The sale of 2.1 million shares of Canabrava Diamond (VSE) helped push Hillsborough Resources (TSE) into the black in 1995.
The company earned $1 million, or 10 cents per share, after gaining $2.1 million on the share sale plus a gain of $1.5 million from the sale of a 37% interest in Quinsam Coal.
The operating loss for the year was $3.4 million, up from the $1.9 million reported in 1994. The loss was compounded by an $8.8-million drop in revenue from the company’s contract mining division (Canadian Mine Development) to the $900,000 level.
Hillsborough’s principal asset is its 63% interest in Quinsam Coal, which operates an underground thermal coal mine on Vancouver Island.
The mine produced 590,000 tonnes of clean coal in 1995, up from the 518,000 tonnes produced in 1994. Coal sales totalled 669,000 tonnes for the year at an average price of $42.93 per tonne, compared with 451,000 tonnes at $40.81 in 1994.
Cash operating costs during 1995 averaged $38.47 per tonne, up marginally from the previous year. Quinsam is expanding annual production capacity to 1.2 million tonnes of clean coal.
Hillsborough still holds 4.7 million common shares of Canabrava.
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