<PAGE>
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)
APRIL 6, 1998
Commission File Number 0-12207
PEGASUS GOLD INC.
(Exact name of registrant as specified in its charter)
Province of British Columbia None
State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
601 W. First Ave., Suite 1500, Spokane, Washington 99201-3282
(Address of principal executive offices) (Zip Code)
(509) 624-4653
(Registrant's telephone number, including area code)
------------
------------
<PAGE>
Item 5. OTHER MATTERS
On February 6, 1998, the Company announced that Michelle G. Viau has been
promoted to Vice President and Chief Financial Officer replacing Phillips S.
Baker, Jr. Mr. Baker left to join Battle Mountain Gold in March.
On March 10, 1998, the Company issued a press release announcing its ore
reserves and resources as of December 31, 1997, combined with a 1997 production
and exploration update.
On March 20, 1998, the Company filed its first monthly report with the U.S.
Bankruptcy Court in Reno, Nevada for the period from January 16, 1998 through
February 28, 1998.
Item 7. FINANCIAL STATEMENTS, PRO FORMA INFORMATION, AND EXHIBITS.
(a) Financial statements - not applicable.
(b) Pro forma financial information - not applicable.
(c) Exhibits:
(99.1) News Release issued by the Company dated February 6, 1998.
(99.2) News Release issued by the Company dated March 10, 1998.
(99.3) Financial Statements included in the monthly report filed
with the U.S. Bankruptcy Court on March 20, 1998
The entire monthly report as filed with the U.S. Bankruptcy
Court for the District in Nevada, in Reno, Nevada, also
includes:
- Schedule of Professional Fees
- Operating Statements
- Consolidating Statement of Operations
- Recapitulation of Cash Accounts
- Projected Cash Flows
- Consolidating Balance Sheet
- Accounts Payable Agings
- Payments to Secured Creditors
- Tax Liability/Insurance Coverage/Post-Petition Payments
- Narrative
- Trustee Fees
- Post-Petition Intercompany Statements
2
<PAGE>
FORM 8-K
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.
PEGASUS GOLD INC. (Registrant)
Date: April 6, 1998 By: /s/ Michelle G. Viau
----------------------------------
Michelle G. Viau
Vice President, Finance and Chief
Financial Officer
<PAGE>
EXHIBIT 99.1
<PAGE>
------------------------------------------------
NEWS RELEASE
------------------------------------------------
PEGASUS GOLD ANNOUNCES NEW CFO
SPOKANE, WA. - February 6, 1998 - Pegasus Gold Inc. (PGU - ME) announced
that MICHELLE G. VIAU has been promoted to Vice President and Chief Financial
Officer replacing Phillips S. Baker, Jr.. Mrs. Viau joined the Company in
October 1984 and has held a variety of financial positions including Tax
Manager, Assistant Controller, Controller, and most recently Treasurer. Mrs.
Viau has been a Certified Public Accountant since 1980 and prior to her
employment with the Company, Mrs. Viau worked as a public accountant for
Coopers & Lybrand.
Mr. Baker has informed the Company that he will be leaving Pegasus to join
Battle Mountain Gold in March.
"Micki's extensive experience with all the Company's financial affairs and
proven leadership and management capabilities will ensure a smooth transition
as Pegasus works to reorganize," stated Werner G. Nennecker, President and
Chief Executive Officer. "Phil has done a great job for the Company and we
wish him every success in the future," he concluded.
Statements in this release which are not historical data are forward looking
and involve a number of risks and uncertainties, including but not limited to
the price of gold and other commodities and currencies, production,
construction and permitting or regulatory delays, reserve estimation of
tonnage, grade and metallurgical recoveries, exploration success and reserve
growth, litigation, capital costs, and other risks that are detailed in the
Company's SEC filings.
Pegasus Gold Inc. is an international gold mining company, headquartered in
Spokane, Washington. The Company carries out exploration internationally
through offices located in Santiago, Chile; and Panama City, Panama. The
common shares of Pegasus are traded under the symbol PGU on the Montreal
Exchange. The common shares also trade over the counter in the United States
under the symbol PSGQF.
