<PAGE> 1
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2000
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ______________________ to _______________________
Commission file number 0-31986 (82-689)
---------------------------------------------------------
GLAMIS GOLD LTD.
- --------------------------------------------------------------------------------
(Exact name of Registrant as specified in its charter)
British Columbia, Canada None
- --------------------------------------------------------------------------------
(Jurisdiction of incorporation or organization)(IRS Employer Identification No.)
5190 Neil Road, Suite 310, Reno, Nevada 89502
- --------------------------------------------------------------------------------
(Address of Principal Executive Offices)
775-827-4600
- --------------------------------------------------------------------------------
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports) and (2) has been subject to such filing
requirements for the past 180 days. Yes X__ No _____.
The number of shares outstanding of the Registrant's common stock, as of May 9,
2000 was 69,962,832.
<PAGE> 2
GLAMIS GOLD LTD.
INDEX
<TABLE>
<CAPTION>
Page
----
<S> <C>
Part I Financial Statements
Item 1. Financial Statements 3
Consolidated Balance Sheets as at March 31, 2000 and
December 31, 1999 3
Consolidated Statements of Operations for the three months
ended March 31, 2000 and 1999 4
Consolidated Statements of Retained Earnings for the three months ended
March 31, 2000 and 1999 4
Consolidated Statements of Cash Flows for the three months ended
March 31, 2000 and 1999 5
Notes to Interim Consolidated Financial Statements 6
Item 2. Management's Discussion and Analysis of Financial Condition and Results of
Operations 9
Item 3. Qualitative and Quantitative Disclosures About Market Risk 13
Part II Other Information 15
Item 1. Legal Proceedings 15
Item 2. Changes in Securities 15
Item 3. Defaults Upon Senior Securities 15
Item 4. Submission of Matters to a Vote of Security Holders 15
Item 5. Other Information 15
Item 6. Exhibits and Reports on Form 8-K 15
Signatures 16
</TABLE>
[Part 1 - Item 1]
2
<PAGE> 3
CONSOLIDATED BALANCE SHEETS
(Expressed in thousands of U.S. dollars except per share amounts)
<TABLE>
<CAPTION>
MARCH 31, December 31,
2000 1999
(unaudited) (unaudited)
---------- ------------
<S> <C> <C>
ASSETS
Cash $ 46,840 $ 55,169
Other current assets (note 3) 15,052 14,084
--------- ---------
Current assets 61,892 69,253
Plant and equipment and mine development costs, net 98,917 88,900
Other assets 5,687 5,579
--------- ---------
$ 166,496 $ 163,732
========= =========
LIABILITIES
Current liabilities $ 7,058 $ 7,622
Long term liabilities 22,766 17,906
SHAREHOLDERS' EQUITY Share capital (note 5):
Authorized:
200,000,000 common shares without par value
5,000,000 preferred shares, Cdn$10 per share par value,
Issuable in Series Issued and fully paid:
69,962,832 (1999- 69,864,832) common shares 158,862 158,717
Contributed surplus 63 63
Retained earnings (deficit) (22,253) (20,576)
--------- ---------
136,672 138,204
--------- ---------
$166,496 $163,732
========= =========
</TABLE>
See accompanying notes to consolidated financial statements
Prepared by Management without audit
Approved by the Directors:
"signed" C. Kevin McArthur "signed" A. Dan Rovig
- -------------------------- ---------------------
C. Kevin McArthur A. Dan Rovig
Director Director
3
<PAGE> 4
Consolidated Statements of Operations
(Expressed in thousands of U.S. dollars, except per share amount)
<TABLE>
<CAPTION>
Three months ended March 31,
----------------------------
2000 1999
-------------- -------------
<S> <C> <C>
Revenue from production $ 15,364 $ 7,986
Cost of production 12,136 7,435
-------- ---------
3,228 551
-------- ---------
Expenses
Depreciation & depletion 3,018 2,107
Reclamation 199 121
Selling, general, administration 1,405 1,202
Exploration 846 647
-------- ---------
5,468 4,077
