Net income of $543,363 (14 per share) on revenue of $5.7 million was recorded by Malartic Hygrade Gold Mines (Canada) (VSE) during the first nine months of 1988, compared with $3.3 million (91 per share) on revenue of $5.6 million for the same period last year.
Net income in 1987 included an extraordinary item of $1.6 million (45 per share). Cash flow from operations during the nine months totalled $1.2 million compared with $2.34 million in 1987.
During the third quarter, the company reported net income of $39,396 (1 per share) on revenue of $1.7 million, compared with $519,926 (14 per share) on revenue of $1.8 million for the same 3-month period in 1987.
The company attributes the reduced earnings to start-up problems at its Orion gold mine near Val d’Or, Que. While underground production and unit operating costs per ton are meeting expectations, the company says mill throughput had to be temporarily suspended because of recovery troubles.
Gold production during the 9-month period totalled 8,883 oz compared with 8,292 oz for the same period last year. (Malartic has a 60% interest in the Malartic/ Barrick mine, and American Barrick Resources a 40% interest.)
Meanwhile, Malartic has started a multi-phase exploration program for three deep-seated targets on the Orion property. (The property hosts both the Malartic/Barrick mine and the near-surface Orion mine.) The three targets are the Orion deep deposit, the Norlartic fault structure and a major porphyry body identified by drilling between the Orion shaft and the Malartic/ Barrick mine.
Also, Malartic has boosted its ownership in Gold Texas Resources (VSE) to 18.9% through the purchase of a further 347,000 Gold Texas shares.
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