Orion start-up costs cut Malartic earnings

Start up costs at Malartic Hygrade’s (VSE) Orion gold mine near Val d’Or, Que., and an unrealized U.S. dollar exchange loss, reduced the company’s earnings during the first half of 1988, Malartic announced recently.

Mine operating profits dropped to $1.49 million for the six months ended June 30 from $1.83 million at the same time last year.

Malartic also reported a reduction in first half net income to $503,967 or 13 cents per share from $1.1 million or 32 cents per share in the first six months of 1987.

First half revenues were up slightly to $3.9 million from $3.7 million last year.

According to Malartic, an extra- ordinary item equal to $1.6 million or 45 cents per share due to a tax refund, increased final net income for the first half of 1987 to $2.8 million or 77 cents per share.

With the extraordinary item excluded, second quarter net income was down to $352,617 or 9 cents per share from $724,135 or 20 cents per share in the second quarter of 1987.

Second quarter revenues of $2.3 million compared to $1.99 million at the same time last year.