Doug Ashbury
Northern News Services

Yellowknife (Apr 05/00) - Despite a doubling of losses in fiscal 1999, Miramar Mining is upbeat about this year's financial potential, according to the company's just-released results.

"(Last year) was an important transitional year as management laid a solid foundation from which Miramar can be built into a profitable intermediate gold producer," said Tony Walsh, Miramar president and CEO.

"We have made important investments in a number of areas, such as Hope Bay and our Yellowknife operations, that will generate significant rewards for our shareholders in 2000 and beyond."

Last year, Miramar spent $21.9 million on the Hope Bay 4.3-million-ounce gold project in Nunavut, of which $20.6 million was for a 50 per cent stake in the project. Miramar also said it spent $6.2 million last year on its the Giant-Con gold property. Much of this spending went toward underground development, infrastructure and costs associated with starting up the Con mill after the strike.

Strike costs in 1999 -- United Steelworkers were on strike for 11 months with the action ending last May -- were estimated by Miramar to be $3 million above start-up costs.

In 1998, the labour disruption shows up as a $5.3- million expense on Miramar's consolidated statements.

In the fourth quarter, Miramar cut staff by 50 per cent, as well as reducing general and administrative costs to $901,000 from $1.7 million in fourth quarter 1998. Termination payments and corporate restructuring costs totalled $4.4 million during 1999.

"These cuts, while painful, have resulted in a more cost-efficient organization appropriate to a company of Miramar's size," said Walsh.

For the 12 months ended Dec. 31, 1999 Miramar lost $20 million -- or 35 cents a share -- compared to a $10.1 million loss -- or four cents a share -- loss in 1998.

Half the 1999 loss was attributed to consolidation of majority-owned subsidiary Northern Orion Explorations.

In fourth quarter, Miramar reports losses of $5.9 million compared to $10.2 million in the same quarter in the prior year.

Miramar ended 1999 with $33.8 million in working capital. Last year, revenues were $25.5 million compared to $28.0 million.

In 1999, expenses were $57.1 million compared to $55.4 million.

Looking ahead to the rest of 2000, Walsh said he is pleased with the positive results generated by the company's Yellowknife operations.

"I expect the year 2000 will see Miramar's highest level of gold production in its history at much lower costs than previously experienced, and to see some very exciting results from Hope Bay."

Miramar stock traded down two cents at 71 cents midday Monday. The company's shares have traded as high as $1.29 in the past 52 weeks and as low as 65 cents over that period.