With the signing of a new joint venture agreement on the Aurora partnership and with legal disputes with its former mining contractor behind it, Minerex Resources (TSE) is gearing up for a prosperous 1991. A new joint venture agreement was signed earlier this year with Electra Mining (VSE), the company’s 50% partner at the Aurora heap leach gold mine in Nevada.
The agreement gives Minerex continued operatorship of the mine and allows for the dilution of a partner’s interest if approved project funding is not met.
An arbitration ruling in September, 1990, awarded the company’s former mining contractor a $1.5-million settlement relating to the termination of a mining contract. As a result, Minerex recorded a $1.2-million after-tax charge against its retained earnings in the third quarter ended Nov. 30.
The company reported earnings of $1.3 million for the 9-month period before the extraordinary charge. This compares with earnings of $846,000 for the nine months ended Nov. 30, 1989.
Cash flow for the period was $2.5 million, although changes in non-cash working capital items brought net cash flow down to $994,000.
About 350,000 tons of ore were stacked on the leach pads during the period at an average grade of 0.12 oz. gold per ton. Nine-month gold production was 26,262 oz.
The average gold price received during the period was US$397 per oz., the same as the 1989 period. A hedging program ensures that the company will receive at least US$395 per oz. for about 35% of scheduled 1991 production.
Production plans for 1991 call for the processing of about 400,000 tons of ore at an average grade of about 0.13 oz. gold per ton. Recoveries are expected to be similar to historic rates of 65-70%.
As at Oct. 1, proven and probable reserves were estimated at 734,000 tons grading 0.12 oz. gold per ton. Michael Iannacone, vice-president of Minerex, said an updated reserve figure is being calculated.
In addition, he said the company was negotiating with adjacent landholders for possible joint ventures to explore ground on to which the deposit apparently trends.
Minerex’ balance sheet had improved greatly as at Nov. 30, with no long-term debt and with working capital of about $690,000. The company has about 11.1 million shares outstanding and last traded at the 36 cents level.
The company’s agreement with Electra stipulates that it receive 100% of the partnership’s income and cash flow until capital contributions are recovered. Minerex has more than US$6 million in recoverable capital invested in the project. Minerex Resources (TSE) 9 months ended Nov. 30 1990 1989 Revenue $12,356 $10,888 Net earnings 1,279 846 per share 0.11 0.08
With the signing of a new joint venture agreement on the Aurora partnership and with legal disputes with its former mining contractor behind it, Minerex Resources (TSE) is gearing up for a prosperous 1991. A new joint venture agreement was signed earlier this year with Electra Mining (VSE), the company’s 50% partner at the Aurora heap leach gold mine in Nevada.
The agreement gives Minerex continued operatorship of the mine and allows for the dilution of a partner’s interest if approved project funding is not met.
An arbitration ruling in September, 1990, awarded the company’s former mining contractor a $1.5-million settlement relating to the termination of a mining contract. As a result, Minerex recorded a $1.2-million after-tax charge against its retained earnings in the third quarter ended Nov. 30.
The company reported earnings of $1.3 million for the 9-month period before the extraordinary charge. This compares with earnings of $846,000 for the nine months ended Nov. 30, 1989.
Cash flow for the period was $2.5 million, although changes in non-cash working capital items brought net cash flow down to $994,000.
About 350,000 tons of ore were stacked on the leach pads during the period at an average grade of 0.12 oz. gold per ton. Nine- month gold production was 26,262 oz.
The average gold price received during the period was US$397 per oz., the same as the 1989 period. A hedging program ensures that the company will receive at least US$395 per oz. for about 35% of scheduled 1991 production.
Production plans for 1991 call for the processing of about 400,000 tons of ore at an average grade of about 0.13 oz. gold per ton. Recoveries are expected to be similar to historic rates of 65-70%.
As at Oct. 1, proven and probable reserves were estimated at 734,000 tons grading 0.12 oz. gold per ton. Michael Iannacone, vice-president of Minerex, said an updated reserve figure is being calculated.
In addition, he said the company was negotiating with adjacent landholders for possible joint ventures to explore ground on to which the deposit apparently trends.
Minerex’ balance sheet had improved greatly as at Nov. 30, with no long-term debt and with working capital of about $690,000. The company has about 11.1 million shares outstanding and last traded at the 36
level.
The company’s agreement with Electra stipulates that it receive 100% of the partnership’s income and cash flow until capital contributions are recovered. Minerex has more than US$6 million in recoverable capital invested in the project. Minerex Resources (TSE) 3 months ended Nov. 30 1990 1989 Revenue $12,356 $10,888 Net earnings 1,279 846
per share 0.11 0.08 TE
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