Gold producer improves but still loses $6.9M

By Phil Boeyen, ShareChat Business News Editor

Wednesday 6th September 2000

Otter Gold Mines has reported a full year loss of $6.9 million, including a write down in the carrying value of Beaconsfield mine. The result is an improvement over last year's loss of $9.317 million.

The company says it wrote down its interest in the mine project by $19.4 million due to delayed plant commissioning, which resulted from significant defects in works performed by the plant design and construct contractor.

Otter Gold says its net equity gold production increased to 118,891 ounces compared with 115,946 ounces last year, but was adversely impacted by prolonged wet conditions at Tanami mine, and the delayed commissioning of the Beaconsfield mine plant.

A two for five renounceable rights offer was made to shareholders and 2003 option holders late last month, at 39 cents per share, to raise almost $12 million. The money will be used to fund Tanami exploration and continued mine development.

Otter says gold production is expected to rise to around 150,000 ounces for 2000/2001, and exploration activities are being focussed on the Tanami and the Union Hill prospect located near Martha mine.

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