Apex Silver Mines Limited (AMEX: SIL) today announced results for
the third quarter 2008. The company also announced that it has
entered into discussions with Sumitomo Corporation ("Sumitomo")
regarding the sale to Sumitomo of the company's interest in the San
Cristobal mine.
Income from Operations and Net Income
Loss from operations for the quarter totaled $488.0 million,
including a $163.0 million gain on metal derivative positions and
$615.0 million impairment of property, plant and equipment. The
impairment resulted from rapidly declining metals prices and
continued high operating costs during the third quarter 2008, which
have reduced current and projected operating margins at the
company's San Crist�bal mine. Net loss for the quarter was $332.0
million, or $5.63 per diluted share, including the gain on metal
derivative positions, the impairment and a writedown of inventories
of $34.0 million due to declining metals prices.
Based on the existing and potential breaches of covenants under
the San Crist�bal project financing facility (the "Facility"), the
company has reclassified all of its debt under the Facility, the
liability under its related metal derivatives positions and its
2.875% and 4.0% convertible subordinated notes (the "Notes") as
short-term as at September 30, 2008.
Liquidity and Capital Resources
Declining metals prices, among other factors, have caused
continued significant deterioration in the company's liquidity, and
the company has relied increasingly on borrowings under a line of
credit provided by Sumitomo to fund its cash needs at San
Crist�bal. The company has been in discussions regarding certain
covenants and metals derivatives payments under the project finance
facility (the "Facility"), liquidity issues and other matters with
the Facility lenders, the counterparties under the metal
derivatives positions and Sumitomo. Based on discussions to date,
the company believes that these matters can be resolved only by a
comprehensive restructuring of its operations and capital
structure.
The company has been in discussions with Sumitomo regarding the
sale to Sumitomo of the company's interest in the San Crist�bal
mine for a limited amount of cash and the assumption by Sumitomo of
the related liabilities, including borrowings under the Facility
and liabilities under the metal derivatives positions, net of the
$91.0 million of restricted cash used as a margin against the
derivatives. The discussions also contemplate the company's
continued management of the mine and its receipt of limited
contingent value rights. Any agreement in principle with Sumitomo
on these matters would be subject, among other conditions, to
definitive documentation and a restructuring of the Facility and
the Notes. There can be no assurance that the parties will reach a
definitive agreement. Concurrent with its discussions with
Sumitomo, the company, in consultation with its financial advisor,
Jefferies & Company, Inc., is continuing to explore strategic
and financial alternatives, including a sale of the company, a sale
of its interest in the San Crist�bal mine or in one or more of its
exploration properties, and a voluntary filing under chapter 11 of
the U.S. Bankruptcy Code.
September 30, 2008 Cash and Investments
At September 30, 2008, the company's aggregate cash, restricted
cash, short- and long-term investments totaled $153.8 million,
compared to an aggregate of $220.7 million in cash, restricted
cash, short- and long-term investments and restricted investments
at December 31, 2007. Cash and investments at September 30, 2008
includes $34.0 million of unrestricted cash and cash equivalents,
$10.6 million of unrestricted short-term investments, $13.9 million
of currently illiquid auction rate securities ("ARS") classified as
long-term, $91.0 million of cash that is restricted to
collateralize the open metal derivative positions required by the
Facility, and $4.3 million of cash held in a collateral account
that is restricted to the operating requirements at the San
Crist�bal mine and interest and principal payments on the Facility.
At September 30, 2008, the company's aggregate unrestricted cash
and investments (excluding ARS) totaled $44.6 million. During
October and through November 7, 2008, the company has used $9.1
million of this amount to fund Minera San Crist�bal, S.A. ("MSC"),
the company's 65% owned subsidiary that owns and operates the San
Crist�bal mine.
Funding of San Crist�bal and Other Cash Requirements
During the first nine months of 2008, the company and Sumitomo
provided $202.0 million in funding to MSC, including $105.0 million
in the third quarter, to augment cash flow from concentrate sales
in order to settle metal derivative positions required in
connection with the Facility and to fund operating costs, income
and other taxes, capital costs and financing costs. The company
funded $94.2 million of this amount, and the remaining $107.8
million was funded by Sumitomo, including $50.0 million advanced
under a separate line of credit provided by Sumitomo. In October
and through November 7, 2008, the company and Sumitomo have funded
an additional $46.0 million to MSC, of which the company funded
$9.1 million and Sumitomo funded $36.9 million, including $32.0
million advanced under the increased Sumitomo line of credit.
