Lower Silver, gold prices hurt Callahan’s first half

Callahan reported a loss of $2.53 million(US) or 33 cents per share for the first six months of 1989, compared with a loss of $1.27 million or 17 cents per share for the first six months of 1988. Comparable revenues were $14.14 million versus $16.74 million a year ago.

Charles Snead Jr., chairman, said $2.28 million in exploration outlays continued to affect the bottom line, with nearly half the budget spent on the company’s Caladay silver exploration project in Idaho.

Consolidated silver revenues from the Galena and Coeur mines declined to $308,000 from $1 million a year ago. The average selling price realized during the period was $5.34 per oz, compared with $6.62 per oz in 1988.

The Ropes gold mine showed a first half pre-tax loss of $815,000, compared with a loss of $771,000 a year earlier.

Snead said the mine was adversely affected by lower gold prices and by the pulling of lower-grade ore for production during most of the first half while shaft sinking was completed to the 1620 level.

These factors, plus a 10% drop in tonnage milled because of power outages and repair downtime, resulted in Callahan selling 15% fewer oz of gold during the period.

The 1989 second-quarter loss was $1.28 million or 17 cents per share, compared with a loss of $875,000 or 12 cents a share for the same period in 1988. Comparable second-quarter revenues were $6.98 million versus $8.36 million last year.

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