A loss of $3.6 million was reported by Breakwater Resources (TSE) for its 1991 third quarter ended Sept. 30, which brings losses for the first nine months of the year to $16 million.
The company is continuing efforts to reverse the deficit and obtain a positive cash flow, with much of this directed at maximizing the potential of the El Mochito polymetallic mine in Honduras.
While the mine experienced an operating loss of $943,000 for the first nine months of 1991, an operating profit of $188,000 was realized during the third quarter.
The Caribou zinc mine in New Brunswick is on a care-and-maintenance basis while negotiations continue with bankers and the provincial government to resolve various outstanding issues. Breakwater hopes to resolve these issues in order to eliminate potential liabilities and allow a review of alternate technological processes.
The 49% owned Cannon mine in Washington produced 108,057 oz. gold during the 9-month period at an average cost of US$266 per oz., to provide cash flow of $4.3 million.
Breakwater continues to rely on the financial support of its major shareholder, Dundee Bancorp (formed by a reorganization of International Corona), which advanced by way of partially secured loans $11.5 million during the nine months, for a total-to-date of $15.9 million.
Be the first to comment on "Breakwater aims to reverse losses"