-------- ---------
Earnings (loss) from operations (2,240) (3,526)
Interest expense 7 542
Other (income) expense (533) (625)
-------- ---------
Earnings (loss) before income taxes (1,714) (3,609)
Provision for (benefit from) income taxes (37) (288)
-------- ---------
Net earnings (loss) $ (1,677) $ (3,321)
======== =========
Earnings (loss) per share $ (0.02) $ (0.07)
======== =========
</TABLE>
CONSOLIDATED STATEMENTS OF RETAINED EARNINGS
(DEFICIT)
(Expressed in thousands of U.S. dollars)
<TABLE>
<CAPTION>
Three months ended March 31,
----------------------------
2000 1999
----------- -------------
<S> <C> <C>
Retained earnings (deficit) beginning of period $(20,576) $ 709
Net earnings (loss) (1,677) (3,321)
Dividends -- --
-------- ----------
Retained earnings (deficit) end of period $(22,253) $ (2,612)
</TABLE>
4
<PAGE> 5
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in thousands of U.S. dollars)
<TABLE>
<CAPTION>
Three months ended March 31,
----------------------------
2000 1999
------------ -------------
<S> <C> <C>
OPERATING ACTIVITIES
Net earnings (loss) $ (1,677) $ (3,321)
Adjustment for items not affecting 3,217 2,699
Working capital
Net changes in non-cash (1,436) 1,879
Working capital
---------- --------
NET CASH PROVIDED BY (USED IN) OPERATIONS $ 104 $ 1,257
---------- --------
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES
Capital expenditures (8,820) (2,967)
Business acquisition 467 7,146
Other assets (226) 1,477
---------- --------
NET CASH FLOWS FROM INVESTMENT ACTIVITIES $ (8,579) $ 5,656
---------- --------
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES
Stock issues 146 143
Note payable -- 8,629
---------- --------
NET CASH FLOWS FROM FINANCING ACTIVITIES $ 146 $ 8,772
---------- --------
Increase (decrease) in cash (8,329) 15,685
Cash, beginning of period 55,169 26,170
---------- --------
Cash, end of period $ 46,840 $ 41,855
=========== ========
</TABLE>
5
<PAGE> 6
GLAMIS GOLD LTD.
Notes to Interim Consolidated Financial Statements
Three months ended March 31, 2000
1. GENERAL
In the opinion of management, the accompanying unaudited consolidated balance
sheet and consolidated statements of operations, consolidated statements of
retained earnings and consolidated statements of cash flows contain all
adjustments, consisting only of normal recurring accruals, necessary to present
fairly, in all material respects, the financial position of Glamis Gold Ltd.
(the "Company") as of March 31, 2000 and December 31, 1999 and the consolidated
results of its operations and its cash flows for the three months ended March
31, 2000 and 1999.
These unaudited interim financial statements should be read in conjunction with
the Company's audited consolidated financial statements and related footnotes
included in the Company's annual report filed on Form 10-K for the year ended
December 31, 1999. Certain of the comparative figures have been reclassified to
conform with the current period's presentation.
The financial statements are prepared in accordance with accounting principles
generally accepted in Canada which conform, in all material respects, with
accounting principles generally accepted in the United States, except as
described in note 7 hereof. All amounts are stated in U.S. dollars unless
otherwise specified.
2. ACQUISITION OF RAYROCK RESOURCES INC.
In March 1999, the Company completed the acquisition of 100% of the issued and
outstanding shares of Rayrock Resources Inc. ("Rayrock"), an Ontario
corporation. The Company issued 29,277,820 common shares and paid Cdn.
$52,883,007 (approximately U.S. $35.0 million) in connection with the
acquisition. The acquisition was accounted for as a purchase and accordingly the
comparative financial information for 1999 herein reflects the consolidated
position of the Company, including Rayrock, as at March 31, 1999 but only
includes the operating results of the acquired operations for the month of March
1999.
