SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 12b-25
SEC File Number 1-8542
CUSIP Number 278751102
NOTIFICATION OF LATE FILING
(Check one):
[ ] Form 10-KSB [ ] Form 11-K [ ] Form 20-F [X] Form 10-Q [ ] Form N-SAR
For Period Ended: September 30, 1997
Read Attached Instruction Sheet before Preparing Form. Please Print or Type.
Nothing in this Form shall be construed to imply that the Commission has
verified any information contained herein.
If the notification relates to a portion of the filing checked above, identify
the Item(s) to which the notification relates: N/A
PART I. - Registrant Information
Full Name of Registrant ECHO BAY MINES LTD.
Former Name if Applicable: None
Address of Principal Executive Office 6400 South Fiddler's Green Circle
(Street and Number) Suite 1000
City, State and Zip Code Englewood, Colorado 80111-4957
<PAGE>
PART II. - Rules 12b-25(b) and (c)
If the subject report could not be filed without unreasonable effort or expense
and the registrant seeks relief pursuant to Rule 12b-25(b), the following should
be completed. (Check box if appropriate.)
[X] (a) The reasons described in reasonable detail in Part III of this form
could not be eliminated without unreasonable effort or expense;
[X] (b) The subject annual or semiannual report/portion thereof will be filed
on or before the fifteenth calendar day following the prescribed due
date; or the subject quarterly report/portion thereof will be filed on
or before the fifth calendar day following the prescribed due date;
and
(c) The accountant's statement or other exhibit required by Rule 12b-25(c)
has been attached if applicable.
III. - Narrative
State in reasonable detail the reasons why the Form 10-K, 11-K, 20-F, 10-Q
or N-SAR or portion thereof could not be filed within the prescribed time
period.
IN CONNECTION WITH THE DIVISION OF CORPORATION FINANCE STAFF'S REVIEW OF
THE COMPANY'S REGISTRATION STATEMENT ON FORM S-3, CERTAIN OF THE COMPANY'S
SECURITIES EXCHANGE ACT FILINGS ARE CURRENTLY UNDER REVIEW BY THE STAFF. THE
COMPANY HAS BEEN ADVISED BY THE STAFF THAT IT MAY FILE THIS FORM 12B-25 PENDING
RECEIPT OF STAFF COMMENTS, WHICH IS EXPECTED IMMINENTLY.
IV. - Other Information
(1) Name and telephone number of person to contact in regard to this
notification.
(Name) (Area Code) (Telephone No.)
Ronald R. Levine, II (303) 892-7514
-2-
<PAGE>
(2) Have all other periodic reports required under Section 13 or
15(d) of the Securities Exchange Act of 1934 or Section 30 of the
Investment Company Act of 1940 during the preceding twelve months
or for such shorter period that the registrant was required to
file such reports been filed? If answer no, identify report(s).
[X] Yes [ ] No
(3) Is it anticipated that any significant change in results of
operations from the corresponding period for the last fiscal year
will be reflected by the earnings statements to be included in
the subject report or portion thereof?
[X] Yes [ ] No
If so: Attach an explanation of the anticipated change, both
narratively and quantitatively, and, if appropriate, state the
reasons why a reasonable estimate of the results cannot be made.
ECHO BAY MINES LTD.
(Name of Registrant as specified in charter)
has caused this notification to be signed on its behalf by the undersigned
thereunto duly authorized.
Date: November 14, 1997 By: /s/ Tom S. Q. Yip
------------------------------------
Name: Tom S. Q. Yip
Title: Controller and Principal
Accounting Officer
INSTRUCTION: This form may be signed by an executive officer of the registrant
or by any other duly authorized representative. The name and title of the person
signing the form shall be typed or printed beneath the signature. If the
statement is signed on behalf of the registrant by an authorized representative
(other than an executive officer), evidence of the representative's authority to
sign on behalf of the registrant shall be filed with the form.
-3-
<PAGE>
ATTACHMENT
On November 4, 1997, Echo Bay Mines Ltd. (the "Company") announced a net
loss of $327.5 million ($2.36 per share) for the third quarter of 1997. This net
loss included a special one-time restructuring charge of $309.8 million ($2.22
per share), following completion of a previously reported comprehensive review
of the carrying values of the Company's assets including four producing gold
mines and a portfolio of exploration properties, development projects and other
assets, in light of current market conditions. Before the restructuring
provision, the Company had a net loss from operations of $17.7 million ($0.14
per share) for the third quarter of 1997. A year ago, the Company had a third
quarter net loss of $42.4 million ($0.31 per share).
The restructuring provision is a non-cash charge. It reduces the cost basis
of the Company's assets on the consolidated balance sheet. There is no tax
effect; the amount is the same pre-tax and after-tax. Details of the non-cash
charges follow:
o $107.4 million write-down of the Company's investment in Santa Elina
Mines Corporation in Brazil to its current market value of $45.0 million.
o $50.0 million write-off of the Company's entire investment in the
Kingking copper-gold project in the Philippines.
o $127.0 million reduction in the carrying values of three producing mines
in the United States and Canada (McCoy/Cove, Lupin and Kettle River) as a result
of continuing low gold prices.
o $25.4 million to write down certain other investments and assets to
market value and to provide for estimated legal and restructuring expenses.
The third quarter 1997 net loss from operations of $17.7 million before the
restructuring provision was attributable to several factors. The Company's gold
production fell and silver production rose in the third quarter of 1997,
principally reflecting the processing of carbonaceous ores leaner in gold but
richer in silver at the McCoy/Cove mine. Company-wide quarterly gold production
totaled 177,502 ounces in the third quarter of 1997, down 19% from 218,043
ounces last year. Silver production rose 56% to 3,271,677 ounces from 2,092,987
ounces a year ago.
Cash operating costs rose 3% to $251 per ounce of gold produced in the
third quarter of 1997 compared to $243 in the third quarter of 1996, principally
reflecting the lower gold grades processed at the McCoy/Cove mine. Quarterly
results also reflect lower gold prices this year than a year ago. The average
price realized by the Company fell by $10 per ounce of gold sold in the third
quarter of 1997, to $380 per ounce this year from $390 a year ago. Third quarter
1997 revenue includes gains of $7.6 million from closing out the Company's gold
and silver forward sales positions earlier in the year. Gains from such
transactions are recognized in revenue in the periods in which the hedged gold
and silver had been scheduled for delivery.
-4-
