Apex Silver Mines Limited Reports First Quarter Results

Apr 26, 2001, 01:00 ET from Apex Silver Mines Limited

    DENVER, April 26 /PRNewswire/ -- Apex Silver Mines Limited (Amex:   SIL)
 today reported a loss of $1.9 million, or $0.05 loss per ordinary share for
 the first quarter of 2001, compared with a loss of $0.7 million, or $0.02 loss
 per ordinary share for the first quarter of 2000.
     During the first quarter of 2001, $5.2 million of project expenditures
 related to engineering and development activities were capitalized at the San
 Cristobal Project, the Company's wholly-owned, open-pit silver-zinc project in
 the Potosi district of southwestern Bolivia, for a total of $82.5 million
 through March 31, 2001.  Apex expensed $1.1 million of exploration costs
 during the first quarter of 2001, including drilling expenses at the San Juan
 del Cordero property in northern Mexico and ordinary shares issued to acquire
 an interest in the El Zapote property in El Salvador.  Administrative
 expenses, primarily associated with the advancement of the San Cristobal
 Project and its financing, were $1.5 million for first quarter of 2001.
     During the first quarter of 2001, Apex Silver continued to make progress
 on its various negotiations related to key infrastructure items for San
 Cristobal including power for the Project and the port facilities, while also
 advancing the detailed project engineering and project permitting.  The
 Company announced that it had called for definitive power proposals from
 interested Bolivian and foreign power providers in late December as a final
 step in the competitive bidding process.  Several bids were received and Apex
 anticipates completing power supply negotiations for San Cristobal during the
 second quarter of 2001.  It is also working, together with the governments of
 Bolivia and Chile, on matters related to the design and use of the road from
 the Project to the Chilean port.  During the second quarter of 2001, the
 Company expects Kvaerner, its engineering, procurement and construction (EPC)
 contractor, to complete engineering documentation sufficient to initiate final
 EPC arrangements.  Once the infrastructure items and engineering documentation
 are completed, the Company and its advisors will be in a position to review
 construction and financing strategies for San Cristobal within the context of
 global financial and metals markets.
     In light of public statements regarding the financial condition of
 Washington Group International, the firm initially selected as mining
 contractor for San Cristobal, Apex evaluated various alternatives for its
 proposed contract mining arrangements.  The Company is pleased to announce
 that it recently signed a new letter of intent with Henry Walker Eltin, one of
 the largest contract mining firms in the world, under terms that are similar
 to those of its original letter of intent with Washington Group.
     Quarter-end working capital totaled $50.4 million, with $54.4 million in
 cash and cash equivalents.  At this point, with its major pre-development
 expenditures completed, the Company expects to reduce its expenditures
 significantly to a more normalized level of only several million dollars per
 year net of interest and other income.  It is expected that the Company will
 end 2001 with well in excess of $40 million in cash and cash equivalents and
 total debt of less than $2.0 million.  The Company believes that its low burn
 rate, combined with little outstanding debt and a substantial cash position,
 as well as its 100 percent ownership of one of the most attractive large-scale
 mining projects in the world, places it in an unusually favorable competitive
 position.  It is the Company's intent to make full use of its strong financial
 position and asset base and, with counsel from its advisors, to be
 opportunistic in its development strategies going forward in order to optimize
 the value of the San Cristobal Project.
     Outside the San Cristobal District, Apex has approximately 100 holdings
 that are combined into 19 major property groups spread over 670,000 acres
 primarily located in the traditional silver-producing regions of Central and
 South America.  In January, the Company announced its plans to create SilEx,
 which is intended to be a premier exploration vehicle focused on the discovery
 of precious metal deposits as well as polymetallic deposits containing
 precious metals.  While the structure of the new company is still being
 developed, it is anticipated that the new company will raise independent
 financing from equity or debt sources.  Subsequently, options for SilEx may
 include at some future time taking the company public on its own when the
 environment improves for exploration valuations and/or spinning it off to
 shareholders.
 
     This press release contains forward-looking statements within the meaning
 of Section 27A of the Securities Act and Section 21E of the Exchange Act.
 Forward-looking statements are inherently subject to risk and uncertainties,
 many of which cannot be predicted with accuracy, and some of which may not
 even be anticipated.
 
 
                           APEX SILVER MINES LIMITED
                      (Successor to Apex Silver Mines LDC)
                          An Exploration 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,
                                                 2001           2000
     Income
       Interest and other income                 $745         $1,735
     Expenses
       Exploration                              1,091          1,042
       Administrative                           1,469          1,363
       Amortization and depreciation               57             53
         Total expenses                         2,617          2,458
         Net loss                             $(1,872)         $(723)
     Net loss per Ordinary Share-basic
      and diluted                              $(0.05)        $(0.02)
     Weighted average Ordinary Shares
      outstanding                          34,521,629     34,471,268
 
 
     SUMMARY BALANCE SHEET DATA               3/31/01       12/31/00
 
     Cash and cash equivalents                $54,357        $61,103
     Working capital                           50,431         57,284
     Property, plant and equipment (net)       82,537         77,352
     Notes payable                              3,479          3,600
     Shareholders' equity                     136,334        137,896
 
 

