<PAGE> 1
SCHEDULE 14A
(RULE 14A-101)
INFORMATION REQUIRED IN PROXY STATEMENT
SCHEDULE 14A INFORMATION
PROXY STATEMENT PURSUANT TO SECTION 14(A) OF THE SECURITIES
EXCHANGE ACT OF 1934
Filed by the Registrant /X/
Filed by a Party other than the Registrant / /
Check the appropriate box:
/ / Preliminary Proxy Statement / / Confidential, for Use of the
Commission Only (as permitted by
Rule 14a-6(e)(2))
/ / Definitive Proxy Statement
/X/ Definitive Additional Materials
/ / Soliciting Material Pursuant to Section 240.14a-11(c) or
Section 240.14a-12
Battle Mountain Gold Company
- --------------------------------------------------------------------------------
(Name of Registrant as Specified in its Charter)
- --------------------------------------------------------------------------------
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
Payment of Filing Fee (Check the appropriate box):
/ / $125 per Exchange Act Rules 0-11(c)(1)(ii), 14a-6(i)(1), 14a-6(i)(2)
or Item 22(a)(2) of Schedule 14A.
/ / $500 per each party to the controversy pursuant to Exchange Act Rule
14a-6(i)(3).
/ / Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and
0-11.
(1) Title of each class of securities to which transaction applies:
- --------------------------------------------------------------------------------
(2) Aggregate number of securities to which transaction applies:
- --------------------------------------------------------------------------------
(3) Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee
is calculated and state how it was determined):
- --------------------------------------------------------------------------------
(4) Proposed maximum aggregate value of transaction:
- --------------------------------------------------------------------------------
(5) Total fee paid:
- --------------------------------------------------------------------------------
/X/ Fee paid previously with preliminary materials.
/ / Check box if any part of the fee is offset as provided by Exchange Act
Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid
previously. Identify the previous filing by registration statement number, or
the Form or Schedule and the date of its filing.
(1) Amount Previously Paid:
- --------------------------------------------------------------------------------
(2) Form, Schedule or Registration Statement No.:
- --------------------------------------------------------------------------------
(3) Filing Party:
- --------------------------------------------------------------------------------
(4) Date Filed:
- --------------------------------------------------------------------------------
<PAGE> 2
EXPLANATORY NOTE
The following materials will be used in connection with presentations
to be made by Battle Mountain Gold Company (the "Company") to certain large
institutional investors and analysts regarding the proposal to approve and
adopt the Combination Agreement effective as of March 11, 1996 by and between
the Company and Hemlo Gold Mines Inc. and the transactions contemplated
thereby, which is to be voted upon at the Company's annual meeting of
stockholders to be held July 15, 1996.
<PAGE> 3
[BATTLE MOUNTAIN GOLD COMPANY LOGO] [HEMLO GOLD LOGO]
CREATING NORTH AMERICA'S NEWEST
TOP TIER GOLD PRODUCER
The United States Private Securities Litigation Reform Act of 1995 provides a
"safe harbor" for certain forward-looking statements. Estimates of operating
data and other forward-looking statements in the following slides 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 and permitting matters. Actual results and time schedules could vary
significantly from the estimates presented.
<PAGE> 4
[BATTLE MOUNTAIN GOLD COMPANY LOGO] [HEMLO GOLD LOGO]
STRATEGIC RATIONALE
o Creating a Powerful, Internationally Competitive Gold Producer.
