Profit and gold production increase posted by Barrick

Increased profit and record gold production highlight the 9-month report of American Barrick Resources Corp.

For the nine months ended Sept 30, net income of $11.3 million was posted before extraordinary items on revenues of $644.3 million. That’s a substantial rise from the net income of $403,000 before extraordinary items on revenues of $29.6 million in the same period a year ago. After extraordinary realization of income tax benefits, the company had a net income of $1.1 million for the 9-month 1985 period.

There were no extraordinary items this year.

Working capital increased in the recent 9-month period to $43.6 million from a deficit of $3.2 million as at Dec 31, 1985.

The company notes this increase was after capital expenditures of $22.2 million and resulted from cash flow generated from operations of $15.8 million, the completion of a $13.8-million mine equipment financing and a $43-million equity and gold purchase warrants financing.

Looking at the recent third quarter, net income was $4.2 million per share on revenues of $21.4 million compared to third quarter net income before extraordinary items of $623,000 on revenues of $19.3 million in 1985.

Gold production increased nearly 2-fold to 140,468 oz in this 9-month period from the 74,258 oz produced in the first nine months of 1985.

Average cash operating costs came in lower at $194(US) per oz in this year’s 9-month period compared to $210(US) per oz in last year’s comparable period.

The company notes production during the recent 9-month period was virtually without contribution from Valdez Creek which experienced operating problems in the third quarter. In the total 9-month period this mine produced 7,115 oz of gold, of which Barrick received 1,645 oz. In last year’s period Valdez produced 20,395 oz of which the company received 4,716 oz.

Looking at the other four mines in which the company has interests, total gold production from the Mercur Mine near Salt Lake City, Utah, was 85,332 oz gold in this 9-month period compared to 26,753 oz in the same period last year. American Barrick has a 100% interest in the mine.

The Camflo mine in northwestern Quebec produced a total of 24,086 oz in the 9-month period down slightly from the 25,710 oz produced in the same period last year.

The Renabie mine in northeastern Ontario had an output of 27,216 oz of gold in this period. The company’s share of production amounted to 13,608 oz. Last year in this period the mine produced 21,889 oz of which the company received 10,945 oz.

The Pinson Mine in Nevada produced 60,180 oz gold in this period, of which the company received 15,797 oz. In last year’s period the mine produced 53,477 oz and American Barrick received 6,134 oz.