<Page>
FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the month of September, 2002
TVX GOLD INC.
-------------
(Translation of registrant's name into English)
Suite 1200, 220 Bay Street Toronto, Ontario M5J 2W4
---------------------------------------------------
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form 20-F _____ Form 40-F X
---
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes_____ No X
---
If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b): 82-__________
Index on Page 2 of 23
Page 1 of 23
<Page>
INDEX
ITEMS FURNISHED UNDER COVER OF FORM 6-K
<Table>
<Caption>
ITEM PAGE
- ---- ----
Form 6-K Cover Sheet 1
Index of Items Furnished Under Cover of Form 6-K 2
2002 Third Quarter Results 3-22
Signature Page 23
</Table>
Page 2 of 23
<Page>
TVX GOLD INC
___________________________________________________ [LOGO]
THIRD QUARTER REPORT 2002
- - IMPROVED THIRD QUARTER NET EARNINGS OF $1.9 MILLION
- - TVX - KINROSS - ECHO BAY MERGER PROCEEDING
TVX GOLD INC. ("TVX") IS PLEASED TO REPORT NET THIRD QUARTER EARNINGS OF $1.9
MILLION ($0.04 PER SHARE) COMPARED TO A LOSS OF $1.1 MILLION DURING THE
THIRD QUARTER 2001 AND EARNINGS OF $0.8 MILLION ACHIEVED DURING THE PREVIOUS
QUARTER. YEAR-TO-DATE NET EARNINGS INCREASED TO $4.2 MILLION ($0.11 PER SHARE)
FROM $0.1 MILLION ($2.13 PER SHARE AFTER GOLD LINKED NOTE ADJUSTMENTS) DURING
THE FIRST NINE MONTHS OF 2001.
The Company has restated its loss per share for the nine-month period
ended September 30, 2001 from $0.50 to earnings per share of $2.13 and will
restate its loss per share for the year ended December 31, 2001 from $12.41 per
share to $10.58 per share. See Restatement and Reclassifications.
Net earnings year-to-date benefited from a higher realized gold price,
$331 per ounce year-to-date compared to $294 per ounce realized in the same
period last year, combined with lower administration costs, down 31%, and a
$1.7 million gain on the sale of the residual interest in the Casa Berardi
mine. Net earnings are after a charge of $2.5 million for transaction costs
related to the previously announced combination of TVX, Kinross Gold
Corporation ("Kinross") and Echo Bay Mines Ltd. ("Echo Bay").
Year-to-date gold equivalent production of 350,600 ounces (TVX's share -
175,300 ounces) was 1% lower than the first nine months of 2001 largely as a
result of significantly lower production at the Musselwhite mine, down 19%,
offset by a 24% increase in gold production at the Brasilia mine. Third quarter
2002 gold equivalent production declined to 117,700 ounces (TVX's share -
58,850 ounces), 4% lower than the 123,000 ounces (TVX's share - 61,500 ounces)
achieved during the third quarter 2001. Increased third quarter 2002 production
at Brasilia, up 29% compared to the same period last year, was offset by
continued disappointing Musselwhite results.
<Table>
<Caption>
THIRD QUARTER HIGHLIGHTS (THREE MONTHS ENDED SEPTEMBER 30, 2002)
- --------------------------------------------------------------------------------
TVX'S SHARE OF PRODUCTION 53,000 OUNCES GOLD
TVX NEWMONT 397,400 OUNCES SILVER
AMERICAS 58,850 GOLD EQUIVALENT OUNCES
- --------------------------------------------------------------------------------
JOINT VENTURE'S SALES 60,650 GOLD EQUIVALENT OUNCES
OPERATIONS 1
---------------------------------------------------
CASH COSTS 2 $176 PER OUNCE SOLD
---------------------------------------------------
PRODUCTION COSTS 2 $237 PER OUNCE SOLD
- --------------------------------------------------------------------------------
TVX HELLAS PRODUCTION (PAYABLE) 9,500 TONNES ZINC
OPERATIONS 7,700 TONNES LEAD
632,500 OUNCES SILVER
- --------------------------------------------------------------------------------
FINANCIAL THREE MONTHS ENDED SEPTEMBER 30,
(MILLONS US$) 2002 2001
--------------
REVENUE $ 46.5 $ 40.1
NET EARNINGS (LOSS) 1.9 (1.1)
OPERATING CASH FLOW 13.2 24.9
CAPITAL EXPENDITURES 4.1 7.6
- --------------------------------------------------------------------------------
</Table>
1 On February 10, 2002, Newmont Mining Corporation acquired Normandy Mining
Limited and with it Normandy's interests in the TVX Normandy Americas Joint
Venture which is now referred to as the TVX Newmont Americas Joint Venture
("TVX Newmont").
2 See "calculation of cash cost, production cost and realized revenue and
reconciliation to the Statement of Operations" on page 8.
1
<Page>
TVX NEWMONT AMERICAS PRECIOUS METALS OPERATIONS
SUMMARY OF GOLD EQUIVALENT PRODUCTION
<Table>
<Caption>
THREE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
-------------------------------------------------------------------------------------------
100% MINE BASIS TVX TVX'S
-------------------------------------- NEWMONT'S INTEREST TVX'S TOTAL TOTAL
TONNES GOLD MINE SHARE OF IN MINE SHARE OF CASH PRODUCTION
MILLED GRADE RECOVERY PRODUCTION PRODUCTION PRODUCTION PRODUCTION COST COST
MINE YEAR (000S) g/t % OUNCES OUNCES % OUNCES $/oz $/oz
- ----------------------------------------------------------------------------------------------------------------------------------
LA COIPA 1 2002 1,553 1.9 75.6 71,400 35,700 25.0 17,850 233 317
2001 1,671 2.2 70.0 83,200 41,600 20,800 197 297
- ----------------------------------------------------------------------------------------------------------------------------------
CRIXAS 2002 191 8.2 95.5 48,200 24,100 25.0 12,050 92 148
2001 185 8.9 95.2 50,400 25,200 12,600 101 151
- ----------------------------------------------------------------------------------------------------------------------------------
BRASILIA 2002 4,406 0.50 82.7 58,900 28,900 24.5 14,450 136 186
2001 4,115 0.44 76.3 45,700 22,400 11,200 195 271
- ----------------------------------------------------------------------------------------------------------------------------------
NEW BRITANNIA 2002 192 4.8 94.1 27,600 13,800 25.0 6,900 203 281
2001 177 5.7 94.0 30,400 15,200 7,600 178 277
- ----------------------------------------------------------------------------------------------------------------------------------
MUSSELWHITE 2002 288 5.4 95.2 47,700 15,200 16.0 7,600 247 265
2001 324 5.8 96.2 58,200 18,600 9,300 206 300
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL 2002 253,800 117,700 58,850 176 237
Total 2001 267,900 123,000 61,500 176 260
- ----------------------------------------------------------------------------------------------------------------------------------
</Table>
1 Production and grade includes silver converted to gold equivalent
<Table>
<Caption>
NINE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
-------------------------------------------------------------------------------------------
100% MINE BASIS TVX TVX'S
-------------------------------------- NEWMONT'S INTEREST TVX'S
TONNES GOLD MINE SHARE OF IN MINE SHARE OF CASH PRODUCTION
MILLED GRADE RECOVERY PRODUCTION PRODUCTION PRODUCTION PRODUCTION COST COST
MINE YEAR (000S) g/t % OUNCES OUNCES % OUNCES $/oz $/oz
- ----------------------------------------------------------------------------------------------------------------------------------
LA COIPA 1 2002 4,692 1.9 74.3 213,000 106,500 25.0 53,250 235 319
2001 4,640 2.2 71.5 229,600 114,800 57,400 204 301
- ----------------------------------------------------------------------------------------------------------------------------------
CRIXAS 2002 563 8.3 95.5 142,800 71,400 25.0 35,700 104 157
2001 553 8.7 95.4 147,200 73,600 36,800 107 157
- ----------------------------------------------------------------------------------------------------------------------------------
BRASILIA 2002 13,820 0.49 78.8 172,900 84,700 24.5 42,350 162 214
2001 11,921 0.48 75.0 140,000 68,600 34,300 190 261
- ----------------------------------------------------------------------------------------------------------------------------------
NEW BRITANNIA 2002 571 5.0 94.0 85,600 42,800 25.0 21,400 196 261
2001 534 5.3 93.9 84,800 42,400 21,200 187 288
- ----------------------------------------------------------------------------------------------------------------------------------
MUSSELWHITE 2002 802 5.8 95.3 141,500 45,200 16.0 22,600 235 290
2001 977 5.8 95.1 174,300 55,600 27,800 192 273
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL 2002 755,800 350,600 175,300 185 249
Total 2001 775,900 355,000 177,500 177 257
- ----------------------------------------------------------------------------------------------------------------------------------
</Table>
1 Production and grade includes silver converted to gold equivalent
2 TVX GOLD INC. A FOUNDATION FOR GROWTH
<Page>
Revenues increased $6.4 million to $46.5 million during the third quarter
primarily as a result of higher realized gold prices on the sale of 121,300
ounces of gold and gold equivalents. Gold equivalent sales from the Americas
contributed $39.6 million with the balance of $6.9 million from base metal sales
from the Company's Stratoni operation. Year-to-date precious metals revenues of
$113.7 million were $13.1 million, or 13%, higher than in 2001 similarly as a
result of the higher realized gold prices achieved during 2002.
