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GOLDFIELD ANNOUNCES AGREEMENT TO SELL GOLD ROYALTY INTEREST FOR $7 MILLION AND THIRD QUARTER EARNINGS FOR 1991

      GOLDFIELD ANNOUNCES AGREEMENT TO SELL GOLD ROYALTY INTEREST
          FOR $7 MILLION AND THIRD QUARTER EARNINGS FOR 1991
    MELBOURNE, Fla., Nov. 7 /PRNewswire/ -- The Goldfield Corporation (AMEX: GV) announced today that it has signed an agreement to sell all of its right, title and interest in the Getchell gold royalty to Euro-Nevada Mining Corporation Limited for $7 million cash.  The Getchell gold royalty is a permanent 2 percent net mint return from the sale of gold and other minerals produced from the Getchell property in Nevada which was previously owned by the company until 1981.  The transaction, which is scheduled to close on or before Nov. 15, 1991, is subject to the delivery of a deed and assignment satisfactory to the purchaser.  The company plans to use the proceeds to expand its mining and electrical construction businesses and for general corporate purposes including possible repayment of $1,148,000 of bank debt.
    The carrying value of the royalty at Sept. 30, 1991 was $730,103. During the year ended Dec. 31, 1990 and the nine months ended Sept. 30, 1991 Goldfield earned $1,321,792 and $1,046,609, respectively, from the Getchell gold royalty.
    The company had a net loss of $473,926 (($.02) per share) for the nine month period ended Sept. 30, 1991, compared to net income of $1,238,990 ($.04 per share) for the like period in 1990.  Total revenue for the 1991 period was $8,106,400, compared to $12,342,537 for the 1990 period.  Net loss of $127,628 (nil per share) was reported for the three month period ended Sept. 30, 1991, compared to net income of $253,305 ($.01 per share) for the like period in 1990.
    In the nine month period ended Sept. 30, 1991, the mining operations had revenue of $2,471,909 and an operating profit of $669,801, compared to $4,284,236 and $2,106,613 respectively, for the like period in 1990.  For the three month period ended Sept. 30, 1991 mining revenue was $720,559 and operating profit was $257,030, compared to $1,017,085 and $445,603 respectively, for the like three month period in 1990.  Operating profits included mining royalties of $1,227,572 and $392,707 for the nine and three month periods ended Sept. 30, 1991, respectively, compared to $1,296,488 and $399,231 for the like 1990 periods.  Mining results for the 1991 period were lower primarily due to the absence of sales of copper concentrate processed from St. Cloud's mines.
    Southeast Power Corporation, the company's electrical construction subsidiary, in the nine month period ended Sept. 30, 1991 had contract revenue of $4,158,697 and an operating loss of $165,160, compared to $6,565,339 and an operating profit of $457,463, respectively, for the like period in 1990.  For the three month period ended Sept. 30, 1991, contract revenue was $1,385,069 and an operating loss of $94,782, compared to $2,045,634 and an operating profit of $218,305 respectively, for the like three month period in 1990. Electrical construction results were lower primarily due to decreased sales resulting from a slowdown in electrical construction and lower gross margins.
    Goldfield is engaged in the business of mining base and precious metals and electrical construction.  It also owns a royalty interest in coal properties.
                     THE GOLDFIELD CORPORATION
                          AND SUBSIDIARIES
                CONSOLIDATED STATEMENTS OF OPERATIONS
                             (Unaudited)
                            Three Months Ended      Nine Months Ended
                                Sept. 30,               Sept. 30,
                             1991        1990       1991         1990
    Revenue
        Contract revenue
         earned           $1,385,069 $2,045,634  $4,158,697  $6,565,339
        Sales of base and precious
         metals mined and
         milled              720,559  1,017,085   2,471,909   4,284,236
        Royalty income       392,707    399,231   1,227,572   1,296,488
        Other income, net     83,890     56,481     248,222     196,474
         Total revenue     2,582,225  3,518,431   8,106,400  12,342,537
    Costs and Expenses
        Cost of contract
         revenue earned    1,288,953  1,662,424   3,751,162   5,613,356
        Cost of base and precious
         metals mined
         and milled          757,015    847,244   2,649,718   3,158,889
        Depreciation         266,186    253,060     839,161     706,957
        Amoritization of repurchased
         royalties            34,093     47,162     143,116     129,978
        General and
         administrative      320,820    362,016   1,035,363   1,189,563
        Interest              42,786     86,220     161,806     279,804
         Total costs and
          expenses         2,709,853  3,258,126   8,580,326  11,078,547
    Income (loss) from operations
        before Income Taxes (127,628)   260,305    (473,926)  1,263,990
    Income taxes                 --       7,000         --       25,000
    Net Income (loss)       (127,628)   253,305    (473,926)  1,238,990
    Preferred Stock
        Dividends              5,940      5,940      17,819      17,819
    Earnings (loss) Available to
        Common
        Stockholders      $ (133,568)  $247,365   $(491,745) $1,221,171
    Earnings (loss) per share of
     of common stock      $     0.00   $   0.01   $   (0.02) $     0.04
    Weighted average number
     of shares
     outstanding          30,184,838 30,183,110  30,184,838  30,183,110
    -0-                        11/7/91
    /CONTACT:  John H. Sottile of The Goldfield Corporation, 407-724-1700/
    (GV) CO:  The Goldfield Corporation ST:  Florida IN:  MNG SU:  ERN SS-AW-MR -- FL006 -- 2147 11/07/91 10:47 EST
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Publication:PR Newswire
Date:Nov 7, 1991
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