Summitville output boosts Galactic’s 1987 balance sheet

Higher gold prices combined with production from Galactic Resources’ Summitville mine in Colorado brought the Vancouver company’s balance sheet back into the black.

Galactic reported 1987 net income of $1.8 million(us) (7 cents per share) compared to a loss of $25.6 million ($1.30 per share) reported in 1986.

Net income for the three months ended Dec 31 was $1.4 million (6 cents per share) compared to a fourth quarter 1986 loss of $14.1 million (63 cents per share). Following operational difficulties at Summitville which reduced 1986 production by about half the expected output, gold production at Summitville increased from 51,626 oz during 1986 to 87,960 oz in 1987.

As a result, fourth quarter income from Summitville was $3.8 million compared to a loss of $1.8 million (before the writedown of $9.9 million of leach pad costs) during the final quarter of 1986.

Income from the Colorado heap leach mine was $7.7 million for the year ended Dec 31, compared to a loss of $6.1 million during the same period last year.

Galactic and partner Cornucopia Resources of Vancouver are attempting to start heap leach operations at the huge Ivanhoe property, at Carlin, Nev., later this year.

The Galactic issue was trading recently on the Toronto Stock Exchange at $8 in a 52-week range of $6 and $17.13.