3. OTHER CURRENT ASSETS
Included in other current assets are the following inventories:
<TABLE>
<CAPTION>
(in thousands of dollars)
MARCH 31, December 31,
2000 1999
--------- ------------
<S> <C> <C>
Finished goods $ 4,427 $ 4,411
Work-in-progress 7,487 6,754
Supplies and spare parts 1,019 1,017
- ------------------------ --------- ------------
$ 12,933 $ 12,182
========= ===========
</TABLE>
6
<PAGE> 7
4. SHARE CAPITAL
<TABLE>
<CAPTION>
Three Months ended Three Months ended
March 31, 2000 March 31, 1999
- --------------------------------------- --------------- -------------------- ---------------- -----------------
# OF SHARES Amount (in 000's) # of shares Amount (000's)
- --------------------------------------- --------------- -------------------- ---------------- -----------------
<S> <C> <C> <C> <C>
Issued and fully paid:
Balance at beginning of period 69,864,832 $ 158,717 38,860,612 $ 109,587
Issued during the period:
For cash consideration under
The terms of Directors' and
Employee's stock options 98,000 146 219,000 143
Issued upon acquisition of Rayrock
(see note 2) -- -- 29,277,820 46,919
---------- ---------- ---------- ----------
Balance at End of Period 69,962,832 $ 158,862 68,357,432 $ 156,649
========== ========== ========== ==========
</TABLE>
5. SEGMENT REPORTING
As at March 31, 2000 and for the quarter ended March 31, 2000
(in thousands of dollars)
(a) Operating segments:
<TABLE>
<CAPTION>
Exploration and
Producing Mines Development
Gold *Copper Properties Corporate Total
- --------------------------------------- --------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
2000
Revenue $ 15,364 $ N/A $ -- $ -- $ 15,364
Earnings (loss) from operations $ 35 $ N/A $ -- $ (2,275) $ (2,240)
Net earnings (loss) $ 28 $ N/A $ -- $ (1,705) $ (1,677)
Identifiable assets $ 60,512 $ N/A $ 47,623 $ 58,361 $ 166,496
1999
Revenue $ 7,183 $ 803 $ -- $ -- $ 7,986
Earnings (loss) from operations $ (685) $ (949) $ -- $ (1,892) $ (3,526)
Net earnings (loss) $ (685) $ (949) $ (460) $ (1,227) $ (3,321)
Identifiable assets $ 68,007 $ 25,570 $ 43,851 $ 61,222 $ 198,650
- --------------------------------------- --------------- -------------- -------------- -------------- --------------
* The Company owned the IVAN copper mine from March-October 1999.
</TABLE>
*
(b) Geographic Information:
As at March 31, 2000 and for the quarter ended March 31, 2000
(in thousands of dollars)
<TABLE>
<CAPTION>
North America Central & South America Total
------------- ----------------------- -----
<S> <C> <C> <C>
2000
Revenue $ 15,364 $ -- $ 15,364
Earnings (loss) from operations $ (2,240) $ -- $ (2,240)
Identifiable Assets $ 132,719 $ 33,777 $ 166,496
North America Central & South America Total
------------- ----------------------- -----
1999
Revenue $ 7,183 $ 803 $ 7,986
Earnings (loss) from operations $ (2,260) $ (1,266) $ (3,526)
Identifiable Assets $ 168,406 $ 30,244 $ 198,650
</TABLE>
7
<PAGE> 8
6. INCOME TAXES
Effective January 1, 2000 the Canadian Institute of Chartered Accountants
changed the accounting standard relating to the accounting for income taxes. The
Company has adopted the new income tax accounting standard retroactively,
without restating the financial statements of any prior periods. As a result,
the Company has recorded an increase to plant and equipment and mine development
costs of $4.8 million to reflect the remaining net of tax adjustment on prior
years' purchase business combinations, and an increase to the future tax
liability, formerly the deferred tax liability, of $4.8 million as at January 1,
2000. As the mineral properties to which these adjustments relate are not yet in
production and accordingly, have not yet commenced being depleted, applying the
new income tax accounting standard had no effect on loss from operations in the
first quarter ended March 31, 2000 as compared to that determined by applying
the previous standard.
7. DIFFERENCES BETWEEN CANADIAN AND UNITED STATES GENERALLY ACCEPTED
ACCOUNTING PRINCIPLES
Accounting in these interim consolidated financial statements under Canadian and
United States generally accepted accounting principles is substantially the same
except for accounting for investments in equity securities. However, these
differences have no material effect on the amounts presented in the consolidated
financial statements as at March 31, 2000 or December 31, 1999, or for the three
months ended March 31, 2000 or 1999.
