Consolidated Statement of Earnings
FOR THE YEAR ENDED DECEMBER 31
($ in thousands)

REVENUE
Fibre
Investments and other

Total revenue

EXPENSES
Cost of Sales
Transportation and warehousing
General and administration

Total expenses

EARNINGS FROM OPERATIONS BEFORE DEPRECIATION

Depreciation

EARNINGS FROM OPERATIONS
INCOME AND MINING TAXES (Note 6)

DIVIDENDS ON PREFERRED SHARES OF SUBSIDIARY
(Note 5)

EARNINGS (LOSS) FROM CONTINUING OPERATIONS

DISCONTINUED OPERATIONS (LOSS)

EARNINGS (LOSS) BEFORE EXTRAORDINARY ITEM

EXTRAORDINARY ITEM

NET EARNINGS (LOSS) FOR THE YEAR

BASIC EARNING (LOSS) PER COMMON SHARE,
after deducting dividend requirements on

Preferred Shares (Note 10)
Before extraordinary item

After extraordinary item

Consolidated Statement of Deficit
FOR THE YEAR ENDED DECEMBER 31
($ in thousands)

DEFICIT BEGINNING OF YEAR
As previously reported
Adjustment of depreciation in inventory (Note 2)

As restated
NET EARNINGS (LOSS) FOR THE YEAR

PREFERRED SHARE DIVIDENDS (Note 7)
DEFICIT AT END OF YEAR (Note 7)

1987 1986
$57,669 $48,446
460 293
58,129 48,739
32,159 29,118
8,894 7,299
4,099 4,007
45,152 40,424
12,977 8,315
2,640 5,411
10,337 2,904
4,474 1,688
5,863 1,216
2,144 2,927
3,719 (1,711)
_ (61)
3,719 (1,772)
= 1,225

$ 3,719 $ (547)
$ 0.23 $ (0.27)
$ 0.23 $ (0.11)
1987 1986
$(13,608) ($13,325)
(1,983) (1,719)
(15,591) (15,044)
3,719 (547)
(11,872) (15,591)
(954) —
$(12,826) $(15,591)

17