EXHIBIT 99.1
[PAN AMERICAN SILVER CORP. LOGO]
[LOGO]
November 18, 2002
PAN AMERICAN SILVER REPORTS THIRD QUARTER RESULTS
Pan American will host a conference call on Monday, November 18th at 10:00 a.m.
Pacific time (1:00 p.m. Eastern time) to discuss the third quarter financial and
operational results, give project updates, and answer questions. To participate
in the call, dial 1-416-695-5806 five minutes before the start time. To listen
to a playback of the call after it has ended, dial 1-416-695-5800 and enter the
pass code 1303238. This option will be available for 2 weeks after the call. The
conference call will also be broadcast live and archived for later playback on
the Internet at HTTP://WWW.Q1234.COM.
HIGHLIGHTS
o Gained overwhelming shareholder approval for acquisition of Corner Bay
Silver.
o Began construction of full-scale operation at La Colorada silver mine
in Mexico, which will quadruple the mine's silver production in
mid-2003.
o Wrote down carrying value of Quiruvilca mine due to lack of
profitability at current metal prices.
o Began expansion of Huaron mine in Peru due to exploration success,
which will result in a 10 percent production increase starting in
2003.
FINANCIAL
Pan American Silver Corp. reported a third quarter net loss (before a write
down) of $2.26 million ($0.05 loss per share) compared to a net loss (before an
unusual gain) of $2.80 million ($0.07 loss per share) for the third quarter of
2001. During the third quarter, the Company wrote down its investment in the
Quiruvilca mine by $15.13 million. Management determined that the recovery of
its investment in Quiruvilca was unlikely unless realized metal prices were
significantly higher than those of the recent past. The net loss, including the
Quiruvilca write down, was $17.39 million ($0.40 per share) for the third
quarter compared to net income of $0.70 million ($0.02 per share) after a $3.50
million unusual gain on the sale of land for the third quarter of 2001.
Revenue for the quarter was $11.20 million or 19 percent less than revenue for
the third quarter of 2001. This decrease is principally due to the timing of
zinc, lead and copper concentrate shipments from the Quiruvilca and Huaron
mines.
Consolidated silver production was 1,750,467 ounces for the third quarter (2001
- - 2,140,802 ounces). Production of zinc and copper were all higher for the third
quarter when compared to 2001. Silver production was lower at La Colorada
because milling operations were temporarily suspended in order to focus on
preparation for the mine expansion and at Quiruvilca because of lower production
levels and lower silver grade. Base metal production was higher because of
higher base metal grades. The La Colorada mine is now back in operation.
1500-625 HOWE STREET, VANCOUVER, BC CANADA V6C 2T6.
TEL 604.684.1175 FAX 604.684.0147
WWW.PANAMERICANSILVER.COM
For the nine months ended September 2002 consolidated silver production was
5,755,367 ounces or 19 per cent higher than for the first three quarters of 2001
due to three quarters of full production from Huaron more than offsetting the
decrease in production at Quiruvilca and La Colorada.
During the third quarter operating activities generated cash flow of $1.17
million. Investing activities, virtually all of which consisted of plant and
equipment expenditures at La Colorada, consumed $3.22 million and financing
activities consumed $1.00 million including loan repayments of $0.60 million.
Working capital, including cash of $17.96 million, amounted to $13.70 million at
September 30, 2002.
CORNER BAY SILVER ACQUISITION
In early September shareholders of both Pan American and Corner Bay voted in
favour of Pan American acquiring Corner Bay. Closing of the merger has been
delayed while efforts have been made to secure a source of water for a potential
mining operation. A water rights agreement with a local agricultural cooperative
has been entered into and is in the process of being ratified and approved by a
regional water users association and necessary Mexican authorities. Pan American
and Corner Bay have extended the date for procurement of water from November 15
to December 17 and it is hoped the merger can then be completed. This will
result in Pan American acquiring 100 percent of the Alamo Dorado silver deposit.
