Toronto-based TVX Gold (TSE) has reported its audited net earnings for 1990 following the amalgamation of its predecessor company Consolidated TVX Mining with Inco Gold on Jan. 7. For accounting purposes, the business combination has been treated as a purchase of Consolidated TVX by Inco Gold since the controlling shareholder after the combination is Inco (TSE). The 1990 net earnings related to the Inco Gold business were US$12.8 million, compared to a net loss of US$4.2 million in 1989.
On a pro-forma basis, assuming the business combination occurred on Jan. 1, 1990, the company’s net earnings would have been US$15.1 million last year, compared with US$3.3 million in 1989. TVX Gold’s share of pro-forma production from the combined operations in 1990 totalled 228,000 oz. of gold at US$228 per oz., compared with 119,000 oz. at US$250 per oz. in 1989. TVX’s share of revenue increased to US$106 million in 1990, up from US$65 million in 1989.
With interests in six producing gold mines in Canada, the U.S., Chile and Brazil, TVX’s share of production is expected to exceed 300,000 oz. in 1991.
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