Exall shines in third quarter

Junior producer Exall Resources (EXL-T) enjoyed a profitable third quarter, netting $801,031 in the three months ended Sept. 30, compared with net losses of $148,552 in the comparable period of 1997.

The turnaround is attributable to output at the Glimmer gold mine near Matheson, Ont., where 16,275 oz. were produced at a cash cost of US$226 per oz. Exall owns a 65.5% interest in the mine, which entered commercial production this year; the remainder is held by Glimmer Resources (GME-V).

Bullion produced from Glimmer was sold for US$290.61 per oz., and this, when added to proceeds the company received from a previously closed hedging position, translated into revenue of $7.6 million.

About 79,290 tonnes grading 6.69 grams gold per tonne were custom-milled at the nearby Stock plant owned by St Andrew Goldfields (SAS-T). That company signed a 3-year contract last year with Exall and Glimmer to treat ore mined from the Glimmer mine.

Earnings in the first nine months were $1.1 million on revenue of $21.6 million, compared with a loss of $784,831 on zero revenue in the year-ago period.

Cash flow from operations was $1.6 million in the recent period.

Production in the first nine months of the year topped 46,615 oz., and the company is on-track to meet its year-end target of 65,000 oz. Cash costs for the period were US$254 per oz., while the average price realized from sales was US$293.86 per oz.

As of May 31, Glimmer hosted reserves of 1.3 million tonnes averaging 10.25 grams per tonne — sufficient for an estimated seven years of production at the projected annual rate of 65,000 oz.