Despite a very successful price protection program, earnings for Amax Gold (NYSE) slipped to US$4 million in the first quarter of 1992. This compares with earnings of US$8 million in the first quarter of 1991.
Amax’s average selling price for gold production was US$405 per oz., or about US$54 per oz. higher than the average market price for the quarter. The average sale price in the first quarter of 1991 was US$421 per oz. Lower gold production from the Sleeper and Wind Mountain mines as well as a drop in the average realized price of gold were cited as the primary reasons for the drop in earnings.
Mining operations at the Wind Mountain mine in Nevada ceased in January although leaching is continuing. The mine produced 18,910 oz. during the quarter at a cash cost of US$149 per oz.
Production at the Sleeper mine in Nevada totaled 39,689 oz., down from 48,725 oz. in the first quarter of 1991.
Production jumped at the Waihi mine in New Zealand with output of 6,687 oz. during the quarter compared with 5,912 oz. in 1991.
Overall, Amax reported an average cash cost of production of US$197 per oz.
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