Operating cash flow of MSC was adversely affected during 2008 by
falling metals prices. From January 1 through November 6, 2008
metals prices have declined by about 30% for silver, 55% for zinc,
and 40% for lead, and from July 1 through November 6, 2008 prices
have fallen about 40% for silver, 40% for zinc, and 20% for lead.
Operating margins in 2008 were also adversely affected by increased
costs for reagents, diesel fuel and other materials consumed in the
operation. Operating margins for 2008 are also negatively affected
by industry-wide increases in treatment and refining charges, which
have approximately doubled from 2007 for lead concentrates and
risen about 30% for zinc concentrates.
In addition to operating costs, sustaining capital expenditures
and taxes payable, the company expects that MSC will have aggregate
debt service and derivative settlement requirements of
approximately $220.0 million during the next 12 months (from
October 2008 through September 2009). This amount includes $95.0
million in scheduled principal and interest payments under the
Facility, $72.0 million to fund the operating and debt service
reserve accounts required under the Facility by December 2008, and
approximately $53.0 million to settle derivative positions maturing
during the period based on metal prices at November 6, 2008 ($10.41
per ounce of silver, $0.50 per pound of zinc, and $0.67 per pound
of lead). The company projects that cash flow from operations will
be insufficient to fund these amounts and that MSC will require
approximately $386.0 million of funding from October 2008 through
September 2009 based on November 6, 2008 metal prices. The
company's share of this funding requirement would be approximately
$251.0 million, which exceeds its current cash and investment
balances and expected sources of funding (including MSC operating
cash flow) during the period.
Facility Compliance
The San Crist�bal mine has not initiated certain performance
tests required to achieve "completion," and thus will not achieve
completion by year-end 2008 as required by the Facility. In the
absence of a waiver or other relief, this failure will constitute
an event of default under the Facility as of January 1, 2009. In
addition, the Facility requires the company to maintain a minimum
consolidated tangible net worth ("TNW") of $280.0 million. The
writedown of the San Crist�bal assets has reduced the company's TNW
below this amount. The company believes that it will be unable to
cure this breach of covenant, and the failure to do so for 30 days
following notice from the lenders would also constitute an event of
default under the Facility. The occurrence of an event of default
would entitle the Facility lenders to accelerate all indebtedness
under the Facility and the counterparties to terminate the related
metals derivative positions. The company's 65% share of the $225.0
million Facility and approximately $225.0 million outstanding
derivative position liability at September 30, 2008 totals
approximately $293.0 million. The company does not have, and does
not expect to have, sufficient cash and investments to settle fully
its share of these obligations if they were to be immediately due
and payable and believes that it would face significant challenges
in obtaining additional funding to do so. If the company were
unable to repay these obligations when due, the lenders and the
counterparties under the derivative positions would be entitled to
enforce their liens and take possession of collateral securing
indebtedness under the Facility and the metals derivative
positions, including the assets that comprise the San Crist�bal
mine and $91.0 million of cash and investments that is pledged as
security for the derivative positions. A failure to pay amounts due
and payable under the Facility and the derivative positions,
including upon acceleration, would also result in a default under
the terms of the Notes, entitling the holders to accelerate the
maturity thereof. The Notes had an aggregate principal amount
outstanding of $290.0 million at September 30, 2008.
Operations Update
Concentrator throughput, metal recovery, concentrate production
and payable metals production continued to improve during the third
quarter 2008 at our San Crist�bal mine. Concentrator throughput for
the third quarter averaged 36,700 tonnes per day, approximately 92%
of the 40,000 tonnes per day designed capacity. During August
throughput averaged 39,200 tonnes per day but was down slightly in
September as the result of a planned maintenance shutdown. During
the first half of October the plant experienced an unscheduled
shutdown as the result of the failure of certain electronics
controlling the SAG mill. MSC was able to restart the SAG mill
using components from one of the two ball mills and continued
operating with the SAG mill and a single ball mill until the
components were replaced in mid-October. As a result, October
throughput averaged approximately 30,000 tonnes per day. However,
after resumption of full operations in mid-October average
throughput for the last 14 days of October were 40,800 tonnes per
day.
