MERIDIAN GOLD INC
6-K, 2000-03-03
GOLD AND SILVER ORES
Previous: CARVER BANCORP INC, 8-K, 2000-03-03
Next: JP MORGAN SERIES TRUST, 497, 2000-03-03



                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 6-K

                            Report of Foreign Issuer
                      Pursuant to Rule 13a-16 or 15d-16 of
                      the Securities Exchange Act of 1934

For the Month of December, 1999               Commission File Number: 001-12003

                               MERIDIAN GOLD INC.
                              (Name of Registrant)

                          9670 Gateway Drive, Suite 200
                               Reno, Nevada 89511
                    (Address of Principal Executive Offices)

Indicate by check mark whether the registrant  files or will file annual reports
under cover of Form 20-F or Form 40-F.

                           Form 20-F [ ] Form 40-F [X]

Indicate by check mark whether the  registrant  by  furnishing  the  information
contained in this form is also thereby  furnishing  the  information  to the SEC
pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

                                 Yes [X] No [ ]

Meridian Gold Inc.                                  [LOGO OF MERIDIAN GOLD INC.
9670 Gateway Drive                                  APPEARS HERE]
Reno, Nevada 89511
Phone: 775-850-3777
Fax: 775-850-3733
<PAGE>

         MERIDIAN GOLD REPORTS FOURTH QUARTER AND FULL YEAR 1999 RESULTS
                      (All dollar amounts in U.S. currency)

Reno,  Nevada,  February 23, 1999 - Meridian  Gold Inc.  today  reported  fourth
quarter gold  production of 70,086 ounces at a cash cost of $133 per ounce.  For
the full year,  the Company  produced  241,661 ounces of gold at an average cash
cost of $163 per ounce,  outperforming  expectations  as both Jerritt Canyon and
Beartrack improved their efficiency. For Beartrack,  1999's full-year production
level set records,  both for the mine and for the State of Idaho.  Cash costs at
Beartrack  for the  quarter and the year set mine  records as well,  at $102 and
$140 per ounce, respectively.

The Company  recognized  a fourth  quarter  loss of $1.3  million,  or $0.03 per
share,  which  included a charge of  approximately  $5.7 million  relating to an
increase in the  Company's  reclamation  liability  for the Royal  Mountain King
mine.  This compares to last year's  fourth  quarter loss of $20.7  million,  or
$0.28 per share,  which included a non-cash  charge of $19.8 million taken as an
impairment of the Beartrack mine based on the depressed gold market.

At the end of the year,  Meridian Gold's cash balance was $20.8 million.  During
the year, the company drew only $30 million of its $50 million  credit  facility
with Standard Bank of London,  for use in the  construction of the El Penon mine
in northern  Chile.  The El Penon mine was  completed on time and on budget with
pre-commercial startup occurring on September 1, 1999.

Fourth Quarter Results
Sales for the quarter were $24.9  million,  versus  $21.3  million in the fourth
quarter of 1998,  due to  increased  production  levels.  Realized  gold  prices
averaged  $336 per ounce in the  fourth  quarter,  versus  $340 per ounce in the
prior year's quarter. During the quarter, the Company recognized $2.9 million in
put option revenue.  Cash  production  costs in the fourth quarter were $133 per
ounce, versus $210 per ounce in 1998.

At Beartrack, gold production in the fourth quarter was 38,667 ounces, with cash
costs of $102 per ounce.  This  compares to fourth  quarter 1998  production  of
31,594  ounces  at a cash cost of $209 per  ounce.  The  lower  1999 cash  costs
reflect a significant improvement in mining efficiency and an increase in grades
and  production.  Mining will be completed at Beartrack in the first  quarter of
2000.  Processing of the heap leach pads will  continue  throughout  2000,  with
anticipated  production of  approximately  60,000 ounces at a cash cost of about
$155 per ounce.

At Jerritt  Canyon,  the Company's share of production in the fourth quarter was
31,419  ounces of gold,  versus 25,705 in the prior year's  quarter.  Cash costs
were lower,  at $171 per ounce  versus $211 per ounce,  primarily as a result of
higher mill feed grades from the Dash open pit ore.

