Here is another way to play GME. And Is "Can of Cord" accumulating EXL?
Matachewan earns $200,443 for the year
Matachewan Consolidated Mines Ltd MATN
Shares issued 12,445,025 Jun 12 close $0.06
Thu 15 Jun 2000 Company Review
Mr. R. D. McCloskey reviews the company
Matachewan has recorded a net profit of $200,443 for the year ended Dec.
31, 1999, compared with a net loss of $251,792 for 1998. The main
contributing factors to the 1999 profit were an increase in investment
income, oil and gas income and a reduction in administrative expenses.
Glimmer gold mine
Matachewan's major asset is its equity holding in Glimmer Resources Inc.
The Glimmer mine is located near Matheson in Northern Ontario. The first
dore gold bar was poured on April 15, 1997, with the successful
commencement of commercial production taking place on Jan. 1, 1998. The
second full year of commercial production ended Dec. 31, 1999, with
production for the year totalling 1,501,289 grams (48,266 ounces) of gold
from 258,699 tonnes milled. St. Andrew Goldfields Ltd. has been custom
milling the Glimmer Mine ore. On Sept. 2, 1999, a new custom milling
agreement was let to Kinross Gold Corporation utilizing the Macassa mill
located in Kirkland Lake, Ont. The gold is recovered by the cyanide-leach
CIP (carbon-in-pulp) process. The 100 per cent financial results for 1999
despite the lowest gold prices in the past 20 years were; a net smelter
return of $19,966,272; operating costs (including charges for amortization
of $2,130,793) of $20,893,266; and a loss of $926,994. There was a positive
cash flow from operations before capital expenditures amounting to
$1,203,799 for the year.
Access to the underground workings is via a 5-by-5 metre decline ramp with
an average gradient of 15 per cent reaching a vertical depth in excess of
180 metres at the end of December, 1999. The mine has been developed on
nine levels. Seventy-six employees were working at the Glimmer minesite at
the end of February, 2000.
Applications have been filed by both Glimmer and the operator of the mine
with the Ontario Court, general division, naming each other as respondent.
The substance of the applications is to ask the court to determine the
parties' respective interests in the project.
Glimmer holds a 100-per-cent working interest in a four-claim, 160-acre
property known as the De Carlo property. The property adjoins the Glimmer
mine immediately north of Highway 101 in Northern Ontario. This property is
subject to a 10-per-cent net profits royalty which is held by the vendor.
Glimmer also holds a 100-per-cent interest in 90 mining claim units in
southeastern Barnet township, Ont.
The corporation re-entered the hydrocarbon industry during 1999. Matachewan
acquired a 25-per-cent interest in a producing oil well located in the Deer
Mountain Area of the province of Alberta, Canada. The location of the
property is T69R9W5M5W1/4section2. The corporation also acquired natural
gas interests in the Signalta 1999 and 2000 programs. It is anticipated
that this segment of the corporation could generate in excess of $200,000
cash flow annually.
The Matachewan property
The Matachewan property is located in the Matachewan gold camp, 50 miles
southeast of Timmins, Ont. This property consists of 24 mining claims in
Powell and Cairo townships, Larder Lake mining division, Ontario. All of
the claims were optioned to Royal Oak Mines Inc. Lariat Property
Corporation has acquired the Royal Oak Mines Inc. interest.
The Hislop property
The corporation's Hislop property is a past-producing gold property. There
are eight mining leases located in the townships of Hislop and Guibord in
the Larder Lake mining division, Ontario. The property has been maintained
in good standing and has been put on care and maintenance pending the
firming-up of gold prices.
General
The corporation sold a portion of its assets during 1999 in order to
provide the financing required to allow the corporation to meet its
financial requirements. A major portion of the moneys were then invested in
the hydrocarbon industry. It is anticipated that the cash flows derived
from this investment will allow the corporation to meet its financial
obligations and provide a basis upon which to grow.
STATEMENT OF OPERATIONS
Year ended Dec. 31
1999 1998
Income
Royalty/option $9,599 $25,322
Investment 210,119 2,607
Oil and gas -- net 39,659 -
Other 56,688 12,000
------- -------
316,065 39,929
------- -------
Expenses
Depletion 41,500 -
Admin 74,122 103,148
------- -------
115,622 103,148
------- -------
Profit (loss) before
other expenses 200,443 (63,219)
------- -------
Other expenses
Share of loss of
equity investment - 164,709
Writedown of
marketable securities - 23,864
------- -------
- 188,573
------- -------
Net profit (loss) for
the year 200,443 (251,792)
======= =======
Net profit (loss) per
share $0.01 ($0.02)
(c) Copyright 2000 Canjex Publishing Ltd. canada-stockwatch.com |
