Cyprus Amax Minerals Reports a 1999 Second Quarter Loss

Of $34 Million from Continuing Operations DENVER (PROTEXT) - Cyprus Amax Minerals Company (NYSE: CYM)today reported a loss of $34 million from continuing operationsfor the 1999 second quarter, or 43 cents per share. This excludesa special charge of $13 million for the sale of the coalsubsidiary and a $1 million after-tax loss from discontinuedDomestic Coal operations. This compared with a 1998 loss fromcontinuing operations of $35 million, or a loss of 43 cents pershare. The 1998 loss included special charges of $38 million. Theslight improvement was primarily attributable to lower coppercost of sales of 14 percent, lower exploration expenses and theabsence of 1998 legal settlements, partially offset by lowermetal realizations -- 20 percent in copper and 23 percent inmolybdenum. In the second quarter of 1999, Cyprus Amax recorded a pre-taxgain of $3 million but an after-tax charge of $13 million, or 14cents per share, on the sale of its coal subsidiary. In thesecond quarter of 1998, Cyprus Amax recorded an after-tax chargeof $12 million, or 13 cents per share, on the sale of certainAppalachian and Midwest coal properties, and an after-tax chargeof $26 million, or 27 cents per share, for settlements of long-standing legal actions primarily associated with the oil and gasproperties acquired in the Amax merger and subsequently sold in1994. Including the discontinued coal operations and special itemsin 1999 and 1998, the 1999 second quarter loss was $48 million,or 58 cents per share, compared with a 1998 second quarter lossof $36 million, or 44 cents per share. For the first six monthsof 1999, Cyprus Amax reported a loss of $74 million, or 92 centsper share, compared with a 1998 loss of $32 million, or 44 centsper share. Milton H. Ward, Chairman, President, and Chief ExecutiveOfficer stated, "On June 30, 1999, Cyprus Amax completed the saleof its Cyprus Amax Coal Company subsidiary to RAG InternationalMining GmbH. Under the terms of the sale, Cyprus Amax receivedcash payments of $1,039 million and RAG assumed debt of $46million. RAG assumed other long-term obligations of approximately$300 million and Cyprus Amax expects to receive certain futureproduction payments and insurance settlements from the WillowCreek mine. Cyprus Amax's Australian coal assets were notincluded in the transaction. Because of Cyprus Amax's expectedtax position in 1999, cash federal and state income tax paymentsare expected to be about $55 million for 1999." Ward added, "We were excited to announce last week thestrategic combination of Cyprus Amax with Asarco. This willresult in a company with larger copper ore reserves and thefinancial capacity to develop, enhance and expand our copperassets. The combined company will have a beneficial interest inannual copper production of approximately 2 billion pounds, whichwill make us the second largest copper producer in the world.Additionally, the combined copper ore reserves will beapproximately 62 billion pounds of contained copper." Ward continued, "The merger is expected to initially reducethe combined expenses of Cyprus Amax and Asarco by $150 million.This will come from reductions in corporate overhead,administrative costs, depreciation, and from operating synergiesand efficiencies resulting from the close proximity of the mines.Subject to regulatory approvals and the approvals of theshareholders of both companies, we expect the merger to close inthe fourth quarter of 1999." Ward concluded, "In spite of the continued weak copper andmolybdenum realizations during the second quarter, ourCopper/Molybdenum division has continued to show strongoperational results. Copper cash costs were 51 cents per pound,with our domestic cash costs being in the mid-50 cents and ourSouth American properties near 40 cents. The ability of theCopper/Molybdenum division to lower cash costs by about 30percent in the last 3 years reflects their unwavering commitmentto our Quest 21 quality management program and the desire to bethe best. We believe that our domestic operations are in a costleadership position in the southwest United States and this willadd a lot to achieving the operating synergies and efficienciesthat will come from the combined Cyprus Amax and Asarco company." SECOND QUARTER HIGHLIGHTS (ALL COMPARISONS ARE VERSUS SECONDQUARTER 1998 UNLESS OTHERWISE STATED): (Segment income is earnings before corporate overhead,interest, equity and other, income taxes, and minority interest.) COPPER/MOLYBDENUM -- Copper/Molybdenum earned $16 million, $28 million lessthan in 1998. -- Copper realizations averaged 70 cents per pound, 17 centslower than in 1998. -- Copper production increased to 257 million pounds from 234million pounds. -- Copper net cash costs dropped to 51 cents per pound, areduction of 6 cents per pound, reflecting lower cost productionfrom domestic and South American operations. Excluding the by-product credit, net cash costs were 11 cents per pound lower or16 percent. This improvement in cash costs reflects the mines'continuous focus and commitment to the Quest 21 qualitymanagement programs, which have resulted in on-going productivityand cost improvements. -- Cost of goods sold dropped to 63 cents per pound, areduction of 10 cents per pound, due to lower worldwide costs. -- Copper price protection strategies are in place for thesecond half of 1999 that will ensure a minimum averagerealization on an LME basis of 69 cents per pound, at a cost of 2cents per pound, on 400 million pounds of production. -- Primary molybdenum earnings were $1 million, $15 millionlower than in 1998 primarily due to $1.23 per pound lowermolybdenum realizations and lower sales volumes. COAL-DISCONTINUED OPERATIONS -- Coal operations earned $1 million, which was $17 millionlower than in 1998. The 1999 result excludes a pre-tax gain onthe sale of the coal subsidiary of $3 million. The 1998 resultexcludes the $16 million loss on the sale of certain Appalachianand Midwest coal properties. The after-tax loss was $1 million inboth 1999 and 1998. -- Earnings decreased primarily due to lower earnings inPennsylvania resulting from the delay in the start-up of the newlongwall in the Northeast district and lower earnings in Utah dueto the continued recovery efforts resulting from the undergroundfire at the Willow Creek mine that occurred in late 1998. In June1999, the Twentymile mine had a longwall move that was originallyplanned for the third quarter. Additionally, in the third quarterof 1999 a portion of the Willow Creek insurance recovery isexpected. EXPLORATION -- Exploration expense was $4 million, $12 million lower thanin 1998, principally due to constraining exploration spending in1999. OTHER -- All Other Minerals reported a loss of $3 million comparedto a loss of $25 million in 1998. The $22 million variance isprimarily due to the absence of a litigation settlementassociated with the oil and gas properties acquired with the Amaxmerger and subsequently sold in 1994. -- Revenue of $277 million was $157 million lower than in1998 due to lower copper and molybdenum realizations, and theabsence of revenues due to the sales of eastern coal propertiesand lithium and the merger of Amax Gold in 1998. -- Equity Investments and Other incurred a loss of $8 millioncompared with a $2 million loss in 1998. Oakbridge reported aloss of $5 million compared with a $2 million loss in 1998. Theloss is due to the effects of an Australian dollar hedge book,which should be mostly closed out by the end of 1999, and higherproduction costs. Additionally, equity losses of $3 million forKinross were attributable to the current low gold prices. -- Net interest expense of $30 million was $9 million lessthan 1998 reflecting the significant reduction in debt. -- During the quarter, $200 million was borrowed against theRevolving Credit Agreement. The funds were used to repay $86million of Cyprus Australia Coal debt and $50 million on theCyprus Amax term loan. The $200 million outstanding on therevolver will be repaid in the third quarter. -- Since the Board approval in August 1998 of a program tobuy back common shares on the open market, 1.5 million shareshave been purchased through July 20, 1999 at an average cost of$10.74 per share or $16 million. No repurchases were made duringthe second quarter of 1999. In view of the announced merger, therepurchase program has been suspended. Cyprus Amax Minerals Company, headquartered in Englewood,Colorado, is a leading producer of copper, the world's largestproducer of molybdenum, and holds a 30% interest in Kinross GoldCorporation. Cyprus Amax is exploring for minerals worldwide. Actual results may vary materially from any forward-lookingstatements the Company makes. Refer to the Cautionary Statementand Risk Factors contained in the Company's 1998 Form 10-K. To obtain a faxed copy of this or any Cyprus Amax newsrelease, call 1-800-758-5804, ext. 224250. News releases can alsobe accessed via the Internet at the Cyprus Amax Web Site,http://www.cyprusamax.com.

