Moving solidly into the black this quarter was Equity Silver Mines (TSE) which posted a profit of $1.1 million or 3 cents per share compared to a loss of $1.7 million or 7 cents per share last year. Anthony J. Petrina, president, attributes the improvement to “higher prices for silver, gold and copper, lower depreciation expense and increased production of silver and gold.”
Cash flow from operations increased to $16.8 million from $2.2 million last quarter because of concentrate sales from inventory and higher metal prices. The company’s cash balance as of March 31 was $19.7 million compared to $4 million a year earlier.
Petrina says this cash resource will be used to finance a $4.5-million exploration program which otherwise would have been funded by flow-through shares. (Under the new system, only junior sector companies are eligible.)
At the end of the period, Equity had forward sales contracts and put options totalling 2.1 million oz of silver at prices averaging $7.85(US) per oz, covering the period June, 1988, to December, 1989. The company also has contracts for the sale of 32,900 oz of gold at prices averaging $481.40 per oz covering the period April, 1988, to December, 1989.
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