Three factors lent strength to Wharf Resources’ (TSE) performance in 1994: a higher realized gold price; an increase in the amount of gold sold; and a US$1-million premium earned on advances from the Golden Reward mine in South Dakota.
The Toronto-based company posted revenue of US$55.4 million and earnings of US$10.4 million for the year, compared with US$44.1 million and US$5.2 million in 1993. This represents a 25% jump in revenues and a 100% increase in earnings.
The company sold 138,924 oz. gold at an average realized price of US$399 per oz., compared with 121,369 oz. at US$362 per oz. in 1993.
Total production from the wholly owned Wharf mine (also in South Dakota) and from its 60% interest in the Golden Reward was 136,816 oz., which is 11% higher than 1993’s figure of 123,710 oz.
Meanwhile, the company is attempting to expand its reserve base, which consists of 945,000 oz. of permitted reserves and 1.2 million oz. unpermitted. Towards this end, it has begun the permitting process for development of the Clinton project, which adjoins the Wharf mine. The Clinton deposit contains an estimated 1 million oz.
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