Initial commercial production at the Jolu mine in January, 1989, and a full year of production at the Silver City operation have increased earnings for International Mahogany (TSE). The company reports unaudited, 1989 earnings of $3.6 million or 26 cents per share, compared with a loss of $3 million or 23 cents per share in 1988. Revenues increased to $27.9 million from $900,000 a year earlier, while cash flow from operations amounted to $14.6 million or $1.07 per share.
Although spot gold prices fell to as low as US$362 per oz. in 1989, International Mahogany was able to realize an average price of US$429 from a combination of forward selling and delivery of production against the gold loan.
As a result of better than expected grades, milled tonnage and gold production (75,722 oz.) for the 12 months ended Dec. 31, the Jolu mine yielded pretax earnings of $11.6 million, of which Mahogany’s share was $8.1 million.
During the same period, production at the Silver City joint venture reached 5,887 oz. gold and 119,708 oz. silver. Total production cost at Silver City, including amortization and depreciation, was US$302 per oz. gold. International Mahogany (TSE) $000s except per-share items* Year ended Dec. 31 1989 1988 Revenue $27,944 $898 Net earnings (loss) 3,600 (3,016 )
per share 0.26 (0.23 ) *US dollars
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