It is expected that Alamo Dorado will produce in excess of 6 million ounces per
year for at least 8 years at a total cash cost of $3.25. Construction could
commence soon after completion of the La Colorada expansion project now
underway.
HUARON MINE, PERU
The Huaron mine continued to operate well during the quarter, producing
1,101,005 ounces of silver and 5,285 tonnes of zinc at a total cash cost of
$4.17 per ounce of silver net of by-product credits. As a result of exploration
success to date in 2002, the mine has begun an expansion project that will
increase production nearly 10 percent by late-2003. This cost is being funded
from operating cash flow and expensed as part of the cash cost of production
reported from the mine. Huaron has outperformed the Company's expectations for
2002 and has contributed $2.85 million in cash flow in the year to date, despite
very low metal prices.
QUIRUVILCA MINE, PERU
The Quiruvilca mine continues to struggle under existing low metal prices.
During the quarter, the mine produced 594,463 ounces of silver and 4,622 tonnes
of zinc at a total cash cost of $5.20 per ounce of silver net of by-product
credits. Since the third quarter of 2001 operating costs per tonne have
decreased from $43.36 to $38.46, however revenue during the same period has
decreased from $38.09 to $32.42 due to lower metal prices and a drop in silver
grades as the more silver-rich veins in the upper parts of the mine are
exhausted and production comes from the deeper, zinc-rich veins. Despite
extraordinary efforts by the Company's employees to reduce all possible costs,
Quiruvilca simply cannot make money at current metal prices. All options
continue to be examined to remedy this situation. Quiruvilca has operated
continuously since 1925, and so closure (either temporary or permanent) would be
very costly in financial and social terms. Higher metal prices will allow the
mine to contribute to the Company's cash flow, as it did most recently in 2000,
but it is impossible to predict when this will occur. Using current metal
prices, the mine will not return its carrying value, and as a prudent accounting
policy, $15.13 million of the mine's book value was written down during the
quarter.
2
LA COLORADA MINE, MEXICO
The third quarter was a transition period at the La Colorada mine as
construction began on the mine expansion that will quadruple silver production
to 3.8 million ounces annually beginning in mid-2003. This work required the
small-scale existing operation to close for six weeks during the quarter.
Production resumed in mid-September. During the quarter, 54,999 ounces of silver
were produced. So far, construction is on schedule and budget. The construction
team is complete, the oxide mill equipment is on site and being assembled and
most of the new underground equipment has been delivered.
SAN VICENTE MINE, BOLIVIA
Small-scale operation by EMUSA, the Bolivian company that operates this mine
under a short term toll-mining agreement with Pan American, continued during the
quarter with production of 350,000 ounces of silver and a cash flow contribution
to Pan American of about $0.10 million. In light of the successful operation to
date that has been possible using EMUSA's nearby milling facility, Pan American
is discussing with EMUSA other options that would increase silver production
from San Vicente to the benefit of both companies and the Bolivian state mining
company COMIBOL.
EXPLORATION
Pan American was active during the quarter in four exploration programs, three
of which continue. Near La Colorada, a small drilling program was carried out
without significant results. At Huaron, drilling was successful in increasing
reserves in the wide zones discovered in late 2001 that have contributed to the
mine's successful operation this year. At Manantial Espejo in Argentina,
drilling began in the 6,000 meter program designed to move the project forward
to the pre-feasibility stage in 2003, and initial results have been very
promising. Finally, in Mexico, surface exploration concluded at the Ocotlan
project and drilling has now begun on the most attractive targets.
SILVER MARKETS
Silver prices deteriorated in the third quarter, along with most other metal
prices. Zinc dropped to a new record low in real dollar terms. These price
declines are due to a drop in industrial demand that began in mid-2000 and no
accompanying change in supply. Silver is widely used in the electronics and
high-tech sectors where demand remains very weak. Little speculative buying was
apparent during the quarter, in contrast to earlier in 2002. However, strong
physical buying is reported at current silver prices, mine supply of silver is
likely to decrease in 2002 for the first time in six years, and it is believed
that Chinese sales of silver inventories have been curtailed for the time being.
