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
[ ] Definitive Additional Materials
[X] Soliciting Material Pursuant to Rule 14a-12
BATTLE MOUNTAIN GOLD COMPANY
(Name of Registrant as Specified In Its Charter)
N/A
(Name of Person(s) Filing Proxy Statement if other than the Registrant)
Payment of Filing Fee (Check the appropriate box):
[X] No fee required
[ ] Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and
0-11. N/A
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(2) Aggregate number of securities to which transaction applies: N/A
(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):
N/A
(4) Proposed maximum aggregate value of transaction: N/A
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[ ] 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>
[LOGO - BATTLE MOUNTAIN GOLD]
[GRAPHIC OMITTED]
NEWS
IMMEDIATE RELEASE
CONTACT: JOSEPH J. BAYLIS
(713) 653-7207 OR
[email protected]
WEB PAGE: WWW.BMGOLD.COM
BATTLE MOUNTAIN GOLD - THIRD QUARTER RESULTS
Houston, November 10, 2000 -- Battle Mountain Gold Company (BMG-NYSE;
BMC-TSE) today reported a third quarter consolidated net loss of $16.2 million,
or 7 cents per share, including non-cash environmental remediation charges and a
reclamation accrual together totaling $6.7 million and non-cash foreign currency
losses of $2.7 million. The third quarter loss compares with a net loss of $20
million, or 9 cents per share in the same period last year, which included a
non-cash environmental remediation charge of $9.5 million.
For the first nine months of 2000, the consolidated net loss was $28.9
million, or 13 cents per share, including the previously mentioned non-cash
environmental remediation charges and a reclamation accrual totaling $6.7
million and, non-cash foreign currency losses of $6.6 million. This compares
with a consolidated loss of $51.7 million or 22 cents per share in the same
period last year which included a $26.2 million loss related to Lihir Gold
Limited (LGL), and non-cash foreign currency gains of $6.9 million.
BMG President and Chief Operating Officer, John A. Keyes, said that the
average realized gold price increased to $287 per ounce in the first nine
months, compared with $272 in the same period of last year. Cash flow from
operations increased to $52.2 million for the period as a result of improved
gold prices, and production and changes in working capital. The Company's cash
position was $53.5 million at the end of the nine months, including $42.3
million in restricted cash, which is primarily related to the Company's loan
facility. Keyes noted that in light of the current low gold price and the
Company's current cash position Battle Mountain will defer capital projects and
exploration expenditures as needed to conserve cash. Production of 586,000
ounces and cash costs of $166 per ounce for the first nine months were slightly
better than planned and are expected to remain on target for the balance of the
year.
The increased reclamation accrual and environmental remediation charges
totaling $6.7 million reflect the current and projected expenditures required at
the San Luis mine, which was closed in 1997. The increase is required to cover
anticipated costs due to changes in the scope and timing of the remediation
project caused by investigating and responding to evolving regulatory issues
associated with the permitting of the discharge, the unanticipated redesign of
the water treatment plant, and the permitting, in-field modification and
construction of a stormwater diversion and conveyance system.
<PAGE>
In addition, Keyes said that the Company's previously announced merger
with Newmont Mining Corporation is expected to be completed around year-end
following customary regulatory approvals and approval by Battle Mountain Gold
shareholders. Noranda Inc., which owns 28 percent of Battle Mountain Gold, has
agreed to vote its shares in favor of the merger.
DEVELOPMENT
In highlighting the third quarter, Keyes also noted that, as previously
announced by the Company on October 4, 2000, development drilling during the
summer at the PHOENIX development project in Nevada continued to yield good
results. A table incorporating these results is attached. These results are not
included in the current reserve calculation, which now stands at 6.1 million
ounces. An updated reserve calculation will be reported at year-end.
Permitting activities are ongoing at Phoenix and Keyes noted that BMG
expects to receive a Draft Environmental Impact Statement early in 2001.
