Last year marked a turning point for Cassiar Mining (TSE) which reported net earnings of $3.7 million and announced plans to develop the McDame asbestos deposit near its existing open pit mining operation at Cassiar, B.C.
Addressing the annual meeting, James C. O’Rourke, president, noted that cash flow from operations provided $9.8 million for debt servicing, reducing Cassiar’s long- term debt to $27 million at year- end. “Cash flow projections indicate that our bank debt of $24 million will be repaid by the end of 1989,” he confirmed.
O’Rourke also noted that all 1988 fibre production “has been allocated for delivery to customers in 1988” and there will be no summer mine closure. First quarter earnings amounted to $1.3 million and cash flow was $2.3 million before debt servicing. The company has a cash pool of $4.8 million of which $2.3 million will be applied to its bank debt May 30.
Citing that cash flow from operations and net earnings are “expected to improve slightly this year,” O’Rourke also predicted lower operating costs for the company’s open pit mining operation because of reduced waste rock removal.
Cassiar’s new wet processing plant should be operational in the second half and work is currently under budget. After it’s completed, a test run will be mounted to gauge customer acceptance of the product and also future operating capacity.
Efforts are under way to achieve production at the company’s dormant gold mine at Bissett, Man. Cassiar is currently discussing financing for the project with potential joint venture partners, he said.
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