ITEM 2 MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
FINANCIAL REVIEW
Glamis Gold Ltd.'s (the "Company's") emphasis on cost-effectiveness continues to
show results as the Company's total cash cost of production of $231 per ounce
for the three months ended March 31, 2000 compares favorably with the $252 cash
cost per ounce recorded in the first quarter of 1999.
The Company continues to actively seek growth opportunities. Effective May 9,
2000 the Company acquired Cambior de Mexico S.A. de C.V. from Cambior Inc. for
$7.0 million in cash. The Company also acquired a crushing system intended by
Cambior for use at the Cerro San Pedro Project (50% owned by Cambior de Mexico)
for an additional $2.5 million.
In the first quarter of 1999 the Company acquired Rayrock Resources Inc.
("Rayrock") (refer to note 2 to the Financial statements). That acquisition
added three operating gold mines in Nevada to the Company with expected annual
output of over 100,000 ounces of gold to the Company's account.
As noted previously, the comparative financial statements of the Company reflect
the acquisition of Rayrock effective March 1999. Accordingly, the Company's
consolidated balance sheet includes the assets and liabilities of Rayrock as at
March 31, 1999. However, the Company's statement of operations for 1999 reflects
a complete three months for the Glamis operations, but only one month (March
1999) of the Nevada
8
<PAGE> 9
operations. Certain of the information provided below is not
reflected in the financial statements, but is provided to inform readers of the
performance of the various properties both prior to and subsequent to the
acquisition date.
The Company reported a loss for the three months ended March 31, 2000 of
$1.7 million ($0.02 per share) compared to a loss of $3.3 million ($0.07 per
share) in the first three months of 1999. Differences in all accounts are
directly attributable to the acquisition of Rayrock in 1999. The first quarter
2000 results reflect three full months of operations of the combined entity
whereas the 1999 first quarter contained only one month of combined operations.
Operationally, performance improved at all the Company's gold operations with
the exception of the Dee Mine. Ounces of gold produced increased from 24,559
during the first three months of 1999 compared to 52,779 in the first quarter
of 2000. Total cash costs dropped from $252 per ounce to $231 per ounce
respectively. Excluding the operations at the Dee Mine during the first
quarter, the average total cash cost of production for the Company was $180 per
ounce.
LIQUIDITY AND CAPITAL RESOURCES
The Company had working capital of $54.8 million at March 31, 2000, a decrease
of $6.8 million from December 31, 1999, as capital expenditures incurred in the
construction of San Martin increased. Long term liabilities were $22.8 million
at March 31, 2000, an increase of $4.9 million due to the change in accounting
for deferred taxes as discussed in note 6 of the consolidated financial
statements. The Company continues to have no long-term debt.
Capital expenditures totaled $8.9 million for the first quarter of 2000 compared
to $3.0 million during the same period in 1999. The San Martin Project
construction accounted for $7.7 million of the first quarter 2000 expenditures.
Plant and equipment additions at Rand ($0.5 million) and Marigold ($0.3 million)
were the other material items. First quarter 1999 capital expenditures were
$1.5 million for deferred stripping at Rand, $0.9 million at San Martin,
primarily for land acquisition and $0.3 million development expenditures at the
Imperial project. All capital expenditures were financed from the Company's
working capital.
During the first three months of 2000 the Company's operations provided
$0.1 million in cash compared to $1.3 million in cash provided during the first
quarter of 1999. Although the changes in all categories of working capital
reflect the acquisition of Rayrock, the most significant change was a use of
cash relating to increases in work-in-process inventory as a result of the
increased production. The Company's gold operations provided
$3.2 million in 2000 compared to $2.0 million during the first quarter of 1999.
The average price per ounce received for gold was the same ($292) in 2000 as in
1999 although the average market price for the quarter improved slightly ($290
average for the first quarter 2000 compared to $287 during 1999). Comparative
production highlights of the first three months of 2000 and 1999 respectively
are as follows:
PRODUCTION/REVENUE DATA
<TABLE>
<CAPTION>
GLAMIS GOLD LTD.