OPERATIONS
At the GOLDEN GIANT mine in Canada, commissioning of the deepened shaft
is expected to be completed in the first quarter of 2001. Cash costs at BMG's
50% joint venture interest in the VERA/NANCY mine at the Pajingo complex in
Queensland, Australia, remained below plan at $101 per ounce for the nine
months. At the HOLLOWAY mine in Canada, the expansion of the nearby
Holt-McDermott Mill is on budget and on time. The additional capacity will come
on stream early in 2001. Production and costs were on plan at KORI KOLLO in
Bolivia.
EXPLORATION
During the quarter, activity focused on surface drilling in the
Holloway area in Canada, Phoenix in Nevada, Llallagua in Bolivia and at the
Pajingo Complex in Australia.
Near Holloway, drilling on the Golden Highway claims has discovered a
new area of significant alteration and mineralization. The discovery hole
returned 0.104 opt Au over 105 ft., including, 0.327 opt Au over 13 ft.
Follow-up drilling is planned for the fourth quarter.
At VERA/NANCY, as previously announced on October 4, 2000, recent
drilling has focused on extending the limits of the Vera/Nancy ore horizon.
Drilling along the northerly extension returned positive results from the Anne
structure, 1,500 ft. north of the Cindy pit, including 0.34 opt Au/12.5 ft. and
0.43 opt Au/20 ft. Drilling along the southern extension has continued to expand
Vera South and a significant new structure called Jandam has been identified
1,200 ft. south of Vera South. Battle Mountain believes that the results are
very favorable. Recent drill holes include 1.12 opt Au/27 ft., 0.68 opt Au/48
ft. and 0.59 opt Au over 110 ft. Additionally, new drilling 2,200 ft. further
south has intersected a second new zone, the Zed structure, returning 0.53 opt
Au/113 ft.
<PAGE>
--------------------------------------------------------------------------------
SELECTED DRILL INTERCEPTS, JULY 15 - SEPTEMBER 25, 2000
--------------------------------------------------------------------------------
DRILL HOLE TARGET INTERCEPT (IN FEET) AU AG CU
--------------------------------------------------------------------------------
NO. TYPE AREA FROM TO WIDTH (OPT) (OPT) (%)
--------------------------------------------------------------------------------
IRON CANYON DEVELOPMENT
--------------------------------------------------------------------------------
9141 RC Wing Fault 225 270 45 0.119 1.81 0.14
--------------------------------------------------------------------------------
9142 RC Wing Fault 215 235 20 0.058 1.50 0.05
--------------------------------------------------------------------------------
PHOENIX PIT DEVELOPMENT
--------------------------------------------------------------------------------
8977 RC North Fortitude 485 505 20 0.076 0.29 0.06
--------------------------------------------------------------------------------
8980 RC North Fortitude 505 525 20 0.106 2.12 0.42
--------------------------------------------------------------------------------
9154 RC So. Battle Formation 925 1010 85 0.062 0.18 0.14
--------------------------------------------------------------------------------
9155 RC So. Battle Formation 295 315 20 0.659 0.19 0.01
--------------------------------------------------------------------------------
" " So. Battle Formation 410 450 40 0.203 0.39 0.23
--------------------------------------------------------------------------------
" " So. Battle Formation 735 785 50 0.044 0.23 0.14
--------------------------------------------------------------------------------
" " So. Battle Formation 1095 1135 40 0.046 0.39 0.41
--------------------------------------------------------------------------------
9156 RC So. Battle Formation 280 385 105 0.030 0.21 0.29
--------------------------------------------------------------------------------
" " So. Battle Formation 410 460 50 0.099 0.08 0.06
--------------------------------------------------------------------------------
" " So. Battle Formation 960 1025 65 0.062 0.51 0.50
--------------------------------------------------------------------------------
9158 RC So. Battle Formation 750 790 40 0.097 0.23 0.08
--------------------------------------------------------------------------------
8981 RC East Pit 140 160 20 0.003 0.37 0.65
--------------------------------------------------------------------------------
