Belmoral reports higher income, drop in output

Net income of $1.99 million (5 per share) on revenue of $20.3 million was reported by Belmoral Mines (TSE) for the first nine months of 1988, compared with $436,000 (1 per share) on revenue of $21.5 million for the same period last year.

During the third quarter, Belmoral recorded a net loss of $1.82 million (5 per share) on revenue of $4.8 million, compared to a profit of $87,000 on revenue of $7.6 million for the same 3-month period in 1987.

Net income during the first nine months includes an extraordinary item of $697,000 for income tax reduction resulting from the application of losses of prior years. Third-quarter results include a write-off of tax benefits (previously recorded) of $635,000.

Total output during the nine months was 34,867 oz from 146,974 tons of ore averaging 0.25 oz gold per ton; during the same period in 1987, the company produced 37,196 oz from 305,306 tons averaging 0.13 oz.

Production was off during the third quarter: 8,966 oz compared with 13,023 oz and 12,878 oz in the first and second quarters, respectively, of this year. Belmoral says that during the quarter, its Val d’Or area mill was not available for company production for a full month; normal summer shutdown lasted two weeks, while a batch test of ore from the Astoria property of Yorbeau Resources (TSE), an associated company, required two weeks.

Production costs were lower during both the 9-month period and third quarter, compared with last year, but offsetting those results was lower revenue, especially in the third quarter. The cash operating cost dropped to $357(C) per oz for the first nine months, from $399 last year.

At the Astoria gold property, in which Belmoral is acquiring a 50% interest, shaft sinking continues. Target depth is 1,680 ft. (Belmoral is also acquiring a substantial equity interest in Yorbeau.) At the Bighorn heap leach project in Arizona, Belmoral is slowly rounding the property into shape; the company hopes to be producing at half capacity (500 oz gold per month) by the end of the year. Belmoral is operating the project for Roddy Resources (TSE). Belmoral is also in the process of acquiring a controlling interest in Roddy.

Belmoral is also active in a number of exploration projects in the Timmins area of northern Ontario through interests in junior mining companies.