Mining delays move Spectrum offshore

Press, 14 September 1988, Page 39

Mining delays move Spectrum offshore

Delays and costs in gaining mining approvals in New Zealand has made Spectrum Resources seek opportunities overseas, says the chairman, Mr Peter Masfen, in the annual report. Tasmania would be the focus of the company’s efforts, he said. The Tasmanian mining industry produced sAust9oo million in income a year, representing a big part of that state’s economy. Consequently, permitting exploration and mining was highly efficient, enabling developments to be established rapidly and economically. Spectrum would focus on tin and base metals in Tasmania. The development of the Anchor tin mine was planned as the first step. Spectrum had been granted an exploration licence for a second promising tin deposit. In New Zealand, the Golden. Kiwi alluvial gold project should generate useful profits, and further discoveries in the im-

mediate area could extend the indicated mine life. Work was expected to start in the summer. The Sylvia mining proposal in the Coromandel Peninsula, was waiting for a land allocation decision by the Government. Provided the land was not allocated to the Department of Conservation the licencing procedure would be promptly activated and

a final decision could be reached early next year. The future of the Monowai underground goldmining project on the Coromandel now depended on consent from the Minister of Conservation, Ms Clark, and favourable decisions by the Planning Tribunal and Minister of Energy, Mr Butcher. Earlier, the High Court had quashed the Minister of Conservation’s decision not to issue a consent for Monowai, ruling that the provisions of the Mining Act must be taken into account, Mr Masfen said. The Monowai project, the Golden Kiwi prospect, and the Anchor tin mine would require capital expenditure of about $7.5M. At balance date the company had liquid funds of $7.4M. Project and equipment financing would be sought when appropriate, he said. The total profit fell 83.9 per cent to $230,383 in the

year to June 30, compared with the previous corresponding period. However, the previous period included an extraordinary profit of SI.3M from the sale of shares in an associate company. There were no extraordinary items in the latest period. Income rose 18.3 per cent to $676,177, and exploration and development expenses dropped $90,667 to $267. Administration expenses fell 13.2 per cent to $445,794, leaving a trading profit of $230,383 ($57,710 previously). No tax was payable in either period, and no dividend recommended. Shareholders’ funds improved $4.3M to $12.6M, including ordinary capital up $3.9M to $9,668,514 after the exercising of options. Working capital moved from a deficit of $4688 to a surplus of $3.3M.

The estimated tax losses to be carried forward against future income is $3.7M.