Metal prices, dollar affect Audrey results

Weak precious metal prices and a strong Canadian dollar were two factors that forced Audrey Resources (TSE) to break out the red ink when reporting its first-half financial results. The Rouyn-Noranda, Que., company reported a net loss of $1.1 million or 7 cents per share in the six months ended June 30 compared with a net loss of $141,000 or 1 cents per share at the same time last year.

Six month revenues shot up to $9.8 million from $77,000 in the corresponding period in 1989 (Audrey’s Mobrun polymetallic mine was shut down for much of last year for development and mill construction purposes).

The mine is now operating at its maximum capacity of 1,386 tons per day and during the three months ended June 30 it produced 1.1 millon lb. copper, 4.3 million lb. zinc, 19,193 lb. cadmium, 21,967 oz. silver and 5,167 oz. gold. The cost of operating the mine has dropped from $44.90 per ton in the first three months of this year, to $39.50 per ton.

Audrey also reported second- quarter net income of $307,000 or 2 cents per share compared with a net loss of $1.4 million or 9 cents per share in the first quarter of this year.

Second-quarter revenues increased by close to 40% to $5.7 million from $4.1 million in the first three months of 1990.

Audrey said its second-quarter results were adversely affected by an unsuccessful takeover bid for the U.S. and Canadian mining assets of Asamera Minerals (TSE). The bid cost Audrey $256,000.014 Audrey Resources (TSE) $000s except per-share items 3months ended June 30 1990 1989 Revenue $5,738 $ Nil Net earnings (loss) 307 Nil

Per share 0.02 Nil 6 months ended June 30 Revenue $9,866 $77 Net earnings (loss) (1,138 ) (141)

Per share (0.07 ) (0.01)