With production ceased at its Afema gold mine in Ivory Coast, troubled Eden Roc Mineral (EDN-T) has racked up more losses.
For the second quarter ended June 30, the junior posted a loss of $1.7 million (or 3.6 cents per share), compared with earnings of $1.4 million (2.9 cents per share) in the corresponding period in 1997.
The loss is attributed to reduced gold production and gold prices, the cost of shutting down Afema, and a foreign exchange loss of $1.2 million.
Second-quarter gold production amounted to 308 oz., compared with 11,670 oz. a year ago. A final gold pour, 640 oz., took place in
the third quarter.
Most of the inventory and equipment have been sold, and proceeds will be used partly to reduce an outstanding loan with bankers Rothschild & Sons. The existing US$4.6-million balance is expected to be reduced to US$3.3 million in the third quarter as proceeds from equipment sales are realized.
The removal of permanent structures at Afema is complete, and site rehabilitation is said to be progressing.
The other significant event in the quarter was the signing of a letter-of-intent with Anglo American to joint-venture Eden Roc’s Ivory Coast properties.
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