Apex Silver Reports First Quarter 2004 Results
04 Maio 2004 - 10:02AM
PR Newswire (US)
Apex Silver Reports First Quarter 2004 Results DENVER, May 4
/PRNewswire-FirstCall/ -- Apex Silver Mines Limited today reported
a net loss of $4.2 million, or $0.10 per share, for the first
quarter of 2004, compared to a net loss of $1.7 million, or $0.05
per share for the first quarter of 2003. The higher net loss was
primarily attributed to $1.5 million paid for financial advisory
and consulting services, including services related to the
offering, an approximately $0.4 million increase in exploration
expenditures and $0.6 million higher mark-to- market losses related
metal hedging activities in the first quarter of 2004 compared to
2003. In calendar 2003, Apex Silver realized about $0.7 million in
mark-to-market gains. At March 31, 2004, Apex Silver's cash and
cash equivalents amounted to $391 million compared to $41 million
at December 31, 2003. In the first quarter 2004, Apex Silver
realized a total of $353.3 million in net cash proceeds by
successfully completing a 10.3-million share offering and issuing
$150 million of 2.875% Convertible Senior Subordinated Notes due
2024. At March 31, 2004, Apex Silver had 47.4 million shares
outstanding. On April 1, 2004 Apex Silver received the remaining
$48.3 million in net proceeds from the additional issuance of
2.875% Convertible Senior Subordinated Notes due 2024, increasing
cash position to approximately $440 million. "With well over $400
million in cash, Apex Silver is exceptionally well positioned to
advance the financing and development of its wholly-owned San
Cristobal project in southwestern Bolivia," said Keith Hulley, Apex
Silver's President and Chief Executive Officer. "We remain firmly
on course to bring this long-life mine into production as one of
the largest and lowest cost producers of silver and zinc in the
world." Apex Silver Engages Two Major Commercial Banks to Provide
Advisory Services On March 24, 2004 Barclays Bank PLC and BNP
Paribas signed a Mandate Letter with Apex Silver to provide the
company with advice and services related to securing commercial
bank debt financing for San Cristobal. This agreement represents
the official launch of the third and final stage in securing the
total financing package for the development and construction of
this major project. "We are delighted to enter into a formal
relationship with two of the most established commercial banks in
the mining business," said Mark Lettes, Apex Silver's Chief
Financial Officer. "Team members from Barclays and BNP Paribas have
been working with us in various capacities for many years and are
bringing a wealth of international experience to the process." Apex
Silver is a mining exploration and development company. Since its
inception in 1993 and with the discovery of San Cristobal, it has
assumed an increasingly important profile within the silver sector.
Its San Cristobal flagship project, located in the Potosi district
in southwestern Bolivia, is one of the world's largest open-pit
silver-zinc-lead deposits. At the designated production rate of
40,000 tonnes of ore per day, San Cristobal is expected to produce
concentrates containing approximately 27 million ounces of silver,
570 million pounds of zinc and 200 million pounds of lead per year
in the first five full years of production, making it one of the
largest producers of these key metals. The common shares of Apex
Silver trade on the American Stock Exchange under the symbol "SIL."
This press release contains forward-looking statements regarding
the company, within the meaning of Section 27A of the Securities
Act and Section 21E of the Exchange Act, including statements
regarding the development of its mining development projects as
well as its global exploration program. Actual results relating to
any and all of these subjects may differ materially from those
presented. Factors that could cause results to differ materially
include fluctuations in silver, zinc and lead prices, fluctuations
in the company's share price, the timing and availability of
financing on acceptable terms, changes in components of cash
operating costs, variations in ore grade and processing rates. The
company assumes no obligation to update this information. For
additional information concerning factors that could cause actual
results to differ materially from those in the forward-looking
statements can be found in the company's Form 10-K filed with the
SEC for the year ended December 31, 2003. For further information,
please contact Igor Levental, Vice President Investor Relations and
Corporate Development, Apex Silver Mines Corporation, 303-764-9162.
APEX SILVER MINES LIMITED An Exploration and Development Stage
Company Summary Financial Information (In thousands of United
States dollars, except for per share data (Unaudited) Quarter Ended
Quarter Ended March 31, March 31, 2004 2003 Income and Expenses
Interest and other income $495 $155 Trading gains/(losses) (627) 20
Exploration (1,144) (734) Administrative (2,961) (1,128)
Amortization and depreciation (8) (6) Net Loss $(4,245) $(1,693)
Net loss per Ordinary Share-basic and diluted $(0.10) $(0.05)
Weighted average Ordinary Shares outstanding 43,879,777 36,384,879
SUMMARY BALANCE SHEET DATA 03/31/04 12/31/03 Cash and cash
equivalents $390,965 $40,899 Working capital 389,644 41,168
Property, plant and equipment (net) 99,610 97,979 Notes payable
long term 150,000 599 Shareholder's equity 349,438 143,986
DATASOURCE: Apex Silver Mines Limited CONTACT: Igor Levental, Vice
President Investor Relations and Corporate Development of Apex
Silver Mines Corporation, +1-303-764-9162
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