Red ink continued to flow for Callahan Mining (NYSE) which reported a loss of US$13.3 million for the year ended Dec. 31. The loss includes a writedown of US$8.5 million relating to the Ropes gold mine in Michigan. The loss compares with a 1988 loss of US$6.3 million which also included a writedown at the Ropes mine of US$5 million. Including writedowns, the Ropes mine ended the year with a pretax loss of US$11.3 million versus a loss of US$6.5 million in 1988. The mine was placed on indefinite shutdown on Sept. 29, due to ground control problems near the main production shaft, as well as low gold prices.
The company noted that although the losses and writedowns at the Ropes mine were the predominant factors in this year’s results, low silver prices throughout the year as well as high expenditures for the Caladay silver project also adversely affected results.
Exploration outlays for the year totalled US$4.4 million compared with US$3.6 million in the previous year.
Consolidated silver revenues from the Galena and Coeur mines in Idaho fell to US$673,000 from US$1.9 million in 1988 with the drop in silver prices from US$6.35 to US$5.33 per oz. The drop in revenue as well as an increase in operating costs caused both operations to report losses for the year.
The company’s manufacturing division reported a pretax income of US$1.3 million on sales of US$11.9 million. Callahan Mining (NYSE)* Year ended Dec. 31 1889 1988 Revenue (000s) $28,006 $34,315 Net loss (000s) 13,251 6,294 Net loss
(per share) 1.73 0.82 * U.S. dollars
Be the first to comment on "Losses continue for Callahan"