Earnings Report (August 14, 1989)

Franco-Nevada Mining Corp. (TSE) reported a net after-tax profit of $452,000 or 3.7 cents per share for the quarter ended June 30. This compares with a $55,000 profit in the same period last year or 0.4 cents per share. Revenue rose to $854,000 from $364,000 the year before.

Canamax Resources (TSE) reported net income of $4.4 million or 25 cents per share for the quarter ended June 30, compared with a loss of $1.9 million (13 cents per share) in the same period last year. Revenue was $11.3 million on sales of 23,208 oz gold at an average price of $409(US) per oz. Second quarter 1988 figures were $1.9 million on sales of 3,428 oz at $451(US) per oz. The difference reflects Canamax’s 100% ownership of the Bell Creek mine (which was only 50%- held last year) and income from the Kremzar and Ketza mines which were not operating during the second quarter of 1988.

For the first six months, Canamax reported revenue of $19.5 million and net earnings of $2.1 million (13 cents per share). For the first half of 1988, revenue was $3.8 million and a net loss posted of $3 million or 20 cents per share.

Nerco Inc. (NYSE) reported second-quarter earnings of $18.2 million or 54 cents per share, up 75% from the same period last year when earnings were $10.4 million or 31 cents per share.

Consolidated revenue was $164.2 million compared with $38.3 million last year.

Nerco’s precious metals interests generated $2.2 million for the quarter on sales of 35,000 oz gold and 530,000 oz silver.

Nerco also has extensive coal and oil and gas holdings.

Second-quarter profits for Brunswick Mining and Smelting (TSE) were $15.9 million or 42 cents per share compared with $5.6 million or 16 cents in the same period last year. The figures bring Brunswick’s first-half profits to $34.2 million or 93 cents per share compared with $9.5 million or 27 cents per share last year.

The higher earnings are the result of strong zinc prices, which averaged $1,685(US) per tonne for the period.

Net earnings of Hemlo Gold Mines (TSE) for the second quarter of 1989 were $12.3 million or 14 cents per share on revenue of $53.2 million. In the same period last year, net earnings were $10.6 million or 12 cents per share on $44.5 million of revenue.

The figures bring Hemlo’s 6- month earnings to $18.7 million or 21 cents per share compared with $25.1 million or 29 cents per share last year.

Hemlo’s Golden Giant mine produced 104,620 oz of gold in the quarter, up from 85,939 oz in the first quarter of this year. The increase represents higher head grades (averaging 12.3 g per tonne on throughput of 3,000 tonnes per day) and treatment of high grade development ore. Cost per oz dropped to $120(US) from $147. Recovery was 95.5%.

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