Bema Gold Corporation - Third Quarter Results.

Publication: PR Newswire

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COPYRIGHT 2002 PR Newswire Association LLC

Bema Gold Corporation ("Bema or the "Company") is pleased to report results from its operations for the third quarter ended September 30, 2002. Bema experienced a strong third quarter as the Julietta Mine in Russia reported its best production to date, mine operating earnings and cash flow from operations improved significantly and the company maintained a strong cash balance.

Financials

The Company reports mine operating earnings of $2.6 million during the third quarter of 2002 compared to a loss of $2.9 million for the same period in 2001. The improved results were achieved partially as a result of the higher average gold price of $313 per ounce for the quarter and the fact that 100% of the gold production in the quarter was from the low cost Julietta Mine located in far eastern Russia. Cash flow from operations was $8 million for the third quarter of 2002 compared to cash used in operations in the amount of $1.7 million during the same period last year. The increase was mainly due to the improved Julietta Mine production results and from the receipt of a $4.2 million arbitration settlement related to construction problems at the Refugio Mine in Chile.

Bema reported a net loss of $1.9 million after taxes ($0.008 per share) on revenue of $11.2 million for the period compared to a net loss of $4.4 million ($0.027 per share) on revenue of $2.7 million for the third quarter of 2001. The loss for the period is mainly due to unrealized foreign exchange losses. During the third quarter, the Company recorded a foreign exchange loss of $1.2 million, of which approximately $945,000 was an unrealized exchange loss on approximately CDN$27 million relating mainly to funds received from the equity financing completed in May 2002.

For the nine months of 2002, the Company reported net earnings after taxes of $642,000 ($0.002 per share) on revenue of $27.8 million compared to a net loss of $9.5 million ($0.060 per share) on revenue of $17.6 million in 2001.

Consolidated Gold Production

For the nine months ended September 2002, Bema reported consolidated gold production of 92,240 ounces of gold at operating cash costs of $119 per ounce and total cash costs of $154 per ounce. During the same period last...

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