Place Res. boosts 1st-quarter income

Net income for Place Resources during the first-quarter of this year was $348,700 (5 cents per share), up from $250,896 (3.5 cents per share) for the same period last year.

Cash flow for the quarter, which ended March 31, was $560,825, up from $338,896 a year ago. Working capital at the end of the quarter was $642,590.

The company’s net income for fiscal year 1986 after non-cash items was down $20,067 to $436,163. Gross revenue in 1986 was almost $3 million, compared with $2.7 million for the previous year.

“Substantially higher depreciation and depletion on acquisitions made in exchange for treasury shares caused this disparity,” President Michael Butler said of the lower 1986 income.

Place, with mining and natural gas interests, increased its cash flow to $1.4 million (19.5 cents per share) in 1986 by $306,159 from the year before.

Besides holding Lake Erie natural gas and other petroleum production, Place is investing $1,125,000 in debentures of Emerald Lake Resources to help finance part of the latter’s capital expenditure preparatory to gold production expected in late summer at a northern Ontario site. This security is convertible at $3.25 per share into Emerald Lake stock currently trading on the tse in the $11-to-$12 range.

Emerald Lake, which is 29.6% controlled by Noramco Mining, is forecasting a milling rate of 400 tons of ore per day from its property located north of North Bay, Ont. Total reserves have been calculated at 2.4 million tons grading 0.23 oz gold per ton.