Despite a third-quarter loss of US$3.2 million, Galactic Resources (TSE) reported net income of US$3.68 million for the nine months ended Sept. 30. The 9-month results were boosted by an extraordinary after-tax gain of US$7.4 million from the sale of the company’s interest in the Far Southeast Project in the Philippines.
The company attributes the third- quarter loss to operating losses as well as mine contract termination costs at the Summitville heap leach operation in Colorado. The operating loss at the Summitville gold mine for the 9-month period was US$6.52 million compared with a loss of US$600,000 in the 1989 period.
Summitville produced 17,964 oz. of gold during the nine months, compared with 26,904 oz. in 1989. Galactic attributed the drop in gold production to the delayed placement of about 1.2 million tons of ore on the leach pads.
Operating profit from the company’s 48% interest in the Ridgeway mine in South Carolina more than offset the losses at Summitville. Galactic’s interest in this mine generated operating income of US$9.53 million from 63,550 oz. of gold for the nine months. The balance of the Ridgeway heap leach mine is owned by RTZ Corp. of London.
Cash flow from operations at producing mines for the nine months was US$8.68 million compared with US$14.08 million in the first nine months of 1989. Operating cash flow was US$1.3 million in the third quarter, down from the US$5.68 million reported in the year-earlier period.
Galactic Resources (TSE)*
3 months ended Sept. 30 1990 1989 Revenue $12,270 $12,509 Net earnings (loss) (3,200) 1,380
per share (0.07) 0.04
9 months ended Sept. 30 Revenue $32,996 $35,519 Net earnings 3,680 1,830
per share 0.09 0.05
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