A writedown of capitalized exploration and development costs incurred in prior years contributed to Aur Resources (TSE) reporting a loss for its fiscal year ended Sept. 30, 1990, of $40.9 million. Revenues for the year totalled $16.5 million, an increase of $10.7 million from 1989, while expenses totalled $57.7 million, up by $52.6 million from the previous year.
The small gold producer — about 22,500 oz. for fiscal 1990 — said the non-cash component of the expenses, consisting mainly of the above-mentioned writedown, totalled $44.2 million.
Mineral property and exploration costs were written down by $35.1 million to recognize that a significant proportion of the gold reserves at the First Canadian and Norlartic gold projects, as well as all of the reserves at the Hewfran and Orenada properties, are not economically extractable at current gold prices, the company said.
It also said the writedown recognizes that certain other of its properties appear unlikely to host economic deposits.
Also written down were $6.1 million of development costs on the First Canadian property and $1.4 million in the carrying value of shares of certain junior mining companies.
At year-end, debt-free Aur said it had cash and short-term deposits totalling $29.4 million.
For fiscal 1991, the company projects combined gold output from the Norlartic, First Canadian, Ferderber and Dumont mines of 78,000 oz. (Aur’s share would be less reflecting its ownership interests in the properties.)
Aur said it has sold forward about three-quarters of its own remaining projected gold output for fiscal 1991. The hedge guarantees a minimum price of US$400 per oz. and a maximum of US$408.
Included in Aur’s property portfolio is a 55% interest in the developing copper-zinc Louvicourt Twp. discovery northeast of Val d’Or, Que.
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