Reduced gold output adds to Inspiration’s losses

A seasonal absence of production at the Nome, Alaska, placer gold mining project and reduced output at the Austin gold mine in central Nevada were factors in a first quarter net loss of $5 million, Inspiration Resouces said recently.

The New York-based resource giant reported a 1988 first quarter net loss of 8 cents per share, on revenues of $282.7 million, compared with a net loss of $5.7 million or 9 cents per share at the same time last year.

But first quarter operating results represent a $17.6-million improvement on the 1987 first quarter, if a $9-million gain on the sale of the Namew Lake, Man., nickel mining property is taken into account, said Chairman Reuben Richards at the company’s recent annual meeting.

Outokumpu Oy of Finland bought the 40% interest for $12.1 million.

“The first quarter results primarily reflect improved operating margins at both the corporation’s base metals and agribusiness operations,” he said.

IRC’s net losses narrowed despite a $5.3-million increase in income taxes that reflected a $3.2-million one-time credit recorded in the 1987 first quarter, the company said.

IRC’s combined U.S. and Canadian base metals operations reported 1988 first quarter operating income of $12.1 million on revenues of $124.4 million compared with $9 million on revenues of $101.3 million at the same time last year.

The corporation’s coal subsidiary reported a 1988 first quarter operating loss of $0.5 million on revenues of $19.6 million, compared with $0.4 million on revenues of $22.6 million last year.

Customer stockpiling in late 1987 in anticipation of a possible coal strike resulted in lower prices and sales volumes during the first three months of this year.