Writedown puts Malartic in red

Lower gold prices combined with asset writedowns and provisions for losses on certain investments put Malartic Hygrade Gold Mines (VSE) in the red durring 1990. The company reported a loss of $5.55 million ($1.27 per share) in 1990 on revenue of $6 million, compared with net income of $595,226 (15 cents per share) on revenue of $9.92 million in 1989.

Last year’s net loss included pretax writedowns on mining assets and provisions for investment losses totalling $6.2 million, the company said.

For the fourth quarter, Malartic reported a net loss of $3.59 million (82 cents per share) on revenue of $3.21 million, compared with net income of $104,074 (3 cents per share) on revenue of $2.84 million in 1989.

Annual gold output fell to 14,277 oz. in 1990, down from 20,015 oz. in 1989 because of slower than anticipated startup at the company’s new Congress mine in Arizona. Meanwhile, fourth-quarter production rose to 6,843 oz., up from 5,931 oz. in the year-earlier period.

In order to reflect the diversification of the company’s asset base into the U.S., Malartic intends to change its name to Republic Goldfields at the upcoming annual meeting in May. The company’s two operating gold mines are near Val d’Or, Que., and Congress, Ariz. Malartic Hygrade Gold Mines (VSE) 3 months ended Dec. 31 1990 1989 Revenue $3,205 $2,838 Net earnings (loss) (3,589) 104,074

per share (0.82) 0.03 12 months ended Dec. 31 Revenue 6,003 9,924 Net earnings (loss) (5,547) 595,226

per share (1.27) 0.15


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