CRYSTALLEX INTERNATIONAL CORPORATION (Amex: KRY; Toronto) today announced its second consecutive quarter of profitability and growth. Increased production, improved efficiencies and a successful hedge program combined to generate record levels of revenue and net income in the second quarter, which ended June 30, 1999. Sequentially, revenue increased 10% and net income increased 39% over the profitable first quarter of 1999. Net income for the second quarter ended June 30, 1999 was C$2,055,315 or C$0.06 per share (basic) on operating revenue of C$9,864,001. This compares with the 1998 second quarter loss of C$1,805,538 or C$0.05 per share (basic) on operating revenue of C$888,167. Total assets increased to nearly C$108 million compared with C$73 million in the second quarter of 1998, and shareholder's equity rose to more than C$71 million, versus C$70 million in the comparable year-earlier period. For the first six months ended June 30, 1999 operating revenue of C$18,848,984, generated a net income of C$3,536,272 or C$0.10 per share (basic). This represents a significant increase over the first six months of 1998 when the Company reported a loss of C$4,199,904 or C$0.12 per share on revenue of C$1,553,643. Operating cash flow for the quarter ending June 30, 1999 was C$4,902,368 or C$0.13 per share, and for the six months of 1999, operating cash flow was C$9,092,948 or C$0.24 per share. During the second quarter, gold production at the San Gregorio mine was 20,588 ounces, a 9% increase over the 18,905 ounces produced in the second quarter of 1998. The Company shipped 21,288 ounces in the second quarter 1999. Mining of ore and waste at the San Gregorio mine increased 21% from 16,790 tonnes per day in the second quarter of 1998 to 20,331 tonnes per day in the second quarter of 1999. These results were achieved with the mine operating 6 days a week compared to 7 days a week in the second quarter of 1998. Several training programs, improved human resource management and better blasting practices contributed to this increase in productivity. In the second quarter 1999 the Company achieved an average realized price per ounce of gold sold of approximately US$300, compared to the average spot market price for the quarter of approximately US$274 per ounce. The Company's hedging program continued to enhance the average price during the quarter. At June 30 1999, Crystallex's hedge program consisted of forward sales contracts of approximately 40% of San Gregorio future gold production with a price floor of US$310 per ounce. Commenting on the Company's profitable second quarter and first six months, Crystallex President and Chief Executive Officer, Marc J. Oppenheimer pointed to increased productivity at the San Gregorio Mine, which has lowered the total cash cost per ounce of gold from $268 in the second quarter of 1998 to $196 in the 1999 second quarter. "Our ability to reduce the costs of gold production by 27% combined with our gold hedging program has enabled Crystallex to maintain a relatively high level of profitability and a positive operating cash flow throughout the first half of the year despite the continued weakness in the gold market." "We're pleased that the increasing production and shipment of gold from the San Gregorio mine has enabled it to be recognized as the major exporter of metals from Uruguay for the second year in a row," Oppenheimer said. "We feel confident that the Crystallex team can bring the same level of production efficiencies and productivity gains to other mining projects that we decide to pursue." Recently the Company announced that it had launched legal proceedings in Venezuela to enforce its ownership rights in relation to the Cristinas 4 and 6 concessions, believed to be the largest gold find ever in that country. "Although such litigation involves risks and uncertainties," Oppenheimer said, "if the outcome is favorable, there is little doubt that the value of the Cristinas concessions to our shareholders would be significant." Crystallex International Corporation is a gold mining and exploration company. The Company's strategy for growth is to develop its portfolio of properties in South America as well as to diversify geographically by investing in producing or near- production projects and by exploring properties of merit in other areas of the world. Financial results for the three and six months periods are reported in the attached table. On Behalf of the Board: Marc J. Oppenheimer, President & CEO For Further Information: Contact: A. Richard Marshall, VP at (USA) 201-541-6650, ext. 26
or Andrea Boltz at (USA) 604-683-0672, ext. 1 To receive previous Company releases: (USA) (800) 758-5804 ext. 114620 Visit us on the Internet: http://www.crystallex.com Company Email: info@crystallex.com Note: This news release may contain certain "forward-looking statements" within the meaning of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of Crystallex, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed under the heading "Risk Factors" and elsewhere in documents filed from time to time with The Toronto Stock Exchange, the United States Securities and Exchange Commission and other regulatory authorities. The Toronto Stock Exchange has not reviewed this release and does not accept responsibility for the adequacy or accuracy of this news release.
