New president named for Dickenson, Wharf

A new president has been named for Dickenson Mines (TSE) and associated company Wharf Resources (TSE) in the wake of John Kachmar’s resignation and the removal of a number of directors. Kachmar, 53, who spent four years at the Dickenson helm and more than two years running Wharf, resigned his presidencies at the respective annual meetings. Assuming the president’s chair in both companies is D.J. Libby, 48, who formerly served as vice-president of operations of Dickenson and Wharf.

Reasons for Kachmar’s resignation remain unclear. Dickenson was taken over a little more than one year ago by Goldcorp Investments, a Toronto-based gold fund, which outbid Corona Corp. “It’s business as usual,” Kachmar said at the 1989 annual meeting of Dickenson, adding Goldcorp was supportive of the company’s objectives.

Kachmar kept his resignation announcements brief. At both meetings, he said he was resigning “as part of an orderly and normal process.” Kachmar is expected to make himself available to the companies for at least the next several months; he said he will continue to sit as a director and act in a consulting capacity.

Giving substance to the theory of dissent within the ranks was the removal of certain directors from the boards of both Dickenson and Wharf.

From the Dickenson board, James McCartney, a lawyer with McCarthy Tetrault, and Donald Haldenby, a director of Goldcorp, were dropped. From the Wharf board, Kachmar and Barry Fisher, general counsel, withdrew their names, while Robert Simon, also a Goldcorp director, Haldenby and McCartney had their nominations rejected.

Haldenby is president of CSA Management, which manages the Goldcorp operations. Chairman of CSA is Robert McEwen, who serves in the same capacity with Dickenson and Wharf. McEwen is also president of Goldcorp.

Publicly expressing their displeasure at being dropped were McCartney, who said he had served on the Dickenson board for 10 years, and Simon. McCartney praised Kachmar for his work with both companies. McCartney’s comment that McEwen has no experience in running mining companies brought agreement from the chairman, who said his mining skills “are zero.”

McEwen went on to say a skilled mining team is in charge of operations. “These men are running the mining operations, and that’s it,” he said.

Dickenson, which posted net income in 1989 of $6.1 million, operates the White mine at Red Lake, Ont., which turned out 76,000 oz. gold last year. Gold output of 82,000 oz. at the mine is projected for 1990.

Wharf is owned 36.4% by Dickenson and 5.2% by Goldcorp. The low-cost gold producer operates a heap leach mine in South Dakota which turned out 77,000 oz. in 1989. Mine production there is expected to reach 86,000 oz. this year and 100,000 oz. in 1991. Wharf recorded a net income in 1989 of US$5.8 million.

Looking to the future, Wharf acquired last year a 28% interest in United Coin Mines (TSE), which has a 662/3% interest in the Golden Reward gold mine, which adjoins the Wharf property. The Golden Reward mine is expected to produce 65,000 oz. this year.

Named to the Dickenson board were McEwen, Libby, Kachmar, D.A. Barr, Jeffrey Nichols, Gerhard Pralle, Hugh Snyder and F.M. Walsh.

Named to the Wharf board were McEwen, Libby, Barr, Richard Brissenden, F.R. Knight, F.H. Lightner, Michael McMurrich and M.N. Mozzaffari.

For the first three months of 1990, Dickenson reported net income of $1.3 million (7 cents per share) on revenue of $15.6 million, compared with $1.4 million (10 cents per share) on revenue of $12.8 million for the same period last year.

For the same period this year, Wharf recorded net income of US$1.2 million (6 cents per share) on revenue of US$6.9 million, compared with US$1.3 million (6 cents per share) on revenue of US$4.5 million for the same three months in 1989. Dickenson Mines (TSE) $000s except per share items Quarter ended Mar. 31 1990 1989 Revenues $15,589 $12,747 Net earnings (loss) $1,301 $1,398

per share $0.07 $0.10 Wharf Resources(TSE) $000s except per share items* Quarter ended Mar. 31 1990 1989 Revenues $6,993 $4,479 Net earnings (loss) $1,198 $1,257

per share $0.06 $0.06 *US dollars.