Rayrock Yellowknife Resources (TSE) reported net earnings of $3.2 million (32 cents per share) for 1989, compared with $6.6 million (68 cents per share) in 1988. Operating funds increased to $9.3 million from $8.85 million. Total revenue increased to $53.7 million from $33.9 million, the result of Rayrock’s increased ownership in Western Ag-Minerals to 100% from 35%. Rayrock’s gold production in 1989 was 37,357 oz., compared with 36,253 in 1988. Higher production is attributed to the startup of the Marigold mine in September and the purchase of additional interest in the Dee mine in October.
However, the overall production increase was dampened by a decrease in grades and recoveries at the Dee mine and the phasing out of heap leach production at the Preble mine. These factors resulted in increased direct cash operating costs of US$207 per oz., compared with US$169 per oz. in 1988.
A $2.2-million-dollar drilling program is under way at Rayrock’s Stonehouse gold deposit on the Marigold property. Rayrock Yellowknife Resources (TSE) Year ended Dec. 31 1989 1988 Revenue (000s) $53,700 $33,900 Net earnings (000s) 3,171 6,612 Net earnings
(per share) 0.32 0.68004
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