While some reports argue that silver prices are being manipulated downward by
bullion traders, we believe silver prices can be well explained by demand and
supply fundamentals, which provide a solid base to current prices and good
support for a higher price trend in the near future.
- End -
Ross J. Beaty, Chairman or Rosie Moore, VP Corporate Relations 604-684-1175
To view Pan American's full third quarter filing, please visit
www.panamericansilver.com/s/InvestorRelations.asp
CAUTIONARY NOTE
Some of the statements in this news release are forward-looking statements, such
as estimates of future production levels, expectations regarding mine production
costs, expected trends in mineral prices and statements that describe Pan
American's future plans, objectives or goals. Actual results and developments
may differ materially from those contemplated by these statements depending on
such factors as changes in general economic conditions and financial markets,
changes in prices for silver and other metals , technological and operational
hazards in Pan American's mining and mine development activities, uncertainties
inherent in the calculation of mineral reserves, mineral resources and metal
recoveries, the timing and availability of financing, governmental and other
approvals, political unrest or instability in countries where Pan American is
active, labor relations and other risk factors listed from time to time in Pan
American's Form 40-F.
3
FINANCIAL AND OPERATIONAL HIGHLIGHTS
NINE MONTHS ENDED THREE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
--------------------------- ---------------------------
2002 2001 2002 2001
----------- ----------- ----------- -----------
CONSOLIDATED FINANCIAL HIGHLIGHTS (IN THOUSANDS OF US DOLLARS)
Net income (loss) $ (19,937) $ (3,689) $ (17,387) $ 701
Earnings (loss) per share (0.48) (0.10) (0.40) 0.02
Net income (loss) before unusual items (4,808) (7,189) (2,258) (2,799)
Earnings (loss) per share before unusual items (0.12) (20.00) (0.05) (0.07)
Contribution from mining operations 1,553 (2,066) (252) (681)
Capital spending 6,048 5,761 3,418 566
Exploration expense 577 438 234 115
Cash 17,964 4,866 17,964 4,866
Working capital $ 13,700 $ 1,965 $ 13,700 $ 1,965
CONSOLIDATED ORE MILLED & METALS RECOVERED TO CONCENTRATE
Tonnes milled 876,383 695,491 287,831 293,065
Silver metal - ounces 5,755,367 4,852,636 1,750,467 2,140,802
Zinc metal - tonnes 29,526 21,517 9,947 8,661
Lead metal - tonnes 15,576 12,425 4,993 5,582
Copper metal - tonnes 2,105 1,390 723 602
Net smelter return per tonne milled $ 40.27 $ 42.38 $ 37.35 $ 40.20
Cost per tonne 39.64 44.34 38.21 42.31
----------- ----------- ----------- -----------
Margin (loss) per tonne $ 0.63 $ (1.97) $ (0.86) $ (2.11)
=========== =========== =========== ===========
CONSOLIDATED COST PER OUNCE OF SILVER (NET OF BY-PRODUCT CREDITS)
Total cash cost per ounce $ 3.87 $ 4.28 $ 4.53 $ 4.06
Total production cost per ounce $ 4.67 $ 4.98 $ 5.45 $ 4.64
IN THOUSANDS OF US DOLLARS
Direct operating costs & value of metals lost $ 37,433 $ 31,456 $ 12,259 $ 13,515
in smelting and refining
By-product credits (13,298) (11,379) (4,583) (4,064)
----------- ----------- ----------- -----------
Cash operating costs $ 24,135 $ 20,077 $ 7,675 $ 9,451
=========== =========== =========== ===========
Depreciation, amortization & reclamation 4,821 3,291 1,565 1,361
----------- ----------- ----------- -----------
Production costs $ 28,956 $ 23,368 $ 9,240 $ 10,812
