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COPYRIGHT 2002 PR Newswire Association LLC
Crystallex International Corporation Toronto today filed third quarter 2002 results. Management's Discussion and Analysis follows.
Management's Discussion and Analysis For the Nine Month Period Ended September 30, 2002 (in Canadian dollars, except per ounce amounts in US dollars)
Management's Discussion and Analysis ("MD&A") of the financial condition and results of the operations of Crystallex International Corporation ("Crystallex" or the "Company") should be read in conjunction with the unaudited consolidated financial statements and the notes. The Company prepares and files its consolidated financial statements and MD&A in Canadian dollars.
Crystallex and its subsidiaries are engaged in gold mining and related activities, including exploration, extraction, processing and reclamation. Crystallex produces gold in Uruguay and Venezuela.
HIGHLIGHTS * On September 17, 2002 Crystallex and the Corporacion Venezolana de Guayana, (the "CVG") signed a definitive Mining Operation Agreement for the development of Las Cristinas 4, 5, 6, and 7. This followed an announcement on September 6 of CVG's selection of Crystallex to develop Las Cristinas. * Crystallex paid US$15 million to the CVG for the use of Las Cristinas drill data, drill core, studies and infrastructure, including a camp and access to an electric substation. * Production of gold from La Victoria was below plan as a result of lower tonnes mined and continued low recoveries from the refractory sulphide ore that has been mined since April this year. Mining rates were impacted by poor equipment availability, whilst recoveries remained low, at 73% for the quarter, as the Revemin mill expansion was delayed. In part, the mining and mill expansion fell behind schedule as a consequence of making the US$15 million payment during the quarter to the CVG. Metallurgical testwork indicates that the ore from La Victoria requires flotation and regrinding to improve recovery of gold to 90%. The mill expansion incorporates flotation and regrind circuits and is currently planned to be operational by the end of the second quarter 2003. * Gold production for the quarter was 23,007 ounces at total cash costs of US$252 per ounce. * San Gregorio continued to produce according to plan and demonstrate cost improvements, lowering total cash costs to US$226 per ounce for the third quarter, 5% lower than the comparable period last year. * Development of the Tomi underground mine continued and the first high grade ore is expected to be mined in January 2003. SUMMARY PRODUCTION STATISTICS US$ Three Months Ended Nine Months Ended Sept. 30, Sept. 30, 2002 2001 2002 2001 Production - Uruguay (ozs) 15,840 15,634 49,126 48,976 Production - Venezuela (ozs) 7,167 12,476 21,279 32,340 Total Gold Production (ozs) 23,007 28,110 70,405 81,316 Total Cash Cost Per Ounce(1) $252 $222 $266 $235 Avg. Realized Price Per Oz. $288(2) $314 $305 $338 Avg. Spot Price Per Oz. $314 $274 $306 $269 (1) Includes Royalties and Production Taxes. (2) Reflects deliveries against forward positions below the prevailing spot price, and also the impact of buying back positions during the quarter. The accounting treatment of the latter reduced the average realized price by US$7 per ounce. THIRD QUARTER AND NINE MONTHS FINANCIAL PERFORMANCE C$ thousands Three Months Ended Nine Months Ended Sept. 30, Sept. 30, 2002 2001 2002 2001 Revenue $10,364 $13,632 $33,683 $42,231 Net Operating Cashflow $96 $1,618 ($8,442) $4,490 Net Income (Loss) ($2,933) $11 ($7,337) $900 Net Income (Loss) per Share (0.03) 0.00 (0.09) 0.02
For the third quarter ended September 30, 2002, Crystallex reported a net loss of C$2.93 million, or C$0.03 per share, as compared with net income of C$11,045, or nil per share in the third quarter of 2001. Net Operating Cashflow (after changes in working capital) for the third quarter was C$96,210, as compared with C$1.62 million during the similar period in 2001.
Gold production for the third quarter 2002...
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