Homestake gold output up 6% in 1992

A total of 1.84 million oz. gold was produced to the account of Homestake Mining (NYSE) in 1992, a modest 6% increase from the previous year. The increase was primarily due to the Homestake mine in South Dakota, which turned out 396,600 oz. last year, and the Kalgoorlie operations in Australia where production rose by more than 22% to 285,600 oz.

Consolidated cash operating costs dropped 8% to US$248 per oz. last year, compared with US$269 per oz. in 1991. This reflects changes in operating plans at certain mines, reduction of personnel levels, and general productivity improvements. Late last year, a new underground mining plan was implemented at the Homestake mine, which is expected to reduce mining costs from current levels and increase gold production.

Gold production from the Hemlo mines in Ontario fell by 12% to 369,900 oz. last year. This year, Homestake Mining expects to produce a total of 1.7 million oz. gold from all operations, with anticipated cash operating costs of about US$250 per oz.

Homestake reported a net loss of US$175.8 million for 1992, compared with a net loss of US$261.9 million in the previous year. The 1992 loss reflects writedowns of mining properties and investments of US$130.3 million, compared with similar writedowns of US$172.4 million in 1991.

Homestake reduced the carrying value of the Eskay Creek project in British Columbia by US$176 million since the Corona acquisition. A charge of US$106 million was recorded in 1991, and an additional US$70 million charge was recorded last year.