Despite an 11% increase in gold and gold equivalent production, Corona (TSE) reported slightly lower earnings in 1990 over those reported in 1989. The company’s 1990 net earnings reached $9.2 million, or 2 cents per share, compared with net earnings of $12.7 million, or 6 cents per share, for 1989. Corona’s 1990 earnings were adversely affected by a $22.9-million charge representing its 26.7% share of Breakwater Resources’ (TSE) 1990 loss.
Corona’s earnings from operations reached $153.4 million for the year, compared with $139.5 million for 1989. This increase was attributed to an increase in gold and gold equivalent production to 755,820 oz. in 1990 from 680,986 oz. in 1989. The increased production was offset in part by a strengthening Canadian dollar.
In 1990, Corona reduced its cost of gold production to an average of US$196 per oz. from all operations, compared with a 1989 cost of US$209 per oz.
Corona’s 1990 increase in gold production is mainly attributable to the Williams mine at Hemlo, Ont., which exceeded budgeted production by 16.6% and exceeded 1989 actual production by about 100,000 oz. Corona and Teck (TSE) each own 50% interests in the Williams and David Bell gold mines at Hemlo.
Additional improvements were reported from the Santa Fe mine (owned 100%) which exceeded 1989 production by 6,457 oz. at the Marigold mine (owned 23.3%) with an increase of 44,788 oz., and at the Dee mine (owned 44%) where Corona’s share of production increased by 6,593 oz. over 1989. These mines are in Nevada. Corona (TSE) 12 months ended Dec. 31 1990 1989 Revenue $342,506 $318,239 Earnings 9,236 12,738 per share 0.02 0.06
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