Corona boosts gold output by 15% but earnings drop during first

Although Corona’s (TSE) first- half gold production increased by 15% in 1990, lower gold prices and the strong Canadian dollar resulted in an earnings drop for the gold producer. For the first six months of the year, Corona reported a net income of $15.1 million (9 cents per share) compared with $18.9 million (12 cents per share) in the first half of 1989. Second-quarter earnings were particularly low. For the quarter, Corona’s earnings dropped 67%, to $4.6 million this year from $13.9 million in 1989. Corona attributes the drop to a combination of lower operating earnings, lower interest and investment income, and higher interest expenses and depreciation charges.

Production at the Williams, David Bell, Marigold and Santa Fe mines is up. In the first half, Corona produced 367,012 oz. of gold, a 14.8% increase over last year’s first half production of 319,616. Meanwhile, direct operating costs declined by 10% to an average of US$203 per oz.006 0600,0206,0300,0008 Corona (TSE) $000s except per share items 3 months ended Jun. 30 1990 1989 Revenue $75,800 $80,000 Net earnings 4,600 13,900

per share 00.02 0.09004