Sale of Mascot brings profit to Royex Gold

An extraordinary gain resulting from the sale of Mascot Gold Mines to Lacana Mining, enabled Royex Gold Mining to realize net income of $47 million for the year ended Sept 30, 1987. This compares to a loss of $2.97 million realized during the same period in 1986.

Before the extraordinary item, Royex earned $6.49 million or 6 cents per share, after payment of preference share dividends. After the inclusion of the Mascot sale, earnings per share were 84 cents . If results from the Williams mine at Hemlo are included, then Royex earned $11.67 million in 1987 and $52.2 million after extraordinary item.

The Mascot sale resulted in a gain of $86.97 million. During the year, Royex offset part of that gain with a $46.6 million writedown of the resource assets of a private Ontario numbered company which is a 100%-owned affiliate of Royex.

Excluding the Williams results, Royex generated revenues of $43.2 million for the period compared to $10.5 million in 1986. Gold bullion sales accounted for $34.2 million in 1987 compared to $9.2 million in the previous year. Including the Williams mine, revenues totalled $80.37 million. As at Sept 30, Royex had a strong working capital position of $134.7 million.