Cyprus Amax Minerals Company

Key Operating Data

Three and Six Months Ended June 30

Three Months Ended Six MonthsEnded

June 30,

June30,

1999

1998

19991998 Copper/Molybdenum

Copper Sales Volume -

Millions of Lbs.

279

295

583568

Produced Copper Sold -

Millions of Lbs.

233

251

519494

Copper Production -

Millions of Lbs.

257

234

511467

Average Realization -

$/Lb. of Copper

.70

.87

.68.87

Cost of Sales - $/Lb.

.63

.73

.64.74

Net Cash Cost - $/Lb.

.51

.57

.50.57

Full Cost - $/Lb.

.63

.72

.63.72

Molybdenum Sales -

Millions of Lbs.

14

16

2832

Molybdenum Production -

Millions of Lbs.

15

16

3131

Average Realization

- $/Lb.

4.08

5.31

4.115.20 Coal(1)

Sales - Millions of Tons(2)

16

19

3337

Production - Millions

of Tons(2)

15

18

3236

Average Realization

- $/Ton

11.65

11.35

11.4511.60

Average Cost of Sales

- $/Ton

11.63

10.58

10.9410.63

Average Cash Cost

- $/Ton

9.75

8.75

9.268.89

Average Unit Cost

- $/Ton

11.63

10.56

10.8110.69 (1) Restated in 1998 to exclude sold properties in the secondquarter of 1998. (2) Includes Oakbridge equity share.

Cyprus Amax Minerals Company

Consolidated Statement of Income

Three and Six Months Ended June 30

(In Millions, Except Per Share Data)

hree Months Ended Six Months Ended

June 30,

June 30,

1999

1998

1999

1998 Revenue

$277

$434

$560

$870 Costs and Expenses

Cost of Sales

206

299

428

606

Selling and

Administrative

Expenses

18

46

34

69

Depreciation,

Depletion,

and Amortization

52

74

104

148

Write-Downs and Special Charges

--

4

--

4

Exploration

4

16

8

25 Total Costs and Expenses

280

439

574

852 Income (Loss) From Operations

(3)

(5)

(14)

18 Interest Income

3

4

7

7 Interest Expense

(34)

(43)

(69)

(90) Capitalized Interest

1

--

2

3 Equity Investments and Other

(8)

(2)

(18)

(2)

Loss from Continuing

Operations

Before Income Taxes

and Minority

Interest

(41)

(46)

(92)

(64) Income Tax Benefit (Provision)

8

10

14

4 Minority Interest

(1)

1

--

2 Loss from Continuing

Operations

(34)

(35)

(78)

(58) Income (Loss) from

Operations of

Discontinued

Domestic Coal

Division, Net

of Applicable

Taxes of $1

(1)

(1)

17

26 Loss on Disposal of Domestic Coal Division, Net of Applicable Taxes of $16

(13)

--

(13)

-- Net Loss

(48)

(36)

(74)

(32) Preferred Stock Dividends

(5)

(5)

(9)

(9) Loss Applicable to Common Shares

$(53)

$(41)

$(83) $(41) Earnings (Loss) Per Common Share Basic and Diluted(1) Loss from Continuing Operations

$(.43) $(.43)

$(.96) $(.72) Income (Loss) from Discontinued Domestic Coal Division, Net of Taxes

$(.15) $(.01)

$.04

$.28 Weighted Average Common Shares

Outstanding

Basic

90.5

93.7

90.5

93.7

Diluted

100.6

103.3

100.3 103.3 Common Shares Outstanding at End of Period

90.5

93.7

90.5

93.7 (1) Diluted earnings (loss) per share were anti-dilutive.

Cyprus Amax Minerals Company

Financial Summary by Business Segment

Three and Six Months Ended June 30

(In Millions)

Three Months Ended June 30, Six Months Ended June 30,

Earnings

Earnings

(Loss) from

(Loss) from

Sales Revenue Operations Sales RevenueOperations

1999 1998 1999 1998

1999 1998 19991998 Copper/Molybdenum

$271 $355

$16 $44

$547 $690

$23$81 Exploration --

--

(4) (16)

--

--

(8)(25) All Other Minerals

6

79

(3) (25)

13

180

(5)(17)

Total

$277 $434

9

3

$560 $870

1039 Corporate

(12) (8)