Total throughput during the third quarter exceeded second
quarter throughput by 10%. Zinc concentrate production of
approximately 103,000 dry tonnes during the third quarter exceeded
second quarter production by 23% and lead concentrate production
during the third quarter exceed second quarter production by
35%.
% variation
======= ======= ======= ===================
1Q08 2Q08 3Q08 2Q08 3Q08 3Q08
Month Month Month vs. vs. vs.
Average Average Average 1Q08 2Q08 1Q08
======= ======= ======= ===== ===== =====
Total tonnes mined (000's) 3,222 3,867 3,505 20% -9% 9%
Total tonnes milled
(000's) 803 1,025 1,126 28% 10% 40%
======= ======= ======= ===== ===== =====
Recovery rate - silver 65% 68% 67% 4% -1% 3%
Recovery rate - zinc 78% 77% 81% -1% 5% 4%
Recovery rate - lead 68% 70% 76% 3% 9% 12%
======= ======= ======= ===== ===== =====
Concentrate produced
(000's)
Zinc (dry tonnes) 20 28 34 41% 23% 73%
Lead (dry tonnes) 5 8 10 53% 35% 106%
======= ======= ======= ===== ===== =====
Costs 1Q08 2Q08 3Q08
======= ======= =======
Total mining cost / tonne of rock $ 1.80 $ 1.49 $ 2.19
Total milled cost(1) / tonne of ore $ 10.91 $ 10.88 $ 9.60
Total site support costs / tonne of con. produced(2)$ 196 $ 202 $ 167
Mining Royalty / tonne of con. produced $ 118 $ 106 $ 80
Sea freight cost / tonne of con. produced $ 112 $ 121 $ 123
======= ======= =======
(1) Includes plant, maintenance and engineering costs
(2) Includes all ther site support costs and land freight costs
Payable production during the third quarter totaled
approximately 4.7 million ounces of silver, 50,000 tonnes of zinc
and 20,000 tonnes of lead, reflecting increases of 12%, 21% and 33%
respectively over second quarter payable production.
% 2Q08 % 3Q08
vs vs
Payable Production (000's) 2007 1Q08 2Q08 3Q08 1Q08 2Q08
======= ======= ======= ======= ====== ======
Silver (oz) 2,200 2,948 4,191 4,701 42% 12%
Zinc (tonnes) 19 29 42 50 43% 21%
Lead (tonnes) 8 10 15 20 50% 33%
======= ======= ======= ======= ====== ======
1Q08 2Q08 3Q08
================== ===== ===== =====
Strip ratio 1.0 1.0 1.1
------------------ ----- ----- -----
Average Mill Feed Grades Silver (g/t) 63 68 72
Zinc 1.88% 2.04% 2.28%
Lead 0.62% 0.70% 0.79%
------------------ ----- ----- -----
Average Concentrate Grades Silver in Zn (g/t) 585 505 404
Silver in Pb (g/t) 4,668 4,537 4,038
Zinc 58% 58% 58%
Lead 68% 68% 68%
================== ===== ===== =====
Notes:
Strip ratio = waste mined / [sulfide ore + oxide ore mined ] , where the
ore mined includes stockpiled sulfides and oxides as well as sulfide ore
fed to mill
With the improved process water availability of 40,000 cubic
meters per day the company has sufficient water to sustain
concentrator throughput at design levels and believes that
sustainable throughput of 40,000 tonnes per day or more should be
achievable going forward.
Sales of Concentrates
Declining lead and zinc prices resulted in a net reduction to
sales of $4.1 million as the result of marking previous period
provisional sales to market during the third quarter 2008. The
company received an additional $8.8 million in the third quarter
for concentrates shipped in the second quarter, which was recorded
as deferred revenue. This amount, net of market adjustments, will
be recorded as sales in the fourth quarter when risk of loss passes
at the port of destination.