THREE MONTHS ENDED
------------------
MARCH 31, March 31,
2000 1999(1)
--------- ---------
<S> <C> <C>
Gold Ounces sold 52,779 24,559
Average revenue per ounce $ 292 $ 292
Average Market price per ounce $ 290 $ 287
Total cash cost per ounce $ 231 $ 252
Total production cost per ounce $ 292 $ 322
</TABLE>
(1) includes the results of the Nevada properties' operations for one month
March,1999.
9
<PAGE> 10
OPERATIONS REVIEW
MINE PRODUCTION
(Note: The Marigold, Dee and Daisy properties were acquired in March 1999 as
part of the Company's acquisition of Rayrock. See note 2 to the consolidated
financial statements.)
<TABLE>
<CAPTION>
THREE MONTHS ENDED Three months ended
March 31, 2000 March 31, 2000 March 31, 1999 March 31, 1999
MINE Total Cash cost Gold ounces Total Cash cost Gold ounces
of production produced of production produced
--------------- -------------- --------------- --------------
<S> <C> <C> <C> <C>
Picacho $ 180 389 $160 2,238
Rand $ 173 22,907 $256 11,900
Marigold (2) $ 196 13,521 (1) $242 15,907 (1)
Daisy $ 165 5,118 (1) $545 3,663 (1)
Dee $ 431 10,844 (1) $191 11,420 (1)
</TABLE>
(1) The Company's share of this production (March 1999 only) totals 4,344
ounces from Marigold, 1,305 ounces from Daisy and 4,130 ounces from Dee;
total cash costs are based on March 1999 only.
(2) Marigold is 66.7% owned.
RAND MINE, CALIFORNIA
The mine produced 22,907 ounces of gold for the three months ended March 31,
2000 compared to 11,900 ounces produced for a comparable period in 1999.
Management expects Rand to produce approximately 98,000 ounces of gold this
year. Total cash costs of production this quarter were $173 per ounce. The
planned major stripping program in 1999 negatively impacted ounces produced a
year ago, as well as resulting in a cash cost of $256 per ounce.
MARIGOLD MINE, NEVADA
The 66.7%-owned Marigold Mine produced 13,521 ounces of gold for Glamis' account
at a total cash cost of $196 per ounce. The final approval of the Marigold
Environmental Impact Statement (EIS) is anticipated in July or August. No
significant items were raised during the comment period. Marigold continues
their outstanding safety record with over 3,000 days worked without a lost time
accident.
DEE MINE, NEVADA
The Dee Mine produced 10,844 ounces in the first quarter, at a cash cost of $431
per ounce. The slow start of production from the Zone 5 area in the underground
mine negatively impacted the first month and a half of production this year.
Production from mid-February to the end of the quarter improved, but was not
enough to offset the deficit created in January.
DAISY MINE, NEVADA
Mining ended at Daisy in December 1999 and final reclamation of overburden
stockpiles and final leaching is underway. Gold ounces produced during the first
quarter of 2000 totaled 5,118 at a total cash cost of $165 per ounce. A decision
on proceeding with the nearby Reward and/or other satellite deposits will be
made later this year.
10
<PAGE> 11
PICACHO MINE, CALIFORNIA
Reclamation continues as well as final gold production. Only 389 ounces were
produced in the first quarter of 2000 and no further shipments are expected
until late in the fourth quarter. Several pieces of equipment from Picacho have
been refurbished and shipped to Honduras for use at the San Martin Project.
IMPERIAL PROJECT, CALIFORNIA
In April, in conjunction with commencing legal proceedings challenging a U.S.
Department of the Interior directive changing the rules governing the Company's
development of the Imperial Project, the Company requested that the Bureau of
Land Management ("BLM") temporarily suspend activities related to the Company's
permit pending the Court's review of the Interior Department's directive. See
Part II, Item 1 "Legal Proceedings".
SAN MARTIN PROJECT, HONDURAS
Construction is well underway: on schedule and on budget. Installation of
plastic lining at the leach pad and pond areas is currently being completed.
Earthwork for is underway for the plant, with construction expected to commence
in the second quarter. The Company continues to anticipate gold production in
the fourth quarter of the year.
