Writedowns produce red ink for Granges

The Tartan gold mine in Manitoba accounted for $2.5 million in writedowns, and the Windflower project in British Columbia accounted for $6 million. Eight other properties were also written down for $1.76 million.

Consolidated gold production for the third quarter ended Sept 30 reached 29,013 oz, an increase from the 21,539 oz for the same period in 1988. Net revenue, less operating costs, increased to $6.03 million from $4 million in the previous year. This improvement was attributed to higher gold production at the Lewis-Crofoot mine in Nevada and an increased interest in the Trout Lake mine in Manitoba.

Granges reported a net loss of $8.28 million or 30 cents per share for the first nine months of 1989, compared with net earnings of $445,000 or 2 cents per share in 1988. Net revenue, less operating costs, increased to $16.7 million from $8.84 million in 1988.

Consolidated gold production increased to 76,364 oz for the period, compared with 47,226 oz for the first nine months of 1988 which only included six months of production from the Crofoot mine.

In early September, Granges announced the retirements of senior officers Mike Muzylowski and Douglas McRae. Colin Kaiser, previously a senior executive of M.I.M Holdings of Australia, was appointed president and chief executive officer. M.I.M has a 32.3% interest in Granges.

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