Lacana improves 2nd-quarter earnings

Annual output of 50,000 oz gold and 150,000 oz silver is expected from its wholly-owned Santa Fe mine in Nevada which is to go into production in October, Lacana Mining reports.

The company, part of the Royex group, reported second-quarter earnings of $3.5 million (14 cents per share) before extraordinary items for the three- month period ending March 31, compared with $1.9 million (14 cents per share) for the same period last year. After extraordinary items, earnings for the quarter were $3.4 million (14 cents per share) compared with $2.6 million (20 cents per share) for the same period in fiscal 1987.

Lacana, with a 50% interest in Mascot Gold Mines (TSE), had 25.4 million shares outstanding as of March 31.

For the first six months of fiscal 1988, Lacana had earnings of $6.5 million (26 cents per share) before, and $7 million (28 cents per share) after, extraordinary items, compared with $3.7 million (28 cents per share) before, and $6.3 million (48 cents per share) after, extraordinary items for the same period last year.

Revenues for the second quarter improved to $29 million from $10.1 for fiscal 1987. For the first six months, revenues increased to $40.3 million from $20.7 million for the same period last year.

Lacana’s share of production from mines in which it has interests was 40,900 oz gold and 467,000 oz silver for the first six months of fiscal 1988.

A proposed amalgamation involving Lacana, Mascot and TSE- listed International Corona Resources, Royex Gold Mining and Galveston Resources was voted on June 3 by shareholders.