EXPLORATION ACTIVITIES
Exploration expense was $0.8 million for the first quarter. Exploration was
focused at Marigold, where two drill rigs are exploring for additional reserves
in the immediate vicinity of current mining as well as testing sections 30 and
31, farther to the south. The current year's drilling program at Cerro Blanco
started the week of March 27, 2000. San Martin exploration work is awaiting the
arrival of a drill rig to test several gold anomalies near the mine.
OTHER MATTERS
The Year 2000 issue arose because many computerized systems use two digits
rather than four to identify a year. Date sensitive systems may recognize the
year 2000 as 1900 or some other date resulting in errors when information that
uses year 2000 dates is processed. Although the change in date has occurred, it
is not possible to be certain that all aspects of the Year 2000 issue that may
affect the Company have been fully resolved.
The Company completed its in-house compliance and supplier assessment in the
fourth quarter, 1999. Limited Year 2000-specific costs were incurred by the
Company. Hardware and software upgrades were planned based on business
requirements. Additional expenditures were not material. As of May 9, 2000, no
operational disruptions related to any Year 2000 systems problems have been
noted.
FORWARD-LOOKING STATEMENTS
Safe Harbor Statement under the United States Private Securities Litigation
Reform Act of 1995: Except for the statements of historical fact contained
herein, the information presented constitutes "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements, including but
11
<PAGE> 12
not limited to those with respect to the price of gold, the timing and amount
of estimated future production, costs of production, capital expenditures,
reserve determination, costs and timing of the development of new deposits, the
Company's hedging practices, permitting time lines, and the timing and possible
outcome of pending litigation involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or achievements of
the Company to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements. Such
factors include, among others, the actual results of current exploration
activities, conclusions of economic evaluations, changes in project parameters
as plans continue to be refined, future prices of gold, as well as those factors
discussed in the section entitled "Other Considerations" in the Company's Form
10-K. Although the Company has attempted to identify important factors that
could cause actual results to differ materially, there may be other factors that
cause results not to be as anticipated, estimated or intended. There can be no
assurance that such statements will prove to be accurate as actual results and
future events could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward-looking
statements.
ITEM 3 QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISK
As noted in Item 7 "Other Risks" in the Company's annual report on Form 10-K for
the year ended December 31, 1999, the Company is subject to changes in metals
prices, which directly impact its profitability and cash flows. Because the
markets in which the Company sells its products set prices outside of the
Company's control, the Company believes it is important to reduce the impact of
negative price movements through hedging transactions. These hedging
transactions utilize so-called "derivatives", the value of which is "derived"
from movements in the prices or rates associated with the underlying product.
The Company's hedging policy attempts to protect the Company's production by use
of forward contracts, spot deferred contracts, and options, in any combination.
The Company continuously monitors its position with respect to the unrealized
gains and losses and to ensure compliance with Company policy.
The Company also invests cash balances in short-term investments, which are
subject to interest rate fluctuations. Because these investments are in highly
liquid, short-term instruments, any impact of an interest rate change will not
be material.
The table below sets forth the positions of the Company at March 31, 2000 and
December 31, 1999. Fair values are estimated based on market quotations of the
variables based on expected maturity date.
