The largest shareholder and parent company of American Barrick Resources, The Horsham Corp., posted a net profit of $42.3 million or 75 cents per share for the 9-month period ended Sept 30. The profit includes an extraordinary gain of $38.5 million which is largely due to a $31.3-million increase in the carrying value of Horsham’s block of American Barrick common shares. This increase in value followed Barrick’s issue of 10 million shares at prices in excess of Horsham’s historical carrying value.
Following another issue by Barrick of three million shares during the period, Horsham’s interest in the big gold producer was reduced from 23.5% to 22%. Barrick, which is Horsham’s largest investment, reported 9-month earnings of $17.7 million, up 55% over the same period in 1986. Gold production totalled 163,838 oz.
Barrick has cash and short term investments in excess of $300 million and proven and probable gold reserves of 5.3 million oz, primarily in Nevada’s Carlin area.
The current market collapse is being seen as an advantageous period for Horsham which was created to become an acquisition oriented company. Potential acquisitions are being researched in both domestic and international markets, the company says.
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