Year-to-date total cash costs increased 5% to $185 per ounce as compared
to the first nine months of 2001. Total cash costs were negatively impacted by
operational difficulties at Musselwhite and lower production at La Coipa offset
by the Brazilian currency devaluation that positively impacted costs at Brasilia
and Crixas. Third quarter total cash costs were unchanged at $176 per gold
equivalent ounce compared to the same period last year.
Third quarter cash flow from operations was $13.2 million compared to
$24.9 million in 2001. Excluding the $16.8 million realized from the hedge book
restructuring during the third quarter of 2001, cash flow from operations
increased by $5.1 million in the third quarter 2002 compared to the previous
year as a result of higher realized gold prices. On the same basis, the 2002
year-to-date operating cash flow of $31.6 million was $12.4 million higher than
last year.
TVX - KINROSS - ECHO BAY BUSINESS COMBINATION
On June 10, 2002, TVX, Kinross Gold Corporation and Echo Bay Mines Ltd.
announced that they had entered into an agreement to combine the three companies
to form a major gold producer that will retain the Kinross name. In a concurrent
transaction, TVX agreed to acquire from Newmont Mining Corporation the interest
in the TVX Newmont Americas joint venture that it does not already own for $180
million. The combination of the companies is conditional upon the completion of
this purchase.
Upon approval of the proposed transaction, TVX shareholders will receive
6.5 shares of the "new" Kinross for every share of TVX owned. If Kinross
undertakes a share consolidation prior to the completion of the transaction then
the conversion rate of 6.5 "new" Kinross shares for each TVX share would be
adjusted accordingly.
As a result of the United States Securities and Exchange Commission's
ongoing review of the Echo Bay preliminary proxy statement filed with the
Commission, the companies will not be able to finalize and mail their proxy
statements in time for the companies to hold their special meetings for the
purpose of considering the combination in advance of November 30, 2002, the
termination date specified in the Combination Agreement. The parties are
discussing amending the Combination Agreement to extend the termination date,
with a view to holding special meetings not later than January 2003.
LA COIPA MINE, Chile - (PLACER DOME, OPERATOR)
Third quarter La Coipa gold equivalent production declined 14% to 71,400
ounces (TVX's share - 17,850 ounces) compared to the same three-month period
last year on 7% lower mill throughput and slightly lower grades offset by
increased recoveries. Year-to-date, precious metals production of 213,000 gold
equivalent ounces (TVX's share - 53,250 ounces) was essentially as planned,
however, compared to the same period last year precious metals production was
down 7% largely due to the processing of lower grade stockpiles.
Total cash costs during the third quarter increased 18% or $36 per gold
equivalent ounce compared to the same 2001 period as a result of the lower gold
production. Year-to-date total cash costs of $235 per ounce were 1% below plan.
The mine has initiated various exploration programs on adjacent optioned
and mine properties with encouraging preliminary results.
CRIXAS MINE, Brazil - (ANGLOGOLD, OPERATOR)
The Crixas mine produced 48,200 ounces of gold during the third quarter
2002 (TVX's share - 12,050 ounces), 4% below the same period last year, on lower
gold grades slightly offset by higher mill throughput. Third quarter total cash
costs of $92 per ounce were 9% better than those achieved during the same period
last year as the mine benefited from the devaluation of the Brazilian currency.
Year-to-date gold production of 142,800 ounces (TVX's share - 35,700
ounces) was 4% higher than plan due to better than planned mill throughput and
higher gold grades achieved during the first half of 2002.
2002 THIRD QUARTER REPORT 3
<Page>
Exploration diamond drilling was focused on delineating extensions to Mina
Nova, infill drilling at Palmeiras and further definition drilling at Mina II
and Mina III. Drilling at Mina III extended the known high-grade gold
mineralization to the 700-metre level, the deepest intersection achieved
to-date.
BRASILIA MINE, Brazil - (RTZ, OPERATOR)
Brasilia continued to enjoy improved results with third quarter gold
production increasing 29% to 58,900 ounces (TVX's share - 14,450 ounces) as the
result of higher mill throughput and higher milled gold grades in comparison to
the same period last year. The increased production levels combined with the
continued devaluation of the Brazilian currency positively impacted total cash
costs improving $59 or 30% to $136 per ounce during the quarter.
On a nine-month basis, production increased 24% to 172,900 ounces (TVX's
share - 42,350 ounces) over the same period last year as cash costs improved to
$162 per ounce. Year-to-date production was slightly better than plan with
higher ore grades being offset by lower than plan mill throughput.
Continued pilot plant SAG mill tests were completed during the quarter.
Results from gravity concentration tests indicated the potential for increased
gold recoveries. It is anticipated that a decision to expand mill capacity will
be taken during the second half of 2003.
NEW BRITANNIA MINE, Canada - (TVX NEWMONT, OPERATOR)
Lower gold grades, offset by higher mill throughput, resulted in third
quarter 2002 gold production of 27,600 ounces (TVX's share - 6,900 ounces), a
decline of 9% over the results achieved during the same 2001 period. Lower gold
production resulted in a 14% increase in third quarter cash costs to $203 per
ounce. Year-to-date production, essentially as planned, was 85,600 ounces or 800
ounces higher than that achieved during the first nine months of 2001.
After nine months of testing, Alimak raise mining has been successfully
incorporated into the New Britannia mine plan allowing for the extraction of
narrow mineralization that had been previously excluded from the mine plan.
MUSSELWHITE MINE, Canada - (PLACER DOME, OPERATOR)
As in the previous quarter, production difficulties continued to
negatively impact Musselwhite results. Lower plant throughput, attributed to
several factors including continued delays in the underground conveyor project,
unplanned repairs to the cone crusher and power interruptions due to severe
electrical storm activity, contributed to a 18% decline in third quarter gold
production to 47,700 ounces (TVX's share - 7,600 ounces) compared to the same
2001 three month period. Cash costs were similarly negatively impacted, rising
20% to $247 per ounce.