-30-
For further information, contact:
John W. Pearson
Vice President, Investor and Public Relations
509-624-4653
<PAGE>
EXHIBIT 99.2
<PAGE>
-------------------------------
News Release
-------------------------------
PEGASUS GOLD UPDATE
(all dollar amounts in this release are in US dollars)
SPOKANE, WA - March 10, 1998 - Pegasus Gold Inc. (PGU - ME; PSGQF - OTC B.B.)
reports that the Company has recalculated its ore reserves and resources as
of December 31, 1997 using a long-term gold price of $350 per ounce. All
reserve pits and stopes were redesigned based on $350 gold price
optimizations. The primary changes to the 1998 ore reserves are that Mt.
Todd has been reclassified as additional mineralization removing it from
proven and probable reserves because the asset is under Voluntary
Administration in Australia, the removal of Zortman from ore reserves since
the Extension Project is no longer economic at current prices, and the
elimination of Black Pine and Beal Mountain from all categories since both
sites are in closure. As a result of ore reserve reductions and the lower
gold price assumption used for calculating reserves, the Company expects to
record a reduction in the carrying values of its operating mines in the
fourth quarter of 1997.
The Company's proven and probable reserves declined to 1.2 million contained
ounces of gold during 1997 as a result of mining and the above noted changes.
At year-end 1997, total mineralized material increased to 2.4 million ounces
of contained gold, with the majority of the increase resulting from the
reclassification of the Mt. Todd, Zortman and Pullalli mines to this
category. At ongoing operations, mineralized material increased to 533,000
contained ounces of gold with the majority of the increase coming at Montana
Tunnels. During 1997, total additional mineralization decreased slightly to
5.1 million ounces of contained gold. Additions of 700,000 ounces at Florida
Canyon and 100,000 ounces at Diamond Hill were offset by reductions at
Montana Tunnels and Mt. Todd.
The Company calculated the proven and probable ore reserves using different
gold price scenarios. At $400 per ounce gold, the proven and probable
reserves at Florida Canyon, Montana Tunnels and Diamond Hill would increase 7
percent to 1.3 million contained ounces of gold, while at $300 per ounce
gold, the proven and probable reserves at Florida Canyon, Montana Tunnels and
Diamond Hill would decrease by 23 percent to 949,400 contained ounces of gold.
<PAGE>
1997 PRODUCTION AND EXPLORATION UPDATE
During 1997, the Company's six mines produced 469,952 ounces of gold at a
total cash cost of $308 per ounce, compared to 497,340 ounces at a total cash
cost of $301 per ounce a year earlier. During the fourth quarter of 1997,
the Company produced a total of 116,902 ounces of gold compared to 146,107
ounces in the fourth quarter of 1996. Total cash costs in the fourth quarter
of 1997 were $339 per ounce compared to $303 per ounce for the same period in
1996.
During the fourth quarter of 1997, operations ceased at both Beal Mountain
and Black Pine as ore deposits were mined out and the Mt. Todd Mine was
placed on care and maintenance.
The Company's ongoing operations include Florida Canyon, Montana Tunnels and
Diamond Hill which are expected to produce approximately 300,000 ounces of
gold at an average total cost of $250 per ounce in 1998.
Florida Canyon: Development and exploration activities in 1997 in the Radio
Tower East, Jasperoid Hill, Cone and Headwaters areas all added upside
resource potential. Exploration drilling at the Headwaters target now stands
at 22 holes totaling 3,316 meters. Favorable results received from drilling
in the northern portion of the target continue to indicate an up dip
expansion of mineralization from Radio Tower East. The best hole to date
penetrated 50.3 meters of oxide mineralization with a grade of 1.44 grams per
tonne (g/t) gold starting at 9.1 meters. Currently, all exploration and
development activity at Florida Canyon is directed toward developing and
increasing minable ore reserves.
