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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): June 27, 1996
BATTLE MOUNTAIN GOLD COMPANY
(Exact name of registrant as specified in its charter)
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<S> <C> <C>
Nevada 1-9666 76-0151431
(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation) File Number) Identification No.)
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333 Clay Street, 42nd Floor
Houston, Texas 77002
(Address of principal executive offices and zip code)
Registrant's telephone number, including area code: (713) 650-6400
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ITEM 5. OTHER EVENTS.
Battle Mountain Gold Company (the "Company") expects that its second
quarter 1996 earnings will be impacted by lower average realized gold prices,
continuing lower than anticipated head grades at the Kori Kollo mine in
Bolivia, and reduced gold sales resulting largely from an inability to ship all
of the production from the Company's 50.5% owned Red Dome mine in Australia.
Approximately 6,500 ounces of Red Dome gold production was not shipped,
remained in inventory and is expected to be shipped in the fourth quarter of
1996. These factors are expected to be somewhat offset by improved production
at the San Luis and Pajingo mines in Colorado and Australia, respectively, as
well as lower cash production costs at those properties, in the second quarter
of 1996 compared with the first quarter of 1996.
The previously reported lower than expected mill head grades at the
Kori Kollo mine experienced in the first quarter of 1996 have continued in the
second quarter. The lower head grades are expected to result in the Company's
attributable share of equivalent gold production from the Kori Kollo mine being
approximately 70,000 ounces for the second quarter of 1996, or 8,800 ounces
lower than had been budgeted for the period, and 142,000 ounces for the first
half of 1996, or 15,500 ounces lower than had been budgeted for the period.
Grades are continuing to average 2.14 grams per tonne, compared to a target of
2.34 grams per tonne. The lower than expected head grades are expected to
cause cash production costs at the Kori Kollo mine in the second quarter of
1996 to average $219 per equivalent ounce of gold, compared with a budgeted
level of $185 per equivalent ounce and actual cash production costs of $206 per
equivalent ounce in the first quarter of 1996. Since the end of the first
quarter of 1996, the Company has been conducting additional drilling and other
studies in an attempt to determine the reasons for the lower than expected head
grades and any potential impacts this may have on, among other things, the
estimated reserves at Kori Kollo.
Production is slightly ahead of budgeted levels at the San Luis and
Pajingo mines, and cash production costs at the San Luis mine are expected to
decline to $236 per equivalent ounce in the second quarter of 1996 compared
with $273 in the first quarter of 1996, while costs at the Pajingo mine are
expected to decline to $208 in the second quarter of 1996 compared with $292 in
the first quarter of 1996.
The United States Private Securities Litigation Reform Act of 1995
provides a "safe harbor" for certain forward-looking statements. Estimates of
results of operations and other forward-looking statements herein are based on
assumptions that the Company believes reasonable, but involve uncertainties as
to future gold prices, costs, ore grades, mining and processing conditions and
regulatory matters. Actual results could vary significantly from the estimates
presented.
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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.
BATTLE MOUNTAIN GOLD COMPANY
Date: June 27, 1996 By: /s/ R. DENNIS O'CONNELL
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R. Dennis O'Connell
Vice President, Finance and
Chief Financial Officer
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