" " East Pit 280 380 100 0.005 0.13 1.08
--------------------------------------------------------------------------------
9163 RC East Pit 45 215 170 0.003 0.15 0.57
--------------------------------------------------------------------------------
9164 RC East Pit 5 90 85 0.003 0.27 0.47
--------------------------------------------------------------------------------
GREATER MIDAS DEVELOPMENT
--------------------------------------------------------------------------------
9129 RC Tomboy-Superior Hill 485 525 40 0.051 0.18 0.16
--------------------------------------------------------------------------------
9134 RC Tomboy-Superior Hill 180 295 115 0.045 0.20 0.09
--------------------------------------------------------------------------------
9185 RC Tomboy-Superior Hill 200 250 50 0.080 0.12 0.07
--------------------------------------------------------------------------------
9186 RC Tomboy-Superior Hill 0 20 20 0.138 0.23 0.14
--------------------------------------------------------------------------------
9187 RC Tomboy-Superior Hill 205 250 45 0.054 0.01 0.04
--------------------------------------------------------------------------------
" " Tomboy-Superior Hill 265 285 20 0.030 0.06 0.06
--------------------------------------------------------------------------------
9188 RC Tomboy-Superior Hill 350 395 45 0.044 1.27 0.61
--------------------------------------------------------------------------------
9189 RC Tomboy-Superior Hill 360 395 35 0.077 0.20 0.15
--------------------------------------------------------------------------------
9190 RC Tomboy-Superior Hill 300 365 65 0.070 0.34 0.13
--------------------------------------------------------------------------------
9399 RC Tomboy-Superior Hill 235 255 20 0.126 0.08 0.03
--------------------------------------------------------------------------------
9130 DDH North Midas 243 275 32 0.075 1.33 0.88
--------------------------------------------------------------------------------
9304 RC North Midas 90 190 100 0.019 0.43 0.14
--------------------------------------------------------------------------------
" " North Midas 275 420 145 0.119 1.78 0.78
--------------------------------------------------------------------------------
9506 RC North Midas 125 190 65 0.019 0.20 0.33
--------------------------------------------------------------------------------
9507 RC North Midas 0 35 35 0.026 0.12 0.17
--------------------------------------------------------------------------------
" " North Midas 70 125 55 0.060 0.87 0.11
--------------------------------------------------------------------------------
9505 RC Box Canyon 10 45 35 0.088 1.49 0.04
--------------------------------------------------------------------------------
" " Box Canyon 65 145 80 0.070 0.19 0.03
--------------------------------------------------------------------------------
" " Box Canyon 185 230 45 0.046 0.11 0.02
--------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
COPPER BASIN EXPLORATION
--------------------------------------------------------------------------------
4407 RC Empire-No. Lights 35 70 35 0.060 0.11 0.10
--------------------------------------------------------------------------------
" " Empire-No. Lights 220 260 40 0.042 0.65 0.09
--------------------------------------------------------------------------------
" " Empire-No. Lights 320 350 30 0.061 0.35 0.05
--------------------------------------------------------------------------------
" " Empire-No. Lights 380 400 20 0.096 0.78 0.05
--------------------------------------------------------------------------------
4413 RC Empire-No. Lights 40 150 110 0.045 0.29 0.23
--------------------------------------------------------------------------------
" " Empire-No. Lights 110 320 210 0.014 0.07 0.40
--------------------------------------------------------------------------------
4415 RC Empire-No. Lights 290 320 30 0.086 0.11 0.10
--------------------------------------------------------------------------------
" " Empire-No. Lights 470 505 35 0.001 0.05 1.95
--------------------------------------------------------------------------------
" " Empire-No. Lights 540 590 50 0.009 0.06 0.83
--------------------------------------------------------------------------------
4419 RC Empire-No. Lights 310 470 160 0.055 0.08 0.10
