Belmoral loss triples in first half of 1990

Despite a 15% increase in gold production and a corresponding jump in revenue, Belmoral Mines (TSE) reported a net loss of $17.1 million (37 cents per share) for the first six months of 1990. The loss, a result of several writedowns and losses on the disposal of its investments, properties and equipment, is almost three times as great as the $6 million (15 cents per share) lost in the first half of 1989.

In order to pay off an $8.5-million debt load, Belmoral has been selling off many of its interests at bargain basement prices, including its 50% stake in the Astoria gold property near Rouyn- Noranda, Que.

First-half gold production was up to 28,362 oz. this year and revenues reached $14.6 million, up from $11.7 million in the first six months of 1989.

At a special meeting on Oct. 18, Belmoral will seek approval from its shareholders to sell a 50% interest in its Val d’Or, Que., properties to Aur Resources (TSE).

In exchange for the package, which includes the Dumont and Ferderber gold mines, a 1,200-ton- per-day mill and 21,000 acres of mining claims, Aur will forgive a $4.5-million debt and lend Belmoral $2 million for further exploration at the two mines. The agreement will eliminate all of Belmoral’s outstanding debt. Belmoral Mines (TSE) 6 months ended June 30 1990 1989 Revenue $14,591 $11,725 Net earnings (loss) (17,118 ) (6,016)

per share (0.37 ) (0.15)