The results, the company says, reflect higher gold production which was partially offset by a lower gold price and changes in the U.S.-Canadian dollar exchange rates, and increased investment and interest income. Cash flow from operations for the nine months amounted to $111 million.
The earnings take into account Corona’s 50% interest in the Williams mine at Hemlo, Ont., which will produce almost 500,000 oz this year. A summer ruling by the Supreme Court of Canada awarded the mine to Corona, which had been locked in an ownership dispute with LAC Minerals for several years.
For the third quarter, Corona reported net after-tax earnings of $15.1 million (10 cents per share). The earnings were reduced by $8 million because of what the company calls a “writedown to the marketable securities portfolio.” Cash flow from operations during the quarter totalled $51.1 million.
More than 60% of Corona’s gold output is derived from the Hemlo area, where the company also has a 50% interest in the David Bell mine, which is set to produce more than 300,000 oz this year.
The company is forecasting total gold production for 1989 of 650,000 oz at an average cost of $210(US) per oz.
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