
to $147 (U.S.) per ounce compared with $226 (U.S.) in 1997. Higher grades
and recovery and increased production reduced unit operating costs in 1998.
During 1998 Wheaton River repaid its $10.5-million bank loan. Cash at the
end of the year was $5.7-million, compared with $15.1-million at the end of
1997.
Gold production at the Golden Bear mine in 1999 is expected to increase by
63 per cent to 59,000 ounces and total cash costs are expected to be $184
(U.S.) per ounce.
The company continued to advance the Bellavista project in Costa Rica
during 1998, completing a prefeasibility study and beginning a final
feasibility study. Approximately $4.3-million was spent on the project
during the year. The results of the final feasibility study are expected in
early March.
Statement of Operations and Deficit
Year ended Dec. 31
1998 1997
Sales $15,661,313 $15,772,316
----------- -----------
Cost of sales 7,290,418 9,211,121
Royalties 627,707 553,371
Depreciation
and depletion 3,663,876 4,282,177
----------- -----------
11,582,001 14,046,669
----------- -----------
Earnings from
mining
operations 4,079,312 1,725,647
----------- -----------
Expenses and
other income
Interest and
financing 238,962 1,834,317
General and
administrative 1,935,764 1,694,168
Depreciation 63,773 24,567
Resource assets
written down 98,025 1,690,589
Other income (205,751) (1,959,799)
----------- -----------
2,130,773 3,283,842
----------- -----------
Earnings (loss)
before the
following 1,948,539 (1,558,195)
Resource and
other taxes 148,433 93,273
Minority
interest - (20,540)
----------- -----------
Net earnings
(loss) $1,800,106 $(1,630,928)
=========== ===========
Earnings (loss)
per share 5 cents (4 cents)
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