<PAGE> 5
[BATTLE MOUNTAIN GOLD COMPANY LOGO] [HEMLO GOLD LOGO]
STRATEGIC RATIONALE
o Fifth-largest Gold Company
o Cash Costs -- US $185/oz (1995)
o Cash Flow to Finance Exploration/Development Projects
o Two High Quality, Low Cost Mines
- Golden Giant
- Kori Kollo
o 8 Mines on 3 Continents
o 5 Quality Development Projects
o Complementary Expertise
o Exciting Exploration Portfolio
o $35 Million Exploration Budget
o "Top Tier" Platform for Future Growth
<PAGE> 6
[BATTLE MOUNTAIN GOLD COMPANY LOGO] [HEMLO GOLD LOGO]
NEW "TOP TIER" GOLD PRODUCER
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
3,285
|
2,400 -- |
| 2,210
| | 1,975
1,800 -- | | |
1996E Production | | | 1,530
Thousands of Ounces | | | |
1,200 -- | | | |
| | | | 1,000
| | | | | 920
600 -- | | | | | | 730
| | | | | | | 515 515
| | | | | | | | | 485
0 -- | | | | | | | | | |
ABX NEM PDG HM NEW GLD ECO CBJ PGU TVX
BMG
</TABLE>
Source: Salomon Brothers
<PAGE> 7
[BATTLE MOUNTAIN GOLD COMPANY LOGO] [HEMLO GOLD LOGO]
STRONG FINANCIAL POTENTIAL
<TABLE>
<CAPTION>
1st Qtr.
1995* 1996
Pro Forma Combined
--------- ---------
<S> <C> <C>
Revenues $386,142M $102,214M
Operating Income $ 37,925M $ 12,310M
Net Income to Common $ 22,477M $ 3,300M
Operating Cash Flow $144,392M $ 37,396M
</TABLE>
*Golden Giant Mine shut down for 20 weeks.
<PAGE> 8
[BATTLE MOUNTAIN GOLD COMPANY LOGO] [HEMLO GOLD LOGO]
OPERATING CASH FLOW 1995
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
$ MM
$550 -
$500 - $502
|
$450 - |
|
$400 - |
|
$350 - |
|
$300 - |
|
$250 - |
|
$200 - | $229
| |
$150 - | | $153 $152
| | | |
$100 - | | | | $144+ $105
| | | | | |
$ 50 - | | | | | | $67
| | | | | | |
$ 0 - | | | | | | |
ABX PDG HM NEM NEW AU ECO
BMG
</TABLE>
+ Pro forma
<PAGE> 9
[BATTLE MOUNTAIN GOLD COMPANY LOGO] [HEMLO GOLD LOGO]
LOW CASH PRODUCTION COSTS
Cash Costs Per Ounce (1995)
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Dollars Per Ounce
$400 - $350
$350 - $320 |
$300 - Avg. N.A. Cash Costs = $241/oz $250 $258 $264 $265 $270 $282 | |
$250 - ---------------------------------------------------------------------------------------------------
$200 - $170 $177 $185 $190 $195 $197 $204 $209 $235 | | | | | | | |
$150 - | | | | | | | | | | | | | | | | |
$100 - | | | | | | | | | | | | | | | | |
$ 50 - | | | | | | | | | | | | | | | | |
$ 0 - | | | | | | | | | | | | | | | | |
AEM ABX NEW TVX KGC GLD NEM PDG ECO CBJ HM AU CDE HL PGU RYO FRMG
BMG
</TABLE>
Source: Salomon Brothers
<PAGE> 10
[BATTLE MOUNTAIN GOLD COMPANY LOGO] [HEMLO GOLD LOGO]
WELL CAPITALIZED BALANCE SHEET
Financial flexibility and liquidity to support ongoing
exploration, development and acquisitions.
