Wheaton ends quarter in red

With its production season just begun, Wheaton River Minerals (WRM-T) found itself $680,777 (or 2 cents per share) in the red during the 3-month period ended March 31, compared with a loss of $303,984 (1 cents per share) in the first quarter of 1998.

Wheaton operates, and owns an 87% interest in, the seasonal Golden Bear heap-leach project in northern British Columbia. Mining there resumed in early May, and 59,000 oz. are expected to be produced before operations are suspended once again in the fall. Total cash costs are projected at US$184 per oz.

The junior has repurchased 47,000 oz. gold and a related currency hedging position that it had previously sold forward, resulting in a cash gain of $643,904. The revenue will not be recorded until 2000, the period for which the gold was sold forward.

Meanwhile, Wheaton is completing an environmental impact statement and cost benefit analysis for its Bellavista open-pit, heap-leach project in Costa Rica. A positive feasibility study was completed in April, and financing negotiations are in progress.

Bellavista is expected to yield 60,000 oz. annually over 7.3 years. Operating costs are projected at US$156 per oz.; capital costs, at US$28.3 million.