Year-to-date, production has fallen 19% to 141,500 ounces (TVX's share -
22,600 ounces) in comparison to the first nine months of 2001. As compared to
plan, year-to-date production was, similarly, 19% lower.
Exploration activities continue successfully at Musselwhite. A total of
12,400 metres of diamond drilling were completed during the quarter focused on
the PQ deep zone, the Red Wing zone and the Canadien zone.
4 TVX GOLD INC. A FOUNDATION FOR GROWTH
<Page>
STRATONI OPERATIONS - TVX HELLAS S.A.
SUMMARY STRATONI PRODUCTION (TVX GOLD, OPERATOR)
<Table>
<Caption>
THREE MONTHS ENDED: SEPTEMBER 30, 2002 SEPTEMBER 30, 2001
- -----------------------------------------------------------------------------------------------------
TONNES TONNES
METAL MILLED GRADE RECOVERY PRODUCTION MILLED GRADE RECOVERY PRODUCTION
- -----------------------------------------------------------------------------------------------------
107,200 104,000
ZINC 9.74% 90.7% 9,500 t 11.07 91.7% 10,600 t
LEAD 7.84% 91.9% 7,700 t 8.15 91.1% 7,700 t
SILVER 211 g/t 87.0% 632,500 oz 208 g/t 86.6% 602,500 oz
- -----------------------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
NINE MONTHS ENDED: SEPTEMBER 30, 2002 SEPTEMBER 30, 2001
- ---------------------------------------------------------------------------------------------------------
TONNES TONNES
METAL MILLED GRADE RECOVERY PRODUCTION MILLED GRADE RECOVERY PRODUCTION
- ---------------------------------------------------------------------------------------------------------
291,700 262,200
ZINC 9.52% 91.5% 25,400 t 10.66 89.8% 25,100 t
LEAD 8.08% 91.9% 21,700 t 8.68 90.8% 20,700 t
SILVER 216 g/t 87.2% 1,767,400 oz 214 g/t 86.6% 1,561,500 oz
- ---------------------------------------------------------------------------------------------------------
</Table>
The Stratoni operation continued to enjoy improvements in productivity
during the third quarter 2002 with tonnage milled increasing 3% compared to the
same period last year and 15% over the second quarter 2002. The improvements
were the result of further underground mechanization combined with an increased
number of production levels available following an intensive development
campaign initiated early in 2002. Year-to-date milled throughput increased 11%
over the same 2001 period.
Zinc production decreased 10% during the third quarter 2002 whereas lead
production was essentially unchanged compared to the same period 2001. Increased
mill throughput was offset by lower base metal grades. The higher mill
throughput combined with higher grades positively impacted silver production,
increasing 5% to 0.63 million ounces as compared to third quarter 2001.
The average LME cash price for lead was $431 per tonne for the third
quarter 2002 (2001 - $470 per tonne) and $459 per tonne year-to-date (2001 -
$475 per tonne). The average spot zinc price was $767 per tonne during the third
quarter 2002 (2001 - $827 per tonne) and $781 per tonne year-to-date (2001 -
$926 per tonne).
CAPITAL STOCK
Effective June 30, 2002, the Company completed a common share
consolidation on a 10 for one basis. As a result, share capital, share options
and warrants, and earnings per share data prior to June 30, 2002, have been
retroactively restated.
As of November 14, 2002, the Company had the following outstanding common
shares and outstanding options and warrants exercisable into common shares:
<Table>
Common shares 43,145,008
Options 906,695
Warrants 8,000
- ------------------------------------
Total 44,059,703
- ------------------------------------
- ------------------------------------
</Table>
2002 THIRD QUARTER REPORT 5
<Page>
OTHER INCOME AND EXPENSES
Corporate administration costs for the quarter of $1.9 million were
essentially unchanged from the third quarter of 2001. On a year-to-date basis,
administration costs of $4.7 million were lower by $2.1 million. These cost
reductions were achieved at the TVX head office in Toronto and the TVX Newmont
office in Rio.
The transaction costs of $2.5 million included in the year-to-date
expenses are associated with the TVX, Kinross and Echo Bay business combination.
The lower interest income and expense figures in 2002 reflect reduced
debt, lower interest rates as well as lower average cash balances.
Historically, a major component of the "other" caption has been mark to
market adjustments related to commodity contracts. In 2002, this amount is
primarily comprised of a $1.7 million gain associated with the sale of residual
rights in the Casa Berardi mine to Aurizon Mines Ltd.
Minority interests and participation rights on the consolidated statements
of operations represents the net earnings attributed to the TVX Newmont joint
venture partner.
FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES
Consolidated cash and short-term investments amounted to $112.7 million at
September 30, 2002, compared to $45.3 million at December 31, 2001. These
figures exclude restricted cash of $9.1 million at September 30, 2002 ($16.6
million at December 31, 2001). During the third quarter, a pledge of $7.5
million of cash and cash equivalents relating to the Greek Olympias project was
released. The Company's share of cash and short-term investments, after minority
interests, was $102.0 million compared to $38.0 million at December 31, 2001.
This increase of $64.0 million primarily results from an equity offering of
7,150,000 common shares at Cdn$10.50 per share for net proceeds of $46.5
million, which closed on April 12, 2002.
At September 30, 2002, current and long-term debt was $2.3 million
compared to $74.2 million at December 31, 2001. In June 2002, export loans
relating to the Brazilia mine totaling $67.0 million were assigned to a
Brazilian bank. Therefore, the debt and corresponding long-term cash deposits
were removed from the consolidated balance sheet.
Expenditures on mining property, plant and equipment are lower in the
quarter as well as year-over-year primarily as a result of the cessation of
expenditures on the Olympias project.
Minority interest dividends represent dividends paid to Newmont, the
minority shareholder in TVX Newmont, and the amount depends on the balance of
surplus cash available for distribution by the TVX Newmont joint venture.
RISK FACTORS, OUTLOOK, FINANCIAL INSTRUMENTS AND ECONOMIC FACTORS
These factors are essentially unchanged from those discussed in the
Management's Discussion and Analysis for the year ended December 31, 2001.
RESTATEMENT AND RECLASSIFICATIONS
The Company has restated its loss per share for the nine-month period
ended September 30, 2001 from $0.50 to earnings per share of $2.13 and will
restate its loss per share for the year ended December 31, 2001 from $12.41 per
share to $10.58 per share.
This results from the inclusion, for purposes of the loss per share
calculation, of the increase in contributed surplus resulting from the
settlement of the gold-linked convertible notes in the determination of the loss
applicable to common shares (note 4). There has been no change in the amount
reported as net income or loss for those periods or any other balances as a
result of this restatement.
6 TVX GOLD INC. A FOUNDATION FOR GROWTH
<Page>
In addition, money market investments, which, on acquisition, had a term
to maturity of greater than three months have been reclassified to short-term
investments resulting in an increase in short-term investments and a decrease
in cash and cash equivalents at December 31, 2001 by $21,345 (2000 - $26,469;
1999 - $45,636). Additionally, restricted cash has been reclassified as a
non-current asset resulting in a decrease in cash and cash equivalents and an
increase in restricted cash at December 31, 2001 by $16,615 (2000 - $17,870;
1999 - $8,100). Accordingly, cash used for/provided by investing activities for
the year ended December 31, 2001 decreased by $6,379 (2000 - $9,397; 1999 -
(provided by) $53,736) in the consolidated statements of cash flows. Cash used
for investing activities increased by $3,185 for the three months ended
September 30, 2001 and decreased by $19,082 for the nine months ended September
30, 2001. There has been no change in cash provided by operating activities or
cash used for/provided by financing activities or in the total of cash and
short-term investments for any period.
