Galactic cuts first-half loss while Ridgeway output falls

The net loss for Galactic Resources (TSE) totalled US$2.15 million during the 1991 first half, compared to net income of US$6.98 million in the same period last year.

The loss includes an after-tax gain of US$2.5 million from the sale of a 25% interest in the company’s Far South East project in the Philippines. The other 75% interest was sold in the first half of 1990 for an after-tax gain of US$7.4 million.

Galactic’s share of gold production from its 48% owned Ridgeway mine declined to 30,573 oz. for the first half of 1991, down from 39,972 oz. in the first half of 1990.

The drop in production was primarily the result of a drop in throughput due to an increase in ore hardness. The installation of a new ball mill was completed in the second quarter and is expected to increase production in the second half of the year.

The cash cost of production at the Ridgeway mine during the 6-month period was US$241 per oz. The operation produced a cash flow of US$4.35 million during the first half, off significantly from US$10.14 million in 1990. Galactic’s Summitville mine in Colorado was brought back into production in late May and produced 9,094 oz. gold in the first half at an operating loss of US$615,000.

The company’s 50% owned Ivanhoe project in Nevada produced 14,859 oz. for the company’s account at an operating loss of US$17,000.

DCC Equities plans to take control of Galactic before 1992.