First Dynasty still in red

Though still in the red, First Dynasty Mines (FDM-T) managed to improve its bottom line in the first half of the year.

The Singapore-based company lost US$4.5 million in the 6-month period ended June 30, compared with a loss of US$4.9 million in the corresponding period of 1997. The better performance is partially attributable to gold sales of US$105,000 and to a US$1.1-million reduction in non-financing charges.

First Dynasty pulls its gold from the Ararat tailings project in western Armenia. The project is a joint venture with the government and has sufficient reserves for eight years of production at the projected rate of 24,000 oz. gold annually.

Also in Armenia, the company has concluded a deal to revitalize the past-producing Zod and Meghradzor mines. A bankable feasibility study concluded that both could be mined profitably at US$300 per oz. gold by railing mined ore to an expanded Ararat plant (T.N.M., July 6-12/98).

First Dynasty is seeking debt-financing for the US$41.6-million expansion and revitalization program and, if successful, could start mining as early as mid-September 1999. First Dynasty’s yearly output from Armenia is expected to top 162,000 oz. gold, at a cash cost of US$172 per oz. mined, in the first seven years of the projected 11-year mine life.