/s/ T. Sean Harvey
-------------------------------------
T. SEAN HARVEY
PRESIDENT AND CHIEF EXECUTIVE OFFICER
November 14, 2002
2002 THIRD QUARTER HIGHLIGHTS
<Table>
<Caption>
(UNAUDITED) THREE MONTHS ENDED NINE MONTHS ENDED
(MILLIONS OF UNITED STATES DOLLARS, SEPTEMBER 30 SEPTEMBER 30
EXCEPT PER SHARE AMOUNTS) 2002 2001 2002 2001
- ---------------------------------------------------------------------------------------------------------
Revenue $ 46.5 $ 40.1 $ 135.7 $ 199.3
Net earnings (loss) $ 1.9 $ (1.1) $ 4.2 $ 0.1
Less: Interest on convertible notes 1 -- (0.3) -- (5.6)
Amortization of issuance costs 1 -- -- -- (1.1)
----------------------------------------------------------
Adjusted earnings (loss) $ 1.9 $ (1.4) $ 4.2 $ (6.6)
----------------------------------------------------------
Basic earnings per share 2 $ 0.04 $ 1.02 $ 0.11 $ 2.13
Operating cash flow $ 13.2 $ 24.9 $ 31.6 $ 35.9
Operating cash flow per share 2 $ 0.31 $ 0.76 $ 0.78 $ 2.72
Common shares outstanding (MILLIONS)
Weighted average 2 43.1 32.6 40.3 13.2
Period end 2 43.1 35.7 43.1 35.7
</Table>
1 $250 million, 5% gold linked convertible notes, issued March 24, 1997 and
converted to common shares during the third quarter of 2001
2 Restated to reflect a 10 old for 1 new share consolidation, which took effect
June 30, 2002
2002 THIRD QUARTER REPORT 7
<Page>
CALCULATION OF CASH COSTS, PRODUCTION COSTS
AND REALIZED REVENUE AND RECONCILIATION TO THE
STATEMENTS OF OPERATIONS
Cash costs, production costs and realized revenue are furnished to provide
additional information and are non-GAAP measures. These measures should not be
considered in isolation as a substitute for measures of performance prepared in
accordance with generally accepted accounting principles and are not necessarily
indicative of operating profit or cost from operations as determined under
generally accepted accounting principles.
<Table>
<Caption>
THREE MONTHS ENDED NINE MONTHS ENDED
(THOUSANDS OF UNITED STATES DOLLARS, SEPTEMBER 30 SEPTEMBER 30
EXCEPT PER OUNCE FIGURES) 2002 2001 2002 2001
- --------------------------------------------------------------------------------------------------------------------
CASH COSTS
Total cost of sales 29,356 25,839 89,569 79,922
Stratoni cost of sales (7,951) (4,295) (23,481) (16,794)
- --------------------------------------------------------------------------------------------------------------------
Cash cost of precious metal sales 21,405 21,544 66,088 63,128
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Ounces sold (000'S) - consolidated 121.3 122.5 356.3 357.3
Cash cost per ounce $ 176 $ 176 $ 185 $ 177
PRODUCTION COSTS
Total mine operating costs 37,347 36,623 114,135 109,728
Stratoni mine operating cost (8,592) (4,749) (25,262) (17,890)
- --------------------------------------------------------------------------------------------------------------------
Production costs - precious metals 28,755 31,874 88,873 91,838
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Ounces sold (000'S) - consolidated 121.3 122.5 356.3 357.3
Production cost per ounce $ 237 $ 260 $ 249 $ 257
REALIZED REVENUE
Total revenue 46,480 40,061 135,683 119,312
Stratoni revenue (6,838) (5,128) (21,986) (18,736)
- --------------------------------------------------------------------------------------------------------------------
39,642 34,933 113,697 100,576
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Revenue - mine operations 38,308 33,867 109,608 96,285
Revenue - hedging 1,334 1,066 4,089 4,291
- --------------------------------------------------------------------------------------------------------------------
39,642 34,933 113,697 100,576
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Ounces sold (000'S) - consolidated 121.3 122.5 356.3 357.3
Ounces sold (000'S) - TVX's share 60.6 61.2 178.1 178.6
Revenue per ounce - mine operations 1 $ 316 $ 277 $ 308 $ 270
Revenue per ounce - hedging 2 22 17 23 24
- --------------------------------------------------------------------------------------------------------------------
Total realized revenue per ounce $ 338 $ 294 $ 331 $ 294
</Table>
1 Revenue per ounce from mine operations is calculated by dividing revenue from
mine operations by ounces sold on a consolidated basis.
2 Revenue per ounce from hedging activities is calculated by dividing revenue
from hedging activities by ounces sold, based on TVX's share only.
The above non-GAAP measures have been calculated on a consistent basis in
each period.
For reasons of comparability, cash costs, production costs and realized
revenue do not include certain items such as mining property write-downs which
do not occur in all periods but are included under GAAP in the determination of
net earnings or loss.
Cash costs and production costs are calculated in accordance with "The Gold
Institute Production Cost Standard". Cash costs, production costs and realized
revenue may not be comparable to similarly titled measures of other companies.
Cash costs, production costs and realized revenue are used by management to
assess profitability and cash flow of individual operations as well as to
compare to other precious metal producers.
8 TVX GOLD INC. A FOUNDATION FOR GROWTH
<Page>
TVX GOLD INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
<Table>
<Caption>
THREE MONTHS ENDED NINE MONTHS ENDED
(THOUSANDS OF UNITED STATES DOLLARS, SEPTEMBER 30 SEPTEMBER 30
EXCEPT PER SHARE AMOUNTS) 2002 2001 2002 2001
- ----------------------------------------------------------------------------------------------------
REVENUE $ 46,480 $ 40,061 $ 135,683 $ 119,312
MINE OPERATING COSTS
Cost of sales 29,356 25,839 89,569 79,922
Depletion and depreciation 7,991 10,784 24,566 29,806
- ----------------------------------------------------------------------------------------------------
37,347 36,623 114,135 109,728
- ----------------------------------------------------------------------------------------------------
EARNINGS FROM OPERATIONS
BEFORE THE UNDERNOTED 9,133 3,438 21,548 9,584
- ----------------------------------------------------------------------------------------------------
OTHER EXPENSES (INCOME)
Corporate administration 1,927 1,916 4,748 6,854
Interest expense 157 989 551 3,214
Exploration 986 357 2,708 2,492
Transaction costs 592 -- 2,478 --
Foreign exchange loss 1,064 2,342 3,693 4,199
Interest income (750) (1,293) (3,091) (4,978)
Other, net (1,103) 932 (2,785) 178
- ----------------------------------------------------------------------------------------------------
2,873 5,243 8,302 11,959
- ----------------------------------------------------------------------------------------------------
Earnings (loss) before the undernoted 6,260 (1,805) 13,246 (2,375)
Income taxes 1,421 2,368 2,441 1,410
Minority interests and
participation rights (NOTE 8) 2,911 (3,063) 6,568 (3,864)
- ----------------------------------------------------------------------------------------------------
NET EARNINGS (LOSS) $ 1,928 $ (1,110) $ 4,237 $ 79
- ----------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------
EARNINGS PER SHARE
(RESTATED - NOTE 4) $ 0.04 $ 1.02 $ 0.11 $ 2.13
- ----------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------
DILUTED EARNINGS
PER SHARE (RESTATED - NOTE 4) $ 0.04 $ 1.02 $ 0.10 $ 2.13
- ----------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------
</Table>
TVX GOLD INC.