Payable Metal Sold (000's) 2007 1Q08 2Q08 3Q08
===== ===== ===== =====
Silver (Oz) 999 3,473 1,645 4,687
----- ----- ----- -----
Zinc (Tonnes) 29 25 26 60
----- ----- ----- -----
Lead (Tonnes) 7 12 5 18
===== ===== ===== =====
Cash Costs
Due to the increase of costs for reagents, transportation costs
and for other materials consumed in the operation, in addition to
the industry-wide increases in treatment and refining charges and
along with the significant decline in by product credits due to the
decline in metals prices, cash costs for the third quarter have
increased.
Cash Cost Production Basis 1Q08 2Q08 3Q08 YTD
======= ======== ======== ========
Ag ($/oz.) $ (1.37) $ 1.42 $ 4.26 $ 2.08
Zn ($/lb.) $ 0.26 $ 0.24 $ 0.37 $ 0.30
======= ======== ======== ========
Summary Financial and Operating Data
Three Months Ended Nine Months Ended
September 30 September 30
---------------------- --------------------
2008 2007 2008 2007
--------- --------- --------- ---------
(in thousands, except (in thousands, except
share data) share data)
Revenues:
Sales of concentrates $ 148,789 a $ - $ 345,320 $ -
Costs and expenses:
Costs applicable to sales
(exclusive of amounts
shown separately below) (124,080) b - (255,840) -
Write down of inventories (34,413) c - (34,413) -
Gain (loss) on commodity
derivatives 163,286 d (136,895) 358,924 (194,236)
Impairment of long lived
assets (615,032) e - (615,032) -
Loss on auction rate
securities (4,902) f (21,130) (8,002) (21,130)
Income taxes 7,634 g (394) (14,168) (488)
Net loss per Ordinary Share -
diluted $ (5.63) $ (2.59) $ (2.18) $ (3.13)
========= ========= ========= =========
a. During the third quarter 2008 the company recorded sales of
concentrates of $148.8 million. The $148.8 million is net of a negative
$4.1 million mark-to-market adjustment related to sales made in prior
periods.
b. These costs relate to mining, milling, marketing, mining royalties and
transportation of concentrate sold to customers.
c. As the result of deteriorating metals prices and increasing operating
costs the company wrote down the carrying value of its sulfide ore
stockpile and concentrate inventories at September 30, 2008, to net
realizable value. The company reduced the carrying value of its
concentrate inventories by $4.2 million, its sulfide ore stockpile
inventories by $30.2 million and recorded a $34.4 million charge to
inventory write down on the accompanying consolidated statements of
operations and comprehensive income (loss).
d. For the third quarter 2008, the company recorded a gain related to its
metal derivative positions in the amount of $163.3 million compared to
a loss of $136.9 million on its metal derivative positions for the
third quarter 2007. Gains and losses are the result of
marking-to-market its open metal derivative positions and metal
derivative positions settled during the period, as compared to the
previous quarter, based upon changes in spot and forward prices for
silver, zinc and lead. The gain for the third quarter 2008 was the
result of declining silver, lead and zinc prices during the period.
During the periods that the metal derivative positions are outstanding,
gains and losses may fluctuate substantially from period to period
based on spot prices, forward prices and quoted option volatilities.
e. Following the guidance of FAS 144, the company has used a probability
weighted analysis of various cash flow scenarios in determining that
future cash flows are not sufficient to recover the carrying value of
the San Crist�bal asset group. The asset group includes all plant,
property, and equipment, inventories. An impairment of $615 million
has been recorded in the income statement and as an offset against
property, plant and equipment on the balance sheet for the period ended
September 30, 2008.
f. During the third quarter 2008 the company recognized a $4.9 million
loss related to an impairment charge on its securities (ARS). The
impairment charge is the result of deteriorating markets for certain of
the ARS held by the company for which the auctions continue to fail.
During the third quarter 2007 the company recognized an initial
impairment charge of $21.1 million related to its ARS as the first
auctions began to fail during that period.
g. During the third quarter 2008, the company recorded an income tax
benefit of $7.6 million as compared to income tax expense of $0.4
million for the third quarter 2007. The income tax benefit is the
result of losses during the period, primarily due to the writedown of
inventories at the San Crist�bal mine.
