Profitable year reported at tame Corona meeting

What a difference a year makes. This year’s annual meeting of International Corona Resources bore no resemblance to the raucous 1987 version at which Murray Pezim, then vice-chairman, stormed out in disagreement with the proceedings.

In fact, so friendly have relations become between Pezim and top Corona officials that the west-coast promoter, a director who is listed as honorary board chairman, graciously received the gift of an oil painting (yet to be painted) of the Hemlo gold camp in northern Ontario from Chairman Ned Goodman.

Corona in fiscal 1987 (to Sept 30), recorded earnings of $13.6 million (88 cents per share) before, and $31.9 million ($2.07 per share) after, unusual items, compared to a loss of $2 million (15 cents per share) before, and $1.3 million (10 cents per share) after, unusual items in 1986.

(The unusual items represent a gain from the sale of Mascot Gold shares to Lacana Mining, and a loss from a write-down of resource assets.)

Including production from the Williams mine and fractional claims at Hemlo, Corona’s income (unaudited) for 1987 was $28.4 million ($1.85 per share) before, and $46.8 million ($3.04 per share) after, unusual items.

The Williams mine is the property developed by Lac Minerals but which was awarded to Corona by the Supreme Court of Ontario, in March, 1986, upon payment of $154 million. The case is currently before the Supreme Court of Canada.

To Sept 30, Corona reported working capital of almost $120 million.

For the first quarter of fiscal 1988, Corona recorded a net income of $11.4 million (64 cents per share) compared with $593,000 (40 cents per share) for the same period in 1987. Including the Williams mine and fractional claims, income during the quarter was $18.5 million ($1.04 per share) compared with $2.2 million (16 cents per share) for the same period last year. David Bell mine Corona is a 50% owner (Teck Corp. has the other 50%) of the David Bell mine at Hemlo, which in 1987 produced 130,122 oz gold at an operating cost of $140(US). A neighboring quarter claim, in which Corona has a 25% net profits royalty interest and which Hemlo Gold Mines is developing, turned out 36,288 oz at a cost of $141 per oz.

For fiscal 1988, Corona is forecasting its half-ownership of the David Bell mine output will amount to 95,000 oz and its 25% share of the quarter claim, 15,000 oz, for a total of 110,000 oz.

The Williams mine, the output from which would be shared equally with Teck, would add another 160,000 oz to the company’s own 1988 forecast.

Corona, 49%-controlled by Royex Gold Mining, has a 23% (fully diluted) interest in its parent firm as well as a 44% interest in profitable Lacana Mining. It also has a one-third interest in Prime Capital, a private firm set up to provide capital funding for mining ventures.

Heavy on the development side, the Royex group is planning a more aggressive stance in the exploration and acquisition areas, Corona President Peter Steen told the meeting. Royex recently hired Chris Jennings, from the BP-Selco group, to be its senior vice-president exploration. Corona-controlled Dolphin Explorations is currently active at the Cape Ray gold project in Newfoundland.

Shareholders approved a five-for- one split of the company’s stock. Corona currently has about 22.7 million shares outstanding.