<TABLE>
<CAPTION>
Pro Forma
3/31/96
---------
<S> <C>
Cash and Equivalents $ 140 MM
Total Debt $ 196 MM
Net Debt $ 56 MM
Total Assets $1,158 MM
Stockholders' Equity $ 623 MM
Net Debt/Net Capitalization* 8%
</TABLE>
*Equal to (Total Debt less Cash)/(Total Debt Less Cash plus Stockholders'
Equity)
<PAGE> 11
[BATTLE MOUNTAIN GOLD COMPANY LOGO] [HEMLO GOLD LOGO]
FINANCIAL STRATEGY
o Maintain Strong Financial Core
o Hedging -- Purposeful and Limited
o New Project Financing -- Largely Internal
o 1995 Universal Shelf -- Utilized In Transaction
o Strong Cash Flow
<PAGE> 12
[BATTLE MOUNTAIN GOLD COMPANY LOGO] [HEMLO GOLD LOGO]
STRONG GOLD FUNDAMENTALS
o Significant Supply/Demand Gap
- 3,300 Ton Demand
- 2,300 Ton New Mine Supply
o Relatively Flat Production Curve
o Growing Asian Markets
o Currency Concerns in Major Markets
o Store of Value
<PAGE> 13
[BATTLE MOUNTAIN GOLD COMPANY LOGO] [HEMLO GOLD LOGO]
LONG LIFE RESERVE POSITION
Mine 12/31/95 (000s oz Contained AU)
------------------------------------------------------------
Golden Giant, Canada 3,535
Kori Kollo, Bolivia 3,065
Battle Mountain Complex, US* 2,185
Lihir, Papua New Guinea 1,260
Holloway, Canada 1,065
New World, US* 1,010
Crown Jewel, US* 835
San Cristobal, Chile 165
Other 220
------------------------------------------------------------
TOTAL 13,340
*Assumes Permitting and Approvals
<PAGE> 14
[BATTLE MOUNTAIN GOLD COMPANY LOGO] [HEMLO GOLD LOGO]
WELL DIVERSIFIED RESERVE BASE
[Chart indicating 7.7 mm oz. reserve base for BMG (42% Latin America, 18%
Austral Pacific, 40% North America), 13.3 mm oz. for New BMG (60% North
America, 24% Latin America, 10% Austral Pacific) and 5.6 mm oz. for HEM (100%
North America)]
<PAGE> 15
[BATTLE MOUNTAIN GOLD COMPANY LOGO] [HEMLO GOLD LOGO]
COMBINED OPERATIONS
[Map of Combined Operations in North America, indicating Operating Mines
and Development Projects]
<PAGE> 16
[BATTLE MOUNTAIN GOLD COMPANY LOGO] [HEMLO GOLD LOGO]
GOLDEN GIANT, ONTARIO (100%)
o Canada's Second Largest
Gold Producer
o Reserves 3.5 Million oz
[PICTURE]
o Annual Production
385,000 oz E
o Cash Costs $120 per ounce E
<PAGE> 17
[BATTLE MOUNTAIN GOLD COMPANY LOGO] [HEMLO GOLD LOGO]
HOLLOWAY, ONTARIO (86%)
o BMG's Newest Gold Mine
o Initial Production
3rd Qtr. 1996 E
[PICTURE]
o Reserves 1.1 Million oz*
o Annual Production
85,000 oz* E
*BMG Share
<PAGE> 18
CROWN JEWEL, WASHINGTON (54%)
o High Quality North American Project
o Reserves 0.8 Million oz*
[PICTURE]
o Final EIS Fall 1996
o Production Spring 1998+ E
o Annual Production 110,000 oz* E
o Cash Costs $180 per ounce
*BMG Share
+Assumes Timely Permitting
<PAGE> 19
[BATTLE MOUNTAIN GOLD COMPANY LOGO] [HEMLO GOLD LOGO]
PHOENIX, NEVADA (100%)
o Reserves 2.1 Million oz
o Final EIS Expected Early 1997
[PICTURE] o Production 2 H 1998*
o Annual Production 250,000 oz E
o Cash Costs $275 per ounce E
*Assumes Timely Permitting
<PAGE> 20
[BATTLE MOUNTAIN GOLD COMPANY LOGO] [HEMLO GOLD LOGO]
NEW WORLD, MONTANA (60%)
[PICTURE] o Reserves 1 Million oz*
o Draft EIS Summer 1996 E
o Annual Production
80,000 oz* E
* BMG Share, Assumes Permitting
<PAGE> 21
