Rea Gold posts first-quarter loss

A low gold price took the wind out of Rea Gold’s (REO-T) sails during the first quarter.

For the 3-Month period, the junior posted a loss of $5.8 million on revenue of $3.1 million, compared with a loss of $856,624 on $2.3 million in the first quarter of 1996.

The company produced 8,550 oz. gold and 18,850 oz. silver during the period, compared with 7,930 oz. gold and 23,700 oz. silver in the first three months of 1996.

These results relate only to the Mt. Hamilton mine in Nevada.

Rea has deferred revenue of $1.2 million from production of 3,570 oz. at the San Gregorio mine in Uruguay until it reaches commercial production, later in the year. Production at the mine is expected to be 66,000 oz. in 1997 and 70,000 oz. in 1998.