Vancouver-based Bema Gold, with interests in South Africa, Russia and Chile, has lost an interim £15 million on revenues of £24 million.


AIM-quoted Bema produced 114,411 oz of gold at a total cash cost of $337 an ounce, compared with today's gold price of $442. The company's wholly-owned Petrex Mine in South Africa raised production from 29,728 oz of gold to 71,170 oz and total cash costs fell from $470 to a still-high $385 an ounce.


Elsewhere, Bema's 79 per cent-owned Julietta mine in Russia increased production from 24,571 oz of gold to 43,421 oz, though net cash costs rose from $186 to $258 an ounce. The company has 75 per cent of the Kupol deposit in Russia, where a feasibility study was recently completed 'with a positive conclusion' and drilling continues.


Final plant commissioning is under way at Refugio in Chile. Bema has 50 per cent of this and projects a 50,000 oz share of production for the rest of the year, with estimated cash costs of $298 an ounce.


The company also stands to meet 50 per cent of a projected £59 million expansion at Refugio, plus half of anticipated £19 million new mining fleet lease. Bema has 24 per cent of another Chilean project at Cerro Casale, where major partner Placer Dome continues to seek funding but could offer its stake to Bema and other partners if it decides to pull out.


Cash and working capital fell from £52 million to £19.5 million between the first and second quarters, reflecting Kupol costs. The company has persuaded Bayerische Hypo-und Vereinsbank to increase its loan facility by 50 per cent to £83.5 million.


A volatile stock market performer, Bema agreed a £45 million finance package for Kupol last year at 165p, since when its shares have fallen to 95p before rallying to 141p today, valuing the company at £565 million.


That volatility may persist for a while yet.