Corona net earnings slip

First-quarter net earnings of Corona (TSE) slipped to $6.2 million this year from the $10.5 million reported in the first three months of 1990.

The company said the decrease reflects a decline in operating revenues, offset in part by lower interest expense brought about by converting dollar-denominated debt into gold loans.

During the 1991 first quarter, some $130 million of debt was converted to gold-denominated obligations (which have lower interest rates), and interest savings of $10-12 million are expected to result from this program in 1991.

The first-quarter results also reflect a loss attributed to Breakwater Resources (TSE), of which Corona’s portion is $2.2 million.

Corona also reported a drop in its share of gold and gold equivalent production to 179,598 oz. in this year’s first quarter, compared with 193,200 oz. produced in the comparable 1990 period. The company said the drop in output was expected as grades at the Hemlo gold mines return to mine plan levels from the high grades mined last year.

Direct operating costs per oz. gold were US$202 for the quarter, US$10 per oz. higher than in the 1990 first quarter, but lower than planned because of good performances at the Williams, David Bell, Nickel Plate and Jolu operations.