A loss of $54.8 million ($4.62 per share) was reported by Pamour (TSE) for 1989, compared with a loss of $6.4 million (54 cents per share) for the previous year. The loss includes the company’s share of the loss for 1989 of a subsidiary, ERG Resources, and the provision for uncollectible amounts receivable from ERG totalling $48.8 million. ERG’s huge gold tailings reclamation project at Timmins, Ont., has struggled since it was placed into production in late 1988.
Pamour, a holding company, says it has written down its advances and investment in ERG to a nominal value of $1.
The loss for 1989 also includes a $1.6-million loss resulting from Pamour’s 41.7% interest in Giant Yellowknife mines, which reported a writeoff for 1989 of its advances to ERG of $5.7 million.
Pamour and its associated companies were recently put up for sale by Australian parent Giant Resources. Pamour (TSE) Year ended Dec. 31 1989 1988 Net loss (000s) $54,800 $6,423 Net earnings
(per share) 4.62 0.54004
Be the first to comment on "Struggling ERG hurts Pamour"