ASAMERA MINERALS ANNOUNCES RESULTS FOR FIRST NINE MONTHS
CALGARY, Alberta, Nov. 13 /PRNewswire/ -- Asamera Minerals Inc. (Toronto, Montreal: AUA) had mineral sales of $24,031,000 for the first nine months of 1991 compared with $27,360,000 for the first nine months of 1990. Mineral sales for the third quarter were $8,736,000 compared with $10,277,000 for the third quarter of 1990.
Nine-month income from operations was $2,193,000 for 1991, 75 percent higher than a year ago primarily as a result of the 1991 gain on the sale of the company's interest in the McArthur River property. For the third quarter of 1991, the company recorded a loss from operations of $1,626,000 compared with income of $1,242,000 a year ago.
Cash flow provided by operations before exploration expenses was $5,415,000 for the first nine months of 1991 compared with $8,540,000 a year ago. Third quarter 1991 cash flow was $1,638,000 compared with $3,866,000 a year ago.
The decline in revenues and the third quarter loss from operations reflect reduced shipments of gold and silver, as production levels were significantly reduced at the Gooseberry mine and tailings project. Although Gooseberry mine operations improved in the third quarter, the improvements were not sufficient to enable the mine to remain economically viable. Accordingly, the mine and mill operations were suspended early in the fourth quarter. Expenses related to the suspension of operations were accounted for in the third quarter and contributed to the loss for the period.
The company's shipments during the first nine months of 1991 were 57,313 net ounces of gold and 181,773 net ounces of silver, decreases of 8 and 46 percent, respectively, from the first nine months of 1990. Third quarter 1991 shipments were 20,311 net ounces of gold and 76,531 net ounces of silver, decreases of 15 and 22 percent, respectively, from the period a year ago.
Gold and silver spot market prices remained weak, but the company continued to benefit from its strategy of forward sales. Gold prices realized by Asamera for the nine- and three-month periods in 1991 were comparable to prices realized in the same periods a year ago, and were 12 and 16 percent, respectively, higher than the spot market prices for those periods this year.
Exploration continued during the third quarter at the promising gold prospects at Meliadine River and Meadowbank, both in the Northwest Territories. Results continue to be positive, and follow- up programs are planned.
(thousands of U.S. dollars, except per share amounts)
Three months ended Nine months ended
September 30, September 30,
1991 1990(a) 1991 1990(a)
Mineral sales $ 8,736 $10,277 $24,031 $27,360
from operations (1,626) 1,242 2,193 1,256
Net income (loss) $(2,246) $ 1,101 $ 1,911 $ 809
Cash flow provided
by operations before
exploration expenses 1,638 3,866 5,415 8,540
Net income (loss)
per common share $ (0.09) $ 0.04 $ 0.08 $ 0.03
The company's interest
in metal shipped (in ounces)
Gold 20,311 23,889 57,313 61,969
Silver 76,531 97,845 181,773 336,996
Average sales prices
(U.S. dollars per ounce)
Gold $414.22 $402.38 $406.28 $406.88
Silver $ 4.23 $ 6.79 $ 4.10 $ 6.37
(a) Figures for 1990 have been restated to reflect a change in accounting policy effective Jan. 1, 1990.
/NOTE: All amounts in this release are in U.S. dollars.
/CONTACT: Craig Langpap of Asamera Minerals, 403-233-4341/
(AUA.) CO: Asamera Minerals ST: Alberta IN: MIN SU: ERN AL -- LA022 -- 4133 11/13/91 17:08 EST