Forward-Looking Statements
Apex Silver is a mining, exploration and development company.
It's 65%-owned San Crist�bal mine is the world's largest
development in silver and zinc. The ordinary 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 company's ongoing discussions with Sumitomo regarding
a possible sale of the company's interest in the San Crist�bal mine
and the restructuring of its operations and capital structure; the
company's expected inability to comply with certain covenants in
the Facility and the potential amendments to the Facility that may
be sought from its lenders; anticipated additional funding
requirements for San Crist�bal, including the expectation that
sales from San Crist�bal will not cover operating, derivative
settlements and other costs for the mine during 2008 and 2009 and
that the Company will be required to contribute additional amounts
to San Crist�bal in 2008 and 2009; production and recovery rates
for the San Crist�bal mine, including the adequacy of process water
for production, improvements during 2008 in metal recovery rates
and the timing of achieving constant mill throughput at designed
capacity; projected costs at the San Crist�bal mine, including
anticipated cash operating costs in 2008, spending on sustaining
capital expenditures and taxes; and the anticipated settlement
costs of the metal derivative positions.
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 the company's ability to reach
a definitive agreement with Sumitomo with respect to the sale of
its interest in the San Crist�bal mine, including resolution of
terms under which the company would continue as the manager of the
mine and to reach a comprehensive restructuring of its capital
structure with the Facility lenders and the holders of the Notes,
among others; the company's ability to continue to retain key
management and mining personnel during the pendency of its
restructuring to assure continued production at the San Crist�bal
mine; the potential impact of the company's proposed restructuring
on its relations with the Bolivian government and key suppliers and
customers as they relate to the continued operation of the San
Crist�bal mine; the company's ability to manage its remaining
liquidity to meet its cash requirements as it pursues its
restructuring, including its ability to achieve, as necessary, a
restructuring of its operations or indebtedness; the nature of the
company's business if it achieves a comprehensive restructuring of
its operations, including the impact on the presentation of its
results of operations and financial condition of the
reclassification of the San Crist�bal asset group as assets held
for sale and of any sale of its interest in that asset group, if
completed; the company's ability to achieve amendments to the
Facility and the Notes to avoid the defaults that will result from
its failure to achieve "completion" as defined in the Facility, to
maintain consolidated tangible net worth as required by the
Facility, or to comply with other covenants under the Facility, and
its ability to comply with the amended covenants, if the company is
unable to achieve a comprehensive restructuring of its operations
and capital structure; the company's ability to manage operational
issues it faces to avoid further impairments of its liquidity;
worldwide economic and political events affecting the supply of and
demand for silver, zinc and lead and related market prices for each
metal; political and economic instability in Bolivia, including the
communities located near the San Crist�bal mine. and in other
countries in which the company conducts business; future actions of
the Bolivian government with respect to nationalization of natural
resources or other changes in the mining or taxation policies of
the Bolivian government, including the approval by the Bolivian
people of a draft constitution which could have a significant
effect on mining operations in Bolivia; material handling problems
in the stockpile reclaim system, difficulties in blending ore types
and variations in ore grade; inability to improve recoveries
without affecting throughput; plant availability and delivery of
operating supplies to the site, operating or maintenance problems
or delays; concentrate train derailments; continued training needs
of the plant workforce labor disputes or strikes; higher than
anticipated mine, concentrator and other operating costs; and
inability to complete planned exploration activities on exploration
properties or at San Crist�bal. The company assumes no obligation
to update this information. 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 for the year ended December 31, 2007 and
the company's Form 10-Q for the quarter ended September 30, 2008,
each of which have been filed with the SEC.
Non GAAP Financial Measures
The company uses the terms "estimated cash operating cost" and
"average cash operating costs," which differ from measures of
performance determined in accordance with generally accepted
accounting principles ("GAAP"). The company has included this
information to provide investors with data about the average costs
associated with its mining activities so that investors may have
information regarding the cash generating capabilities of the San
Crist�bal mine. This information should not be considered in
isolation or as a substitute for measures of performance that will
be prepared in accordance with GAAP. These measures are not
necessarily indicative of operating profit or cash flow from
operations to be determined under GAAP and may not be comparable to
similarly titled measures of other companies.
