L and M first-half loss

Press, 25 February 1989, Page 28

L and M first-half loss

PA Wellington L and M Mining has reported a $1,019,000 loss for the six months ended December. The result compares with the company’s $5,747,000 profit for the year to June, 1988. Turnover of $2,952,000 compared with $9,799,000 for the full year. No tax was payable, compared with a $26,000 tax credit last year. There were no extra-

ordinary items for the six months ($3,741,000 gain for the full year). L and M’s total gold production for the six months was 4164 ounces. Several factors had contributed to the loss, L and M said in a statement. The overturning of its Number 2. plant in early September during a major flood near Queenstown meant lost production. The company was unable to carry out repairs

until February this year because of continuing ij variable weather. Production is expected to start again at the end of March. Another factor was the extended commissioning period of the Rimu plant near Hokitika which contributed to major shortfalls in production, the company said. The plant produced 2152 ounces for the halfyear, which was well be-

low budget. But commissioning difficulties have been settled and for the past 10 weeks production has been 15 per cent above budget. Gold production has increased with the resolution of the difficulties of last year, the company said. Total gold production in January was 950 ounces, with a further 575 ounces produced in the first two weeks of February.