The company reports its net income rose 23% last year to $61 million(US), or 93 cents per share, up from $49.8 million or 76 cents per share a year ago. Despite lower average gold prices in 1988, FMC Gold says higher production and lower costs combined to result in the improved earnings.
At year-end, FMC’s precious metal production totalled 332,000 oz of gold and more than 4.3 million oz of silver, up from 293,000 oz gold and 3.1 million oz silver produced in 1987.
These production levels rank FMC Gold among the top five U.S. gold producers, and its cash production costs of $122 per oz gold equivalent are among the lowest in the world.
Higher production volumes resulted from richer ore grades processed at all three of the company’s gold mines. Its main producing properties are all located in Nevada and include the 100%-owned Paradise Peak, Jerrit Canyon (30%- owned) and Austin (27.5%-owned) mines.
Spun off as a wholly-owned affiliate of FMC Corp., the company made its official public debut in 1987 and is still largely unknown in the investment community.
“In just a short time, FMC Gold has become a major North American gold company,” said Chairman Raymond Tower. “Our goals are straightforward. We want to improve our low-cost position and add to our reserve base.”
Spending on exploration totalled more than $13 million in 1988, up from $10.5 million in 1987, and makes FMC Gold’s exploration program one of the largest in the U.S. The majority of its exploration budget, about 65%, goes toward grass roots exploration. The company says it acquired 15 new targets last year, bringing its current portfolio to 35 properties.
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