All results are expressed in United States Dollars unless otherwise stated. Prior year comparative figures have been restated to conform with new accounting standards relating to the disclosure of redeemable preferred shares.
Net Income Net income for the year ended December 31, 1996 was $10,449,000, or 9 cents per share on revenues of $208,492,000. This compares with the previous year's earnings of $12,552,000, or 12 cents per share on revenues of $137,887,000 and earnings of $17,795,000, or 19 cents per share on revenues of
$95,965,000 for 1994. Operating cash flow before changes in non-cash working capital increased by 50% to $57,900,000 compared to $38,503,000 in 1995 and $30,407,000 in 1994. The 1996 results include a pretax writedown of $5,221,000 ($3,693,000 net of applicable income taxes) primarily a result of the impairment in value of, our smallest operation, the Golden Kopje mine.

Effective rates for income and mining taxes increased to 56.4% in 1996 as compared to 40.9% in 1995 and 29.8% in 1994. The effective tax rate in 1996 was higher than the 1995 rate as a consequence of the tax benefit recorded on the losses in the U.S. which is at a rate less than the effective tax rate in Canada. The 1994 rate was unusually low due to the utilization of certain Canadian non-capital losses and other unclaimed deductions. Effective tax rates are expected to be lower in 1997 as the U.S. operations are expected to earn profits. Results for 1996 reflect a full year ownership of the Macassa mine and the further acquired interest  of the Denton-Rawhide mine whereas the comparative 1995 results reflect the results of operations for the period and level of ownership in 1995. Higher gold equivalent production was achieved at all of the Company's mines with the exception of the Golden Kopje mine in Zimbabwe.

Revenues
The Company's primary source of revenue is from the sale of its gold and silver production. Record gold equivalent production resulted in significantly higher revenue in 1996. The Company produced 524,795 ounces of gold equivalent in 1996 which compares to 342,365 ounces of gold equivalent last
year and 245,002 ounces of gold equivalent in 1994.

Revenue from the sale of 450,102 ounces of gold and 5,568,000 ounces of silver was $204,759,000, 54% higher than the $133,254,000 revenue reported in 1995 from the sale of 274,355 ounces of gold and 5,024,000 ounces of silver and significantly higher than the revenue reported in 1994 of $92,138,000 from the sale of 174,165 ounces of gold and 5,152,000 ounces of silver.

Cautionary Statement on Forward-Looking Information