CONSOLIDATED STATEMENTS OF DEFICIT
(UNAUDITED)
<Table>
<Caption>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
(THOUSANDS OF UNITED STATES DOLLARS) 2002 2001 2002 2001
- -------------------------------------------------------------------------------------------------
Deficit, beginning of period $(454,122) $(226,981) $(456,431) $(221,837)
Net earnings (loss) for the period 1,928 (1,110) 4,237 79
Accretion of convertible notes -- (333) -- (6,666)
- -------------------------------------------------------------------------------------------------
DEFICIT, END OF PERIOD $(452,194) $(228,424) $(452,194) $(228,424)
- -------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------
</Table>
2002 THIRD QUARTER REPORT 9
<Page>
TVX GOLD INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
<Table>
<Caption>
(THOUSANDS OF UNITED STATES DOLLARS) SEPTEMBER 30, 2002 DECEMBER 31, 2001
- ----------------------------------------------------------------------------------
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 108,472 $ 16,568
Short-term investments 4,187 28,740
Accounts receivable 22,376 25,739
Inventories 21,184 24,299
- ----------------------------------------------------------------------------------
156,219 95,346
MINING PROPERTY, PLANT AND EQUIPMENT 227,069 237,262
RESTRICTED CASH 9,121 16,615
EXPORT PREPAYMENT CONTRACTS (NOTE 6) -- 66,983
DEFERRED CHARGES 4,980 182
DEFERRED INCOME TAXES 12,262 12,473
OTHER ASSETS 23,433 29,434
- ----------------------------------------------------------------------------------
$ 433,084 $ 458,295
- ----------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------
LIABILITIES
CURRENT LIABILITIES
Accounts payable and accrued liabilities $ 25,582 $ 28,266
Current portion of long-term debt 2,250 15,401
Current portion of deferred revenue 6,131 5,332
- ----------------------------------------------------------------------------------
33,963 48,999
LONG-TERM DEBT -- 58,832
OTHER LIABILITIES 23,665 22,943
DEFERRED INCOME TAXES 20,123 20,948
- ----------------------------------------------------------------------------------
77,751 151,722
MINORITY INTERESTS AND PARTICIPATION RIGHTS 129,756 132,088
- ----------------------------------------------------------------------------------
207,507 283,810
- ----------------------------------------------------------------------------------
SHAREHOLDERS' EQUITY
CAPITAL STOCK 641,516 594,661
CONTRIBUTED SURPLUS 36,255 36,255
DEFICIT (452,194) (456,431)
- ----------------------------------------------------------------------------------
225,577 174,485
- ----------------------------------------------------------------------------------
$ 433,084 $ 458,295
- ----------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------
</Table>
10 TVX GOLD INC. A FOUNDATION FOR GROWTH
<Page>
TVX GOLD INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<Table>
<Caption>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
(THOUSANDS OF UNITED STATES DOLLARS) 2002 2001 2002 2001
- -----------------------------------------------------------------------------------------------------
OPERATING ACTIVITIES
Net earnings (loss) $ 1,928 $ (1,110) $ 4,237 $ 79
Non-cash items:
Depletion and depreciation 7,991 10,784 24,566 29,806
Gain on sale of other assets (373) -- (1,675) --
Deferred income taxes (216) (3,517) (605) (5,220)
Minority interests and
participation rights 2,911 (3,063) 6,568 (3,864)
Other (478) 1,748 497 1,583
Deferred revenue (1,334) (1,922) (3,999) (4,596)
Net proceeds from hedge book
restructuring -- 16,801 -- 16,801
- -----------------------------------------------------------------------------------------------------
10,429 19,721 29,589 34,589
Change in working capital 2,776 5,157 1,982 1,340
- -----------------------------------------------------------------------------------------------------
Cash provided by operating activities 13,205 24,878 31,571 35,929
- -----------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES
Mining property, plant and equipment (4,110) (7,623) (12,898) (20,615)
Decrease (increase) in restricted cash 7,499 (1,270) 7,494 (2,140)
Purchase of short-term investments (2,281) (19,193) (28,748) (37,949)
Sales and maturities of short-term
investments 10,477 12,323 53,301 74,132
Payment of receivable from
High River Gold Mines Ltd. 179 1,168 2,794 1,999
Export prepayment contracts -- -- -- (25,848)
Proceeds from sale of other assets 618 -- 4,495 --
Other 1,005 948 940 (142)
- -----------------------------------------------------------------------------------------------------
Cash provided by (used for)
investing activities 13,387 (13,647) 27,378 (10,563)
- -----------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES
Gold-linked convertible notes -- (3,568) -- (9,173)
Common shares 363 (2,234) 46,855 (2,234)
Minority interest dividends (5,400) -- (8,900) (16,916)
Debenture payable -- -- -- (26,855)
Long-term debt (3,000) (19,880) (5,000) 474
- -----------------------------------------------------------------------------------------------------
Cash provided by (used for)
financing activities (8,037) (25,682) 32,955 (54,704)
- -----------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 18,555 (14,451) 91,904 (29,338)
Cash and cash equivalents,
beginning of period 89,917 34,409 16,568 49,296
- -----------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS,
END OF PERIOD $ 108,472 $ 19,958 $ 108,472 $ 19,958
- -----------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------
</Table>
2002 THIRD QUARTER REPORT 11
<Page>
TVX GOLD INC.
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
SEPTEMBER 30, 2002
(UNITED STATES DOLLARS, UNLESS OTHERWISE STATED. ALL AMOUNTS ARE
EXPRESSED IN THOUSANDS, EXCEPT NUMBER OF SHARES AND PER SHARE
AMOUNTS)
1. BASIS OF PRESENTATION
These unaudited interim consolidated financial statements have been
prepared in accordance with generally accepted accounting principles in Canada
("GAAP") for interim financial information. Accordingly, these interim
consolidated financial statements do not include all information and note
disclosures required under GAAP and they should be read in conjunction with the
consolidated financial statements of the Company for the year ended December
31, 2001. The interim financial statements follow the same accounting policies
and methods of their application as the most recent consolidated annual
financial statements except for the adoption of new standards described in note
3.
2. BUSINESS COMBINATION
During the second quarter, the Company, Kinross Gold Corporation and Echo
Bay Mines Ltd. entered into an agreement to combine their respective companies
while concurrently acquiring Newmont's interest in the TVX Newmont joint
venture. The combination is subject to regulatory and shareholder approval. TVX
shareholders will receive 6.5 shares of Kinross for every common share of TVX
that they hold at the time of the final approval of the combination. Similar to
other transactions of this nature the Company could be subject to break fees of
up to Cdn$28 million and other transaction expenses should the transaction not
close.
As a result of the United States Securities and Exchange Commission's
ongoing review of the Echo Bay preliminary proxy statement filed with the
Commission, the companies will not be able to finalize and mail their proxy
statements in time for the companies to hold their special meetings for the
purpose of considering the combination in advance of November 30, 2002, the
termination date specified in the Combination Agreement. The parties are
discussing amending the Combination Agreement to extend the termination date,
with a view to holding special meetings not later than January 2003.
3. CHANGES IN ACCOUNTING POLICIES
Effective January 1, 2002, the Company adopted a new accounting standard
issued by the Canadian Institute of Chartered Accountants ("CICA") relating to
stock-based compensation and other stock-based payments. This new standard
requires either the recognition of compensation expense for grants of stock,
stock options and other equity instruments to employees, or, alternatively, the
disclosure of pro forma net earnings and net earnings per share data as if
stock-based compensation had been recognized in earnings. The Company has
elected to disclose pro forma net earnings and earnings per share data for
options granted after January 1, 2002. Therefore, there is no effect of
adopting this standard on the Company's results of operations and financial
position.