=========== =========== =========== ===========
Ounces for cost per ounce calculations 5,700,369 4,691,507 1,695,468 2,329,652
AVERAGE METAL PRICES
Silver - LME Cash Settlement per ounce $ 4.63 $ 4.40 $ 4.67 $ 4.27
Zinc - LME Cash Settlement per pound $ 0.35 $ 0.42 $ 0.35 $ 0.37
Lead - LME Cash Settlement per pound $ 0.21 $ 0.22 $ 0.20 $ 0.21
Copper - LME Cash Settlement per pound $ 0.71 $ 0.74 $ 0.69 $ 0.67
AVERAGE METAL PRICES REALIZED
Silver - per ounce (note) $ 4.29 $ 4.02 $ 4.34 $ 3.96
Zinc - per pound $ 0.35 $ 0.41 $ 0.35 $ 0.38
Lead - per pound (note 3) $ 0.21 $ 0.21 $ 0.20 $ 0.21
Copper - per pound (note) $ 0.62 $ 0.64 $ 0.62 $ 0.60
Note - Pan American pays a refining charge for silver and copper
4
MINE OPERATIONS HIGHLIGHTS
HUARON MINE
NINE MONTHS ENDED THREE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
--------------------------- ---------------------------
2002 2001 2002 2001
----------- ----------- ----------- -----------
Tonnes milled 449,995 230,135 150,330 142,254
Average silver grade - grams per tonne 263.5 276.6 256.6 274.4
Average zinc grade - percent 4.08% 3.13% 4.15% 3.24%
Silver - ounces 3,393,069 1,809,763 1,101,005 1,122,715
Zinc - tonnes 15,440 5,355 5,285 3,473
Lead - tonnes 10,275 5,727 3,338 3,441
Copper - tonnes 1,334 512 471 302
Net smelter return per tonne milled $ 44.41 $ 40.65 $ 43.21 $ 39.77
Cost per tonne 38.14 40.44 39.59 39.24
----------- ----------- ----------- -----------
Margin (loss) per tonne $ 6.27 $ 0.20 $ 3.62 $ 0.53
=========== =========== =========== ===========
Total cash cost per ounce $ 3.65 $ 3.93 $ 4.17 $ 3.94
Total production cost per ounce $ 4.10 $ 4.28 $ 4.63 $ 4.29
IN THOUSANDS OF US DOLLARS
Direct operating costs & value of metals lost $ 19,065 $ 9,639 $ 6,730 $ 6,233
in smelting and refining
By-product credits (6,675) (2,526) (2,143) (1,578)
----------- ----------- ----------- -----------
Cash operating costs $ 12,390 $ 7,113 $ 4,586 $ 4,655
=========== =========== =========== ===========
Depreciation, amortization & reclamation 1,530 641 511 413
----------- ----------- ----------- -----------
Production costs $ 13,920 $ 7,754 $ 5,097 $ 5,068
=========== =========== =========== ===========
Ounces for cost per ounce calculations 3,393,069 1,809,763 1,101,005 1,182,445
QUIRUVILCA MINE
NINE MONTHS ENDED THREE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
--------------------------- ---------------------------
2002 2001 2002 2001
----------- ----------- ----------- -----------
Tonnes milled 389,254 431,858 131,200 137,766
Average silver grade - grams per tonne 177.6 201.9 163.8 203.3
Average zinc grade - percent 3.99% 4.13% 3.97% 4.11%
Silver - ounces 1,933,526 2,487,501 594,463 792,619
Zinc - tonnes 13,854 15,991 4,622 5,059
Lead - tonnes 5,070 6,443 1,620 2,027
Copper - tonnes 771 878 252 300
Net smelter return per tonne milled $ 34.90 $ 41.50 $ 32.42 $ 38.09
Cost per tonne 39.53 44.52 38.46 43.36
----------- ----------- ----------- -----------
Margin (loss) per tonne $ (4.63) $ (3.03) $ (6.04) $ (5.26)
=========== =========== =========== ===========
Total cash cost per ounce $ 5.04 $ 4.64 $ 5.20 $ 6.10
Total production cost per ounce $ 6.62 $ 5.60 $ 6.97 $ 7.10
IN THOUSANDS OF US DOLLARS
Direct operating costs & value of metals lost $ 16,368 $ 20,306 $ 5,529 $ 7,264
in smelting and refining
By-product credits (6,615) (8,764) (2,440) (2,431)
----------- ----------- ----------- -----------
