For the year, Bema incurred a loss of US$4 million (3 per share) on gold revenue of US$35.2 million, compared with a 1998 loss of US$46.1 million (40 per share) on US$32.1 million. (The 1998 results include a writedown, in the fourth quarter, of US$37.2 million on mineral properties.)
Bema attributes the losses to higher-than-anticipated cash costs resulting from power disruption at the Refugio mine, near Santiago, Chile, as well as a mineral property writeoff and a one-time charge of US$1.5 million relating to the termination of the mining contract at that operation.
Cash from operations amounted to US$780,000 (1 per share) in the recent fourth quarter, compared with US$550,000 (nil per share) in the year-earlier period. For the past year, cash from operations totalled US$3.3 million (3 per share), compared with US$3 million (3 per share) in 1998.
The 50%-owned Refugio mine produced 42,665 oz. gold in the fourth quarter (Bema’s share: 21,332 oz.) at an operating cash cost of US$284 per oz., compared with year-ago production of 48,680 oz. (24,340 oz.) at US$246 per oz. The production shortfall is attributed to a loss of power following the breakdown of diesel generators; the generators have since been repaired and power levels re-established.
Bema’s gold-hedging program realized an average gold price per oz. of US$402 during the fourth quarter, compared with US$386 per oz. in the last three months of 1998. For the year, Bema realized an average gold price of US$402 per oz., compared with US$393 in 1998.
At December 31, 1999, Bema had US$3.9 million in cash and US$1.8 million in working capital.
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