Corona reports first consolidated earnings

Consolidated earnings of $18.8 million (12 cents per share) before unusual and extraordinary items, or $15.7 million (10 cents per share) after unusual and extraordinary items, were reported by Corona Corp. (TSE) for the first nine months (to July 1) of the company’s fiscal year.

The major gold producer is reporting its first interim financial information since Corona was created from the amalgamation of Royex Gold, International Corona, Lacana Mining, Mascot Gold and Galveston Resources earlier this year.

The above figures do not include the company’s 50% share in the Williams mine at Hemlo which is the subject of an ownership dispute with Lac Minerals (TSE). The Supreme Court of Canada is set Oct 11 to hear the final appeals of a Supreme Court of Ontario decision in 1986 which awarded the mine to Corona. (The Ontario Court of Appeal unanimously upheld that 1986 ruling).

Including results from the Williams mine, Corona’s income before unusual and extraordinary items was $36.2 million (26 cents per share) for the nine months, or $33.2 million (24 cents per share) after unusual and extraordinary items.

Revenues for the nine months amounted to $127.1 million; the company’s share of gold production during the period totalled 208,000 oz. Including results from the Williams mine, revenues for the period were $197.6 million, with gold output increasing to 341,000 oz.

Corona is a 50% partner with Teck Corp. (TSE) in the producing David Bell mine at Hemlo. Should Corona win control of the Williams mine, it and Teck would become equal partners in that mine’s operation.