Hemlo Gold lives up to early billing

When the initial public offering of Hemlo Gold Mines was subscribed for last February, the company was expected to be a steady money maker.

With 87.3 million shares outstanding, Hemlo had the largest market capitalization of any Canadian gold mining issue.

It also owned and operated the Golden Giant gold mine at Hemlo, Ont., which is scheduled to churn out 300,000 oz annually when full production begins later this year.

As indicated by its 1987 results, the company is already living up to its billing.

In the four months ended Dec 31, Hemlo reported net earnings of $17,735,000 or 20 cents per share bringing earnings for the 11 months that the company has been in operation to $52,694,000 or 60 cents per share.

Revenues during the recent 4- month period were $62,787,000 compared to $201,789,000 during the first 11 months of operations.

Fourth quarter production averaged 2,550 tonnes per day at an average grade of 14.14 per ton. At an average cost of $97(US) per oz, the company produced 102,092 oz gold during the 4-month period.

During the quarter, the company undertook to buy 1,250,000 common shares of Vancouver-based Viceroy Resource Corp. at $8 per share representing a 10% interest.