Also, effective January 1, 2002, the Company adopted retroactively a new
CICA accounting standard in respect of foreign currency translation that
eliminates the deferral and amortization of currency translation adjustments
related to long-term monetary items with a fixed and ascertainable life. There
is no impact on the Company's results of operations and financial position as a
result of adoption of this new standard.
12 TVX GOLD INC. A FOUNDATION FOR GROWTH
<Page>
4. COMMON SHARES AND EARNINGS PER SHARE
Basic earnings per share is computed by dividing the earnings applicable
to common shares for the period by the weighted average number of common shares
outstanding during the period. Diluted earnings per share is computed by
dividing the earnings applicable to common shares for the period by the weighted
average number of common shares outstanding had potentially dilutive common
shares been issued.
Effective June 30, 2002, the Company consolidated its common shares on a
ten (10) old for one (1) new basis. All earnings per share, share capital, share
options and warrant data in the consolidated financial statements have been
restated to reflect the share consolidation.
The number of common shares outstanding at September 30, 2002 was
43,145,008 (December 31, 2001 - 35,722,353).
At September 30, 2002, the Company had 906,695 stock options and 8,000
warrants outstanding.
Basic earnings per share is computed as follows:
<Table>
<Caption>
THREE MONTH PERIOD NINE MONTH PERIOD
ENDED SEPTEMBER 30, ENDED SEPTEMBER 30,
2002 2001 2002 2001
- -----------------------------------------------------------------------------------------------
RESTATED RESTATED
BASIC EARNINGS PER SHARE
Net earnings (loss) $ 1,928 $ (1,110) $ 4,237 $ 79
Increase from the settlement of the
Gold-linked convertible Notes -- 34,729 -- 34,729
Interest accretion on
Gold-linked convertible Notes -- (278) -- (5,559)
Amortization of issuance costs -- (55) -- (1,107)
- -----------------------------------------------------------------------------------------------
Net earnings applicable to
common shares $ 1,928 $ 33,286 $ 4,237 $ 28,142
- -----------------------------------------------------------------------------------------------
Weighted average common shares
outstanding (000'S) 43,120 32,577 40,316 13,229
- -----------------------------------------------------------------------------------------------
Basic earnings per common share 1 $ 0.04 $ 1.02 $ 0.11 $ 2.13
- -----------------------------------------------------------------------------------------------
DILUTED EARNINGS PER SHARE
Net earnings applicable to common
shares, assuming dilution $ 1,928 $ 33,286 $ 4,237 $ 28,142
- -----------------------------------------------------------------------------------------------
Weighted average common shares
outstanding (000'S) 43,120 32,577 40,316 13,229
Dilutive effect of stock options 544 -- 421 --
- -----------------------------------------------------------------------------------------------
43,664 32,577 40,737 13,229
- -----------------------------------------------------------------------------------------------
Diluted earnings per common share 1 $ 0.04 $ 1.02 $ 0.10 $ 2.13
- -----------------------------------------------------------------------------------------------
</Table>
1 The Company has restated its earnings (loss) per share for the nine-month
period ended September 30, 2001 from $(0.50) per share to $2.13 per share
(three-months ended September 30, 2001 from $(0.04) to $1.02) to include, for
the purposes of the loss per share calculation, the increase in contributed
surplus resulting from the settlement of the gold-linked notes, described in
Note 9 to the consolidated financial statements for the year ended December
31, 2001, in the determination of the loss applicable to common shares. There
has been no change in the amount reported as loss for the year ended December
31, 2001 and the periods ended September 30, 2001.
2002 THIRD QUARTER REPORT 13
<Page>
5. COMMITMENTS AND CONTINGENCIES
A) ALPHA GROUP LITIGATION
The Ontario Court (General Division) issued its judgement in connection
with the claim against TVX Gold Inc. (TVX) by three individuals (collectively
the "Alpha Group") on October 14, 1998 relating to TVX's interest in the
Hellenic Gold mining assets in Greece (the "Hellenic Gold Assets").
The Court rejected full ownership and monetary damages claims but did
award the Alpha Group a 12% carried interest and a right to acquire a further
12% participating interest in the Hellenic Gold Assets. TVX filed a notice to
appeal and the Alpha Group filed a notice of cross-appeal.
Subsequent to the trial decision, the Company received notification of two
actions commenced by 1235866 Ontario Inc. ("1235866") the successor to Curragh
Inc. ("Curragh"), Mineral Services Limited ("Mineral") and Curragh Limited
("Curragh Ltd.") against the Alpha Group, and others, in Ontario and English
Courts, in relation to the claim by the Alpha Group against the Company for an
interest in the Hellenic Gold Assets.
On July 28, 1999, the Company entered into an agreement with 1235866 to
ensure that these new claims would not result in any additional diminution of
the Company's interest in the Hellenic Gold Assets. 1235866 agreed not to pursue
any claim against the Company for an interest in the Hellenic Gold Assets beyond
the interest which had been awarded to the Alpha Group. In the event that
1235866 is successful in its claim against the Alpha Group, 1235866 would be
entitled to a 12% carried interest as defined in the agreement (being an
economic interest) and the right to acquire a 12% participating interest upon
payment of 12% of the aggregate amounts expended by the Company and its
subsidiaries in connection with the acquisition, exploration, development and
operation of the Hellenic Gold Assets up to the date of the exercise.
The Company's appeal, the Alpha Group cross-appeal and the 1235866 motion
were all heard on February 17, 18 and 25, 2000. By judgement released on June 1,
2000, the Court of Appeal, while partially granting the TVX appeal, essentially
upheld the trial decision, rejected the Alpha Group cross-appeal and denied the
1235866 motion for a new trial. 1235866 continues its separate action against
the Alpha Group.
TVX and the Alpha Group have been unable to agree on the definition and
application of the interests awarded in the trial judgement. Accordingly, in
June, 2001, a new action was commenced between the Alpha Group and TVX to
clarify the award. At this time, TVX is unable to determine the impact, if any,
of an adverse result.
B) LITIGATION IN GREECE
On March 1, 2002, the Conseil d'Etat, the Greek Supreme Court, issued its
judgement, which annulled the purportedly valid permits issued by the Greek
Government to TVX Hellas with respect to the Olympias project. Given the Court
decision prohibiting the development, the Company is reviewing all of its
options, including possible legal actions, in an attempt to recover its
investments in Greece. As a result of the judgement, the Company wrote off the
carrying value of Olympias during 2001.
On February 15, 2002, a new mining permit, allowing for the continuation
of mining beneath the village of Stratoniki was issued to TVX Hellas. A local
action group filed a Petition of Annulment against the Greek Government to have
the new permit annulled. This action was heard on June 7, 2002 and the Court has
not yet released a decision. At this time, TVX is unable to determine the
impact, if any, of an adverse result.
14 TVX GOLD INC. A FOUNDATION FOR GROWTH
<Page>
C) HELLENIC GOLD COMMITMENTS
Pursuant to the acquisition contract of the Hellenic Gold assets in 1995
the Company has the obligation to fulfill the following: (1) Gold Plant
Guarantee - the Company is obligated to construct a gold plant within two years
from receiving all applicable licenses, which may be extended by a further eight
months under certain circumstances. The Company pledged $7.5 million to satisfy
a GRD2.6 billion guarantee; (2) employment must be offered by the construction
contractor to 150 former employees of Hellenic Gold for a period of 18 months,
during the construction of the gold plant; (3) the Company is also obligated to
employ at least 477 employees for a period of 10 years to maintain its
eligibility for government grants. In August 2002, the Greek government returned
the letter of guarantee to the Company in connection with the commitment to
construct a gold plant at Olympias. As a result, the $7.5 million pledge was
released.
