TVX generated US$46.7 million in revenue during the second quarter, almost identical to its US$46.5 million in the second quarter of 1999, when the company made a US$3-million profit. Over the first half of 2000, TVX incurred a loss of US$1.3 million, compared with earnings of US$4.9 million in the corresponding period in 1999.
Interest on the convertible notes cost the company US$2.6 million, and issuance costs, which are being amortized over time, amounted to US$500,000. TVX also took a one-time charge to reflect changes in the value of its hedge book, which cut earnings by another US$1.7 million.
On the operations side, the company saw production from its North and South American interests decrease marginally from the corresponding period in 1999. These assets, shared with
The production shortfall came entirely at the La Coipa mine in Chile, where TVX Normandy is participating in an equal joint venture with
TVX’s wholly owned Stratoni operation, in Greece, produced 256,000 oz. silver, 4,582 tonnes zinc and 3,984 tonnes lead.
An environmental impact statement for the Olympias project, also in Greece, has been approved by the local municipal council, and now TVX must await final approval by the country’s environment ministry. There remain several court challenges to previous approvals Greek government agencies had granted to the project, which are scheduled to be heard in early October.
In a dispute over ownership of the project, the Ontario Court of Appeal has dismissed both TVX’s appeal and the Alpha Group’s cross-appeal of a lower-court decision that had awarded a 12% carried interest and the right to acquire a further 12% working interest in the project. The decision of the trial court stands.
TVX also completed a share consolidation during the quarter, with five old shares traded for one new one. It now has 35.7 million shares outstanding.
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