A net loss of $8.1 million or 28 cents per share was reported by Granges (TSE) for 1989, compared with a 1988 net loss of $13.5 million or 61 cents per share. The company said the improvement reflects unit cost reductions at the Crofoot/Lewis gold mine in Nevada and increased revenues from this mine and the Trout Lake polymetallic mine in Manitoba.
After allowing for more than $12 million in depreciation and depletion, Granges reported 1989 earnings from operations of $11.3 million, compared with a loss from operations of $600,000 in 1988. Net sales for 1989 were $66.2 million, a 45% increase over the $45.6 million reported in 1988.
After completing evaluations of several undeveloped mineral properties in 1989, a number were abandoned or placed for sale resulting in a writedown of $12.1 million.
Colin Kaiser, Granges president and chief executive officer, said both Granges and its 59% owned subsidiary Hycroft Resources & Development (VSE) saw a turnaround in operations in 1989.
“While we have had substantial writeoffs and onetime expenses in the past year, the company’s strength is evident and the future is promising in view of our solid operating performance in 1989,” he stated.
The company reported that its consolidated gold output rose from 24,000 oz. in 1987 to 68,500 oz. in 1988 and finally, to 102,000 oz. in 1989. Granges (TSE) Year ended Dec. 31 1989 1988 Revenue (000s) $66,200 $45,600 Net loss (000s) 8,100 13,500 Net loss
(per share) 28 61004
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