Cons. TVX reports reduced earnings

Consolidated TVX Mining (TSE) reported reduced annual earnings for 1989 of $6.3 million or 15 cents per share, compared with $13.3 million or 44 cents per share in 1988. TVX said the decrease in earnings was due to a $6.5-million writeoff of its interest in Golden Shield Resources, and a $7-million decrease in profit contributions from the company’s Novo Astro gold mine in Brazil. The company is instituting major changes at Novo Astro in order to return that mining operation to its former level of profitability, however.

During the year, the company’s total gold production rose 21% to 79,000 oz. from 65,000 oz. and resulted in TVX’s share of revenues increasing to $54 million from $45 million in 1988.

Construction of the 15,000- ton-per-day mining and milling operation at La Coipa in Chile is on budget with startup scheduled in early 1991, at which time 70% of TVX’s earnings will come from production at La Coipa.

Since TVX has adopted the U.S. dollar as its reporting currency, 1989 earnings are restated as US$4.2 million or 10 cents per share compared with US$11.2 million or 37 cents per share in 1988. The company has interests in four gold mines located in Brazil and Chile where the U.S. dollar is the primary currency of business.