Cash operating costs $ 9,752 $ 11,542 $ 3,089 $ 4,833
=========== =========== =========== ===========
Depreciation, amortization & reclamation 3,049 2,394 1,054 793
----------- ----------- ----------- -----------
Production costs $ 12,801 $ 13,936 $ 4,143 $ 5,627
=========== =========== =========== ===========
Ounces for cost per ounce calculations 1,933,526 2,487,501 594,463 792,619
5
LA COLORADA MINE
NINE MONTHS ENDED THREE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
---------------------- ---------------------
2002 2001 2002 2001
--------- --------- --------- ---------
Tonnes milled 37,134 33,498 6,301 13,045
Average silver grade - grams per tonne 414.0 661.0 335.7 631.2
Silver - ounces 428,772 555,372 54,999 225,468
Zinc - tonnes 232 171 40 129
Lead - tonnes 231 255 35 114
Net smelter return per tonne milled $ 46.36 $ 65.58 $ -- $ 67.12
Cost per tonne 58.96 68.82 -- 64.78
--------- --------- --------- ---------
Margin (loss) per tonne $ (12.60) $ (3.24) $ -- $ (2.34)
========= ========= ========= =========
Total cash cost per ounce $ 5.33 $ 3.41 $ -- $ 3.74
Total production cost per ounce $ 5.98 $ 4.06 $ -- $ 4.87
IN THOUSANDS OF US DOLLARS
Direct operating costs & value of metals lost $ 2,001 $ 1,433 $ -- $ 899
in smelting and refining
By-product credits (8) (89) -- (55)
--------- --------- --------- ---------
Cash operating costs $ 1,993 $ 1,344 $ -- $ 843
========= ========= ========= =========
Depreciation, amortization & reclamation 243 256 -- 256
--------- --------- --------- ---------
Production costs $ 2,236 $ 1,600 $ -- $ 1,099
========= ========= ========= =========
Ounces for cost per ounce calculations 373,773 394,243 -- 225,468
6
PAN AMERICAN SILVER CORP.
Consolidated Balance Sheets
(Unaudited - in thousands of U.S. dollars)
SEPTEMBER 30 DECEMBER 31
ASSETS 2002 2001
------------ -----------
Current
Cash and cash equivalents $ 17,964 $ 3,331
Short-term investments 13 513
Accounts receivable 5,408 6,037
Inventories - concentrate 3,285 2,115
Inventories - supplies 2,769 2,540
Prepaid expenses 4,680 6,534
--------- ---------
Total Current Assets 34,119 21,070
Property, plant and equipment, net 55,234 66,659
Mineral properties 3,797 1,785
Deferred income tax 240 --
Other 2,416 2,003
--------- ---------
Total Assets $ 95,806 $ 91,517
========= =========
LIABILITIES
Current
Operating line of credit $ 720 $ 1,390
Accounts payable and accrued liabilities 11,591 12,283
Advances for metal concentrates 4,514 4,071
Current portion of bank loans 2,209 2,209
Current portion of capital leases 116 --
Current portion of severance indemnity and commitments 663 547
Current portion of deferred revenue 606 643
--------- ---------
Total Current Liabilities 20,419 21,143
Deferred revenue 1,764 1,850
Capital leases 117 --
Bank loans 3,409 5,010
Provision for reclamation 2,756 2,112
Severance indemnity and commitments 2,219 2,525
--------- ---------
Total Liabilities 30,684 32,640
========= =========
SHAREHOLDERS' EQUITY
Share capital
Authorized:
100,000,000 common shares of no par value
Issued:
December 31, 2001 - 37,628,234 common shares
September 30, 2002 - 43,209,262 common shares 156,917 130,723
Additional paid in capital 1,108 1,120
Deficit (92,903) (72,966)
--------- ---------
Total Shareholders' Equity 65,122 58,877
--------- ---------
Total Liabilities and Shareholders' Equity $ 95,806 $ 91,517
========= =========
See accompanying notes to consolidated financial statements
7
PAN AMERICAN SILVER CORP.
