Dickenson income falls, while Wharf improves earnings

Reporting lower net earnings for the first six months of 1988, but similar gold production at its Red Lake, Ont., mine, compared with last year, was Dickenson Mines (TSE).

Net earnings to the end of June totalled $2 million (14 cents per share) on revenue of $18.8 million, compared with $3 million (21 cents per share) on revenue of $20.6 million.

Gold output at the A. W. White mine in northwestern Ontario was 30,200 oz during the six months, of which Dickenson claimed 19,900 oz. (In 1987, comparable gold production was 29,500 oz, of which Dickenson’s share was 19,200 oz.) Dickenson recently became the sole owner of the White mine, purchasing the 34% interest held by Cambior Inc. (TSE).

President John Kachmar said gold production at the White mine continues to be affected by problems related to the limited number of workplaces. Underground development programs needed to establish more production workplaces were on schedule at the end of the first six months, Kachmar said.

Meanwhile, Wharf Resources (TSE), in which Dickenson has a 33% interest, announced 6-month gold production at its South Dakota heap leach mine of 30,200 oz, compared with 19,500 oz for the same period in 1987. During the second quarter alone, the mine produced 21,200 oz gold.

Income to the end of June totalled $4.2 million(US) (23 cents per share) on revenue of $13.6 million, compared with $2.7 million (18 cents per share) on revenue of $8.4 million for the same period last year. During the second quarter, Wharf recorded income of $3 million (16 cents per share) on revenue of $9.7 million, compared with $3.4 million (22 cents per share) on revenue of $6.6 million.