Exall Resources records quarterly loss

Toronto-based Exall Resources (EXL-T) lost $716,431 (or 2 cents per share) in the three months ended Sept. 30, compared with earnings of $801,031 in the third quarter of 1998. Revenue between the periods fell to $4.2 million from $7.6 million.

Exall attributes the loss to low gold prices, lower-than-expected ore grades at its Glimmer mine in Matheson, Ont., and delays in custom milling at the Stock mill of St Andrew Goldfields (SAS-T). In mid-October, Exall began shipping its ore to the Macassa mill of Kinross Gold (K-T), believing it to be more efficient.

During the recent quarter, Exall cranked out 10,490 oz. at a cash cost of US$257 per oz., bringing the 9-month total to 36,531 oz. at US$262 per oz. The quarterly output was sold for US$272 per oz., whereas the average for the longer period was US$277 per oz.

At Sept. 30, Exall had a working capital deficit of $2.4 million. The company’s cash position was $539,649.