Diamond Hill: The 1997 exploration program had encouraging drill results
within the North and Glory Hole Zones verifying that these zones continue to
depth. At the adjacent Blacksmith property Phase I drilling commenced and
eleven RC holes totaling 1,606 meters were completed by year-end. Initial
results were very encouraging. Four holes penetrated significant intervals
of high and low grade mineralization. One of the best holes, Hole 1 returned
two high grade zones averaging 7.6 meters grading 3.7 g/t gold and 15.2
meters grading 4.3 g/t gold contained within a lower grade envelope of 44.2
meters grading 1.05 g/t gold. Also, Hole 3 returned two high grade zones
averaging 3 meters grading 38.7 g/t gold and 12.2 meters grading 17.5 g/t
gold within a lower grade envelope of 41.2 meters 1.05 g/t gold. The gold
mineralization is associated with altered and pyritized volcanics defined by
a distinct geophysical IP anomaly approximately 700 meters long and 300
meters wide. Follow-up drilling is continuing.
Capira Dorada Project, Panama: Reconnaissance sampling was completed on
thirteen separate target areas throughout the concession. Based on these
results, seven different drill targets have been established. However, due
to the Company's current financial position, Pegasus has asked its partners
to suspend the Company's obligations for six months.
Brazil: Pegasus is in the process of joint venturing most of its properties
in Brazil. The Independencia property has been joint ventured with Placer
Dome who has commenced
<PAGE>
drilling to test for possible projections of the stockwork and sheeted vein
systems outside of the known mineralized area. The program is still in the
early stages and significantly more work will be completed on the joint
venture.
1998 PLANS
Overall, gold production in 1998 is expected to be approximately 300,000
ounces. Pegasus expects that total cash costs for 1998 will be $250 per
ounce. The Company anticipates that from existing operations gold production
could increase in 1999 to the 350,000 ounce level at a total cash cost of
$200 per ounce.
GOLD PRODUCTION
<TABLE>
<CAPTION>
1997a 1998e 1999e
MINE (ounces) (ounces) (ounces)
- ---------------- -------- -------- --------
<S> <C> <C> <C>
Florida Canyon............... 163,320 185,000 235,000
Montana Tunnels.............. 78,517 70,000 75,000
Diamond Hill................. 41,709 45,000 40,000
Mt. Todd..................... 100,300 -- --
Black Pine................... 44,080 -- --
Beal Mountain................ 30,740 -- --
Zortman...................... 11,286 -- --
-------- -------- --------
Total 469,952 300,000 350,000
-------- -------- --------
-------- -------- --------
</TABLE>
TOTAL CASH COST PER OUNCE
The total cash cost per ounce conforms to the Gold Institute Standards which
includes royalties. Montana Tunnels assumes zinc prices of $0.55 per pound and
silver prices of $5.00 per ounce in 1998 and 1999 in calculating by-product
credits.
<TABLE>
<CAPTION>
1997a 1998e 1999e
MINE ($/oz) ($/oz) ($/oz)
- --------------- ------ ------ ------
<S> <C> <C> <C>
Florida Canyon............... 323 285 230
Montana Tunnels.............. 258 170 90
Diamond Hill................. 261 225 235
Mt. Todd..................... 338 -- --
Black Pine................... 296 -- --
Beal Mountain................ 320 -- --
<PAGE>
1997a 1998e 1999e
MINE ($/oz) ($/oz) ($/oz)
- --------------- ------ ------ ------
<S> <C> <C> <C>
Zortman...................... 343 -- --
------ ------ ------
Average.................... $308 $250 $200
------ ------ ------
------ ------ ------
</TABLE>
At Florida Canyon, the Company has reviewed and changed the mining plan
significantly. During 1998, ore will be placed on the existing heap leach
pad resulting in expected gold production of 185,000 ounces at a total cash
cost of $285 per ounce. The new reserve model reduces the strip ratio
considerably resulting in a lower mining cost per tonne. Additionally,
mining costs improve due to efficiencies gained in shorter waste hauls, rock
characteristics improve and less working faces to maintain resulting in more
efficient operations. The overall capital required for the site has been
reduced because the Company intends to build an extension to the existing
heap leach pad as opposed to building a completely separate heap leach pad.