--------------------------------------------------------------------------------
4420 RC Empire-No. Lights 220 245 25 0.088 0.21 0.02
--------------------------------------------------------------------------------
" " Empire-No. Lights 255 295 40 0.030 0.07 0.21
--------------------------------------------------------------------------------
4421 RC Empire-No. Lights 160 200 40 0.005 0.10 0.23
--------------------------------------------------------------------------------
" " Empire-No. Lights 435 490 55 0.074 0.47 0.05
--------------------------------------------------------------------------------
4425 RC Empire-No. Lights 150 205 55 0.009 0.05 0.50
--------------------------------------------------------------------------------
" " Empire-No. Lights 320 390 70 0.051 0.10 0.08
--------------------------------------------------------------------------------
" " Empire-No. Lights 440 500 60 0.049 0.03 0.05
--------------------------------------------------------------------------------
PRIVATE SECURITIES LITIGATION REFORM ACT SAFE HARBOR STATEMENT
This press release includes forward-looking information and statements about
Battle Mountain Gold Company that are intended to be covered by the safe harbor
for "forward-looking statements" provided by the Private Securities Litigation
Reform Act of 1995. Forward-looking statements are statements that are not
historical facts. These statements include financial projections and estimates
and their underlying assumptions; statements regarding plans, objectives and
expectations with respect to future operations, products and services; and
statements regarding future performance. Forward-looking statements are
generally identified by the words "expect," "anticipates," "believes,"
"intends," "estimates" and similar expressions. The forward-looking information
and statements in this press release are subject to various risks and
uncertainties, many of which are difficult to predict and generally beyond the
control of Battle Mountain, that could cause actual results to differ materially
from those expressed in, or implied or projected by, the forward-looking
information and statements. These risks and uncertainties include those
discussed or identified in the public filings with the U.S. Securities and
Exchange Commission (SEC) made by Battle Mountain; risks and uncertainties with
respect to the effect of gold price and foreign exchange rate fluctuations, and
general economic conditions such as changes in interest rates and the
performance of the financial markets, changes in domestic and foreign laws,
regulations and taxes, changes in competition and pricing environments, the
occurrence of significant natural disasters, civil unrest and general market and
industry conditions.
ADDITIONAL INFORMATION
Information regarding the identity of the persons who may, under SEC rules, be
deemed to be participants in the solicitation of stockholders of Battle Mountain
in connection with its proposed merger with a wholly owned subsidiary of Newmont
Mining Corporation, and their interests in the solicitation, are set forth in a
Schedule 14A filed by Battle Mountain on June 21, 2000 with the SEC. Newmont and
Battle Mountain will be filing a definitive proxy statement/prospectus and other
relevant documents concerning the proposed transaction with the SEC. Battle
Mountain filed preliminary proxy materials with the SEC on September 22, 2000.
INVESTORS ARE URGED TO READ THE PRELIMINARY PROXY MATERIALS THAT ARE AVAILABLE
NOW AND ANY OTHER RELEVANT DOCUMENTS INCLUDING THE DEFINITIVE PROXY
STATEMENT/PROSPECTUS THAT ARE FILED WITH THE SEC BECAUSE THEY CONTAIN IMPORTANT
INFORMATION ON THE PROPOSED MERGER TRANSACTION. Investors are able to obtain the
documents free of charge at the SEC's website (www.sec.gov). In addition,
documents filed with the SEC by Newmont may be obtained free of charge by
contacting Newmont Mining Corporation, 1700 Lincoln Street, Denver, CO 80203,
(303) 863-7414. Documents filed with the SEC by Battle Mountain will be
available free of charge by contacting Battle Mountain Gold Company, 333 Clay
Street, 42nd Floor, Houston, Texas 77002, (713) 650-6400. INVESTORS SHOULD READ
THE DEFINITIVE PROXY STATEMENT/PROSPECTUS CAREFULLY WHEN IT BECOMES AVAILABLE
BEFORE MAKING ANY VOTING OR INVESTMENT DECISION.
