Granges gold output higher but quarterly loss reported

Despite higher gold output and revenues, Granges Exploration (TSE) posted a $1.2 million or 5 per share loss for the third quarter, compared to a profit of $822,721 or 5 for the same period a year ago. In the first nine months, net earnings amounted to $445,455 or 2 versus $1.3 million or 9 the year before.

Consolidated gold production during the quarter was 21,525 oz, an increase of 3,500 oz from the previous period. The Crofoot and Lewis mine properties in Nevada accounted for 75% of that production, said Granges.

Nine month gold output was 47,211 oz, triple the 1987 level.

“In spite of initial tune-up problems, we are well on our way to achieving our previously stated production goal of 25,000 oz of gold per quarter,” said Mike Muzylowski, president.

An operating profit of $4 million was reported in the third quarter and $8.8 million for the nine months. This was before non-cash charges of depreciation, depletion, and amortization totaling $4.5 million and $8.6 million respectively.