The company attributed the loss primarily to a $17.1-million write- down — $10 million from the Tartan mine in Manitoba, $5 million from the Crofoot heap leach mine in Nevada, and $2.1 million from various mineral exploration properties.
The company said the write- down relates to mineral property costs, with the exception of $700,000 from a write-down of Tartan mine fixed assets. Some $13.4 million was expended for depreciation, depletion and amortization.
Consolidated gold production (before minority interests) was reported as 68,500 oz in 1988 from five mines, up from 24,000 oz in 1987 from four mines. The Crofoot mine contributed 37,900 oz to this increase, and the company noted that gold output from the mine increased each successive quarter during the year.
The company reported sales of $51.5 million in 1988 compared with $21.6 million in 1987, while full year operating profit doubled from $6.2 million in 1987 to $12.3 million in 1988.
In early February, Granges announced that M.I.M Holdings of Australia has agreed to invest $50 million in Granges through the purchase of 11 million shares at $4.55 per share. This agreement is to be presented for shareholder approval in May.
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