With record exploration expenditures in 1986, Muscocho Explorations has reported a loss for the year, after non-cash items consisting of depreciation, amortization and preferred share dividends, of $413,000 (3 cents per share) compared to a profit of $151,000 (2 cents per share) in 1985.
A total of $8.1 million in flow- through funding was completed during 1986, permitting a high level of exploration activity. The company has raised a further $10 million of flow-through funding for exploration in 1987.
The debt-free company had net revenue or working capital from operations last year of $1.8 million (15 cents per share) compared with $2.2 million (23 cents per share) in 1985.
President J. T. Flanagan reports the reduction in revenue last year reflected factors relating to the change-over in production from the North Montauban mine to the new South Montauban mine on property southwest of Quebec City. The company’s gold production from the property in 1986 was 13,952 oz while total silver production was 39,955 oz.
The change-over is complete, and Mr Flanagan reports that, by year-end, the production rate is expected to be 20,000 oz gold and 170,000 oz silver.
Cash at the end of 1986 stood at $1.4 million; that total was subsequently augmented by a private placement netting the treasury $1.9 million earlier this year. In addition, securities with a book value of $2.75 million had a market value of $5.8 million at the end of 1986, Mr Flanagan reports.
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