Earnings Report (July 10, 1989)

The quarterly loss increases the 6-month loss to $2.1 million or 24 cents per share.

During the quarter Skyline produced 11,174 oz of gold, 210,948 oz of silver and 339,000 lb copper. The mill processed an average of 307 tons per day.

Underground drilling at Johnny Mountain has increased reserves by 28%. Using a cut off grade of 0.3 oz per ton, the mine has proven and probable reserves of 142,000 tons grading 0.82-0.84 oz. The company estimates a further 680,000 tons of possible reserves.

Toronto-based Regional Resources (TSE) reported a first- quarter net income of $60,000 compared to a $30,000 gain in the same period last year. At the end of the period, Regional’s deficit stood at $1.9 million, compared with $2.1 million in 1988.

Net first-quarter earnings after extraordinary items for Cheni Gold Mines (TSE) were $404,000 or 4 cents per share. No 1988 figures are available since Cheni’s Lawyers gold- silver mine achieved production on March 1 of this year.

At the end of the period Cheni had $937,000 on hand in cash and short-term investments compared with $25.9 million at the same time last year. The company has repaid $148,000 of its gold/silver loan.

During March, Lawyers’ 550- ton-per-day mill operated at 88% capacity and achieved recovery rates of 88% for gold and 78% for silver.

Amax Gold (TSE) recorded first- quarter earnings of $9.2 million(US) or 15 cents per share compared with a profit of $12.5 million or 21 cents per share in the same period last year. Increased taxes in Nevada and an equity loss through Amax’s stake in Canamax Resources contributed to the reduced earnings, the company said.

Gold sales climbed 33% to 66,472 oz from the first quarter last year.

American Pacific Mining (VSE) reports first-quarter income of $2.4 million (23 cents per share) compared with $1.2 million (13 cents per share) for the same period last year. Cash flow during the quarter totalled $2.8 million. The company operates the El Mochito zinc-lead-silver mine in Honduras.

Orofino Resources (TSE) reported a loss of $386,303 (2 cents per share) for the six months ended March 31. In the same period last year the loss was $20,287.

Orofino has $800,000 in cash, continuing cash flow from its Scadding mine, and $500,000 in flow-through financing for exploration. Gold production from Scadding, near Sudbury, Ont., was 2,400 oz during the period compared with 2,200 oz the year before. The mine has a stockpile of 60,000 tons of ore estimated to contain 8,400 oz. The ore will be processed over the next 18 months. Further exploration is being considered to extend the mine’s life.

A $750,000 exploration program is planned this summer for the Coronation Gulf property in the Northwest Territories.

Coniagas Mines (TSE) reported a net loss of $140,706 for the first quarter equal to 3 cents per share. In the same period last year, the company lost $21,217.

Coniagas ended the quarter with a debt of $229,001.

A net loss of $88,855(US) or 1 cents per share was reported by Piedmont Mining (NASDAQ) in the first quarter ended March 31. In the same period a year ago, Piedmont lost $432,959 or 4 cents per share. Net sales increased this year to $1.3 million from $594,122. Gold production climbed to 3,560 oz from 1,339 oz. The company ended the quarter with no long-term debt.

Piedmont Mining (NASDAQ) reported a net loss of $88,855(US) or 1 cents per share for the first quarter. In the first quarter of 1988, the company had a loss of $432,959 or 4 cents per share. Net sales rose to $1.3 million compared with $594,122 the year before.

Piedmont ended the quarter free of debt with assets worth $6.7 million.

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