Hedman double year loss

Despite efforts to increase sales, Hedman Resources more than doubled its losses in 1986. For the year ended July, 31, the company realized a loss of $245,428 or 9 cents per share. This compares with a loss of $105,698 realized in 1985.

Sales of hedmanite, a lizardite serpentine mineral, which finds application as an asbestos substitute, totalled $608,906; up marginally from $580,235 in the previous year. Hedman operates an open pit mine near Matheson, Ont. A mill processes at a rate of 300 tons per day.

The large level of losses does not appear to be abating. During the first quarter ended Oct 31, 1986, losses at Hedman were $54,689; more than triple the $18,152 lost in the same period in 1985. In a bid to test the gold potential of the company’s land holdings, a flow-through share offering has been completed which will gross $370,000.

A story of a stock promotion scandal in Europe reported in the Globe and Mail, has linked Hedman’s CEO, George B. Sukornyk, with a European boiler room operation which bilked investors of millions of dollars. The Globe story said that “worthless shares in a defunct Toronto research company” were sold by Greenwood International Securities, Mr Sukornyk’s London-based brokerage company. The brokerage firm is partly owned by GR Investor Relations, a company which also does public relations work for Hedman.