A net loss for 1989 of $6.9 million (48 cents per share) was reported by Minnova (TSE), compared with a net gain of $921,000 (7 cents per share) for the previous year. The company recorded a net loss during the fourth quarter of $11.3 million, reflecting an after-tax charge of $6.3 million from writing off expenditures on the Donalda gold project (Quebec), production shortfalls at some of its underground mines, falling base metal prices and the higher Canadian dollar.
Both metal sales and operating income increased by about 50% last year because of the initial six months’ production from the new Ansil (Quebec) and Samatosum (British Columbia) mines and a full year’s production from the Winston Lake mine in northwestern Ontario.
Ground falls at Winston Lake constrained metal production there during the first half of 1989. The company also experienced a rock burst in the shaft at Lac Shortt (Quebec) during the fourth quarter, as well as hoist-motor failure and ore pass problems at Ansil. Lac Shortt is again operating at full capacity while Ansil’s production will be restricted during the first half of 1990 while the problems are corrected.
An operating loss at the Opemiska works in Quebec resulted in a 25% reduction in the workforce there, the company reports.
The Donalda gold project near Rouyn-Noranda, Que., will require a higher gold price before it is brought into production, the company has decided. Further development has been suspended indefinitely and a $7.2-million carrying value of the property written off.
Minnova had capital expenditures totalling $41.3 million during 1989. Work on the Mobrun 1100 massive sulphide deposit near Rouyn-Noranda, which Minnova is developing with Audrey Resources, has boosted preliminary estimates of reserves to 10 million tonnes. Minnova (TSE) Year ended Dec. 3119891988 Net sales (000s)$116,598$77,918 Net earnings (000s)(6,855) 921 Net earnings
(per share)(0.48) 0.0703 Minnova’s parent firm, Kerr Addison Mines (TSE), recorded a 1989 net income of $12.6 million (72 cents per share), compared with earnings of $10.5 million (60 cents per share) for 1988. Kerr, playing the role of a holding company, attributes the higher earnings to its investment returns.
For the fourth quarter last year, Kerr reported a net loss of $4 million, including after-tax charges of $4.9 million. Kerr Addison Mines (TSE) Year ended Dec. 3119891988 Net earnings (000s)$12,639$10,509 Net earnings
(per share)0.720.60003
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