Improved first half for Belmoral Mines

Net income of $3.8 million (10 cents per share) on revenues of $15.5 million was reported by Belmoral Mines (TSE) for the first six months of 1988, compared with net income of $349,000 (1 cents per share) on revenues of $13.9 million for the same period last year.

The 1988 results include an extraordinary item of about $1.3 million ($105,000 in 1987) for an income tax reduction resulting from the application of losses of prior years.

During the second quarter, net income amounted to $1.6 million (4 cents per share) on revenues of $7.7 million, compared to a loss of $656,000 (3 cents per share) on revenues of $5.9 million for the same period in 1987. The 1988 results include an extraordinary item of $544,000 for an income-tax reduction, while the 1987 results include a reduction of tax benefits equal to $195,000.

First-half cash operating costs averaged $308(C) per oz, compared with $374 for the same period in 1987. During the 6-month period, the company turned out 25,901 oz compared with 24,214 oz last year. (The comparable gold output was achieved by milling about half the tonnage processed in 1987; a higher recovery rate helped in part.) Second-quarter production totalled 12,878 oz; 51,783 tons of ore were milled during the quarter at an average grade of 0.26 oz gold per ton.

The company reports deep drilling at its Dumont mine at Val d’Or, Que., has indicated mineralization below 2,200 ft and consideration is being given to deepening the shaft.