Hemlo puts Corona in the black

Increased gold production both from the David Bell mine and the still-disputed Williams mine at Hemlo helped put International Corona Resources well into the black for the year ended Sept 30, 1987.

The company reports earnings in the period, before unusual items, of $13,585,000, or 88 cents a share, compared to a loss of $2,034,000 or 15 cents a share, for the year ended Sept 30, 1986.

After unusual items (an amount of $18,331,000 in Corona’s 1987 results representing the company’s share of the unusual items of associated Royex Gold Mining Corp.), net earnings were $31,916,000 or $2.07 a share, for 1987, against a loss of $1,334,000 or 10 cents a share, in 1986.

And, Corona says, including unaudited results from the Williams mine at Hemlo, the company’s earnings for 1987 were $28,419,000 or $1.85 a share before unusual items, and $46,750,000 or $3.04 a share after the unusual items.

(The March, 1986 Supreme Court of Ontario ruling which awarded the Williams mine to Corona, on payment of $154 million, is under further appeal by Lac Minerals to the Supreme Court of Canada.)

Corona’s revenues for fiscal 1987, excluding the Williams mine, soared to $49,705,000 from $4,121,000 in the previous year, reflecting the start of commercial production at the David Bell mine at Hemlo, on the first of October, 1986.

The mine produced 130,122 oz gold in 1987, compared to 52,888 oz in 1986, while the associated quarter-claim in which Corona has a 25% net profits royalty interest, produced 36,288 oz gold, compared to 13,224 oz in 1986. Corona has a 50% interest in the David Bell mine, as has Teck Corp.

Corona’s revenues for fiscal 1987 increased to $116,708,000, including 50% of revenues from the production of the Williams mine and associated fractional claims.

That mine and the fractional claims produced 242,500 oz gold in the fiscal 1987 period, compared to 199,800 oz in the 10 months since production started in December, 1985, to Sept 30, 1986.

Thanks largely to the proceeds of an issue of notes and gold purchase warrants in Europe in May of last year, which raised some $65,000,000, Corona’s working capital has risen to $119,650,000 as at Sept 30, 1987, from $41,793,000 a year earlier.


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