(24)(21) Interest, Equity and Other

(38) (41)

(78)(82) Loss from Continuing Operations Before Income Taxes and Minority Interest

(41) (46)

(92)(64) Income Tax Benefit (Provision)

8

10

14 4 Minority Interest

(1)

1

-- 2 Loss from Continuing Operations

(34) (35)

(78)(58) Income (Loss) from Operations of Discontinued Domestic Coal Division, Net of Applicable Taxes of $1

(1) (1)

17 26 Loss on Disposal of Domestic Coal Division, Net of Applicable Taxes of $16

(13) --

(13) -- Net Loss

$(48) $(36)

$(74)$(32)

Cyprus Amax Minerals Company

Consolidated Balance Sheet

(In Millions)

June 30, December31,

19991998 ASSETS

Cash and Cash Equivalents

$1,275$353

Accounts Receivable, Net

3748

Notes Receivable, Net

4669

Inventories

294386

Prepaid Expenses

2852

Deferred Income Taxes

3213

Total Current Assets

1,712921

Properties - At Cost, Net

2,5463,842

Equity Investments

328345

Other Assets

160233

Total Assets

$4,746$5,341 LIABILITIES and SHAREHOLDERS' EQUITY

Short-Term Debt and Current Portion

of Long-Term Debt

$328$161

Other Current Liabilities

414510

Long-Term Debt

1,4991,677

Capital Lease Obligations

2641

Deferred Employee and Retiree Benefits

179345

Deferred Closure, Reclamation and

Environmental

178300

Deferred Income Taxes

1457

Other Noncurrent Liabilities and

Deferred Credits

2959

Minority Interest

2034

Total Shareholders' Equity

2,0592,157

Total Liabilities and Shareholders' Equity $4,746$5,341

Cyprus Amax Minerals Company

Consolidated Statement of Cash Flows

Six Months Ended June 30

(In Millions)

Six MonthsEnded

June30,

19991998 Operating Activities

Net Loss

$(74)$(32)

Adjustments to Reconcile Net Loss to Net Cash

Provided by Operating Activities

Depreciation, Depletion, and Amortization 146205

Write-downs and Special Charges

--4

Deferred Income Taxes

(61)--

Loss (Gain) on Sale of Assets

(3)19

Changes in Assets and Liabilities

Net of Effects from Businesses Sold

19(79)

Other, Net

2012

Net Cash Provided by Operating Activities 47129 Investing Activities

Capital Expenditures

(121)(117)

Capitalized Interest

(3)(3)

Advances and Investments, Net to Affiliates

(10)(58)

Collections on Notes Receivable

33

Proceeds from Sale of Assets

1,02493

Cash Effect of Deconsolidating Amax Gold Inc.

--(17)

Net Cash Provided by (Used for)

Investing Activities

893(99) Financing Activities

Net Borrowings on Short-Term Debt

21918

Payments on Short-Term Debt

(5)(15)

Net Proceeds from Issuance of Long-Term Debt

5

3

Payments on Debt and Other Obligations

(171)(51)

Payments on Capital Lease Obligations

(34)(5)

Stock Activity, Net

----

Dividends to Minority Interests

--(4)

Dividends Paid

(32)(46)

Net Cash Used for Financing Activities

(18)(100)

Net Increase (Decrease) in Cash and

Cash Equivalents

922(70)

Cash and Cash Equivalents

at Beginning of Year

353250

Cash and Cash Equivalents

at End of Period

$1,275$180 ots Original Text Service: Cyprus Amax Minerals CompanyInternet: http://www.newsaktuell.de Contact: Gerald J. Malys,Senior Vice President & Chief Financial Officer, 303-643-5060, orJohn Taraba, Vice President & Controller, 303-643-5244, both ofCyprus Amax Minerals Company Company News On-Call:http://www.prnewswire.com/comp/224250.html or fax, 800-758-5804,ext. 224250 Web site: http://www.cyprusamax.com

Subscribers please note that material bearing the slug"PROTEXT" is not part of CTK's news service and is not to bepublished under the "CTK" slug. Protext is a commercial serviceproviding distribution of press releases from clients, who areidentified in the text of Protext reports and who bear fullresponsibility for their contents.