Earnings reached a record level for Galactic Resources (TSE) in the 1990 first quarter, totalling US$7.51 million compared with US$1.82 million in the previous year’s first quarter. The jump in earnings can be attributed to a gain of US$7.4 million on the sale of the company’s “Far South East Investment,” an interest in a huge gold-copper property in the Philippines.
The Ridgeway gold mine, 48% owned by Galactic and 52% owned by RTZ Corp., continued to exceed expectations with 43,797 oz. of gold produced in the first quarter at a cash cost of US$158 per oz.
The average price received for the production was US$419 per oz. Cash flow to Galactic from Ridgeway totalled US$5 million.
The Summitville mine produced 3,642 oz. gold during the quarter for a negative cash flow of US$1 million. Mining at the seasonal heap leach operation is scheduled to resume in mid-May.
Galactic noted that the development of the 50% owned Ivanhoe property in Nevada is progressing as planned. Gold production is expected to begin in the fourth quarter of 1990.
Galactic’s partner at Ivanhoe is Cornucopia Resources (TSE). Recently, Galactic announced it would be seeking to effect a “business combination” merger of the two companies based on a proposed share exchange and other mutually acceptable terms.
The final share ratio is subject to a fairness opinion, due diligence investigations, regulatory approvals and a definitive agreement. Galactic Resources (TSE)* $000s except per-share items* 1st quarter ended Mar. 31 1990 1989 Revenue $10,352 $11,854 Net earnings 7,509 1,815 Net earnings
(per share) 0.18 0.05 * in US dollars004
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