Engineering is underway on the design of an extension to the existing heap
leach pad eliminating approximately $10 million in capital expenditures
required for a new pad. For 1998, the Company is planning capital
expenditures of approximately $2.3 million at Florida Canyon.
Montana Tunnels and Diamond Hill are expected to produce approximately
115,000 ounces of gold combined during 1998. Processing of Diamond Hill ores
will be via truck haulage to Montana Tunnels with ongoing ore blending and
batch treatment at the Tunnels mill. The majority of Diamond Hill's ore will
come out of the North and Glory Hole Zones for 1998.
Zortman Extension Project
The Company has decided that it will not proceed with the Zortman Extension
Project and that it will proceed with the reclamation of the existing site.
Factors contributing to this decision include the IBLA's inaction on the appeal
of the Record of Decision (which effectively precludes work on the Extension
Project) and the recent recalculation of the ore reserves at $350 per ounce gold
which show that the Zortman Extension Project cannot support a $30 to $40
million capital investment necessary to construct the expansion project. The
Company feels that at current gold prices the Zortman Extension Project is
uneconomic at this time and will not proceed, therefore, a write-down will be
recorded in the fourth quarter of 1997.
1998 Exploration Program
The Company is planning a $4.3 million exploration program for 1998. The
majority of the exploration spending is planned at Florida Canyon and Diamond
Hill, which are targeted to continue to add to the reserve and resource base.
CHAPTER 11 UPDATE
Subsequent to the Company filing for protection under Chapter 11 on January
16, 1998, a Creditors' Committee has been formed. The committee consists of
nine creditors, of which three represent lenders under the revolving credit
facility, three represent convertible subordinated note holders and three are
trade creditors. The first meeting of creditors (the "341" meeting) was held
in Reno, Nevada on March 9, 1998.
<PAGE>
As previously reported, the Company has engaged workout specialists to assist
in preparation of a business plan and a plan of reorganization to restructure
the Company's obligations. The plan of reorganization will be submitted
later this year, but confirmation of a plan and consummation of it may be 9
to 15 months in the future. Pegasus management is committed to reorganizing
and emerging from Chapter 11 as an operating Company with the appropriate
capital structure in place producing gold from at least two or more mines.
Statements in this release which are not historical data are forward looking
and involve a number of risks and uncertainties, including but not limited to
the price of gold and other commodities and currencies, production,
construction and permitting or regulatory delays, reserve estimation of
tonnage, grade and metallurgical recoveries, exploration success and reserve
growth, litigation, capital costs, and other risks that are detailed in the
Company's SEC filings.
Pegasus Gold Inc. is an international gold mining company, headquartered in
Spokane, Washington. The Company carries out exploration internationally
through offices located in Santiago, Chile; and Panama City, Panama. The
common shares of Pegasus are traded under the symbol PGU on the Montreal
Exchange. The common shares also trade over the counter in the United States
under the symbol PSGQF.
Two tables follow
For further information, contact:
John W. Pearson
Vice President, Investor and Public Relations
509-624-4653
<PAGE>
PEGASUS GOLD INC.