[BATTLE MOUNTAIN GOLD COMPANY LOGO] [HEMLO GOLD LOGO]
COMBINED OPERATIONS
[Map of Combined Operations in Latin America, indicating Operating Mines]
<PAGE> 22
[BATTLE MOUNTAIN GOLD COMPANY LOGO] [HEMLO GOLD LOGO]
KORI KOLLO, BOLIVIA (88%)
[PICTURE] o South America's 2nd
Largest Gold Mine-1995
o Reserves 3.1 Million oz*
o Annual Production
300,000 oz* E
o Cash Costs $185
per ounce E
o Young Exploration
District
*BMG Share
<PAGE> 23
[BATTLE MOUNTAIN GOLD COMPANY LOGO] [HEMLO GOLD LOGO]
COMBINED OPERATIONS
[Map of Combined Operations in Austral Pacific,
indicating Operating Mines and Development Project]
<PAGE> 24
[BATTLE MOUNTAIN GOLD COMPANY LOGO] [HEMLO GOLD LOGO]
LIHIR, PNG, (8.6%)
[PICTURE] o World's Largest Gold Resource
Under Development
o Reserves 1.3 Million oz*
o Initial Production Mid 1997 E
o Annual Production
50,000 oz* E
o Cash Costs $213
per ounce E
*BMG Share
<PAGE> 25
[BATTLE MOUNTAIN GOLD COMPANY LOGO] [HEMLO GOLD LOGO]
1996E PRODUCTION APPROXIMATELY
1.0 MILLION OUNCES OF GOLD
Attributable Cash Total
Mine Ounces AU (000s) Costs Costs
- ---- ---------------- ----- -----
Golden Giant, Canada 385 $120 $192
Kori Kollo, Bolivia 300 $182 $264
Reona/Basin, USA 80 $292 $364
San Luis, USA 75 $241 $331
Red Dome, Australia 40 $236 $328
San Cristobal, Chile 45 $278 $384
Silidor, Canada 30 $290 $346
Holloway, Canada(1) 25 $260 $336
Pajingo, Australia 20 $252 $358
- ------------------- ----- ---- ----
TOTAL 1,000 $185 $264
(1) Late 1996 start-up; does not reflect full scale costs which are expected to
be lower
<PAGE> 26
[BATTLE MOUNTAIN GOLD COMPANY LOGO] [HEMLO GOLD LOGO]
WELL DIVERSIFIED PRODUCTION*
[Chart indicating production of 1 Million oz for New BMG (5% Austral Pacific,
60% North America, 35% Latin America), and production percentages, by region,
for BMG (60% Latin America, 27% North America, 13% Austral Pacific) and HEM
(100% North America)]
* Estimated 1996
<PAGE> 27
[BATTLE MOUNTAIN GOLD COMPANY LOGO] [HEMLO GOLD LOGO]
PROJECTED GROWTH POTENTIAL
[Chart showing Current Year and Projected Annual Production From Projects In
Hand, in ounces, assuming permitting and no substantial legal appeals at Crown
Jewel, New World and Phoenix projects]
<PAGE> 28
[BATTLE MOUNTAIN GOLD COMPANY LOGO] [HEMLO GOLD LOGO]
CORPORATE VISION
FIVE PRIORITIES -- Unlock Value Through:
1. Growth
o Reserves
o Production
2. High Quality Reserves
3. Strong, Sustainable Cash Flow
4. Diversification of Production Profile
5. Strong Management
<PAGE> 29
[BATTLE MOUNTAIN GOLD COMPANY LOGO] [HEMLO GOLD LOGO]
GROWTH STRATEGY
o Exploration & Acquisition
o Targets: 1 Million Ounces Reserves
o Aggressive Reserve Replacement/Growth Goal
o $35 Million Exploration Budget
o Expanded Acquisition Effort
<PAGE> 30
[BATTLE MOUNTAIN GOLD COMPANY LOGO] [HEMLO GOLD LOGO]
MANAGEMENT STRUCTURE
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
Office of the Chief
Executive
|
|
Karl E. Elders
Chairman
Ian D. Bayer
President
|
_____________________________________________________|_______________________________________________________
| | | | | |
| | | | | |
| | R. Dennis O'Connell | | |
| | Executive VP Finance | | |
