Antam's IARL records revenue up in 9-month period

Vancouver based gold and silver producer International Antam Resources Limited (IARL) said over the weekend that its unaudited revenue during nine-month period ended September 30, 2002, had reached US$3.74 million higher compared to $2.95 million of last year?s corresponding period.

IARL said the $3.74 million was derived from the sale of 7,298 ounces of gold and 38,099 ounces of silver from its Cikidang gold mining site in West Java.

The company said cash cost of production for the period was $219 per ounce of gold equivalent produced. Amortization of property acquisition and development costs amounted to $39 per ounce of gold equivalent for a total production cost of $258 per ounce of gold equivalent produced.

The average sales price received was $303 per ounce of gold and $4.64 per ounce of silver.

The company further said that net loss, after tax, for the nine-month period had amounted $98,112 compared to a net loss of $322,409 of last year's corresponding period.

The company recorded negative cash flow from operations of $341,345 for the nine-month period ended September 30, 2002 compared to positive cash flow of $112,813 for the last year's corresponding period.

Cash flows were negatively affected by the net reduction of $118,880 in accounts payable to PT Aneka Tambang for contract operating costs and a deposit of $524,160 made to the Indonesian tax authorities in relation to disputed tax assessments.

Cash flow was positively affected by net cash of $376,539 from gold sales after taking into account cash production costs and operating expenses.

IARL cash position declined to $1,382,568 as at September 30, 2002 from $1,639,099 at December 31, 2001.

The company said it financial results had also negatively impacted by higher administration expenses for legal, consulting and professional fees related to a corporate restructuring transaction with its majority shareholder, PT Aneka Tambang Tbk (Antam).

But Antam suspended the plan to reduce its 81.9 percent stake in IARL to 19.9 percent. Antam president director Dedi Aditya Sumanagara said earlier they would have to study various aspects before deciding the right time for restructuring IARL.

IARL said it had incurred cost of $100,597 related to the transaction for consultants, financial advisors and related fees and expenses. (robert)