GOLD RESERVES(1) AS OF DECEMBER 31, 1997
<TABLE>
<CAPTION>
Tonnage Grade Contained
(Tonnes (grams/ Ounces
Proven and Probable 000's) tonne) (000's)
- ------------------- ------- ------- ----------
<S> <C> <C> <C>
Florida Canyon............. 39,498 0.69 877
Montana Tunnels............ 17,589 0.55 308
Diamond Hill............... 198 8.10 51
------- ------- ----------
Total.................... 57,285 0.67 1,236
------- ------- ----------
------- ------- ----------
Mineralized Material
Florida Canyon............. 6,903 0.72 159
Montana Tunnels............ 18,603 0.57 343
Diamond Hill............... 110 8.76 31
------- ------- ----------
SubTotal................. 25,616 0.65 533
Mt. Todd(2)................ 23,190 1.27 949
Zortman(3)................. 22,026 0.58 410
Pullalli(4)................ 9,135 1.60 470
------- ------- ----------
Total.................... 79,967 0.92 2,362
------- ------- ----------
------- ------- ----------
Additional Mineralization
Florida Canyon............. 104,531 0.63 2,120
Montana Tunnels............ 14,043 0.52 233
Diamond Hill............... 645 7.89 164
------- ------- ----------
Sub Total................ 119,219 0.66 2,517
Mt. Todd(2)................ 43,191 1.14 1,581
Zortman(3)................. 53,269 0.54 919
Pullalli(4)................ 4,067 0.89 117
------- ------- ----------
Total.................... 219,746 0.73 5,134
------- ------- ----------
------- ------- ----------
</TABLE>
(1) Ore reserves are calculated using a $350 per ounce gold price(2) Mt. Todd
was placed in voluntary administration in Australia in December 1997
(3) The Company is not going ahead with the Zortman Extension at this time
(4) The Company may sell the Pullalli property
<PAGE>
PEGASUS GOLD INC.
OPERATIONS STATISTICS(1)
<TABLE>
<CAPTION>
Three Months Ended Twelve Months Ended
December 31 December 31
1997 1996 1997 1996
------- -------- -------- --------
<S> <C> <C> <C> <C>
FLORIDA CANYON
Production: Gold (Ounces)................. 35,196 64,513 163,320 183,176
Silver (Ounces)............... 28,178 34,397 146,567 104,684
Ore Mined tonnes (000's)................ 2,344 4,027 10,795 13,881
Cash Operating Cost............................. $363 $236 $310 $250
Total Cash Cost................................. $378 $256 $323 $266
Total Production Cost........................... $475 $353 $424 $342
MONTANA TUNNELS(2)
Production: Gold (Ounces)................. 35,761 24,849 120,226 81,558
Silver (Ounces)............... 154,208 231,331 796,003 921,512
Lead (Tons)................... 1,800 1,845 8,499 7,049
Zinc (Tons)................... 4,568 3,276 20,861 18,312
Ore Milled tonnes (000's)................ 1,066 1,232 4,823 5,006
Cash Operating Cost............................. $360 $367 $234 $286
Total Cash Cost................................. $372 $401 $259 $326
Total Production Cost........................... $433 $570 $373 $491
MT. TODD
Production: Gold (Ounces)................. 25,315 12,129 100,300 62,613
Silver (Ounces)............... 3,303 -- 11,968 --
Ore Milled tonnes (000's)................ 876 491 2,611 4,004
Cash Operating Cost............................. $322 $306 $338 $370
Total Cash Cost................................. $320 $306 $338 $371
Total Production Cost........................... $458 $826 $480 $553
ZORTMAN
Production: Gold (Ounces)................. 1,507 7,820 11,286 37,043
Silver (Ounces)............... 1,440 30,904 19,464 129,807
Ore Mined tonnes (000's)................ -- -- -- 126
Cash Operating Cost............................. $283 $300 $327 $309
Total Cash Cost................................. $302 $319 $343 $322
Total Production Cost........................... $465 $454 $503 $445
BEAL MOUNTAIN
Production: Gold (Ounces)................. 9,455 13,157 30,740 45,067
Silver (Ounces)............... 1,226 2,523 4,878 7,834
Ore Mined tonnes (000's)................ -- 473 672 1,718
Cash Operating Cost............................. $332 $352 $289 $339
Total Cash Cost................................. $365 $383 $320 $365
Total Production Cost........................... $449 $484 $407 $524
BLACK PINE
Production: Gold (Ounces)................. 9,668 23,639 44,080 87,883
