Here's some news:
INTERNATIONAL PURSUIT CORPORATION
LISTING: THE TORONTO STOCK EXCHANGE
SYMBOL: IPJ
TORONTO, Aug. 28 /CNW/ - International Pursuit Corporation (''Pursuit'')
reported results for its three month period ended June 30, 1998.
SECOND QUARTER RESULTS
The Company's net loss was $6,268,325 or 21.9 cents per share for the six
months ended June 30, 1998, versus $967,747 or 3.8 cents per share for the six
months ended June 30, 1997.
Revenue for the six months ended June 30, 1998 for Pursuit was $219,295
versus $608,590 for the six months ended June 30, 1997. The Company's revenues
for the six month period ended June 30, 1998 were generated through interest
income of $129,958 (1997 - $89,080) and dividend income of $89,337 (1997 -
$73,484).
Expenses were $6,484,352 for the six months ended June 30, 1998 compared
to $2,286,394 for the six months ended June 30, 1997. The increase in expenses
was mainly a result of a $3,399,787 loss on marketable securities included in
the six months ended June 30, 1998 expenses versus a $446,026 gain on
marketable securities included in the six months ended June 30, 1997 revenues.
The Company's marketable securities are valued at the lower of cost and market
on a portfolio basis each quarter. As a result of this accounting treatment,
changes in the valuation of the Company's marketable securities can have a
significant effect on reported earnings as was the case for the six month
period ended June 30, 1998. The Company's expenses for the six month period
ended June 30, 1998 also included general and administrative expenses of
$1,792,006 (1997 - $1,658,523), a write-down of mineral properties of $673,989
(1997 - nil) and interest expenses of $618,570 (1997 - $513,242). The
write-down of mineral properties is comprised of a $420,589 write-off of the
Tonka project in Nevada and a $253,400 write-off of certain mineral claims in
Peru. The Company reviews on a periodic basis the valuation of its mineral
assets, which may result in further write-downs. Pursuit did not charge any
general prospecting expenses during the six months ended June 30, 1998
compared to a charge of $114,629 during the six months ended June 30, 1997.
Pursuit recorded a provision for income taxes of $3,268 for the six
months ended June 30, 1998 versus a recovery of income taxes of $710,057 for
the six months ended June 30, 1997.
As at June 30, 1998, Pursuit had a working capital position of
approximately $8 million and 28.5 million shares outstanding on an undiluted
basis.
REVIEW OF OPERATIONS
Philippines
Pursuit's agreement with Minoro Mining & Exploration Company (''Minoro'')
was terminated in late June as a result of Minoro's inability to finance the
previously announced joint venture with the Company's Philippines subsidiary
due to market conditions. The Philippines project has now been put on ''care
and maintenance'' and the project is being offered for joint venture or
divestiture. Given the depressed price of copper and Asia's malaise, it may
take an extended period of time to complete an appropriate transaction.
Indonesia
Exploration results for Pursuit's Indonesian Mahakam properties have been
positive to-date and are indicative of an early stage discovery of potentially
large copper mineral deposits with associated gold and molybdenum.
During the past several months Pursuit has been approached by a number of
major mining companies to joint venture these projects and is now in active
discussions with several companies to complete a joint venture for the East
Mahakam block where most of Pursuit's exploration activities have been carried
out. If successfully concluded, Pursuit would be carried for ongoing mineral
expenditures.
Future Direction
It is management's view that the present malaise in the mining industry
and the economic and political uncertainties in Indonesia and the Philippines
will continue for an extended period of time and as a result, Pursuit is in
the process of divesting, joint venturing or placing on a care and maintenance
program all of its mineral properties.
In addition, the Company has dramatically reduced its corporate overhead
and staffing in line with these decisions and is assessing various investment
opportunities which may result in a new direction outside of the mining
industry for the Company.
Pursuit is a Canadian public company whose share are listed on The
Toronto Stock Exchange under the symbol ''IPJ''. The company is actively
exploring for gold and copper deposits in the Philippines, Indonesia, Mongolia
and Nevada.
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For further information: please contact: Stephen R. Dattels, President
and CEO, (416) 947-9216 or 1-800-396-5188 |