Exploration  spending in the fourth  quarter was $2.2 million,  compared to $3.8
million in the fourth quarter of 1998.

<PAGE>

Results for the Full Year
For the full year 1999, the Company  recorded a loss of $13.7 million,  or $0.19
per share,  compared to a loss of $39.2  million or $0.53 per share for the full
year 1998.

Sales for the full year,  including  put  option  revenues,  were $71.2  million
versus $65.7 million in 1998.  Gold  production  was higher,  at 241,661  ounces
versus 214,640  ounces,  while the average  realized gold price fell to $295 per
ounce from $307 per ounce.  Exploration  spending for the full year decreased to
$10.2 million from $13.1 million in 1998.

El Penon Mine Update
El Penon met the targets of its startup period, which ran from September 1, 1999
to December 31, 1999.  Gold  production  was 20,500 ounces,  mostly  obtained by
processing  lower grade open pit ores. All operating  costs and revenues  during
this period were capitalized. Commercial production began on January 1, 2000 and
the mine was officially  inaugurated on January 21, 2000 at a ceremony  attended
by the  President of the  Republic of Chile,  His  Excellency  Eduardo Frei Ruiz
Tagle.

2000 Outlook
Meridian expects to produce  approximately 410,000 ounces from its operations in
2000.  Meridian  expects to generate its first annual  profit as an  independent
entity in 2000.  Exploration  spending of $10.5  million has been  budgeted  for
2000,  with  approximately  $3.1 million of this earmarked for El Penon and $3.5
million slated for Jerritt Canyon. Additionally,  Barrick Gold Corporation plans
drilling  and  development  expenditures  of about  $2.7  million  at the  Rossi
property  as part of their  earn-in  requirement  under  the  terms of the joint
venture agreement.

Date of Annual and Special Meeting
Meridian Gold's Annual and Special Meeting of Shareholders  will be held at 4:00
p.m.  on Tuesday,  May 2, 2000 at the TSE  Conference  Centre  located on street
level of The  Exchange  Tower,  130 King Street West (NE corner of King and York
Streets), Toronto, Canada (business attire required).

The Record Date has been set at March 14, 1999. The Company's 1999 Annual Report
and Proxy Circular will be mailed to shareholders on or about March 24, 1999.

Publication of Reserves and Resources
Meridian is planning to publish  year-end 1999  reserves and resources  later in
the first quarter.

Meridian  Gold Inc. is a growth gold  business  with its common shares traded on
The Toronto Stock Exchange (MNG) and the New York Stock Exchange (MDG).

- -----------------------------------
Safe Harbor  Statement  under the United States  Private  Securities  Litigation
Reform  Act of  1995:  Statements  in  this  release  that  are  forward-looking
statements  are  subject  to  various  risks and  uncertainties  concerning  the
specific factors identified above and in the corporation's periodic filings with
the Ontario Securities  Commission and the U.S. Securities Exchange  Commission.
Such information  contained herein  represents  management's best judgment as of
the date hereof based on information  currently available.  The corporation does
not intend to update this  information  and disclaims any legal liability to the
contrary.

For further information,  please visit our website at  www.meridiangold.com,  or
contact:

     Wayne M. Hubert                Tel:  (775) 850-3730
     Investor Relations             Fax: (775) 850-3733
     Meridian Gold Inc.             E-mail: [email protected]

<PAGE>



                               Meridian Gold Inc.
                 Consolidated Condensed Statement of Operations
                    (in US$ millions, except per share data)

<TABLE>
                                                          Three Months
                                                        Ended December 31                Full Year
                                                       ------------------           -------------------
                                                        1999        1998             1999        1998
<S>                                                    <C>         <C>              <C>         <C>
Sales                                                  $ 24.9      $ 21.3           $ 71.2      $ 65.7

Costs and expenses
      Cost of sales                                      18.3        15.4             53.0        49.0
      Depreciation, depletion & amortization              5.4         4.7             18.9        22.1
      Exploration costs                                   2.2         3.8             10.2        13.1
      Selling, general and administrative
        expenses                                          1.1         2.4              5.0         7.2
      Other operating income                             (0.9)       (3.6)            (0.9)       (3.6)
      Impairment of mineral properties                    ---        19.8              ---        19.8
                                                          ---  -     ----              ---        ----
Total costs and expenses                                 26.1        42.5             86.2       107.6
                                                         ----        ----             ----       -----

