Continued difficulties with production at its low-grade mine in Newfoundland, coupled with relatively weak gold prices, kept {Hope Brook Gold Mines{ (TSE) in the red during 1990. The company reported a net operating loss last year of $16.7 million (56 cents per share), roughly the same as in the previous year.
.TAfter providing for a $30-million writedown and interest charges of $9.9 million, the net loss was $49.8 million ($1.66 per share) compared with $18.8 million (63 cents per share) in 1989.
As in the previous year, the Hope Brook operation continued to experience difficulties in 1990 and has failed to meet its targets. To correct the situation, capital expenditures were made in three areas during the year. The mill’s effluent system was replaced and a new ore-sorting process was installed to increase mill throughput. As well, a third electric haulage truck was purchased to increase haulage capacity.
In October, the company purchased option contracts to hedge its financial exposure to the possible exercise of outstanding gold purchase warrants. Agreement was also reached in November for a first contract with the United Steelworkers of America. The contract runs for a period of three years. Annual gold output at the mine rose 31% to 110,460 oz. last year. Hope Brook Gold{ (TSE) 3 months ended Dec. 31 1990 1989 Revenue $12,710 $10,894 Net earnings (loss) (36,825) (6,165)
per share (1.23) (0.21) 12 months ended Dec. 31 Revenue 54,014 38,094 Net earnings (loss) (49,837) (18,817)
per share (1.66) (0.63)
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