General Minerals nine-month earnings improveGeneral Minerals nine-month earnings improve
General Minerals Corp GNM
Shares issued 18,275,125 Nov 27 2000 close $.210
Nov 28 2000 11:47:35
Mr. Richard Doran reports
The company ended the third quarter with a cash position of $1.5-million, excluding the subsequently completed private placement with Ranger Minerals Ltd. that raised an additional $1.3-million. This additional financing is not reflected in the third quarter financial figures reported herein and now represents a significant percentage increase in the company's cash position. The cash position at the end of the quarter showed a reduction of $1.8-million from the cash position of $3.3-million at the end of the second quarter. Working capital stood at $1.4-million after including other current assets of $0.4-million and deducting current liabilities of $0.5-million. This compares with a working capital of $3.2-million as reported at the end of the second quarter.
The company continues to hold approximately 1.4 million shares of Trend Mining plus warrants to acquire an additional 200,000 shares, which were acquired through an option agreement which allows Trend to earn a 100-per-cent interest in the company's Lake Owen platinum property. At Sept. 30, 2000, these shares had a market value of approximately $2.4-million, based on the quoted market value. These shares are carried at cost on the balance sheet.
During the third quarter the company continued its efforts to reduce cash out flows. Further staff reductions were made at the corporate level, in Chile, and in Bolivia. Activities on all properties were reduced with the focus now being on bringing in joint venture partners to advance the projects.
At Atocha, the company concluded its test-mining program, after having achieved the objectives. The knowledge gained has significantly reduced some of the technical risks and improved the cost estimates and technical assumptions used in the internal feasibility study. Manpower has now been dramatically reduced and the property is on a care and maintenance basis, pending financing or formation of a joint venture.
The company also expended funds to maintain its interests at Escalones, to complete modest metallurgical studies at Vizcachitas, and to continue surface sampling and tunnelling at Towerbeck.
Separately, the company announced in Stockwatch Nov. 23, that Ranger Minerals Ltd., an Australian gold producer, had purchased 4.5 million common shares at a price of 28 cents per share. This purchase represented a total of $1.26-million. Ranger has become the company's single largest shareholder and now holds 19.8 per cent of the company's outstanding common shares. As of Nov. 23, the company has 22.77 million common shares outstanding.
CONSOLIDATED STATEMENT OF OPERATIONS
Nine months ended Sept. 30
2000 1999
Interest income
and bonus
payments $ 182,579 $ 1,580,434
Exploration
expenditures
Exploration 4,633,927 5,886,530
Less mining
claims and
deferred
exploration (3,848,636) (5,127,987)
----------- -----------
Reconnaissance
expense 785,291 758,543
----------- -----------
Mining claim
writedowns - 3,009,973
Other costs
and expenses
General and
administrative 1,171,074 1,281,537
Depreciation and
amortization 218,573 267,325
(Gain) on asset
disposals (2,246,910) -
Foreign currency
exchange (gain)
loss (47,338) 283,217
----------- -----------
(904,601) 1,832,079
----------- -----------
Net gain
(loss) $ 301,889 $(4,020,161)
=========== ===========
Net gain (loss)
per share 0.02 (0.22)
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