Earnings for Black Swan Gold Mines (VSE) for the nine months ended Dec. 31 amounted to $7,000 on revenues of $3.4 million. No figures were given for the comparable period in the previous year. The 9-month earnings included extraordinary writedown of an investment as well as the writeoff of a mineral property for a total of $135,000.
A major factor affecting earnings was a drop in the realized price of gold when the company’s forward sales program expired. Average price for the period was $475 per oz. compared with $505 per oz.
The company notes that it does not intend to enter into any new longterm sales contracts and is currently receiving about $500 per oz. for its share of production from the 25% owned Gabanintha gold mine in Western Australia.
During the 9-month period, Black Swan’s share of gold production was 7,200 oz. at an average operating cost of US$319 per oz. Cash flow from operations for the period was $482,000 or about 2 cents per share.
Black Swan has $2.5 million in working capital, no debt, and about 27.4 million shares outstanding trading in the 30 cents-range. Black Swan Gold Mines (VSE) Nine months ended
Dec. 31, 1989 Revenue (000s) $3,422 Net earnings (000s) $7 Net earnings
(per share) 0.00004
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