D) BRASILIA MINE
A legal action has been commenced with RTZ Brazil regarding the
interpretation of the Shareholders Agreement governing the Brasilia mine. RTZ
Brazil alleges that rights of first refusal were triggered by the TVX Normandy
transaction in 1999 and by the resignation of TVX's former Chairman and Chief
Executive Officer in 2001. RTZ Brazil has purported to terminate the
Shareholders Agreement. The TVX Newmont entity (formerly TVX Normandy), does not
agree with the interpretation and was successful in bringing an injunction
against RTZ Brazil, preventing the Shareholders Agreement from being terminated
and preserving the status quo until the actual dispute is heard and ultimately
decided. At this time, TVX is unable to determine the impact, if any, of an
adverse result.
6. EXPORT PREPAYMENT CONTRACTS
During June 2002, under an Amended and Restated Debt Assumption Agreement,
long-term debt in an amount of $66,983 was legally extinguished. Consequently,
the debt and the related export prepayment contract balances were removed from
the consolidated balance sheet in a non-cash transaction.
2002 THIRD QUARTER REPORT 15
<Page>
7. SEGMENTED INFORMATION
FOR THE THREE MONTH PERIOD ENDED SEPTEMBER 30, 2002
<Table>
<Caption>
MUSSEL- NEW STRATONI GREECE
LA COIPA BRASILIA CRIXAS WHITE BRITANNIA OPERATIONS DEVELOP- CORPORATE/
CHILE BRAZIL BRAZIL CANADA CANADA GREECE MENT OTHERS TOTAL
- --------------------------------------------------------------------------------------------------------------------------------
Revenue 11,112 10,280 7,785 4,518 4,613 6,838 -- 1,334 46,480
- --------------------------------------------------------------------------------------------------------------------------------
Cost of sales 8,211 4,403 2,275 3,571 2,945 7,951 -- -- 29,356
Depletion and depreciation 2,935 1,640 1,367 259 1,129 641 -- 20 7,991
- --------------------------------------------------------------------------------------------------------------------------------
11,146 6,043 3,642 3,830 4,074 8,592 -- 20 37,347
- --------------------------------------------------------------------------------------------------------------------------------
Earnings (loss) from operations
before the undernoted (34) 4,237 4,143 688 539 (1,754) -- 1,314 9,133
- --------------------------------------------------------------------------------------------------------------------------------
Corporate administration -- -- -- -- -- -- -- 1,927 1,927
Interest expense 35 45 44 -- -- -- -- 33 157
Exploration 206 -- 225 158 239 -- -- 158 986
Transaction costs -- -- -- -- -- -- -- 592 592
Foreign exchange (gain) loss (283) 2,644 (149) 424 35 -- -- (1,607) 1,064
Interest income (9) (103) (126) (13) -- -- -- (499) (750)
Other, net (52) 1 79 14 -- -- -- (1,145) (1,103)
- --------------------------------------------------------------------------------------------------------------------------------
(103) 2,587 73 583 274 -- -- (541) 2,873
- --------------------------------------------------------------------------------------------------------------------------------
Earnings (loss) before
the undernoted 69 1,650 4,070 105 265 (1,754) -- 1,855 6,260
Income taxes (recovery) 474 (174) 275 -- -- -- -- 846 1,421
Minority interests and
participation rights (202) 912 1,897 53 133 -- -- 118 2,911
- --------------------------------------------------------------------------------------------------------------------------------
Net earnings (loss) (203) 912 1,898 52 132 (1,754) -- 891 1,928
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Mining property, plant and
equipment expenditures 686 934 404 866 426 794 -- -- 4,110
</Table>
FOR THE THREE MONTH PERIOD ENDED SEPTEMBER 30, 2001
<Table>
<Caption>
MUSSEL- NEW STRATONI GREECE
LA COIPA BRASILIA CRIXAS WHITE BRITANNIA OPERATIONS DEVELOP- CORPORATE/
CHILE BRAZIL BRAZIL CANADA CANADA GREECE MENT OTHERS TOTAL
- -------------------------------------------------------------------------------------------------------------------------------
Revenue 10,953 6,352 6,977 5,292 4,293 5,128 -- 1,066 40,061
- -------------------------------------------------------------------------------------------------------------------------------
Cost of sales 7,841 4,477 2,537 3,928 2,761 4,295 -- -- 25,839
Depletion and depreciation 3,985 1,744 1,257 1,788 1,533 454 -- 23 10,784
- -------------------------------------------------------------------------------------------------------------------------------
11,826 6,221 3,794 5,716 4,294 4,749 -- 23 36,623
- -------------------------------------------------------------------------------------------------------------------------------
Earnings (loss) from operations
before the undernoted (873) 131 3,183 (424) (1) 379 -- 1,043 3,438
- -------------------------------------------------------------------------------------------------------------------------------
Corporate administration -- -- -- -- -- -- -- 1,916 1,916
Interest expense 69 564 92 -- -- -- -- 264 989
Exploration 73 -- 22 30 170 -- -- 62 357
Foreign exchange (gain) loss -- 1,990 667 83 (37) -- -- (361) 2,342
Interest income (3) (145) (392) (27) -- -- -- (726) (1,293)
Other, net 183 2 11 1 -- -- -- 735 932
- -------------------------------------------------------------------------------------------------------------------------------
322 2,411 400 87 133 -- -- 1,890 5,243
- -------------------------------------------------------------------------------------------------------------------------------
Earnings (loss) before taxes (1,195) (2,280) 2,783 (511) (134) 379 -- (847) (1,805)
Income taxes (recovery) (68) 744 353 -- -- -- -- 1,339 2,368
Minority interests and
participation rights (563) (1,512) 1,215 (256) (67) -- -- (1,880) (3,063)
- -------------------------------------------------------------------------------------------------------------------------------
Net earnings (loss) (564) (1,512) 1,215 (255) (67) 379 -- (306) (1,110)
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
Mining property, plant and
equipment expenditures 883 504 938 1,518 287 879 2,529 85 7,623
</Table>
16 TVX GOLD INC. A FOUNDATION FOR GROWTH
<Page>
FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2002
<Table>
<Caption>
MUSSEL- NEW STRATONI GREECE
LA COIPA BRASILIA CRIXAS WHITE BRITANNIA OPERATIONS DEVELOP- CORPORATE/
CHILE BRAZIL BRAZIL CANADA CANADA GREECE MENT OTHERS TOTAL
- --------------------------------------------------------------------------------------------------------------------------------
Revenue 32,700 26,524 22,379 13,917 14,088 21,986 -- 4,089 135,683
- --------------------------------------------------------------------------------------------------------------------------------
Cost of sales 25,052 13,977 7,544 10,579 8,936 23,481 -- -- 89,569
Depletion and depreciation 8,964 4,480 3,861 2,455 2,961 1,781 -- 64 24,566
- --------------------------------------------------------------------------------------------------------------------------------
34,016 18,457 11,405 13,034 11,897 25,262 -- 64 114,135
- --------------------------------------------------------------------------------------------------------------------------------
Earnings (loss) from operations
before the undernoted (1,316) 8,067 10,974 883 2,191 (3,276) -- 4,025 21,548