Operating loss                                           (1.2)      (21.2)           (15.0)      (41.9)

Interest income                                           0.3         0.5              1.7         2.7

Gain (loss) on sale of assets                            (0.4)         ---            (0.4)         ---
                                                         -----         ---            -----         ---

Net loss (1)                                           $ (1.3)    $ (20.7)         $ (13.7)    $ (39.2)
                                                       =======    ========         ========    ========

Loss per common share                                  $(0.03)     $(0.28)         $ (0.19)    $ (0.53)
                                                       =======     =======         ========    ========

Weighted average common shares outstanding              73.7        73.6             73.7        73.6
                                                       =======     =======         ========    ========
</TABLE>
- -----------------------------------
(1)In the  fourth  quarter  of 1998,  the  Company  recognized  a $19.8  million
non-cash  charge  relating  to the  Beartrack  mine,  reflecting  the  continued
depressed gold market.

<PAGE>

                               Meridian Gold Inc.
                                 Operating Data
<TABLE>
                                                                        Three Months
                                                                      Ended December 31                    Full Year
                                                                    ---------------------             ----------------------
                                                                     1999          1998               1999           1998
<S>                                                                  <C>           <C>                <C>            <C>
Beartrack Mine
       Gold production - heap leach (ounces)                        38,667         31,594           132,726         110,289
       Tonnes mined (thousands)
           Ore                                                       1,089            996             4,671           4,088
           Waste                                                       755          1,679             3,511           7,163
                                                                    ------         ------            ------          ------
               Total                                                 1,844          2,675             8,182          11,251

Average heap leach grade (grams / tonne)                              1.10           0.86              1.10            0.80

Cash cost of production / ounce                                      $ 102          $ 209             $ 140           $ 220

Jerritt Canyon Joint Venture
       Gold production (Meridian Gold's 30% share, ounces)
           Milling                                                  31,419         25,705           108,935         104,351

       Tonnes mined (100%, thousands)
           Ore                                                         358            303             1,238             897
           Waste                                                       667          3,270             7,777          13,954
                                                                    ------         ------            ------          ------
               Total                                                 1,025          3,573             9,015          14,851

       Mill tonnes processed (100%, thousands)                         382            352             1,461           1,348
       Average mill ore grade (grams / tonne)                         9.43           7.95              8.60            8.71
       Mill recoveries                                               90.8%          94.1%             91.0%           90.9%

Cash cost of production / ounce                                      $ 171          $ 211             $ 191           $ 187


Totals
Ounces of gold produced                                             70,086         57,299           241,661         214,640
Ounces of gold sold                                                 74,344         62,203           242,413         212,947
Average realized price / ounce                                       $ 336          $ 340             $ 295           $ 307

Cash cost of production / ounce                                      $ 133          $ 210             $ 163           $ 204

</TABLE>

The  calculation  of  cash  costs  of  production   conforms  to  the  standards
recommended by the Gold Institute.

<PAGE>

                               Meridian Gold Inc.
                      Consolidated Condensed Balance Sheets
                                (in US$ millions)
<TABLE>
                                              December 31           December 31
                                                  1999                  1998
<S>                                           <C>                   <C>
Assets
Current Assets
      Cash and cash equivalents                  $ 20.8                $ 34.1
      Trade and other receivables                   5.1                   8.1
      Inventories                                   8.7                   6.3
      Other current assets                          0.9                   1.5
                                                  -----                 -----
Total current assets                               35.6                  50.0
                                                  -----                 -----

Property, plant and equipment, net                102.9                  57.5
Other assets                                        3.0                   2.6
                                                  -----                 -----

Total assets                                    $ 141.5               $ 110.1
                                                =======               =======


Liabilities and Shareholders' Equity
Current Liabilities
      Current portion of long-term debt          $ 12.0                 $ ---
      Accounts payable, trade and other             5.4                   3.9
      Accrued and other liabilities                17.1                   9.6
                                                  -----                 -----
Total current liabilities                          34.6                  13.5
                                                  -----                 -----

