Giant Yellowknife’s profit improved by Timmins results

Consolidated earnings for Giant Yellowknife Mines totalled $9.3 million or $1.33 per share for the 9- month period ended Sept 30. This compares with earnings of $2.8 million or 66 cents per share realized during the corresponding period in 1986.

The consolidated results include data from the mining operations acquired from Pamour Inc. located in Timmins, Ont. This division contributed $7.6 million to operating income before depreciation, amortization and exploration expense during the 9-month period.

The improved bottom line also reflects stronger gold prices during the year and higher gold production from the company’s Yellowknife operations. For the period, the company produced 168,021 oz of gold compared to 85,422 oz during the same time last year. Third quarter output was 52,831 oz of gold.

Cash flow, before the retirement of a $5-million short-term bank loan assumed on the acquisition of the Timmins operations, amounted to $16.7 million compared to $5.1 million in the same period last year.

Following the completion of a private placement with Giant Resources, an Australian-based resources company, Giant Yellowknife has cash in treasury of $44.3 million. The private placement included 1.4 million shares at a price of $28.25 per share. As a result of the financing, Giant Resources holds a 16.7% interest in the company with Pamour holding another 41.8%.