Although a loss was reported for the year ended Dec. 31, Rea Gold (TSE) reached profitability in the first quarter of 1990. The company reported a loss of $2 million or $0.16 per share for the year ended Dec. 31, on revenues of $4.9 million. The loss included $1.3 million in writedowns and losses on investments. There were no comparable results for the previous year since the Samatosum mine did not start commercial production until July 1, 1989.
Net earnings for the three months ended March 31, were $1.37 million or $0.10 per share on revenues of $4.97 million. Earnings can be broken down to include the 30% working interest in the mine which provided $719,573, and the 5% net smelter royalty which earned $645,626.
First quarter metal production at the mine was 2.2 million oz. of silver, and 4,000 oz. of gold contained in the copper, lead, and zinc concentrates. Operating costs after gold and base metal credits were US$1.42 per oz. of silver produced.
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