| | and Corporate Development | John A. Keyes |
Ian Atkinson | | | Senior VP |
Senior VP | | | Operations |
Exploration | __________|_________ | |
| | | | | |
| | | | | |
| | | | | |
Fred B. Reisbick Joseph L. Mazur Michael E. Power Michael C. Proctor Robert J. Quinn Joseph J. Baylis
VP Exploration VP Administration VP Corporate VP Finance VP and General President
and Planning Battle Mountain Counsel Battle Mountain
Communication Canada Australia
</TABLE>
<PAGE> 31
[BATTLE MOUNTAIN GOLD COMPANY LOGO] [HEMLO GOLD LOGO]
EXPLORATION STRATEGY
Philosophy
o Long-term Commitment
o Focused
o Geologically Driven
- Economic Model
- Proven Potential
o Sustained Effort
<PAGE> 32
[BATTLE MOUNTAIN GOLD COMPANY LOGO] [HEMLO GOLD LOGO]
EXPLORATION STRATEGY TARGETS
Gold Deposits that
o Generate Significant Long-term Cash Flow
o Produce at World Competitive Costs
o Add 10% to Reserve Base and Annual Production Profile
o Occur where Business and Political Climates Support
Exploration and Development
<PAGE> 33
[BATTLE MOUNTAIN GOLD COMPANY LOGO] [HEMLO GOLD LOGO]
EXPLORATION PROFILE
[Map of Exploration Profile depicting worldwide
Exploration Project Areas and Offices]
<PAGE> 34
[BATTLE MOUNTAIN GOLD COMPANY LOGO] [HEMLO GOLD LOGO]
AUSTRALIAN PROJECTS
[Map of Australian Projects, indicating BMA Projects
& Joint Ventures, BMA Offices, and Yilgarn Shield]
<PAGE> 35
[BATTLE MOUNTAIN GOLD COMPANY LOGO] [HEMLO GOLD LOGO]
VERA - NANCY GOLD DEPOSIT
[Map of Preliminary Long Section of Vera-Nancy Gold Deposit, in Australia,
indicating the Boundaries of Mineralization Defined by Drilling and the Possible
Mineralization Boundaries (Further Drilling Necessary)]
<PAGE> 36
[BATTLE MOUNTAIN GOLD COMPANY LOGO] [HEMLO GOLD LOGO]
DUNKWA PROPERTY - GHANA
[Map of Dunkwa Property, in Ghana, indicating Gold Mines, Gold Showings,
Tarkwaian Sediments, Upper Birimian Volcanics & Sediments, and Lower Birimian
Sediments]
<PAGE> 37
TUPIZA REGION, BOLIVIA
[Map of Tupiza Region, in Bolivia, indicating Concessions and Prospects]
<PAGE> 38
[BATTLE MOUNTAIN GOLD COMPANY LOGO] [HEMLO GOLD LOGO]
MOYAGEE PROJECT
[Map of Moyagee Project, in Australia, indicating areas containing Greenstone,
Granite, and Shear]
<PAGE> 39
[BATTLE MOUNTAIN GOLD COMPANY LOGO] [HEMLO GOLD LOGO]
IRIAN JAYA JOINT VENTURES
[Map of Irian Jaya Joint Ventures, in Indonesia, indicating Iriana COW/JV,
Mamberamo COW/JV, COW's Other Companies, and Operating Mines]
<PAGE> 40
[BATTLE MOUNTAIN GOLD COMPANY LOGO] [HEMLO GOLD LOGO]
VOLTA GRANDE PROJECT
[Map of Volta Grande Project, in Para State, Brazil, indicating Volta Grande
site and Serra Pelada (CVRD) Prospect]
<PAGE> 41
[BATTLE MOUNTAIN GOLD COMPANY LOGO] [HEMLO GOLD LOGO]
MEXICO
[Map of Deposits/Mines and Exploration Projects, in Mexico, indicating Major
Au/Ag Deposits/Mines, Minera BMG Exploration Projects, and HEM Exploration
Projects]
<PAGE> 42
[BATTLE MOUNTAIN GOLD COMPANY LOGO] [HEMLO GOLD LOGO]
HONDURAS PROJECTS
[Map of Honduras Projects, indicating Major Gold Deposits, BMG Projects,
Alluvium, Tertiary Volcanics, and Paleozoic Basements]
<PAGE> 43
[BATTLE MOUNTAIN GOLD COMPANY LOGO] [HEMLO GOLD LOGO]