SOURCE Apex Silver Mines Limited
    DENVER, April 26 /PRNewswire/ -- Apex Silver Mines Limited (Amex:   SIL)
 today reported a loss of $1.9 million, or $0.05 loss per ordinary share for
 the first quarter of 2001, compared with a loss of $0.7 million, or $0.02 loss
 per ordinary share for the first quarter of 2000.
     During the first quarter of 2001, $5.2 million of project expenditures
 related to engineering and development activities were capitalized at the San
 Cristobal Project, the Company's wholly-owned, open-pit silver-zinc project in
 the Potosi district of southwestern Bolivia, for a total of $82.5 million
 through March 31, 2001.  Apex expensed $1.1 million of exploration costs
 during the first quarter of 2001, including drilling expenses at the San Juan
 del Cordero property in northern Mexico and ordinary shares issued to acquire
 an interest in the El Zapote property in El Salvador.  Administrative
 expenses, primarily associated with the advancement of the San Cristobal
 Project and its financing, were $1.5 million for first quarter of 2001.
     During the first quarter of 2001, Apex Silver continued to make progress
 on its various negotiations related to key infrastructure items for San
 Cristobal including power for the Project and the port facilities, while also
 advancing the detailed project engineering and project permitting.  The
 Company announced that it had called for definitive power proposals from
 interested Bolivian and foreign power providers in late December as a final
 step in the competitive bidding process.  Several bids were received and Apex
 anticipates completing power supply negotiations for San Cristobal during the
 second quarter of 2001.  It is also working, together with the governments of
 Bolivia and Chile, on matters related to the design and use of the road from
 the Project to the Chilean port.  During the second quarter of 2001, the
 Company expects Kvaerner, its engineering, procurement and construction (EPC)
 contractor, to complete engineering documentation sufficient to initiate final
 EPC arrangements.  Once the infrastructure items and engineering documentation
 are completed, the Company and its advisors will be in a position to review
 construction and financing strategies for San Cristobal within the context of
 global financial and metals markets.
     In light of public statements regarding the financial condition of
 Washington Group International, the firm initially selected as mining
 contractor for San Cristobal, Apex evaluated various alternatives for its
 proposed contract mining arrangements.  The Company is pleased to announce
 that it recently signed a new letter of intent with Henry Walker Eltin, one of
 the largest contract mining firms in the world, under terms that are similar
 to those of its original letter of intent with Washington Group.
     Quarter-end working capital totaled $50.4 million, with $54.4 million in
 cash and cash equivalents.  At this point, with its major pre-development
 expenditures completed, the Company expects to reduce its expenditures
 significantly to a more normalized level of only several million dollars per
 year net of interest and other income.  It is expected that the Company will
 end 2001 with well in excess of $40 million in cash and cash equivalents and
 total debt of less than $2.0 million.  The Company believes that its low burn
 rate, combined with little outstanding debt and a substantial cash position,
 as well as its 100 percent ownership of one of the most attractive large-scale
 mining projects in the world, places it in an unusually favorable competitive
 position.  It is the Company's intent to make full use of its strong financial
 position and asset base and, with counsel from its advisors, to be
 opportunistic in its development strategies going forward in order to optimize
 the value of the San Cristobal Project.
     Outside the San Cristobal District, Apex has approximately 100 holdings
 that are combined into 19 major property groups spread over 670,000 acres
 primarily located in the traditional silver-producing regions of Central and
 South America.  In January, the Company announced its plans to create SilEx,
 which is intended to be a premier exploration vehicle focused on the discovery
 of precious metal deposits as well as polymetallic deposits containing
 precious metals.  While the structure of the new company is still being
 developed, it is anticipated that the new company will raise independent
 financing from equity or debt sources.  Subsequently, options for SilEx may
 include at some future time taking the company public on its own when the
 environment improves for exploration valuations and/or spinning it off to
 shareholders.
 
     This press release contains forward-looking statements within the meaning
 of Section 27A of the Securities Act and Section 21E of the Exchange Act.
 Forward-looking statements are inherently subject to risk and uncertainties,
 many of which cannot be predicted with accuracy, and some of which may not
 even be anticipated.
 
 
                           APEX SILVER MINES LIMITED
                      (Successor to Apex Silver Mines LDC)
                          An Exploration 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,
                                                 2001           2000
     Income
       Interest and other income                 $745         $1,735
     Expenses
       Exploration                              1,091          1,042
       Administrative                           1,469          1,363
       Amortization and depreciation               57             53
         Total expenses                         2,617          2,458
         Net loss                             $(1,872)         $(723)
     Net loss per Ordinary Share-basic
      and diluted                              $(0.05)        $(0.02)
     Weighted average Ordinary Shares
      outstanding                          34,521,629     34,471,268
 
 
     SUMMARY BALANCE SHEET DATA               3/31/01       12/31/00
 
     Cash and cash equivalents                $54,357        $61,103
     Working capital                           50,431         57,284
     Property, plant and equipment (net)       82,537         77,352
     Notes payable                              3,479          3,600
     Shareholders' equity                     136,334        137,896
 
 SOURCE  Apex Silver Mines Limited

RELATED LINKS

http://www.apexsilver.com