Silver (Ounces)............... 3,205 6,121 16,204 30,995
Ore Mined tonnes (000's)................ 1,069 2,135 2,654 8,726
Cash Operating Cost............................. $302 $250 $276 $258
Total Cash Cost................................. $316 $276 $296 $284
Total Production Cost........................... $326 $311 $307 $320
CONSOLIDATED TOTALS
Production: Gold (Ounces)-100%............ 116,902 146,107 469,952 497,340
Silver (Ounces)............... 191,560 305,276 995,084 1,194,832
Lead (Tons)................... 1,800 1,845 8,499 7,049
Zinc (Tons)................... 4,568 3,276 20,861 18,312
Ore Mined/Milled tonnes(000's)................. 5,355 8,358 21,555 33,461
Cash Operating Cost............................. $327 $280 $292 $280
Total Cash Cost................................. $339 $303 $308 $301
Total Production Cost........................... $426 $440 $413 $409
</TABLE>
1 Cash Operating costs calculated include all operating costs at the mine
sites, but exclude royalties, production taxes and reclamation. Total cash
costs include royalties and production taxes, but exclude reclamation. Total
production costs include reclamation and depreciation, depletion and
amortization.
2 Includes production from Diamond Hill, net of by-product credits.
<PAGE>
EXHIBIT 99.3
<PAGE>
PEGASUS GOLD CORPORATION
AND
SUBSIDIARIES
MONTHLY REPORT
FINANCIAL STATEMENTS--INDEX
JANUARY 16 - FEBRUARY 28, 1998
ATTESTATION
CONSOLIDATED STATEMENT OF OPERATIONS, JANUARY 16, 1998--FEBRUARY 28, 1998
CONSOLIDATED STATEMENT OF CASH FLOWS, JANUARY 16, 1998--FEBRUARY 28, 1998
CONSOLIDATED BALANCE SHEET, FEBRUARY 28, 1998
<PAGE>
LETTERHEAD
March 19, 1998
ATTESTATION
I declare under penalty of perjury under the laws of the United States that
this report and the documents attached hereto are true and correct.
Executed on: March 19, 1998 /s/ MICHELLE G. VIAU
-------------- ----------------------------------
Spokane, Washington 99201 Michelle G. Viau
Vice President, Finance
Chief Financial Officer
/s/ M. VIAU
----------------------------------
Michelle G. Viau
<PAGE>
PEGASUS GOLD INC.
CONSOLIDATED STATEMENT OF OPERATIONS
JANUARY 16--FEBRUARY 28, 1998
<TABLE>
<S> <C>
Sales.............................................................................. $ 14,929
---------
Costs of Sales..................................................................... 12,092
Depreciation and amortization...................................................... 2,891
---------
14,982
---------
Gross profit....................................................................... (53)
---------
Operating expenses:
General and administrative...................................................... 755
Royalties....................................................................... 236
Exploration and evaluation...................................................... 565
Closure, remediation and related costs.......................................... 72
Property write-downs............................................................ 0
Restructuring charges........................................................... 30
---------
1,657
---------
Income(loss) from operations....................................................... (1,710)
---------
Other Income (expense):
Interest and other income........................................................ 165
Interest expense, net of amounts capitalized..................................... (1,572)
Acquisition costs................................................................ 0
Equity in net income (loss) of affiliates........................................ 0
Gain (loss) on disposition of assets............................................. (245)
---------
(1,652)
---------
Minority interest in earnings of subsidiary........................................ 0
---------
Income(loss) before income taxes................................................... (3,362)
Income tax provision (benefit)..................................................... 0
---------
Net Income(loss) ($3,362)
---------
---------
</TABLE>
NOTE: The consolidated statement of operations includes non-bankrupt
subsidiaries.
