Refugio mine adds fuel to Bema’s quarter

Operations at its 50%-owned Refugio gold mine in central Chile contributed to first-quarter earnings of US$198,000 for Bema Gold (BGO-T), compared with US$514,000 for the same period in 1996.

Refugio produced 51,900 oz. during the period, of which Bema’s share was 25,950 oz. at an operating cost of US$243 per oz. The remaining half of the mine is owned by Amax Gold (AU-N).

The company reported a loss of half a cent per share, as earnings on a per-share basis were adjusted for interest charged to its deficit.

Bema showed an investment gain of US$1.3 million from the sale of shares in Puma Minerals (PUM-V). But that was offset by a foreign exchange loss of US$412,000 and interest expenses of US$546,000 on long-Term debt.

Gold revenue for the quarter was US$9.2 million from the sale of 24,700 oz., including hedging gains of US$530,000. The average price realized was US$371 per oz., compared with the average spot price of US$351 per oz.

For 1996, Bema recorded a loss US$2.7 million (or 5 cents per share) and a fourth-quarter loss of US$1.4 million (2 cents per share).