Weak metal prices combined with a strong Canadian dollar forced Audrey Resources (TSE) to break out the red in 1990. The Montreal-based polymetallic producer reported a loss of $2.9 million or 19 cents per share during the year ended Dec. 31 compared to a loss of $526,000 or 5 cents a share in the previous year.
As 1990 was the first full year of operations at Audrey’s Mobrun mine near Rouyn-Noranda, Que., annual revenues increased to $20 million from $5.6 million in 1989 when the mine operated for just three months.
During 1990, Mobrun produced 5.7 million lb. copper, 17.6 million lb. zinc, 17,919 oz. gold and 92,916 oz. silver from 496,940 tons milled.
Management of Audrey is attempting to sell the company to a senior mining firm capable of financing development of Mobrun’s new 1100 massive sulphide lens which contains 15.5 million tons of grade 4.64% zinc, 0.83% copper, 1.05 oz. silver and 0.035 oz. gold.
Toronto-based Minnova (TSE) is currently completing a feasibility study on the 1100 to earn a 50% stake in any future production from the new lens. Development costs could be as much as $90 million.
Meanwhile, Audrey reported first-quarter earnings of $91,700 or 1 cents a share on revenues of $5.4 million compared to a loss of $1 million or 7 cents a share on revenues of $4.4 million in the first three months of 1990.
In the first quarter Mobrun produced 1.8 million lb. copper, 5.6 million lb. zinc, 5,532 oz. gold and 25,703 oz. silver from 126,236 tons milled.
“Discussions with several major international mining companies with respect to their acquisition of an interest in the company or in the Mobrun mine have progressed appreciably in the last few days,” Audrey said. “The company will announce immediately any conclusion with respect to this matter.” Audrey Resources (TSE) 3 months ended March 31 1991 1990 Revenue $5,380 $4,444 Net earnings (loss) 92 (1,000)
per share 0.01 (0.07) 12 months ended Dec. 31 Revenue 19,937 5,616 Net earnings (loss) (2,989) (526)
per share (0.19) (0.05)
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