6mo results
Trillion Resources Ltd TLQ
Shares issued 22,364,500 Mar 6 close $1.88
Mon 9 Mar 98 Company Review
Mr Jens Hansen reviews the company
The most significant event of the past quarter was the purchase of the
Ndarama Mines complex. This acquisition moves the company well along the
road to becoming a substantial gold producer. Trillion intends to focus on
profitable gold production and acquisitions rather than on exploration.
The first quarter report made reference to the difficult industry
conditions confronting all mining companies.
Since then the general industry environment has continued to be under
pressure. Trillion's plan will allow it to operate successfully in this
setting. The company is therefore basing all projections on US$300 per oz
of gold.
Trillion's two producing gold mines in Zimbabwe (Jena 50%; Ndarama 100%)
have both achieved recent production records.
Production at Jena for the first six months totalled 9,740 oz with a record
1,860 oz in December 1997 while cash costs averaged US$272/oz. The
operations are beginning to benefit from the upgrading of the inclined
shaft leading to the Stump ore body completed in June 1997 as well as other
productivity improvements implemented at the mine site.
The two phase $3.2 million exploration program designed to increase the
reserves at Jena scheduled to begin in late 1997 has been postponed in
order to focus on the Ndarama expansion. The current reserve status at Jena
is sufficient to support production in the 20,000 oz annual range for the
next four years.
At the Ndarama Mines, production for the period from October 1 to December
31 1997 was 4,065 oz. Ndarama has become Trillion's flagship project due to
the excellent potential for expanding its gold reserves and production.
Work is underway on the initial expansion program to increase annual
production to the 30,000 oz/year level.
STATEMENT OF EARNINGS
Six months ended December 31
($ 000s)
1997 1996
Revenue
Mining revenue $ 3,979 $ 2,251
Drilling revenue - 524
Interest and
other 267 240
Management fees 14 216
-------- --------
4,260 3,231
-------- --------
Costs and
expenses
Mining (excluding
amortization) 3,394 1,437
Exploration
and development 557 -
Drilling - 157
Amortization of
capital assets 727 592
General and
administrative 2,110 1,967
Interest on
convertible
debenture - 150
-------- --------
6,788 4,303
-------- --------
Loss before
the following (2,528) (1,072)
Gain on sale
of investments - 220
Writedown of
investments, etc. 16,605 -
Non-controlling
interest - (66)
-------- --------
Net loss for
the period $(19,133) $ (918)
======== ========
Loss per share $(0.682) $(0.034)
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