NEVADA PROJECTS - 1996
[Map of 1996 Nevada Projects, indicating the BMG Complex, Gold Deposits,
and Hemlo Projects]
<PAGE> 44
[BATTLE MOUNTAIN GOLD COMPANY LOGO] [HEMLO GOLD LOGO]
HEMLO REGIONAL COMPILATION
[Map of Hemlo Regional Compilation, in Canada, indicating Coldwell Complex,
Granite, Ultramafic, Sediment, Moose Lake Fm., Felsic Volcanic, Int. Volcanic,
Mafic Volcanic, and the Property Outline]
<PAGE> 45
[BATTLE MOUNTAIN GOLD COMPANY LOGO] [HEMLO GOLD LOGO]
MATHESON AREA PROPERTIES
[Map of Matheson Area Properties, in Canada, indicating Granite, Mafic
Intrusive, Interm. Volcanic, Mafic Volcanic, Sediments and Active Properties]
<PAGE> 46
[BATTLE MOUNTAIN GOLD COMPANY LOGO] [HEMLO GOLD LOGO]
THE TRANSACTION
March 11, 1996, Battle Mountain and Hemlo Gold announced definitive agreement
to combine in a stock-for-stock transaction
o Fixed Exchange: 1.48 Battle Mountain Shares
per Hemlo Gold Share
o Pooling under U.S. GAAP - No "Goodwill"
o Exchangeable ("Mirror") Shares
o Offer subject to:
- BMG & HEM Shareholder Votes
- Regulatory and Court Approvals
o Name: Battle Mountain Gold Company
o Headquarters: Houston
<PAGE> 47
[BATTLE MOUNTAIN GOLD COMPANY LOGO] [HEMLO GOLD LOGO]
EXCHANGEABLE SHARE STRUCTURE
Investors have option of holding either BMG common stock or "exchangeable"
shares
o Not "Foreign Property" for Qualified Canadian Investors
o Tax-Free to Canadian and U.S. Shareholders
o Exchangeable at Holder's Option for BMG Common
o Demonstrated Technique in U.S./Canadian Mergers
- A Special Share in Hemlo with Economic Voting Rights Equivalents for Common
Shares of BMG
o Traded on the TSE under "BMG"
<PAGE> 48
[BATTLE MOUNTAIN GOLD COMPANY LOGO] [HEMLO GOLD LOGO]
TRANSACTION TIMETABLE
o June 11 -- Proxy Mailing to Shareholders Begins
o July 15 -- HEM Meeting/Shareholder Vote
o July 15 -- BMG Meeting/Shareholder Vote
o July 18 -- Final Ontario Court of Justice Ruling
o July 18-19 -- Anticipated Closing
o 100 Days Post Merger -- Focused Integration Program
<PAGE> 49
[BATTLE MOUNTAIN GOLD COMPANY LOGO] [HEMLO GOLD LOGO]
RELATIVE VALUATIONS
Firm Value/EBITDA
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
FV/EBITDA
60.x -
50.0x - 48.5x 48.3x
| | 40.3x
| | | 34.1x
40.0x - | | | | 32.1x
| | | | | 30.6x
| | | | | | 29.5x
30.0x - | | | | | | | 28.6x
| | | | | | | | 23.8x
| | | | | | | | | 19.8x 19.5x 18.3x 17.2x 16.6x 16.1x
20.0x - | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
10.0x - | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
0.0x - | | | | | | | | | | | | | | |
NEM RYO ECO AEM HL CDE TVX KGC PDG ABX CBJ NEW HM PGU GLD
BMG
</TABLE>
5/1/96 Firm Value = Market Cap. - (Cash and Equivalents) + Debt
Source: Salomon Brothers
<PAGE> 50
[BATTLE MOUNTAIN GOLD COMPANY LOGO] [HEMLO GOLD LOGO]
RELATIVE FIRM VALUES
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Firm Value+ / Implied Cash Value of Reserves*
2.25x -
2.00x - 1.90x
|
| 1.83x
1.75x - | |
| |
| |
1.50x - | | 1.39x 1.39x
| | | |
| | | | 1.16x
1.25x - | | | | | 1.07x
| | | | | | 0.95x
| | | | | | | 0.88x
1.00x - | | | | | | | | 0.85x
| | | | | | | | | 0.75x