<PAGE>
BATTLE MOUNTAIN GOLD COMPANY
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
------------ ------------
US$ MILLIONS, EXCEPT PER SHARE AMOUNTS 2000 1999 2000 1999
-------------------------------------- ---- ---- ---- ----
<S> <C> <C> <C> <C>
Sales $ 57.4 $ 54.6 $ 179.1 $ 161.8
------- ------- ------ ------
Costs and expenses
Production costs 37.0 35.8 112.6 107.4
Depreciation, depletion and amortization 15.0 16.6 47.7 46.8
Exploration, evaluation & other lease costs, net 3.2 3.9 10.6 13.1
Environmental remediation charge 5.6 9.5 5.6 9.5
Merger expense 1.7 - 2.4 -
General and administrative expenses 2.8 4.5 8.7 11.9
-------- -------- -------- -------
Total costs and expenses 65.3 70.3 187.6 188.7
------- ------- ------ ------
Operating Loss (7.9) (15.7) (8.5) (26.9)
Interest expense (3.7) (3.7) (11.2) (11.2)
Interest income 1.0 1.6 3.0 5.2
Equity in losses (income) & impairment of Lihir - 0.2 - (26.2)
Foreign currency exchange gain (loss), net (2.7) 0.1 (6.6) 6.9
Minority interest in net loss 0.2 - 1.0 4.0
Other income, net 0.2 0.5 0.3 1.3
-------- -------- -------- --------
Loss Before Income Taxes (12.9) (17.0) (22.0) (46.9)
Income tax benefit (expense) (0.1) 1.0 (1.1) 3.2
Mining income tax expense (1.3) (2.1) (0.2) (2.4)
-------- -------- -------- -------
Net Loss (14.3) (18.1) (23.3) (46.1)
Preferred dividends 1.9 1.9 5.6 5.6
-------- -------- -------- --------
Net Loss to Common Shares $ (16.2) $ (20.0) $ (28.9) $ (51.7)
======= ======= ======= ======
Loss per Common Share - Basic and Diluted $ (.07) $ (.09) $ (.13) $ (.22)
======== ======== ======== =======
Average Common Shares Outstanding for
Basic and Diluted Loss per Share Purposes 229.9 229.9 229.9 229.9
====== ======= ====== ======
</TABLE>
<PAGE>
BATTLE MOUNTAIN GOLD COMPANY
CONDENSED CONSOLIDATED BALANCE SHEET
(UNAUDITED)
SEPTEMBER 30, DECEMBER 31,
US$ MILLIONS 2000 1999
------------ ------------
(as restated)(a)
ASSETS
Current assets
Cash and cash equivalents $ 11.2 $ 67.5
Restricted cash 0.4 0.2
Accounts and notes receivable, net 10.7 36.7
Product inventories 11.4 8.7
Materials and supplies, net, at average cost 20.4 22.4
Marketable equity securities 36.9 -
Other current assets 7.2 7.7
-------- --------
Total current assets 98.2 143.2
-------- --------
Investments
Investment in Lihir - 68.4
Other investments 12.1 10.6
-------- --------
Total investments 12.1 79.0
-------- --------
Restricted cash 41.9 40.0
Property, plant and equipment, net 275.0 299.6
Other assets 4.1 6.7
-------- --------
Total Assets $ 431.3 $ 568.5
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Current maturities of long-term debt $ 10.6 $ 2.6
Debt due upon disposal of Lihir 30.0 30.0
Accounts payable 16.3 16.0
Income and mining taxes payable 16.7 16.7
Other current liabilities 22.2 23.6
-------- --------
Total current liabilities 95.8 88.9
Long-term debt 155.1 176.8
Deferred income and mining taxes 55.4 64.5
Other liabilities 57.7 54.5
-------- --------
Total Liabilities 364.0 384.7
Minority interest 4.5 65.1
Shareholders' equity 62.8 118.7
-------- --------
Total Liabilities and Shareholders' Equity $ 431.3 $ 568.5
======== ========
(a) Restated to include bullion and bullion settlements as components of
accounts and notes receivable, which is a more widely accepted practice, as
opposed to cash and cash equivalents as previously presented.
