VANCOUVER - CRYSTALLEX INTERNATIONAL CORPORATION (KRY on T.S.E. and Amex) today announced that the quarter ended September 30, 1999 marks its third consecutive profitable quarter in spite of slightly lower gold production due to a planned five day mill shutdown to accommodate productivity improvements.
Net income for the third quarter ended September 30, 1999 was C$1,379,060 or C$0.03 per share (basic) on operating revenue of C$8,322,994. This compares with the 1998 third quarter loss of C$1,939,985 or C$0.05 per share (basic) on operating revenue of C$212,878. Total assets increased in the 1999 third quarter to nearly C$110 million compared with C$70 million in the third quarter of 1998, and shareholder's equity rose to more than C$76 million, versus C$68 million in the comparable year-earlier period.
For the first nine months ended September 30, 1999 operating revenue was C$27,171,978, compared to C$1,766,521 in the year-earlier period. Net income for the first nine months of 1999 was C$4,915,332 or C$0.13 per share (basic), compared to a loss of C$6,139,889 or C$0.17 per share for the first nine months of 1998. Operating cash flow for the quarter ending September 30, 1999 was C$4,079,639 or C$0.09 per share, and for the nine months of 1999, operating cash flow was C$13,172,637 or C$0.31 per share. The average realized price of gold sales for the quarter was US $ 307 an ounce compared to the average spot price of gold for the quarter of US $ 259.
During the 1999 third quarter, the mill operation at the Company's San Gregorio mine underwent a planned five-day shut down while improvements were made to the Sag and Ball Mills. Gold shipped for the third quarter was 17,640 ounces bringing the year to date shipments of gold from San Gregorio to 58,200 ounces of gold. The total cash cost per ounce of gold at San Gregorio during the third quarter was US $ 198.
"In addition to continuing our profitability during the third quarter, we made progress in other areas as well," commented Crystallex President and CEO, Marc J. Oppenheimer. "The work we did on the mill at San Gregorio positions us to increase our sustainable throughput next year."
Mr. Oppenheimer continued, "While our primary focus has been on San Gregorio and the continued profitability of the Company, we have increased our efforts in Venezuela to resolve the continuing dispute over the ownership of the Cristinas 4 and 6 concessions. In August, we announced that we had launched legal proceedings to enforce the Company's ownership rights in regard to these valuable properties. We are continuing to move forward our interests on several fronts. If the Cristinas issue is resolved in our favor, we plan to widen our focus in Venezuela to include the development of Las Cristinas, in a manner which is intended to consider the interests of all parties including participants and stake holders."
Crystallex International Corporation is a gold mining and exploration company. The Company's strategy for growth is to develop its portfolio of properties in South America as well as to diversify geographically by investing in producing or near-production projects and by exploring properties of merit in other areas of the world.
Financial results for the three and nine months periods are reported in the attached table. On Behalf of the Board: Marc J. Oppenheimer, President & CEO Note:
This news release may contain certain "forward-looking statements" within the meaning of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of Crystallex, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed under the heading "Risk Factors" and elsewhere in documents filed from time to time with The Toronto Stock Exchange, the United States Securities and Exchange Commission and other regulatory authorities.
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.
CONSOLIDATED BALANCE SHEETS
(Expressed in Canadian dollars)
(Unaudited - Prepared by Management)
CONSOLIDATED STATEMENT OF OPERATIONS
(Expressed in Canadian dollars)
(Unaudited - Prepared by Management)
These financial statements should be read in conjunction with the notes to the consolidated financial statements
|