Total Erickson Resources reports net income for 1986 of $2.5 million, which compares to a loss of $9.9 million in 1985. The latter represents only six months of mining operations due to the business combination of Erickson and Total Eastcan Exploration which became effective June 30, 1985.
Last year’s highlights included the construction and successful startup of two mills, one at the Mount Skukum project in the Yukon and the other at Cassiar, B.C., which replaced one destroyed by fire.
Total Erickson notes that a provision of $5 million has been included in the 1986 financial statements which reflects a substantial portion of an insurance claim relating to the fire at Cassiar. The company has submitted a claim for business interruption loss totalling $7 million and any balance will be recorded in susbsequent fiscal years, says the company.
The financial statements also include a non-cash writedown of $2.6 million on its long-term investment in Trans Canada Resources in which it holds a 9% equity interest. Net income would have been $5.1 million or 18 cents per share without the writedown, says Erickson.
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