- --------------------------------------------------------------------------------------------------------------------------------
Corporate administration -- -- -- -- -- -- -- 4,748 4,748
Interest expense 146 137 192 -- -- -- -- 76 551
Exploration 347 -- 368 613 800 -- -- 580 2,708
Transaction costs -- -- -- -- -- -- -- 2,478 2,478
Foreign exchange (gain) loss (456) 5,100 311 324 (28) 707 -- (2,265) 3,693
Interest income (20) (1,213) (524) (28) -- -- -- (1,306) (3,091)
Other, net (141) (12) 81 24 -- -- -- (2,737) (2,785)
- --------------------------------------------------------------------------------------------------------------------------------
(124) 4,012 428 933 772 707 -- 1,574 8,302
- --------------------------------------------------------------------------------------------------------------------------------
Earnings (loss) before
the undernoted (1,192) 4,055 10,546 (50) 1,419 (3,983) -- 2,451 13,246
Income taxes (recovery) 556 (471) 992 -- -- -- -- 1,364 2,441
Minority interests and
participation rights (874) 2,263 4,777 (25) 710 -- -- (283) 6,568
- --------------------------------------------------------------------------------------------------------------------------------
Net earnings (loss) (874) 2,263 4,777 (25) 709 (3,983) -- 1,370 4,237
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Cash and cash equivalents 4,021 1,032 4,962 364 34 618 -- 97,441 108,472
Mining property, plant and
equipment expenditures 1,965 1,874 2,530 3,802 1,199 1,513 -- 15 12,898
Mining property, plant
and equipment 65,725 62,156 24,387 47,583 7,849 4,218 15,000 151 227,069
Total assets 77,626 78,867 33,431 51,309 10,929 13,493 15,000 152,429 433,084
</Table>
FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2001
<Table>
<Caption>
MUSSEL- NEW STRATONI GREECE
LA COIPA BRASILIA CRIXAS WHITE BRITANNIA OPERATIONS DEVELOP- CORPORATE/
CHILE BRAZIL BRAZIL CANADA CANADA GREECE MENT OTHERS TOTAL
- -------------------------------------------------------------------------------------------------------------------------------
Revenue 29,699 19,202 20,305 15,160 11,919 18,736 -- 4,291 119,312
- -------------------------------------------------------------------------------------------------------------------------------
Cost of sales 22,538 13,561 8,024 10,815 8,190 16,794 -- -- 79,922
Depletion and depreciation 10,768 5,078 3,725 4,514 4,457 1,096 -- 168 29,806
- -------------------------------------------------------------------------------------------------------------------------------
33,306 18,639 11,749 15,329 12,647 17,890 -- 168 109,728
- -------------------------------------------------------------------------------------------------------------------------------
Earnings (loss) from operations
before the undernoted (3,607) 563 8,556 (169) (728) 846 -- 4,123 9,584
- -------------------------------------------------------------------------------------------------------------------------------
Corporate administration -- -- -- -- -- -- -- 6,854 6,854
Interest expense 267 564 417 -- -- -- -- 1,966 3,214
Exploration 278 -- 70 441 348 -- -- 1,355 2,492
Foreign exchange (gain) loss -- 3,715 1,391 101 48 -- -- (1,056) 4,199
Interest income (17) (1,410) (805) (42) -- -- -- (2,704) (4,978)
Other, net 635 (2) 7 1 -- -- -- (463) 178
- -------------------------------------------------------------------------------------------------------------------------------
1,163 2,867 1,080 501 396 -- -- 5,952 11,959
- -------------------------------------------------------------------------------------------------------------------------------
Earnings (loss) before taxes (4,770) (2,304) 7,476 (670) (1,124) 846 -- (1,829) (2,375)
Income taxes (recovery) (358) (525) 979 -- -- -- -- 1,314 1,410
Minority interests and
participation rights (2,206) (890) 3,249 (335) (562) -- -- (3,120) (3,864)
- -------------------------------------------------------------------------------------------------------------------------------
Net earnings (loss) (2,206) (889) 3,248 (335) (562) 846 -- (23) 79
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
Mining property, plant and
equipment expenditures 5,294 1,468 2,094 2,615 1,021 2,792 5,243 88 20,615
</Table>
2002 THIRD QUARTER REPORT 17
<Page>
GEOGRAPHIC SEGMENTS ARE AS FOLLOWS:
<Table>
<Caption>
THREE MONTH PERIOD NINE MONTH PERIOD
ENDED SEPTEMBER 30, ENDED SEPTEMBER 30,
2002 2001 2002 2001
- --------------------------------------------------------------------------------
REVENUE
Canada $ 10,465 $ 10,651 $ 32,094 $ 31,370
Chile 11,112 10,953 32,700 29,699
Brazil 18,065 13,329 48,903 39,507
Greece 6,838 5,128 21,986 18,736
- --------------------------------------------------------------------------------
$ 46,480 $ 40,061 $135,683 $119,312
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
SEPTEMBER 30, DECEMBER 31,
2002 2001
IDENTIFIABLE ASSETS
Canada $102,762 $108,576
Chile 82,205 88,430
Brazil 115,117 188,148
Greece 36,978 37,475
Others 96,022 35,666
- ----------------------------------------------------------------------------
$433,084 $458,295
- ----------------------------------------------------------------------------
- ----------------------------------------------------------------------------
</Table>
8. SUPPLEMENTARY INFORMATION ON MINORITY INTERESTS AND
PARTICIPATION RIGHTS
<Table>
<Caption>
THREE MONTH PERIOD NINE MONTH PERIOD
ENDED SEPTEMBER 30, ENDED SEPTEMBER 30,
2002 2001 2002 2001
- -----------------------------------------------------------------------------------------------
Revenue $ 19,821 $ 17,467 $ 56,849 $ 50,288
Mine Operating Costs 14,698 16,164 45,327 46,467
Other expenses 2,212 4,366 4,954 7,685
- -----------------------------------------------------------------------------------------------
Minority interests and
participation rights $ 2,911 $ (3,063) $ 6,568 $ (3,864)
- -----------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
</Table>
9. COMPARATIVE FIGURES
Certain comparative figures have been reclassified to conform to the
presentation used in the current year.
18 TVX GOLD INC. A FOUNDATION FOR GROWTH
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2002 THIRD QUARTER REPORT 19
<Page>
TVX GOLD INC.
220 Bay Street, Suite 1200 Toronto, Ontario Canada M5J 2W4 [LOGO]
Telephone: 416 366 8160 Fax: 416 366 8163
INVESTOR CONTACT
Toll Free (in North America)
1 877 TVX GOLD (889 4653)
E-Mail: info@tvxgold.com
CARL HANSEN
INVESTOR RELATIONS MANAGER
TEL: 416 941 0119
cbhansen@tvxgold.com
TRACEY THOM
INVESTOR RELATIONS COORDINATOR
TEL: 416 941 0134
tthom@tvxgold.com
INTERNET WEBSITE
www.tvxgold.com
STOCK SYMBOL: EXCHANGE
TVX: TSX
TVX: NYSE
ALL DOLLAR FIGURES ARE EXPRESSED IN UNITED STATES DOLLARS, UNLESS OTHERWISE
STATED.
FORWARD LOOKING STATEMENTS
SOME STATEMENTS IN THIS REPORT CONTAIN FORWARD LOOKING INFORMATION. THESE
STATEMENTS ADDRESS FUTURE EVENTS AND CONDITIONS AND, AS SUCH, INVOLVE INHERENT
RISKS AND UNCERTAINTIES. ACTUAL RESULTS COULD BE SIGNIFICANTLY DIFFERENT FROM
THOSE PROJECTED.
<Page>
SIGNATURE
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.
TVX GOLD INC.
By: ___________________________________
R. Gregory Laing
General Counsel, Vice President
and Corporate Secretary
Dated: November 25, 2002
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