The loss reported by Pamour follows similarly disappointing news by associated company Giant Yellowknife Mines (TSE), which took a $29.6-million write-down of assets at the end of the year and whose 1988 gold production fell to 187,354 oz from almost 215,000 oz the year before. Pamour has a 41.8% interest in Giant Yellowknife.
After extraordinary items, Pamour’s net loss for 1988 was $6.4 million (54 cents per share) compared to net earnings of $10.7 million (95 cents per share) in 1987.
The 1988 financial results reflect a $3.4 million write-down of the carrying value of the investment in shares of Dickenson Mines (TSE) and Kam-Kotia Mines (TSE) and the administrative costs and net carrying costs of its investments in affiliated companies, Pamour says.
Pamour recently tendered its holdings in both Dickenson and Kam-Kotia to Goldcorp Investments Ltd. following a takeover of both companies by Goldcorp.
No revenue was reported in 1988 from the gold tailings recovery project of ERG Resources (TSE) at Timmins, Ont., which officially went into production last October, but has yet to reach full production. Pamour has a 61.6% interest in ERG.
The ERG project, managed by Giant Yellowknife, restarted in March after having been shutdown for the winter. Pamour reports the project’s milling and flotation recovery systems are progressing to a commercial level of production.
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