Damang gives Repadre earnings boost

With a share in production from the Damang gold mine in Ghana now part of its portfolio, Repadre Capital (RPD-T) has posted earnings of $4.1 million (or 10 per share) on revenue of $5.9 million in the three months ended Sept. 30.

Damang, in which Repadre now owns an 18.9% interest, produced 70,200 oz. in the quarter at a total cash cost of US$263 per oz. Its larger neighbour, the Tarkwa mine, in which Repadre holds an identical stake, produced 148,800 oz. at US$180 per oz. Both are operated by Gold Fields (GFI-N), which owns the remaining interest in the two projects.

Royalty revenue at Repadre increased further in the quarter, to $892,000, as the Vueltas del Rio mine in Honduras, owned by Geomaque Explorations (geo-t), began paying out royalties that had accrued since the start of production in the first half of 2001.

The company also booked an unrealized $741,000 gain on foreign exchange; its royalty income is mainly in U.S. dollars, which appreciated about 5% against the Canadian dollar in the third quarter.

Repadre’s quarterly results represented a big jump from the corresponding period in 2001, when the company earned $1.6 million on revenue of $3.1 million.

For the first nine months of the year, Repadre is showing a profit of $10.2 million on revenue of $13.9 million. At last year’s quarter-pole, the company had earned $4.4 million on revenue of $7.6 million.

At the end of the quarter, Repadre, which announced its intention to merge with Iamgold (IMG-T) in late October (T.N.M., Nov. 4/02), had $45.7 million in cash and $661,000 in gold, and a further $2 million in other current assets. On the same date, Iamgold had $27.4 million in cash and $48.4 million in bullion (US$17.3 million and US$30.5 million, respectively).

Three other royalty streams are set to kick in for Repadre. The Magistral mine, owned by Queenstake Resources (QRL-T), started production in October; Repadre holds a variable royalty of 1-3.5%. Diamond shipments from the Diavik mine, owned by Rio Tinto (rtp-n) and Aber Diamond (ABZ-T), are to start in February, and Repadre owns a 1% royalty. Lastly, the Don Mario gold mine in Bolivia, owned by Orvana Minerals (ORV-T), where Repadre owns a 3% net smelter return, is on schedule to start production in the first quarter of 2003.

Print

Be the first to comment on "Damang gives Repadre earnings boost"

Leave a comment

Your email address will not be published.


*


By continuing to browse you agree to our use of cookies. To learn more, click more information

Dear user, please be aware that we use cookies to help users navigate our website content and to help us understand how we can improve the user experience. If you have ideas for how we can improve our services, we’d love to hear from you. Click here to email us. By continuing to browse you agree to our use of cookies. Please see our Privacy & Cookie Usage Policy to learn more.

Close