Exall losses mount in quarter

The continuing malaise in the gold market is taking its toll on junior producer Exall Resources (EXL-T).

Net losses in the three months ended June 30 totalled $415,640 (or 2 per share) on revenue of $5 million, compared with net losses of $678,159 (2 per share) on $5.3 million in the corresponding period of 1999.

Losses for the first six months of 2000 were $856,503 (3 per share) on revenue of $10.3 million, compared with $345,398 (1 per share) on $11.4 million at the end of the first half of last year.

Production at the Glimmer mine in northern Ontario topped 9,614 oz. in the recent quarter. A total of 69,444 tonnes was milled, much less than the 132,472 tonnes milled in the second quarter of 1999, when 22,331 oz. were produced.

Cash costs in the recent quarter averaged US$351.06 per oz., whereas the average realized price for the quarterly output was US$282.26 per oz. By comparison, costs in the year-ago period were US$296.95, with realized prices averaging US$287.63.

Exall operates, and has a controlling interest in, the Glimmer mine. The minority interest is held by Glimmer Resources (GME-V).

Meanwhile, Exall continues to explore the past-producing Barza Brad gold concession in Romania (T.N.M., July 24/00). In late July, the company raised $2.4 million to fund the project; the arrangement consisted of a private placement of 8 million shares priced 30 each.

Exall now has 36.8 million shares and 2 million warrants outstanding. The warrants were issued as part of the recent equity financing and can be exchanged for shares at 40 apiece in the first year and at 50 apiece in the second.

On June 30, Exall had a negative working capital of $2.1 million.

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