<PAGE>
BATTLE MOUNTAIN GOLD COMPANY
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
NINE MONTHS ENDED
SEPTEMBER 30
US$ MILLIONS 2000 1999
------------ ---- ----
(as restated)(a)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (23.3) $ (46.1)
Adjustments to reconcile net loss to net cash flows from
operating activities:
Depreciation, depletion and amortization 47.7 46.8
Environmental remediation charge 5.6 9.5
Deferred income and mining taxes (5.8) (2.8)
Equity in losses and impairment of Lihir 26.2
-
Foreign currency exchange loss (gain), net 6.6 (6.9)
Change in working capital accounts, net 26.3 9.1
Other, net (4.9) (5.2)
-------- -------
Net Cash Flows Provided by Operating Activities 52.2 30.6
-------- -------
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (34.8) (37.3)
Crown Butte liquidating dividend to minority shareholders - (11.0)
Proceeds from sale of assets 1.5 11.3
Effects on cash of the Niugini Mining and Lihir merger (54.7) -
Other, net (1.4) (2.9)
-------- -------
Net Cash Flows Used in Investing Activities (89.4) (39.9)
-------- -------
CASH FLOWS FROM FINANCING ACTIVITIES
Debt repayments (15.1) (30.8)
Decrease in short-term borrowings - (14.9)
Cash dividend payments (5.6) (5.6)
Increase in restricted cash (2.0) (32.0)
Other, net - 0.1
-------- -------
Net Cash Flows Used in Financing Activities (22.7) (83.2)
-------- -------
Effect of Exchange Rate Changes on Cash 3.6 1.4
-------- -------
Net Decrease in Cash and Cash Equivalents (56.3) (91.1)
Cash and cash equivalents at beginning of period, as restated 67.5 156.9
-------- -------
Cash and Cash Equivalents at End of Period $ 11.2 $ 65.8
======== =======
</TABLE>
(a) Restated to include bullion and bullion settlements as components of
accounts and notes receivable, which is a more widely accepted practice, as
opposed to cash and cash equivalents as previously presented.
<PAGE>
BATTLE MOUNTAIN GOLD COMPANY
SUPPLEMENTAL INFORMATION - (UNAUDITED) (1)
(Data reflects BMG attributable interests, except as noted)
(Ounces in thousands)
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
------------ ------------
2000 1999 2000 1999
---- ---- ---- ----
<S> <C> <C> <C> <C>
GOLDEN GIANT
Gold ounces recovered 82 94 255 258
Silver ounces recovered 6 9 18 16
-------------------------------------------------------------------------------------------------------------------
Cost per Gold Ounce Produced
Cash production costs $ 145 $ 126 $ 148 $ 147
Depreciation, depletion and amortization 67 64 66 65
Reclamation and mine closure costs 6 3 6 3
----- ----- ----- -----
Total production costs $ 218 $ 193 $ 220 $ 215
-------------------------------------------------------------------------------------------------------------------
KORI KOLLO (88% Interest)
Gold ounces recovered 63 61 181 187
Silver ounces recovered 155 150 453 516
-------------------------------------------------------------------------------------------------------------------
Cost per Gold Ounce Produced (2)
Cash production costs $ 191 $ 196 $ 203 $ 191
Depreciation, depletion and amortization 84 92 88 89
Reclamation and mine closure costs 7 11 6 11
----- ----- ----- -----
Total production costs $ 282 $ 299 $ 297 $ 291
-------------------------------------------------------------------------------------------------------------------
HOLLOWAY (84.65% Interest)
Gold ounces recovered 20 28 64 71
-------------------------------------------------------------------------------------------------------------------
Cost per Gold Ounce Produced
Cash production costs $ 223 $ 162 $ 216 $ 188
Depreciation, depletion and amortization 134 130 134 131
Reclamation and mine closure costs 3 2 3 2
----- ----- ----- -----
Total production costs $ 360 $ 294 $ 353 $ 321
-------------------------------------------------------------------------------------------------------------------
VERA/NANCY (50% Interest)
Gold ounces recovered 26 15 86 45
Silver ounces recovered 20 11 65 35