The term "estimated cash operating cost" includes actual mining,
milling and mine related overhead costs, mine royalty taxes, inland
freight costs, and marketing costs incurred on concentrate
production during the period. Estimated cash operating costs also
includes estimated ocean freight and insurance costs for
concentrates produced during the period. Estimated cash operating
costs for silver also includes projected off-site costs related to
silver refining charges. Estimated cash operating costs for zinc
also includes projected off-site costs related to treatment and
smelting charges for zinc-silver concentrates. Estimated cash
operating costs exclude income taxes, depreciation, amortization
and provisions for reclamation. This measure differs from costs
applicable to sales determined in accordance with GAAP. Costs
applicable to sales in accordance with GAAP reflect costs incurred
for concentrates sold during the period, as opposed to produced,
and includes actual costs for ocean freight and insurance. In
addition, costs applicable to sales do not include refining,
treatment and smelting charges, which in accordance with GAAP are
netted against revenue.
The average cash operating cost per ounce of silver is equal to
the total of estimated cash operating costs for the period reduced
by the estimated value of lead and zinc by-product credits for the
period and divided by the number of "payable ounces" of silver. The
"payable ounces" are the estimated number of ounces of silver
produced during the period reduced by the ounces required to cover
estimated refining charges. The lead by-product credits are equal
to the estimated revenue from "payable pounds" of lead produced
during the period, less estimated treatment and smelting charges
for lead-silver concentrates. The "payable pounds" are the number
of pounds of lead produced during the period, reduced by the
estimated number of pounds required to cover refining and treatment
charges. The zinc by-product credits are equal to the estimated
revenue from "payable pounds" of zinc produced during the period,
less estimated treatment and smelting charges for zinc-silver
concentrates. The "payable pounds" are the number of pounds of zinc
produced during the period, reduced by the estimated number of
pounds required to cover refining and treatment charges.
The average cash operating cost per pound of zinc is equal to
the total of estimated cash operating costs for the period, reduced
by the estimated value of silver and lead by-product credits for
the period, divided by the number of "payable pounds" of zinc. The
lead by-product credits are equal to the estimated revenue from
"payable pounds" of lead produced during the period, less estimated
treatment and smelting charges for lead-silver concentrates. The
silver by-product credits are equal to the estimated revenue from
"payable ounces" of silver produced during the period, less
estimated silver refining charges.
APEX SILVER MINES LIMITED
CONSOLIDATED BALANCE SHEETS
(Expressed in United States dollars)
(Unaudited)
September 30, December 31,
2008 2007
------------- -------------
(in thousands, except
share data)
Assets
Current assets
Cash and cash equivalents $ 33,973 $ 40,736
Restricted cash 95,340 12,313
Investments 9,246 52,243
Trade receivables 6,002 3,110
Inventories 76,618 44,211
Derivatives at fair value 7,302 -
Deferred tax asset 7,019 -
Prepaid expenses and other assets 16,295 16,195
------------- -------------
Total current assets 251,795 168,808
Property, plant and equipment, net 215,990 841,981
Ore stockpile inventories 70,806 76,914
Deferred financing costs 12,734 15,990
Value added tax recoverable 149,501 95,327
Restricted cash 10 91,000
Investments 15,261 24,407
Derivatives at fair value 5,002 8,475
Other 244 2,009
------------- -------------
Total assets $ 721,343 $ 1,324,911
============= =============
Liabilities and Shareholders' Deficit
Current liabilities
Accounts payable and other accrued
liabilities $ 73,413 $ 55,957
Deferred revenue 8,782 -
Accrued interest payable 3,001 4,982
Derivatives at fair value 237,434 266,820
