TVX takes writedown

Toronto-based TVX Gold (TVX-T) will take a $64-million, one-time, non-cash charge against its 1999 earnings, reflecting the original purchase price of the Stratoni lead-zinc operation in Greece.

The writedown includes the purchase of capital assets, development costs and accumulated operating losses since the acquisition of Stratoni in 1995.

Since the first of the year, TVX has been treating the operation as a separate business unit within its Greek subsidiary, TVX Hellas.

The operation consists of the Madem Lakkos and Mavres Petres mines and mill. Madem Lakkos has been providing all the feed to the mill since the Mavres Petres mine was shut down in 1996.

Recently, TVX announced it will resume mining at Mavres Petres and, moreover, that the mine should be providing most of the millfeed by 2001. The decision is based on the results of a 1999 drill program, which identified new resources at both mines, additional reserves and a new lead-zinc-silver resource.

In 2000, the Stratoni operation is expected to churn out 18,500 tonnes of zinc in concentrate, 18,900 tonnes of lead, and 1.5 million oz. silver in lead concentrate.