Earnings Report (May 22, 1989)

High zinc prices contributed to the increased earnings and the company reports that production targets were met with satisfactory recoveries and grades. Production of lead, silver and acid dropped, however, because of poor quality coke at its smelter.

Net earnings for Mineral Resources International (TSE) were $11.7 million for the quarter ended March 31 or 60 cents per share. Net earnings from the same quarter in 1988 were $3 million or 15 cents per share. Revenue was $25.6 million compared with $11.4 million in 1988. The company had $51.4 million cash and short-term deposits at the end of the quarter, up from $42.3 million last March.

First-quarter earnings for Kerr Addison Mines Ltd. (TSE) were $9.7 million or 55 cents per share, up from the first quarter of last year when net profits were $3.1 million or 18 cents per share.

Cash and short-term securities amounted to $132 million compared to $171 million in the same period of 1988.

This year’s production figures include the new Winston Lake zinc mine.

Noranda Inc. (TSE) reported first- quarter earnings of $158 million or 82 cents per share, up from $129 million or 66 cents per share in the first three months of 1988. Revenues were $2.3 billion for the quarter compared to $2.1 billion last year.

A common dividend of 25 cents per share has been declared payable June 15 to shareholders of record May 15.

First-quarter earnings for Corona Corp. were $2.3 million or 1 cents per share compared to $7.5 million or 6 cents per share in the same period last year. Revenue was $46.3 million compared to $44.3 million. These results do not include contributions from the disputed Page-Williams mine in Ontario in which Corona has a 50% interest. Ownership of that mine will be determined by the Supreme Court of Canada.

Earnings for the quarter were less than expected because of falling gold prices and the strong Canadian dollar. Aborted takeovers of Dickenson Mines and Kam Kotia also hurt finances, the company reported.

The company expects to produce 625,000 oz of gold this year (including Page-William’s output) at an average cost of $220(US) per oz.

Conwest Exploration (TSE) reports net earnings of $7 million in the first quarter of 1989 or 54 cents per share. That’s up from the first quarter of 1988 when net earnings were $4.3 million, or 35 cents per share. At the end of the quarter Conwest had $65.5 million cash and short-term deposits on hand compared to $90.8 million in 1988.

Echo Bay Mines (TSE) reported net earnings of $10.6 million(US) or 11 cents per share for the first quarter of 1989, compared with $10.9 million or 11 cents per share last year. Quarterly revenue was $59.9 million versus $60 million last year.

Gold production rose by 12% in the quarter and silver production tripled.

MinVen Gold Corp. reported a first-quarter net loss of $626,336 or 3 cents per share compared to a net profit of $51,703 in the same period last year. Revenue was $8.7 million compared to $8.4 million. MinVen produced 20,078 oz gold and 39,755 oz silver in the period, compared to 17,645 oz gold and 53,383 oz silver in the same period of 1987.

Toronto-based Hope Brook Gold (TSE) reported a net loss of $2.8 million or 9 cents per share in the first quarter of 1989. Last year, the company posted a first-quarter loss of $1.2 million or 4 cents per share. Revenue was $4.3 million, up from $2.4 million in the same period of 1988.

Production from the company’s Hope Brook gold mine in southwest Newfoundland was 5,406 oz for the quarter. Milling was halted during February and March to correct a problem with the effluent treating system, but underground work was not interrupted.

The average gold price realized by the company was $498 per oz compared to $603 per oz last year.

Denver-based Bond International Gold (TSE) reported third-quarter net earnings of $3.4 million(US) on net sales of $52 million for the three months ended March 31. Net income for the first three quarters of Bond’s fiscal year is $18.6 million on sales of $151 million.

Results from Bond’s interest in Australia’s North Kalgurli Mines are not included in these figures.

A 10-fold increase in revenue in 1988 is reported by Canyon Resources (NASDAQ) of Colorado, but the mining company still lost money.

Total revenue was nearly $3 million(US) last year, but much of that was spent upgrading facilities at the Kendall gold mine in Montana giving a net loss of $371,162 or 5 cents per share. Net income in 1987 was $939,588 or 16 cents per share and total revenue was $214,339.

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