The net loss of $91 million reported by Princeton Mining (TSE) for 1991 reflects a $60-million writedown in subsidiary Cassiar Mining, an asbestos mining company now in receivership.
The 1991 results also reflect a $21.4 million loss from continued operations (which includes a $9.2 million writedown of long-term investments) and a loss of $9.6 million from discontinued operations.
The past year has been a tough one for Princeton, which also reported an operating loss from its Similco copper-gold mine near Princeton, B.C. The open pit operation produced 31.9 million lb. copper in 1991, well below the 56.4 million lb. produced in 1990. The lower production and the operating loss were attributed to a four-and-a-half-month strike in 1991, and lower copper prices.
Princeton’s other subsidiary, Teranov Mining, purchased an asbestos wet mill plant last summer that uses a new process being developed to recover fibre from tailings. The plant, located in Newfoundland, operated from July to November, 1991, until it was closed for winter. During this period, daily fibre production increased from 20 tonnes per day in July to 60 tonnes per day in November.
The plant is now being re-opened and plant improvements are planned which are expected to increase daily production to more than 80 tonnes.
Be the first to comment on "Mixed response to budget from other sectors; Writedown,"