A delay in the start of the 1988 mining season and debenture issue costs totalling $1.932 million(US) led to a seasonal second quarter loss of $4.348 million for Galactic Resources (TSE), up considerably from the loss of $1.631 million for the same period in 1987. The company notes, however, had it adopted the alternative accounting policy used by most major corporations of capitalizing and amortizing the debenture issue costs, the net loss of the second quarter would have been $2.416 million.
Gold production at Summitville for the first half of 1988 was 25,695 oz of gold versus 34,197 oz for the same period in 1987.
The company began its mining season this year on June 1, a full month later than the start of production for 1987. As a result, second quarter results reflect seasonal start-up costs with one month of production compared with two months of production in the second quarter of 1987.
Galactic expects a profitable operation in the second half of 1988 at Summitville and says its monthly gold production is currently 7,000- 8,000 oz per month and rising.
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