Big profit drop for GMK

Press, 10 February 1982, Page 23

Big profit drop for GMK

PA Melbourne A 33 per cent drop in gold prices, lower ore grades, and plant problems, resulted in sharply lower first half earnings, for Gold Mines of Kalgoorlie (Aust). Ltd. and will have a similar effect on the results of Poseidon, Ltd. GMK told Australian stock exchanges that its profit for the 28 weeks to January 5 had been cut to $677,000 from $4.7M in the previous corresponding period. Last year there were two interim dividends and a final—a total of 32.5 cents. There will be no interim this year.

GMK and Poseidon each have a 47 per cent equity in Kalgoorlie Lake View Pty, Ltd, (KLV) of which Western Mining Corp holds the other six per cent. KLV in turn holds 52 per cent of Kalgoorlie Mining Associates (KMA)

operator of the Mount Charlotte and Fimiston gold mines, of which Homestake Gold. Ltd, holds the other 48 per cent. In the latest half year. KMA’s profit plunged’ to $2.4M from ,$17.6M previously. The partnership distributed only SI.IM in the half year, compared with SIOM previously and as a result KLVs profit was slashed to SI.2M from S9.OM. KMA said that although more ’gold was produced in the latest half year, the average price dropped to $367 an ounce from $544 previously. Earnings were also hit by an 18 per cent drop in the recovered grade from Mount Charlotte ore. and commissioning and mechanical problems in the treatment plant.