Geomaque reports loss

Although production at its San Francisco gold mine was up by more than a third, Geomaque Exploration (GEO-T) was unable to turn a profit in the latest third quarter.

The mine, in Mexico’s Sonora state, produced 17,295 oz. gold during the quarter, up from 12,681 oz. in the previous 3-month period. However, a low peso-U.S. dollar exchange rate and a lower realized gold price stung the company for a US$138,000 loss on revenue of US$5.8 million (or 2 cents per share). By contrast, the company posted record earnings in the third quarter of 1997 of US$796,000 on revenue of US$6 million (2 cents per share). Total costs per ounce were up significantly at San Francisco, the company’s only producing mine, to US$320, compared with US$258 in the similar period last year. Between those periods, the company’s average realized gold price dropped to US$332 per oz. from US$363.

The company’s cash flow from operations also dropped between third quarters, to US$657,000 (2 cents per share) from US$1.9 million (5 cents per share).

For the nine months ended Sept. 30, the company lost US$212,000 on sales of US$14.7 million (nil per share), compared with a profit of US$1.5 million on revenue of US$14.5 million (4 cents per share) in the corresponding period last year.

Work on the feasibility study of the Vueltas del Rio gold project in Honduras is scheduled to wrap up at the end of November. Second-phase drilling in the third quarter included 5,500 metres over 72 holes.

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