Metal prices, operating costs factor in Asamera financials

Lower precious metal prices and the increased cost of operating its U.S. gold mines resulted in a decline in annual profits for Calgary-based Asamera Minerals (TSE). Asamera, a possible acquisition target for three North American companies including Rouyn-Noranda, Que.-based Audrey Resources (TSE), is a 92% owned subsidiary of Asamera Inc., which in turn is owned by Gulf Canada Resources.

The company reported net income for the year ended Dec. 31 of US$1.9 million or 8 cents per share, compared with US$6.2 million or 14 cents per share during the same period last year.

While still attempting to finance a competitive bid for Asamera’s Canadian and U.S. minerals assets, Audrey is attracted by revenues generated by the Calgary company’s 51% owned Cannon gold mine in Wenatchee, Wash. Asamera is also the sole owner of the Gooseberry mine and tailings recovery project near Reno, Nev.

However, revenues from those operations declined in 1989 to US$13.6 million or 54 cents per share from US$15.8 million or 63 cents per share in fiscal 1988 due to lower average metal prices.

Asamera’s share of production from Cannon and Gooseberry increased slightly in 1989 to 83,701 oz. gold and 461,184 oz. silver from 81,390 oz. gold and 372,663 oz. silver in the previous year.

Asamera and affiliates Asamera Resources and Asamera Minerals (U.S.) are now reported to be fully protected from potential liabilities and expenses arising from its oil operations in the U.S.

Those liabilities were said to be the main reason why Toronto-based gold producer Corona (TSE) elected not to proceed with an offer to purchase substantially all of Asamera’s assets.

Also, the company said it holds interests in 700,000 acres of mineral lands in northwestern Ontario’s Rankin Inlet area. Asamera Minerals (TSE)* $000s except per-share items Year ended Dec. 31 1989 1988 Revenues $13,633 $15,886 Net earnings 1,982 6,195

per share 0.08 0.25 *US dollars.004