| | | | | | | | | | 0.71x
0.75x - | | | | | | | | | | | 0.67x
| | | | | | | | | | | | 0.62x 0.61x
| | | | | | | | | | | | | |
0.50x - | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
0.25x - | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
0.00x - | | | | | | | | | | | | | |
PDG HL CBJ ABX NEM HM ECO NEW AU RYO PGU CDE GLD TVX
BMG
</TABLE>
+ 5/1/96 Firm Value = Market Capitalization - (Cash and Equivalents) + Debt
* Implied Cash Value = (Reserves x (Spot Gold - Cash Costs))
Source: Salomon Brothers
<PAGE> 51
[BATTLE MOUNTAIN GOLD COMPANY LOGO] [HEMLO GOLD LOGO]
RELATIVE MARKET VALUATIONS
Firm Value/Reserves
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Dollars Per Ounce
$400 -
$350 - $350
|
|
$300 - | $299
| | $274
| | |
$250 - | | |
| | | $225
| | | | $219
$200 - | | | | | $198
| | | | | | $174
| | | | | | | $150
$150 - | | | | | | | | $144
| | | | | | | | | $124
| | | | | | | | | | $122
$100 - | | | | | | | | | | | $109
| | | | | | | | | | | | $93
| | | | | | | | | | | | | $86
$ 50 - | | | | | | | | | | | | | | $55
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
$ 0 - | | | | | | | | | | | | | | |
PDG ABX FRMG HL NEM CBJ New ECO HM TVX GLD AU PGU CDE RYO
BMG
</TABLE>
Note: Firm Value at 5/1/96
Reserves at 12/31/95
Source: Salomon Brothers
<PAGE> 52
[BATTLE MOUNTAIN GOLD COMPANY LOGO] [HEMLO GOLD LOGO]
SUMMARY
The New BMG offers investors the opportunity to participate in a growth
oriented, "pure-play", top tier, international gold producer
o New BMG Valued Substantially Below Top-Tier Peers
o 1 Million Ounce Gold Producer
o Growth in Production
o Low Cash Production Costs -- US $185/oz
o Proven & Probable Reserves of Over 13 Million Ounces
o Well-Capitalized Balance Sheet
o Diversified, $35 Million International Exploration Program
o Highly Liquid Stock with Strong Institutional Ownership
o Provides a Canadian Security
<PAGE> 53
[BATTLE MOUNTAIN GOLD COMPANY LOGO] [HEMLO GOLD LOGO]
STRATEGIC RATIONALE
Creating a Powerful, Internationally Competitive
Gold Producer.
<PAGE> 54
[BATTLE MOUNTAIN GOLD COMPANY LOGO] [HEMLO GOLD LOGO]
OPERATING STRUCTURE
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
[] Company
<> Operating Mine
[] Battle Mountain
o Development Project Gold Company
|
|
_____________________________________________________|________________________________________________________________
| 54% | 100% | | | | | 88% | | | 50%
o Crown | | | | |
Jewel <> San | | | | [] Empresa Minera | | |
Luis | | Inti Raymi, S.A. | <> Vera
| | [] Battle Mountain | | | | Pajingo/
| Canada 100% | | 50.5% Cindy
| | | | | 100% | [] Niugini Mining
_________| | Kori Limited
| 100% | ______|______________|________ | <> Kollo | |
| | | | 100% | | |
| | | | | | | 85% | | |
<> Reona/ o Phoenix | <> Golden | o Holloway _________________|_________________
Basin | | Giant | | 100% | | 100% | 17% |
Leach | | | | |
| 60% | | | <> San | <> Red o Lihir
| | Cristobal Dome
| | | | |
o New <> Silidor 55%
World | | |
| | |
| | |
|_____________United States_______________| |_________Canada_____________| |____Latin America_____| |____Austral-Pacific____|
</TABLE>