Current portion of long term debt 523,978 41,155
------------- -------------
Total current liabilities 846,608 368,914
Long term debt 61,743 546,981
Derivatives at fair value - 482,683
Deferred gain on sale of asset 945 945
Asset retirement obligation 8,723 6,981
Deferred tax liability 8,086 -
Other long term liabilities 4,803 2,508
------------- -------------
Total liabilities 930,908 1,409,012
------------- -------------
Commitments and contingencies
Shareholders' equity (deficit)
Ordinary Shares, $.01 par value,
175,000,000 shares authorized; 58,955,475
and 58,909,625 shares issued and
outstanding at respective dates 590 589
Additional paid-in capital 680,115 677,203
Accumulated deficit (890,300) (761,783)
Accumulated other comprehensive (loss) 30 (110)
------------- -------------
Total shareholders' deficit (209,565) (84,101)
------------- -------------
Total liabilities and shareholders'
deficit $ 721,343 $ 1,324,911
============= =============
APEX SILVER MINES LIMITED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(Expressed in United States dollars)
(Unaudited)
Three Months Ended Nine Months Ended
September 30 September 30
---------------------- ----------------------
2008 2007 2008 2007
---------- ---------- ---------- ----------
(in thousands, except (in thousands, except
share data) share data)
Revenues:
Sales of concentrates $ 148,789 $ - $ 345,320 $ -
Costs and expenses:
Costs applicable to sales
(exclusive of amounts
shown separately below) (124,080) - (255,840) -
Write down of
inventories (34,413) - (34,413) -
Production startup
income/expense, net - (12,423) - (12,423)
Exploration (6,306) (2,975) (21,437) (9,341)
Administrative (7,756) (7,457) (18,282) (19,193)
Gain (loss) on commodity
derivatives 163,286 (136,895) 358,924 (194,236)
Gain on foreign currency
derivatives and
transactions 4,798 2,572 15,631 4,792
Asset retirement
accretion expense (208) (154) (574) (439)
Impairment of long lived
assets (615,032) - (615,032) -
Depreciation, depletion
and amortization (17,490) (4,675) (36,225) (4,865)
---------- ---------- ---------- ----------
Total operating
expenses, net (637,201) (162,007) (607,248) (235,705)
---------- ---------- ---------- ----------
Loss from operations (488,412) (162,007) (261,928) (235,705)
Other income and expenses:
Interest and other income 1,285 5,479 5,219 19,073
Loss on auction rate
securities (4,902) (21,130) (8,002) (21,130)
Gain on sale of interest
in subsidiary - - 63,071 -
Interest expense and
other borrowing costs (15,555) (7,290) (45,751) (7,290)
---------- ---------- ---------- ----------
Total other income and
expenses (19,172) (22,941) 14,537 (9,347)
---------- ---------- ---------- ----------
Loss before minority
interest and income
(taxes) benefit (507,584) (184,948) (247,391) (245,052)
Income taxes 7,634 (394) (14,168) (488)
Minority interest in loss
of consolidated
subsidiaries 168,172 33,501 133,042 61,833
---------- ---------- ---------- ----------
Net loss $ (331,778) $ (151,841) $ (128,517) $ (183,707)
---------- ---------- ---------- ----------
Other comprehensive loss:
Unrealized gain (loss)
on securities $ (1,524) $ 96 $ 140 $ (65)
---------- ---------- ---------- ----------
Comprehensive loss $ (333,302) $ (151,745) $ (128,377) $ (183,772)
========== ========== ========== ==========
Net loss per Ordinary Share
- basic $ (5.63) $ (2.59) $ (2.18) $ (3.13)
========== ========== ========== ==========
Net loss per Ordinary Share
- diluted $ (5.63) $ (2.59) $ (2.18) $ (3.13)
========== ========== ========== ==========
Weighted average
Ordinary Shares
outstanding - Basic 58,954,820 58,644,407 58,934,882 58,635,980
========== ========== ========== ==========
Weighted average
Ordinary Shares
outstanding - diluted 58,954,820 58,644,407 58,934,882 58,635,980
========== ========== ========== ==========
CONTACT: Apex Silver Mines Corporation Jerry W. Danni (303)
839-5060 Sr. Vice President Corporate Affairs
Global X Silver Miners (AMEX:SIL)
Historical Stock Chart
From Jun 2024 to Jul 2024
Global X Silver Miners (AMEX:SIL)
Historical Stock Chart
From Jul 2023 to Jul 2024
