Despite higher gold output,
During the 3-month period ended June 30, the junior lost $596,000 (or 1 cents per share) on revenue of $5.44 million, compared with losses of $181,000 (or nil per share) on $4.37 million in the corresponding period of 1998. Cash flow decreased to $331,000 from $624,000, primarily reflecting the lower price of gold.
Gold production from the San Francisco mine in northwestern Mexico rose 38% to 17,532 oz., while cash costs dropped 3% to US$254 per oz. (and are expected to fall further in the fourth quarter).
The company sold its gold for an average US$310 per oz., or 11% less than in the year-ago period.
Losses for the first half of this year totalled $507,000 (or 1 cents per share) on $11.6 million, compared with $74,000 on $9 million a year ago.
Cash flow remained relatively unchanged, at $1.5 million.
Construction continues at the Vueltas del Rio gold project in Honduras, where crews recently completed building the leach pad, process pond, access road and bridge. Commercial production is expected to begin in early 2000 at a phased rate that should eventually top 60,000 oz. yearly.
Geomaque recently filed a rights offering aimed at raising $4.6 million, which would fund the remaining work at Vueltas del Rio. Shareholders will receive one right for every share held, with six rights plus 60 cents exchangeable into one unit. A unit consists of one share and half a warrant, with a full warrant entitling the holder to buy an additional share at 90 cents within 18 months of the deal’s closing, in mid-October.
Canaccord Capital, acting as solicitor, has agreed to buy up to 2.5 million units. This ensures the company of at least $1.5 million from the deal.
On June 30, Geomaque had $6.9 million in working capital.
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