Rising gold prices aren’t likely to affect Canamax Resources’ (TSE) recent decision to shut down its Ketza River and Kremzar mines, says Udo von Doehren, the company’s vice-president of finance. While the price of gold has jumped to US$411 per oz. from US$355 since the decision was taken, the two mines will close as scheduled this month, leaving Canamax with one operating gold mine.
Having provided for shutdown expenses, Canamax reported a net loss of $4.2 million or 18 cents per share for the three months ended June 30, compared with net income of $4.4 million or 25 cents a share during the same period last year.
Canamax said revenue of $11.6 million was generated during the quarter from the sale of 23,518 oz. gold, compared with $11.3 million from 23,208 oz. in the equivalent 1989 period. The average price realized from gold sales in the second quarter climbed to US$422 per oz. from US$409 in the equivalent period last year.
Canamax also reported a net loss of $8.2 million or 32 cents per share for the six months ended June 30, compared with net income of $2.1 million or 13 cents per share in the same period last year.
First-half revenue from the sale of 45,798 oz. gold increased to $22.9 million from $19.5 million in the 1989 period when 39,769 oz. gold was sold.
Canamax realized an average of US$426 per oz. in the first half of 1990 for its gold sales, compared with US$412 in the corresponding period last year.
Canamax Resources (TSE) 000s except per-share items 3 months ended June 30 1990 1989 Revenue $11,600 $11,300 Net earnings (loss) (4,200)4,400
Per share (0.18 ) 0.25 6 months ended June 30 1990 1989 Revenue $22,900 $19,500 Net earnings (loss) (8,200 ) 2,100
Per share (0.32 ) 0.1304
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