Bull Run Gold Mines (NASDAQ) is anticipating a significant cash flow deficit in 1989 due to operating problems and a cost over-run at the Big Springs gold mine operated by Freeport-McMoran Gold Co.
President Norman Burmeister says that Freeport has informed Bull Run that the cost of a new fluid bed roaster and CIL gold mill will reach $22.5 million(US) — up from the projected $16.2 million.
Also, Freeport expects there will be a major shortfall in gold production next year from the projected 99,930 oz. As a result, Bull Run is working with consultants and its bankers to resolve the problems. For the 3-month period ended Sept 30, the company realized net income of $966,019(US) or 10 p er share. This compares with a loss of $67,311 or 1 per share during the same period last year. For the period, revenues were $3.1 million. Net income for the 9-month period totalled $1.8 million or 19 per share.
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