Long-term debt, net of current portion             18.0                   ---
Other long-term liabilities                        28.5                  23.1
Shareholders' equity                               60.4                  73.5
                                                  -----                 -----

Total liabilities and shareholders' equity      $ 141.5               $ 110.1
                                                =======               =======

</TABLE>

<PAGE>

                               Meridian Gold Inc.
                 Consolidated Condensed Statement of Cash Flows
                                (in US$ millions)

<TABLE>
                                                         Three Months
                                                      Ended December 31                    Full Year
                                                     --------------------            ------------------
                                                         1999        1998             1999        1998
<S>                                                    <C>        <C>              <C>         <C>
Net loss                                               $ (1.3)    $ (20.7)         $ (13.7)    $ (39.2)

Provision for depreciation, depletion and
      amortization                                        5.4         4.8             18.9        22.2
Gain (loss) on sale of assets                            (0.4)        ---              0.5         ---
Impairment of mineral properties                          ---        19.8              ---        19.8
Provision for reclamation, net of costs incurred
                                                          6.0         ---              6.8         1.0
Accrued pension cost                                      0.4         ---              0.3         ---
Changes in assets and liabilities, net                  (10.5)       (5.9)             8.3         ---
                                                        ------      ------           ------      ------

Net cash provided by (used in) operating
     activities                                          (0.4)       (2.0)             21.1         3.8
                                                        ------      ------           ------      ------

Cash flows from investing activities
      Capital spending                                   (6.8)      (14.9)           (64.9)      (23.7)
      Disposal of PP&E                                    0.2         0.1              0.3         0.1
                                                        ------      ------           ------      ------

Net cash used in investing activities                    (6.6)      (14.8)           (64.6)      (23.6)
                                                        ------      ------           ------      ------

Cash flows from financing activities
      Proceeds from long-term borrowings                  2.1                         30.0         0.1
      Proceeds from sale of common stock                  0.6         0.1              0.8       (0.5)
      Repayment of long-term debt                         ---         ---            (0.5)         ---
      Redemption of preferred stock                       ---         ---            (0.1)         ---
                                                        ------      ------           ------      ------

Net cash provided by (used in) financing
activities                                                2.7         0.1             30.2       (0.4)
                                                        ------      ------           ------      ------

Increase (decrease) in cash and cash
     equivalents                                         (4.3)      (16.7)           (13.3)      (20.2)

Cash and cash equivalents, beginning
     of period                                           25.1        50.8             34.1        54.3
                                                        ------      ------           ------      ------

Cash and cash equivalents, end of period               $ 20.8      $ 34.1           $ 20.8      $ 34.1
                                                       =======     =======          =======     =======
</TABLE>

<PAGE>

                                   SIGNATURE

     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned, thereunto duly authorized.

Date: December 31, 1999                MERIDIAN GOLD INC.

                                       By: /s/ Brian J. Kennedy
                                          --------------------
                                          Brian J. Kennedy
                                          President and Chief Executive Officer