Consolidated Statements of Operations and Deficit
(Unaudited - in thousands of U.S. dollars, except for
shares and per share amounts)
NINE MONTHS ENDED THREE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
---------------------------- ----------------------------
2002 2001 2002 2001
------------ ------------ ------------ ------------
REVENUE $ 33,009 $ 26,383 $ 11,195 $ 13,791
EXPENSES
Operating 31,456 28,448 11,447 14,471
General and administration 1,236 1,467 379 486
Depreciation and amortization 4,180 3,020 1,316 1,278
Reclamation 645 330 226 107
Exploration 577 438 234 115
Interest expense 765 479 250 287
Other expenses (income) (802) (4,110) (399) (3,654)
Write-down of mineral property 15,129 -- 15,129 --
------------ ------------ ------------ ------------
53,186 30,072 28,582 13,090
------------ ------------ ------------ ------------
Net income (loss) before taxes (20,177) (3,689) (17,387) 701
Income tax recovery 240 -- -- --
------------ ------------ ------------ ------------
Net income (loss) for the period (19,937) (3,689) (17,387) 701
Deficit, beginning of period (72,966) (64,889) (75,516) (69,279)
------------ ------------ ------------ ------------
Deficit, end of period $ (92,903) $ (68,578) $ (92,903) $ (68,578)
============ ============ ============ ============
Income (loss) per share - Basic $ (0.48) $ (0.10) $ (0.40) $ 0.02
Income (loss) per share - Fully Diluted $ (0.48) $ (0.10) $ (0.40) $ 0.02
Weighted average shares outstanding - Basic 41,751,774 35,679,701 43,193,324 37,429,443
Weighted average shares outstanding - Fully
Diluted 41,751,774 35,679,701 43,193,324 37,589,724
See accompanying notes to consolidated financial statements
8
PAN AMERICAN SILVER CORP.
Consolidated Statements of Cash Flows - Direct Method
(Unaudited - in thousands of U.S. dollars)
NINE MONTHS ENDED THREE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
-------------------- --------------------
OPERATING ACTIVITIES 2002 2001 2002 2001
-------- -------- -------- --------
Sales proceeds $ 33,386 $ 28,221 $ 9,983 $ 11,688
Hedging activities 723 22 253 --
Interest paid (765) (479) (250) (287)
Other income and expenses 769 268 126 (166)
Products and services purchased (31,385) (27,165) (8,437) (12,138)
Exploration (557) (423) (192) (105)
General and administration (1,086) (1,498) (317) (614)
-------- -------- -------- --------
1,085 (1,054) 1,166 (1,622)
-------- -------- -------- --------
FINANCING ACTIVITIES
Shares issued for cash 22,708 9,552 90 404
Share issue costs (956) (311) -- 13
Capital leases 233 -- -- --
Proceeds from (repayment of) line of credit (670) -- (490) --
Proceeds from (repayment of) bank loans (1,601) (5,180) (603) (2,113)
-------- -------- -------- --------
19,714 4,061 (1,003) (1,696)
-------- -------- -------- --------
INVESTING ACTIVITIES
Property, plant and equipment expenditures (5,286) (5,798) (3,185) (561)
Mineral property expenditures (762) (22) -- (13)
Short-term investments (purchases) sales -- 256 -- 200
Other (118) (121) (39) (43)
-------- -------- -------- --------
(6,166) (5,685) (3,224) (417)
-------- -------- -------- --------
Increase (decrease) in cash and cash equivalents
during the period 14,633 (2,678) (3,061) (3,735)
Cash and cash equivalents, beginning of period 3,331 7,544 21,025 8,601
-------- -------- -------- --------
Cash and cash equivalents, end of period $ 17,964 $ 4,866 $ 17,964 $ 4,866
======== ======== ======== ========
SUPPLEMENTAL DISCLOSURE ON NON-CASH TRANSACTIONS
Sale of land concessions $ -- $ 3,300 $ -- $ 3,300
Shares issued for royalty purchase
(390,117 shares issued) 3,000 -- -- --
Shares issued for compensation expense
(69,000 shares issued) 254 -- -- --
-------- -------- -------- --------
$ 3,254 $ 3,300 $ -- $ 3,300
======== ======== ======== ========
See accompanying notes to consolidated financial statements
9
PAN AMERICAN SILVER CORP.