CRYSTALLEX INTERNATIONAL CORPORATION
CONSOLIDATED BALANCE SHEETS
(Expressed in Canadian dollars)
(Unaudited - Prepared by Management)
June 30, June 30, December 31,
1999 1998 1998 ASSETS Current
Cash and cash
equivalents $ 5,680,555 $ 19,993,829 5,535,716
Accounts receivable 3,357,773 1,419,906 2,032,739
Production
inventories 8,459,045 -- 6,721,802
Supplies inventory
and prepaid
expenses 1,470,635 137,344 1,069,341
Marketable securities 38,186 105,516 38,186
Due from
related parties 35,520 -- 39,960
19,041,714 21,656,595 15,437,744
Security deposits 177,661 109,043 188,367
Property, plant and
equipment 88,477,710 51,563,405 90,098,063
Deferred financing fee 301,393 -- --
$107,998,478 $ 73,329,043 105,724,174 LIABILITIES AND SHAREHOLDERS' EQUITY Current
Accounts payable
and accrued
liabilities $ 7,996,131 $ 3,009,174 10,477,514
Due to related
parties 73,814 -- 382,772
Current portion
of long-term debt 2,560,625 -- 2,913,270
10,630,570 3,009,174 13,773,556
Reclamation provision 876,462 -- 713,699
Long-term debt 22,880,747 -- 23,348,884
Deferred Charges 2,556,505 -- 110,606
36,944,284 3,009,174 37,946,745 Shareholders' equity
Capital stock
Authorized
Unlimited Common Shares, without par value
20,000,000 Class "A" preference shares, par value $50
20,000,000 Class "B" preference shares, par value $250
Issued
December 31, 1998 - 36,541,481 common shares
June 30, 1998 - 36,358,966 common shares
June 30, 1999 -
37,014,905
common shares 98,436,106 97,464,796 97,927,696 Cumulative translation adjustment (910,479) (152,922) (142,562) Deficit (26,471,433) (26,992,005) (30,007,705)
71,054,194 70,319,869 67,777,429
$107,998,478 $ 73,329,043 105,724,174
CRYSTALLEX INTERNATIONAL CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(Expressed in Canadian dollars)
(Unaudited - Prepared by Management)
Six Month Six Month Three Month Three Month
Period Ended Period Ended Period Ended Period Ended
June 30, June 30, June 30, June 30,
1999 1998 1999 1998 OPERATING REVENUE $18,848,984 $ 1,553,643 $ 9,864,001 $ 888,167 OPERATING EXPENSES
Operations 9,756,036 2,978,067 4,961,633 1,624,130
Amortization
and
depletion 1,943,826 528,335 978,036 281,050 Earnings (loss) from Operations 7,149,122 (1,952,759) 3,924,332 (1,017,013) GENERAL EXPENSES 4,346,835 3,127,449 2,212,206 1,619,014 Income (loss) before other items 2,802,287 (5,080,208) 1,712,126 (2,636,027) OTHER ITEMS
Interest and
other Income 898,493 453,218 463,783 251,178
Foreign exchange
(loss)/gain (164,508) 406,043 (120,594) 578,585
Gain on sale
of marketable
securities -- 21,043 -- 726
733,985 880,304 343,189 830,489 Income (loss) for the period $ 3,536,272 $(4,199,904) $ 2,055,315 $ (1,805,538) Basic earnings (loss) per share $ 0.10 $ (0.12) $ 0.06 $ (0.05) ots Original Text Service: Crystallex International Corporation Internet: http://www.newsaktuell.de Contact: A. Richard Marshall, VP, (USA) 201-541-6650, ext. 26, or Andrea Boltz, (USA) 604-683-0672, ext. 1, or info@crystallex.com, both of Crystallex International Corporation Company News On-Call: http://www.prnewswire.com/comp/114620.html or Fax: (USA) 800- 758-5804, ext. 114620 Web site: http://www.crystallex.com