Corona boasts net earnings of $3.6m. for second quarter

Second-quarter earnings of $3.6 million (4 cents per share) before unusual items, and $3.3 million (4 cents per share) after unusual items, were recorded by International Corona Resources (TSE) for the three months ending March 31.

For the same period in fiscal 1987, the company recorded earnings of $584,000 (1 cents per share) before, and $42.6 million (61 cents per share) after, unsual items. (The earnings-per-share for fiscal 1987 have been restated by the company to reflect a 5-for 1 stock split which occurred in February, 1988.)

Including results from the Williams mine and associated fractional claims in the Hemlo area of northern Ontario, Corona’s second- quarter earnings were $7.5 million (8 cents per share) before, and $7.1 million (8 cents per share) after, unusual items. For the same period last year, income was $3.3 million (5 cents per share) before, and $45.3 million (65 cents per share) after, unusual items.

Ownership of the Williams mine is being disputed by Corona and Lac Minerals (TSE). The Supreme Court of Canada is scheduled to hear the final appeals of the case Oct 11. Corona in March, 1986, was awarded the mine by the Supreme Court of Ontario, a ruling subsequently upheld by the Ontario Court of Appeal. Should Corona win the court case, the company and Teck Corp. (TSE) will operate the Williams mine as equal partners. First-half earnings

For the first six months of fiscal 1988, Corona had earnings of $15 million (16 cents per share) before, and $14.7 million (16 cents per share) after, unusual items. For the same period last year, earnings were $1.2 million (2 cents per share) before, and $43.2 million (62 cents per share) after, unusual items.

When results for the Williams mine and associated fractional claims are included, six-month earnings were $25.9 million (28 cents per share) before, and $25.6 million (28 cents per share) after, unusual items. Last year for the same period, earnings were $5.5 million (8 cents per share) before, and $47.5 million (68 cents per share) after, unusual items.

Second-quarter revenues increased to $17 million from $8.7 million last year, largely because of increased production from the David Bell mine at Hemlo, the company says. For the first six months of fiscal 1988, revenues totalled $40.6 million compared with $17.1 million for the same period last year.

When 50% of revenues from production at the Williams mine and associated fractional claims are included, second-quarter revenues were $36.4 million and six-month revenues were $84.2 million, compared with $23 million and $43 million for the respective periods last year.

Corona’s share of production from the David Bell mine (operated by Teck) and an adjacent quarter claim, for the first six months of fiscal 1988, netted Corona 49,268 oz gold compared with 28,043 oz for the same period last year.

Shareholders of Corona and four TSE-listed associated companies — Royex Gold Mining, Lacana Mining, Mascot Gold Mines and Galveston Resources — met June 3 to vote on a proposed amalgamation.