Consolidated Statements of Cash Flows - Indirect Method
(Unaudited - in thousands of U.S. dollars)
NINE MONTHS ENDED THREE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
-------------------- --------------------
OPERATING ACTIVITIES 2002 2001 2002 2001
-------- -------- -------- --------
Net income (loss) for the period $(19,937) $ (3,689) $(17,387) $ 701
Items not involving cash
Depreciation and amortization 4,180 3,020 1,316 1,278
Gain on sale of assets -- (3,523) -- (3,500)
Reclamation provision 645 330 226 107
Deferred income tax (240) -- -- --
Operating cost provisions 131 (291) 314 (184)
Write-down of mineral property 15,129 -- 15,129 --
-------- -------- -------- --------
(92) (4,153) (402) (1,598)
Changes in non-cash operating working capital items 1,177 3,099 1,568 (24)
-------- -------- -------- --------
Cash provided by (used in) operations 1,085 (1,054) 1,166 (1,622)
-------- -------- -------- --------
FINANCING ACTIVITIES
Shares issued for cash 22,646 9,552 90 404
Share issue costs (956) (311) -- 13
Changes in non-cash working capital items 62 -- -- --
Capital leases 233 -- -- --
Proceeds from (repayment of) line of credit (670) -- (490) --
Proceeds from (repayment of) bank loans (1,601) (5,180) (603) (2,113)
-------- -------- -------- --------
19,714 4,061 (1,003) (1,696)
-------- -------- -------- --------
INVESTING ACTIVITIES
Property, plant and equipment expenditures (4,884) (5,745) (2,827) (553)
Mineral property expenditures (762) (16) -- (13)
Changes in non-cash working capital items (402) (59) (358) (8)
Short-term investments (purchases) sales -- 256 -- 200
Other (118) (121) (39) (43)
-------- -------- -------- --------
(6,166) (5,685) (3,224) (417)
-------- -------- -------- --------
Increase (decrease) in cash and cash equivalents during 14,633 (2,678) (3,061) (3,735)
the period
Cash and cash equivalents, beginning of period 3,331 7,544 21,025 8,601
-------- -------- -------- --------
Cash and cash equivalents, end of period $ 17,964 $ 4,866 $ 17,964 $ 4,866
======== ======== ======== ========
SUPPLEMENTAL DISCLOSURE ON NON-CASH TRANSACTIONS
Sale of land concessions $ -- $ 3,300 $ -- $ 3,300
Shares issued for royalty purchase
(390,117 shares issued) 3,000 -- -- --
Shares issued for compensation expense
(69,000 shares issued) 254 -- -- --
-------- -------- -------- --------
$ 3,254 $ 3,300 $ -- $ 3,300
======== ======== ======== ========
See accompanying notes to consolidated financial statements
10