Although lower gold production prevented
The Vancouver-based company reported a net loss of US$4.7 million (or 3 per share) on revenue of US$7.9 million during the quarter, compared with a loss of US$1.5 million (2 per share) on revenue of US$9.6 million in the corresponding period of 1999. The loss is attributed to lower production at the company’s 50%-owned Refugio mine in Chile. The production shortfall, in turn, was a result of delays in the startup of the phase-3 leach pad, as well as higher costs associated with power generator rentals.
For the first six months of 2000, Bema tabled a net loss of US$8.2 million (6 per share) on revenue of US$16.6 million, compared with a loss of US$772,000 (1 per share) on revenue of US$19.3 million during the first half of 1999. Cash from operating activities during the first half of 2000 rang in at US$726,000.
Bema realized an average spot price of US$351 per oz. gold during the recent quarter, compared with US$280 a year ago. In the first half of 2000, the company’s hedging program realized US$355 per oz., compared with a spot price of US$285 per oz. in the first half of 1999.
The company’s Refugio mine, the other half of which is owned by
Tonnage higher
The mine achieved two consecutive record quarters of crushed tonnage, with 2.6 million tonnes produced during the April 1-to-June 30 period. The average grade of ore sent to the heap-leach pads was 0.96 gram.
During the first half of 2000, the Refugio mine produced 95,064 oz. gold (Bema’s share: 47,532 oz.) at a cash operating cost of US$263 per oz. and a total cost of US$350. Comparable production in the first half of last year amounted to 101,466 oz. (Bema’s share: 50,733 oz.) at US$244 and US$315 per oz., respectively.
Bema attributed the mine’s lower production to the “in heap” gold inventory drawdown during the first quarter, which was less than that that was recorded for the comparable period in 1999. In addition, a portion of the ore crushed during the second quarter was stacked on a new pad that had not been placed under leach until the third quarter. Bema stresses that the mine should reap the benefits of record tonnage throughput in the second half of the year.
At the company’s Julietta project, in the Magadan region of Russia, construction is advancing steadily. The tailings pond earthworks were nearing completion in May, with the liner scheduled for installation in 2001. Concrete and steel work for the mill and ancillary buildings is on schedule, and Bema reports that improvements to the access road should be completed before Sept. 30.
In July, Bema received the proceeds of a US$4-million convertible debenture, which completes the company’s equity financing for construction and will allow the company to draw down its US$35 million in project loans.
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