U.S.Report Lower sales, stock dilution cut Battle Mountain’s

A reduction in gold sales volumes and dilution from recent stock and debenture offerings were among the factors that combined to cut Battle Mountain Gold’s (TSE) first- quarter earnings. Battle Mountain reported first- quarter net income of $7 million or 10 cents per share, compared with $10.8 million or 16 cents per share in the same period last year.

First-quarter revenues declined by 12% to $30.7 million from $35 million in the 1988 quarter.

Chairman Douglas Bourne said first-quarter per share earnings declined because of higher provisions for unproven lease abandonments, slightly higher administrative costs, a reduction in gold volumes and the dilutive effect of the company’s recent common stock and debenture offerings. The number of shares outstanding has increased to 72.3 million from 65.6 million last year.

However, production from the company’s mines in the U.S., Australia and Bolivia remained steady at 81,000 oz. gold and 172,000 oz. silver in the first three months of 1990 compared with last year.

The company expects to sell about 340,000 oz. gold in 1990, up slightly from the 331,000 oz. sold in 1989.006 0508,0206,0304,0008 Battle Mountain Gold (TSE) $000s except per-share items Quarter ended Mar. 31 1990 1989 Revenue $30,670 $34,960 Net earnings 7,001 10,820

per share 0.10 0.16004

per share 0.10 0.16 *US dollars004