Even though Canamax Resources (TSE) succeeded in almost tripling its annual gold production last year, the Vancouver-based company couldn’t quite break into the black. Canamax reported a net loss of $0.7 million or 4 cents per share for the year ended Dec. 31, compared with a loss of $12.7 million or 85 cents per share at the same time last year.
The 49.7% owned Amax Gold (TSE) affiliate also increased its gold output from three Canadian gold mines to 91,113 oz. in 1989 from 32,667 oz. the previous year. As a result, Canamax’s annual revenues increased to $43 million from $17.4 million in 1988.
According to Canamax, the reduced loss reflects cash flow from operations of $8.2 million, gains of $11.4 million from the sale of non- core assets and recognition arising from the conversion of the gold loan and commodity option contracts in 1988.
A 150% increase in gold sales was attributed to production improvements at the Bell Creek mine near Timmins, Ont., contributions from the Kremzar mine near Wawa, Ont., and full ownership of Bell Creek and the Yukon-based Ketza River mine.
During 1989, Canamax realized an average of US$403 per oz. for its gold sales, $22 per oz. higher than the average Handy and Harman closing quote. In 1988, the average price realized by the company was US$447 per oz. Canamax says it also managed to eliminate $16.1 million in longterm debt last year via debt reduction programs. Canamax Resources (TSE) — $000s Year ended Dec. 31 1989 1988 Revenue $43,000 $17,400 Net earnings (loss) (700) (12,700 )
per share (0.4) (0.85 )
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