A drop in both the price of gold and production levels help to explain a loss of US$688,000 for Atlas (NYSE) in its first quarter ended Sept. 30. The results compare to a net income of US$607,000 in the first quarter of fiscal 1990. Comparative results were also affected by the inclusion of US$355,000 in earnings from discontinued operations in the 1990 period as well a reduction in depreciation expense of US$220,000 in the recent quarter.
During the quarter, gold production reached 14,342 oz., compared with production of 16,286 oz. in the first quarter of 1990. The price of gold realized by Atlas in the 1991 first quarter was US$383 per oz., compared with US$423 per oz. in the first quarter of fiscal 1990.
The company noted operations at its Gold Bar Mill in Nevada were adversely affected by startup problems in the new refractory circuit. Operating cost were higher than forecast and recoveries were lower. Atlas expects costs and recoveries to return to previous levels as oxide ore from a nearby deposit is processed through the mill.
Atlas was not successful in obtaining a positive court ruling regarding governmental cost sharing on the cleanup of uranium tailings at its Utah uranium site.
As a result, the company will have to foot the entire cleanup bill. Atlas accrued US$17.4 million for cleanup costs when the site was closed in 1987. The Nuclear Regulatory Commission is expected to review Atlas’ reclamation plans for the site by mid-1991. The cleanup costs have not been set aside as a trust but show up on the company’s balance sheet as future liabilities. Atlas (NYSE) 3 months ended Sept. 30 1991 1990 Revenue $5,955 $7,037 Net earnings (loss) (688) 607
per share (0.12) 0.1
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