TVX’s losses stem from annulled Greek venture

TORONTO (Reuters) – Canada’s TVX Gold Inc reported a deep fourth-quarter loss yesterday on expected writeoffs totaling $244.5 million, which were mainly due to a Greek court annulling permits to transform its Olympias base metals mine in Greece into a gold producer after protests from environmentalists. TVX said losses in the quarter which ended on December 31 were $288 million or 64 cents a share, compared with a profit of $2.6 million or 2 cents a share in the same period a year prior. Operating cash flow was a positive $9.9 million or 3 cents a share in the quarter, versus a loss of $1.5 million or 4 cents a share. Revenue was flat at $39 million compared with the period a year ago, the company said in a statement. The company reported a 2001 loss of $277.9 million or $1.24 cents a share, compared with earnings of $12.4 million or zero cents a share in 2000. Excluding the writeoffs, 2001 net earnings would have been $2.7 million after income taxes and minority interests, the company said. Production from its five precious metals mines in the Americas was 475,500 ounces, of which TVX’s share was 237,800 ounces, an 8 percent decline in output compared with 2000, and 2 percent below planned production for 2001.

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