A gain from the sale of its oil and gas assets helped Westmin Resources (TSE) report year-end earnings of $63.6 million or $1.17 per share, compared with earnings of $17.8 million or $0.02 per share in the previous year. The jump in earnings is a result of a $90.6 million gain from the asset sale coupled with a $30-million provision against the carrying value of the company’s mining properties.
Cash flow from operations dropped to $33.6 million versus $60.8 million in the year’s earlier period. Westmin noted the drop was primarily the result of lower cash flow from mining operations, about $22.4 million, and an increase of $4.8 million in interest expense.
Mining revenues dropped to $103.5 million from $114.3 million in the previous year because of lower head grades and volumes at the Myra Falls operations. Revenues were also affected by the sale of the Whitewood coal leases in 1988.
The Premier gold project also experienced problems with operating costs running above forecasts and full production not yet attained. Westmin Resources (TSE) Year ended Dec. 31 1989 1988 Revenue (000s) $113,700 $125,400 Net earnings (000s) $63,600 $17,800 Net earnings (000s)
(per share) $1.17 $0.02003
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