Top Judgements:
Saskatoon Co-operative Association Limited v United Food and Commercial Workers | Aug 15, 2022
Old Lakeshore Inc. v City of Burlington | Sep 2, 2022
Tietz v. Affinor Growers Inc. | Sep 13, 2022
Efficiencyone (E1) | Sep 6, 2022
President's Choice Bank v. The Queen | Jul 19, 2022
First Global Data Ltd | Sep 15, 2022
Rayonier v Unifor, Locals 256 and 89 | Aug 11, 2022
Alberta Workers’ Compensation Appeals Commission | Decision No. 2021-0334 | Jul 14, 2022
Metrowest Developments Ltd v Flynn Canada Ltd | Sep 14, 2022
R. v. Cameron | Jul 15, 2022
Functional Servicing and Stormwater Management | Jul 28, 2022
101034761 Saskatchewan Ltd. v Mossing | Aug 24, 2022
Waste Control Services Inc. v International Union of Operating Engineers, Local No. 115 | Aug 12, 2022
RJM56 Holdings Inc. c. Bazinet | Aug 17, 2022
Sherwood v The Owners, Strata Plan VIS 1549 | Aug 9, 2022
WCAT Decision A2001487 | Aug 8, 2022
City of Hamilton v Ontario Water Employees’ Association | Sep 12, 2022
Century Services Corp. v. LeRoy | Jul 8, 2022
United Food and Commercial Workers, Local 175 v Metro Ontario Inc. | Jul 4, 2022
Langmaid’s Island Corporation v Lake of Bays | Sep 12, 2022
WCAT Decision A2102416 | Jul 22, 2022
Inquiry about McAbee Fossil beds | Jul 14, 2022
1088558 Ontario Inc. v. Musial | Sep 16, 2022
Biogen Canada Inc. v. Pharmascience Inc. | Aug 8, 2022
CIC Management Services Inc. v City of Toronto | Jul 21, 2022
Bonterra Energy Corp v Rosells’ Enterprises Ltd | Aug 31, 2022
WCAT Decision A2100606 | Aug 17, 2022
Leffler v Aaron Behiel Legal Professional Corporation | Jun 30, 2022
Espartel Investments v. MTCC No. 993 | Aug 19, 2022
Onespace Unlimited Inc. v. Plus Development Group Corp. | Sep 19, 2022
Professional Institute of the Public Service of Canada v. Canada Revenue Agency | Jun 23, 2022
Community Savings Credit Union v. Bodnar | Jul 29, 2022
Galperti SRL v F.I.A.L. Finanziaria Industrie Alto Lario S.P.A | Jun 30, 2022
WCAT Decision A2102352 | Jul 6, 2022
WCAT Decision A2102306 | Jul 25, 2022
Thrive Capital Management Ltd. v. Noble 1324 Queen Inc. | Jul 12, 2022
Questor Technology Inc v Stagg | Sep 8, 2022
MediPharm v. Hexo and Hwang | Jul 25, 2022
Immunization rates & vaccine hesitancy | Aug 17, 2022
Morabito v. British Columbia Securities Commission | Aug 12, 2022
Killeleagh v Mountain View County (Development Authority) | Aug 24, 2022
Quality Control Council v Stanley Inspection Canada Ltd. | Sep 9, 2022
British Columbia Investment Management Corporation | Aug 17, 2022
Abbeylawn Manor Living Inc. v Sevice Employees International Union, Local 1 Canada | Jul 5, 2022
Windrift Adventures Inc. et al. v. Chief Animal Welfare Inspector | Aug 18, 2022
Irani and Khan v. Registrar, Motor Vehicle Dealers Act | Jul 14, 2022
CP REIT Ontario Properties Limited v City of Toronto | Aug 12, 2022
Potash Corporation of Saskatchewan Inc. v. The Queen | Jul 7, 2022
Wong v. Pretium Resources Inc. | Jul 22, 2022
Labourers' International Union of North America, Local 183, Union v Mulmer Services Ltd. | Aug 5, 2022
City of Mississauga v. Hung | Sep 22, 2022
Secretary of the Ministry of Health v The New South Wales Nurses and Midwives' Association (28 September 2022)
Orewa Community Church v Minister for Covid-19 Response (16 August 2022)
Yeshiva College Bondi Limited v NSW Education Standards Authority (15 August 2022)
Moreland Planning Scheme Amendment C208more | Heritage Nominations Study | Panel Report | 15 July 2022
New Zealand Tegel Growers Association Incorporated | 2 August 2022
Farrow-Smith and Comcare (Compensation) | 26 September 2022
Evolution Fleet Services Pty Ltd v Allroads Plant Pty Ltd | 14 September 2022
656621 B.C. Ltd. v David Moerman Painting Ltd. | Sep 27, 2022
Fraser Valley Packers Inc. v Raiwal Holdings Ltd | Sep 26, 2022
Parmar v Tribe Management Inc. | Sep 26, 2022
DES Studio inc. c. Shuchat | Sep 26, 2022
Van-Kam Freightways Ltd. v Teamsters Local Union No. 31 | Sep 28, 2022
Rogers Communication Inc. v British Columbia | Sep 28, 2022
Alderbridge Way GP Ltd. | Sep 28, 2022

© 2022 IncJournal is not affiliated with or endorsed by the U.S. Securities and Exchange Commission