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Meridian Gold weighs in with 4th quarter and yearend
Bad Credit Credit Creditres by Freddie Mooche - Senior Financial ColumnistMeridian Gold (NYSE: MDG; TSX: MNG) reported net income for the year of $36.8 million, 11% lower than the $41.5 million from the prior year. While investors remain mixed on future results.
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By yearend, the rebels had been crushed, but the military continued to expand its hold over the government.
Bad Card Credit Credit February 25, 2004 (AXcess News) Reno NV - Meridian Gold (NYSE: MDG; TSX: MNG) reported $10.4 million net income, or $0.11 per share, for the fourth quarter, compared to net income of $10.7, or $0.11 per share for the same period of 2002.
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Bad Car Credit Loan This slight decrease is due to a combination of increased tax expense and Esquel project-related costs, offset by a one-time gain of $2.9 million on the sale of the Queenstake shares that were obtained as part of the sales agreement of the Jerritt Canyon property on June 30, 2003.
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Bad Credit Loan Mortgage Sales revenue decreased $4.2 million, or 12%, over the fourth quarter of 2002 resulting from the sale of the Jerritt Canyon property (which contributed $8.6 million in revenues in the fourth quarter of 2002). This was partially offset by a 21% increase in realized gold price quarter over quarter. The average realized gold price was $399 per ounce this quarter versus the spot market of $393 and the prior year's average realized gold price of $329 per ounce.
Auto Bad Credit Loan Quarterly production for the Company totaled 78,000 ounces of gold, including the 543 ounces produced at Beartrack, all of which were sold and realized in the fourth quarter. The 28% decrease in gold ounces sold compared to the fourth quarter in the previous year is due to the sale of Jerritt Canyon.
Bad Credit Mortgage Refinance Operating margins increased to 41% versus 37% in the fourth quarter of the prior year, due to higher realized gold prices (21% increase from the prior year), and the sale of the high cost Jerritt Canyon mine on June 30, 2003 (which had a 9% operating margin in the fourth quarter of 2002).
Bad Credit Refinance Meridian Gold reported a $5.2 million tax expense for the fourth quarter of 2003, compared to $2.6 million in the fourth quarter of the previous year when the Company was utilizing its remaining available operating losses. In accordance with CICA HB.3465 regarding intraperiod tax allocation, the Company has reflected a 33% overall effective tax rate during the quarter on book earnings as a result of non-utilized losses principally from Argentina, Canada and the U.S.
Bad Credit Mortgage Second The Company recorded revenues of $132.6 million for 2003, versus $133.6 million for 2002. This slight decrease is a result of a 17% increase in the realized price of gold year over year ($367 in 2003 versus $315 in 2002), offset by the sale of Jerritt Canyon on June 30, 2003.
Bad Credit Loan Student For the twelve months ended December 31, 2003, cash costs per ounce decreased 6% to $82 from $87 during the same period of the prior year. Total production costs per ounce remained relatively stable at $140 this year compared to $141 last year.
Bad Card Credit Net income for the period of $36.8 million is 11% lower than $41.5 million for the same period last year due to lower revenues resulting from the sale of the Jerritt Canyon property in the second quarter, and higher tax expense, offset by higher gold prices and a one time gain on the sale of the Queenstake shares.Cash provided by operating activities for the twelve months ended December 31, 2003, was $63.3 million, versus $71.1 million for the same period in the prior year. This is 11% lower due to increased spending at the Esquel project and
Bad Credit Financing increased reclamation spending.
Bad Credit Home Loan Mortgage Cash to meet the Company's operating needs, to finance capital expenditures and to fund exploration activities was provided from operations and from existing cash reserves. Cash provided by operating activities was a record high of $24.0 million in the fourth quarter of 2003, versus $19.5 million in the fourth quarter of 2002. This increase is due to strong gold prices, and the one time gain of $2.9 million recognized on the sale of the Queenstake shares associated with the Jerritt Canyon property. At December 31, 2003, cash and cash equivalents, including restricted cash, totaled $182.2 million, versus $135.7 million as
Bad Credit Loan People of December 31, 2002.
Bad Card Credit Credit People On January 23, 2004, Meridian entered into an option/joint venture agreement with Freegold Ventures Ltd., owner of the 18,000 acre Golden Summit Project, an advanced stage exploration project located near Fairbanks, Alaska. The project lies approximately 5 miles north of Alaska's largest gold producing Fort Knox Mine.
Bad Credit Guaranteed Loan Conservative estimates indicate the presence of some 63,000 linear feet of mineralized shear zones in and around the Golden Summit property area. Under the terms of the agreement, Meridian may earn up to 70% interest in this project by spending $5 million in exploration over four years, completing a bankable feasibility study, arranging project financing and placing the project into commercial production. Drilling is scheduled to begin during the first quarter of 2004.While flush with cash Meridian's El Pinion mine is beginning to show signs of lower yields. The Golden Summit Project could suffice to replace declining gold and silver yields but for the next two years the company could face continued declining production overall until Golden Summit goes online.
Bad Credit Refinancing Wednesday, following Alan Greenspan's talk about the economy and the federal deficit, gold prices dropped 8 percent to close at $395.8 and silver closed at $6.54, up 1 percent.
Bad Credit Equity Home Loan Meridian Gold ended the day at $13.36, up $.08 or .6%, on volume of 616,700 shares. The 52-week hi is $15.70. Preceding Thursday's scheduled conference call to discuss its results, analysts were mixed on whether the precious metals company would top that price.AXcess News will be reporting on any new market trends related to this story. Members should watch their in-box for late breaking news. If you're not a member, consider joining now. Members get the latest business news, commentaries and stock picks delivered right to their in-box.
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