Increased sales volumes brought about by higher production of silver, gold and copper, and sales from opening concentrate inventory helped boost earnings for Equity Silver Mines (TSE). The company’s mine near Houston, B.C., produces silver/ copper and gold in concentrate.
The Placer Dome (TSE) subsidiary reported earnings of $6,245,000 or 19 a share for the nine months ended Sept 30, as compared to $3,916,000 or 13 a share for the corresponding 1987 period. Revenues in the two periods were $68,113,000 and $60,593,000 respectively.
Equity President A. J. Petrina said silver production increased 13% largely due to the processing of higher grade ore, and gold production rose 19% as a result of improved recoveries in the gold plant which treats the mill tailing. More favorable smelter terms and lower depreciation charges related to 1987 asset writedowns were also cited as contributing to the improvement. Petrina noted that lower silver prices this year offset the benefit of higher gold and copper prices. Petrina added that cash from operation was more than double that of the 1987 period, and the company’s cash balance was $20,203,000 for the nine months, compared to $8,808,000 a year earlier. A 5 dividend per common share was paid during the third quarter.
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