12
<PAGE> 13
Positions as at December 31, 1999
(in thousands of U.S. dollars, except for per ounce amounts)
<TABLE>
<CAPTION>
Assets: Derivatives: Gold Put Gold Call Gold Call
Short-term Gold Forward Options Options Options
Investments Sales Purchased Sold Purchased
------------ ------------- --------- --------- ---------
Maturity 2000
<S> <C> <C> <C> <C> <C>
Investments $46,252 -- -- -- --
Ounces -- 65,000 36,000 19,000 --
Average
price per
ounce -- $288 $275 $275 --
Fair Market
Value $46,252 $(552) Nil $(417) --
Maturity 2001
Investments -- -- -- -- --
Ounces -- -- -- 60,000 --
Average
price per
ounce -- -- -- $295 --
Fair Market
Value -- -- -- $(824) --
</TABLE>
Positions as at March 31, 2000
(in thousands of U.S. dollars, except for per ounce amounts)
<TABLE>
<CAPTION>
Assets: Derivatives: Gold Put Gold Call Gold Call
Short-term Gold Forward Options Options Options
Investments Sales Purchased Sold Purchased
----------- ------------ --------- ---------- ---------
Maturity 2000
<S> <C> <C> <C> <C> <C>
Investments $41,485 -- -- -- --
Ounces -- 44,500 27,000 19,000 --
Average
price per
ounce -- $ 286 $ 275 $ 275 --
Fair Market
Value $41,485 $ (83) Nil $ (290) --
Maturity 2001
Investments -- -- -- -- --
Ounces -- 60,000 --
Average
price per
ounce -- -- -- $ 295 --
Fair Market
Value -- -- -- $ (94) --
</TABLE>
13
<PAGE> 14
PART 11 - OTHER INFORMATION
ITEM 1 LEGAL PROCEEDINGS:
On April 14, 2000, Glamis Imperial Corporation, a wholly-owned subsidiary of the
Company, commenced legal proceedings in the U.S. District Court in Reno, Nevada
challenging a U.S. Department of the Interior directive that substantially
changes the rules governing the Company's development of the Imperial Project.
The Company alleged that the new directive is contrary to governing federal
statutes and contrary to past administrative practice. The relief sought by the
Company includes a declaration that the new rules are unlawful and an order
restraining the Bureau of Land Management from implementing those rules in
connection with the Imperial Project. The Company cannot reasonably predict how
long before the case will be resolved or what will be its final outcome.
ITEM 2 CHANGES IN SECURITIES: None
ITEM 3 DEFAULTS UPON SENIOR SECURITIES: None
ITEM 4 SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS:
The Company held its Annual General Meeting on May 3, 2000. At the meeting,
1 shareholder holding 20,000 shares was present in person and 812
shareholders holding 47,389,926 shares were represented by proxy.
At the meeting, all shares present in person or by proxy voted in favor of
the following:
1) The election of Messrs. A. Dan Rovig, James R. Billingsley, Ian S.
Davidson, Jean Depatie, Leonard Harris, C. Kevin McArthur and Kenneth
F. Williamson to the Board of Directors.
2) The appointment of KPMG LLP, Chartered Accountants, as auditors of the
Company.
3) Approval of a Shareholders' Rights Plan.
4) Approval of an amendment to the Incentive Share Purchase Option Plan
making an additional 2,016,800 shares available for issuance under it.
ITEM 5 OTHER INFORMATION: None
ITEM 6 EXHIBITS AND REPORTS ON FORM 8-K:
a) Exhibits
Exhibit Number Exhibit Description
27 Financial Data Schedule
b) Reports on Form 8-K: None
Filed on March 8, 2000, regarding adoption of a
Shareholder Rights Plan dated February 25,2000
14
<PAGE> 15
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 thereunto duly authorized.
GLAMIS GOLD LTD.
(registrant)
Date: May 9, 2000 "signed" Cheryl S. Maher
-----------------------
CHERYL S. MAHER
Vice President Finance
Chief Financial Officer and Treasurer
(Principal Accounting and Financial Officer)
15
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM GLAMIS GOLD
LTD. CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED MARCH 31, 2000
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH 10-Q
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-START> JAN-01-2000
<PERIOD-END> MAR-31-2000
<CASH> 46,840
<SECURITIES> 0
<RECEIVABLES> 1,110
<ALLOWANCES> 0
<INVENTORY> 12,933
<CURRENT-ASSETS> 61,892
<PP&E> 195,684
<DEPRECIATION> 96,767
<TOTAL-ASSETS> 166,496
<CURRENT-LIABILITIES> 7,058
<BONDS> 0
0
0
<COMMON> 158,862
<OTHER-SE> (22,190)
<TOTAL-LIABILITY-AND-EQUITY> 166,496
<SALES> 15,364
<TOTAL-REVENUES> 15,364
<CGS> 12,136
<TOTAL-COSTS> 17,604
<OTHER-EXPENSES> (533)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 7
<INCOME-PRETAX> (1,714)
<INCOME-TAX> (37)
<INCOME-CONTINUING> (1,677)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,677)
<EPS-BASIC> (0.02)
<EPS-DILUTED> (0.02)
</TABLE>
