1st-quarter earnings drop for Cons. TVX

Production problems and increased operating costs at Consolidated TVX’ (TSE) Novo Astro gold mine in the Amazon region of Brazil was reflected recently in the company’s first-quarter financial results. During the 3-month period ended March 31, Consolidated TVX reported reduced net earnings of $0.4 million (1 cents per share) compared with net earnings of $3.7 million (12 cents per share) in the first quarter of 1989.

The company’s first-quarter revenue amounted to $14 million, compared with $10 million in the equivalent 1989 period. President Ian Telfer said the decline in earnings is due primarily to a reduced contribution from the company’s 49% owned Novo Astro gold mine in northern Brazil. He said the mine continues to experience production problems and increased operating costs. Ore grades being treated at the mine are lower than expected, he said. An independent technical review of the operations at the mine is under way.

Meanwhile, TVX’ first-quarter gold production increased to 23,200 oz., up from 15,300 oz. in the year- earlier period. The increased production is primarily the result of contributions from the 40% owned La Coipa mine in Chile. Total production from the 1,100-ton-per- day plant at La Coipa was 24,700 oz. of which 9,900 oz. are attributable to TVX. Construction of a larger 16,530-ton-per-day plant is continuing with startup projected for the second quarter of 1991.