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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
___________________
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) of the
Securities Exchange Act of 1934
___________________
Date of Report (Date of Earliest Event reported)
February 25, 1998
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CAMPBELL RESOURCES INC.
(Exact name of registrant as specified in its charter)
CANADA
(Jurisdiction of Incorporation)
Commission File No. 1-8488
NONE
(I.R.S. Employer Identification No.)
Suite 1910
120 Adelaide Street West
Toronto, Ontario
Canada, M5H 1T1
(Address of Principal Executive Offices)
Registrant's telephone number, including area code: (416) 366-5201
___________________
NOT APPLICABLE
(Former name or former address
if changed since last report)
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Item 5 Other Events
On February 25, 1998, Campbell Resources Inc. (the "Company"
or "Campbell") announced its financial results for the fiscal
year ended December 31, 1997, as follows:
FINANCIAL RESULTS
The impact of lower gold prices, decreased gold production
from the Santa Gertrudis Mine and a write-down in the carrying
value of natural resource properties resulted in Campbell
recording a loss of $40.4 million, or $0.27 per share for the
year ended December 31, 1997, compared to net income of $9
million ($0.06 per share in 1996). Excluding write-downs and
the closure costs of $31.7 million, there was a loss from
operations of $12.2 million in 1997 compared to income from
operations of $6.7 million in 1996.
Following the drop in gold prices in 1997, the Company
prepared a new life-of- mine plan for the Joe Mann Mine,
calculating mineable reserves based on a gold price of US$300
per ounce in 1998, US$325 per ounce in 1999 and US$375
thereafter. As a result of this new plan, the Company has
recorded a write-down of $28 million before taxes, or $25.7
million net of the drawdown of related deferred mining taxes.
Total gold production in 1997 was 113,000 ounces compared to
the 125,000 ounces produced in 1996. The decrease in 1997
production was attributable to lower grade material mined at
the Santa Gertrudis Mine and the cessation of mining
operations at Santa Gertrudis in early December.
Cash operating costs in 1997 were US$288 per ounce of gold
produced compared with US$252 per ounce a year earlier.
Campbell's realized gold revenue of US$336 per ounce in 1997
compared to realized gold revenue of US$396 in 1996. Campbell
currently has 45,000 ounces of gold hedged in 1998 at an
average price of US$327 per ounce.
As of December 31, 1997, Campbell had working capital of $49.0
million including cash and short-term deposits of $41.7
million. This compares with working capital of $65.5 million
and cash and short-term deposits of $55.3 million in 1996. As
a result of increased mining costs and decreased revenues from
gold sales, cash flow from operations before the change in
non-cash operating working capital decreased to $0.6 million
in 1997 compared to $21.4 million in 1996.
The program to deepen the No. 2 mine shaft by almost 1,100
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feet was completed in December on schedule and under budget.
The shaft now extends to a depth of more than 3,700 ft. below
surface. Lateral development to connect the ore and waste
pass systems will be completed by the first half of 1998.
Subsequent lateral development will be initiated on the six
new production levels.
Gold production at the Santa Gertrudis Mine of 39,200 ounces
was less than projected for 1997. Costs increased to US$333
per ounce. A decision was made to suspend mining operations at
Santa Gertrudis in December 1997 after attempts to find a
sufficient supply of easily mineable high-grade ore were
unsuccessful. Despite the suspension of mining activity, Santa
Gertrudis will continue to produce gold in 1998 as ore
presently on the pads continues to be leached. In 1998
Campbell expects Santa Gertrudis will produce approximately
12,000 to 15,000 ounces at a significantly lower cash
operating cost than in 1997.
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SIGNATURES
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, hereunto duly authorized.
CAMPBELL RESOURCES INC.
Per: /s/ LORNA D. MACGILLIVRAY
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Lorna D. MacGillivray
DATE: March 3, 1998 Vice President, Secretary and
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General Counsel