<PAGE>
PEGASUS GOLD INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
JANUARY 16--FEBRUARY 28, 1998
<TABLE>
<S> <C>
Operating activities:
Net income (loss)............................................................. $( 3,362)
Adjustments to reconcile:
Depreciation................................................................ 2,971
Amortization of debt issuance costs......................................... 109
Loss on sale of investments................................................. 331
Provision for closure, enviro., & legal..................................... 0
Payments for closure, enviro., & legal...................................... 0
Deferred items.............................................................. (368)
Other, net ................................................................. (489)
Change in receivables ...................................................... (4,276)
Change in Inventories ...................................................... 355
Change in accounts payable and accruals..................................... 6,022
Change in intercompany accounts............................................. 0
Change in other current assets.............................................. 10,001
--------
Net cash provided by operating activities..................................... 11,294
Investing activities:
Additions to property plant, and equipment, net............................... (170)
Translation adjustment Sale of property plant, and equipment.................. 0
Other, net.................................................................... 0
Purchase of investments....................................................... 0
Proceeds from maturity of short-term investments.............................. 0
Purchase of investment in subsidiary.......................................... 0
Proceeds from the sale of investments......................................... 0
---------
Net cash applied to investing activities........................................ (170)
---------
Financing activities:
Dividends paid................................................................ 0
Proceeds from issuance of common stock........................................ 0
Payments of obligations under capital lease................................... (56)
Proceeds from issuance of long-term debt...................................... 0
Payments of long term debt.................................................... 0
Debt Issuance costs........................................................... 0
---------
Net cash provided by (applied to) financing activities.......................... (56)
---------
Effect of foreign currency exchange rate changes................................ 0
---------
Net increase (decrease) in cash and cash equivalents............................ 11,068
Cash and cash equivalents, beginning of period.................................. 20,871
---------
---------
---------
Cash and cash equivalents, end of period........................................ 31,939
---------
</TABLE>
NOTE: This consolidated statement of cash flows includes non-bankrupt
subsidiaries.
<PAGE>
PEGASUS GOLD INC.
CONSOLIDATED BALANCE SHEET
AS OF FEBRUARY 28, 1998
ASSETS
<TABLE>
<S> <C>
Current Assets:
Cash and cash equivalents.................................. $ 4,672
Short-term investments..................................... 27,267
Due from sales of products................................. 18,126
Receivable from unconsolidated subsidiary.................. 5,813
Inventories................................................ 28,860
Other Current Assets....................................... 3,491
----------
Total current assets..................................... 88,230
Investments.................................................. 1,283
Property, plant and equipment, net........................... 93,857
Other Assets................................................. 7,011
----------
Total Assets............................................. $190,380
----------
----------
LIABILITIES
Liabilities subject to compromise............................ $ 23,634
Current Liabilities:
Accounts payable and other current......................... 6,234
Accrued salaries, wages, and benefits...................... 3,216
Mining taxes payable....................................... 4,283
Dividends Payable.......................................... 0
Current portion of capital lease obligations............... 3,891
----------
Total current liabilities................................ 17,623
----------
Long-term debt............................................... 167,230
Capital lease obligations.................................... 18,394
Accrued care & maintenance................................... 3,498
Deferred site closure and remediation........................ 87,440
Deferred revenue............................................. 0
Other deferred liabilities................................... 5,912
----------
Total Liabilities........................................ 323,731
----------
SHAREHOLDERS' EQUITY
Class A preferred stock, Series 1, C$10 par value:
Authorized--20,000,000 shares; none issued
Common stock no par value:
Authorized--200,000,000 shares; issued and
outstanding, 1996--41,092,342 shares and
1997--41,833,751 shares 428,810
Accumulated deficit.......................................... (561,155)
Foreign currency translation adjustment...................... (1,006)
Unrealized Gain/(Loss) on Available for Sale Investments..... 0
----------
Total shareholders' equity............................... (133,351)
----------
Total liabilities and shareholders' equity............... $190,380
----------
----------
</TABLE>
NOTE: This consolidated balance sheet includes the non-bankrupt
subsidiaries.
