Dickenson boosts gold output but earnings continue to slip

Increased revenue but lower earnings during the third quarter and the first nine months of 1990 were reported by Dickenson Mines (TSE). The company attributed the improved revenue level to higher gold output from its Red Lake mine in northwestern Ontario and the acquisition of a sodium sulphate operation, Saskatchewan Minerals, near the end of last year.

During the third quarter, earnings of $286,000 (2 cents per share) were reported on revenue of $15 million, compared with $1.4 million (9 cents per share) on $13.2 million for the same period last year. For the nine months, earnings of $2.6 million (15 cents per share) on revenue of $47.2 million were recorded, compared with $8 million (49 cents per share) on $39.1 million last year.

During the third quarter, output at Red Lake totalled 19,445 oz., up from 18,397 oz. last year. For the nine months, output jumped by 6% to 59,884 oz.

A Dickenson-controlled company, Wharf Resources (TSE), reported third-quarter earnings of US$1.3 million (6 cents per share) on revenue of US$7.5 million, compared with $1.6 million (9 cents per share) on US$9.9 million last year. For the nine months, Wharf reported earnings of US$4.6 million (23 cents per share) on revenue of US$22.5 million, compared with US$5.3 million (28 cents per share) on US$23.3 million last year.

Gold output by Wharf during the third quarter totalled 19,670 oz., down from 27,003 oz. last year. During the nine months, output totalled 58,849 oz., down from 61,280 oz. last year. A lower rate of gold recovery from one of the company’s four leach pads at its South Dakota operation was blamed for the lower production.

Dickenson Mines (TSE) 3 months ended Sept. 30 1990 1989 Revenue $15,013 $13,205 Net earnings 286 1,427

per share 0.02 0.09

9 months ended Sept. 30 Revenue $47,203 $39,124 Net earnings 2,591 8,003

per share 0.15 0.49

Wharf Resources (TSE)* 3 months ended Sept. 30 1990 1989 Revenue $7,516 $9,902 Net earnings 1,254 1,631

per share 0.06 0.09

9 months ended Sept. 30 Revenue $22,522 $23,312 Net earnings 4,644 5,328

per share 0.23 0.28