-------------------------------------------------------------------------------------------------------------------
Cost per Gold Ounce Produced
Cash production costs $ 108 $ 112 $ 101 $ 116
Depreciation, depletion and amortization 32 39 40 36
Reclamation and mine closure costs 2 2 2 1
----- ----- ----- -----
Total production costs $ 142 $ 153 $ 143 $ 153
-------------------------------------------------------------------------------------------------------------------
===================================================================================================================
AGGREGATE DATA
Gold ounces recovered 191 198 586 561
Average price per gold ounce realized $ 283 $ 262 $ 287 $ 272
Silver ounces recovered 181 170 536 567
Average price per silver ounce realized $4.83 $ 5.26 $4.79 $5.20
-------------------------------------------------------------------------------------------------------------------
Weighted Average Cost per Gold Ounce Produced
Cash production costs $ 164 $ 152 $ 166 $ 164
Depreciation, depletion and amortization 73 80 76 79
Reclamation and mine closure costs 6 5 5 6
----- ----- ----- -----
Total production costs $ 243 $ 237 $ 247 $ 249
===================================================================================================================
</TABLE>
<PAGE>
BATTLE MOUNTAIN GOLD COMPANY
SUPPLEMENTAL INFORMATION - (UNAUDITED) (1)
(Data reflects BMG attributable interests, except as noted)
(Ounces in thousands)
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
------------ ------------
2000 1999 2000 1999
---- ---- ---- ----
<S> <C> <C> <C> <C>
AGGREGATE DATA (cont.)
Gold ounces recovered - 100% 200 207 611 587
Gold ounces sold - 100% 199 205 614 585
Gold ounces sold - BMG share 190 195 589 558
-------------------------------------------------------------------------------------------------------------------
Silver ounces recovered - 100% 202 190 598 637
Silver ounces sold - 100% 202 184 597 631
Silver ounces sold - BMG share 180 165 535 562
===================================================================================================================
</TABLE>
(1) Cash production costs are presented in accordance with guidelines
established by The Gold Institute. In addition to mining, milling and plant
level general and administrative expenses, cash production costs include
royalties, freight, smelting costs and allowances, and production taxes.
Credits for by-product silver and copper are offset against these cash
production costs.
(2) Royalties paid to the Bolivian government for the Kori Kollo mine are
treated as income tax for per ounce cost calculations and are therefore not
included in these cost calculations.
================================================================================
DERIVATIVES OUTSTANDING
AT SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
TOTAL OR
2000 2001 2002 2003 2004 AVERAGE
---- ---- ---- ---- ---- -------
<S> <C> <C> <C> <C> <C> <C>
Call options
Ounces 38 149 149 149 20 505
Average price per ounce $ 358 $ 358 $ 358 $ 358 $ 372 $ 359
Put options
Ounces 38 149 149 149 20 505
Average price per ounce $ 297 $ 297 $ 297 $ 297 $ 302 $ 297
Forwards
Ounces 9 38 38 38 2 125
Average price per ounce $ 316 $ 317 $ 317 $ 317 $ 326 $ 317
</TABLE>
================================================================================
The put options are the minimum price Battle Mountain will receive,
while the call options, having a higher price, allow participation in a rising
gold market. All ounces sold through the forwards will be at the stated prices.
The above derivatives have no margin requirements nor do they subject Battle
Mountain to lease rate exposure. The above ounces represent between 3% and 25%
of estimated production for each period from October 1, 2000 through March 31,
2004, with a weighted average of approximately 18% of total estimated production
for those periods combined.
