The company reported net earnings of $8.9 million(US) or 15 cents per share for the 1989 second quarter, compared with $13 million or 22 cents per share for the same period in 1988.
Net earnings for the first half of 1989 reached $18.1 million or 30 cents a share, compared with $25.5 million or 42 cents per share for the same period in 1988.
Gold production was 137,000 oz in the first half of 1989, which includes the first commercial production of 3,600 oz of gold and 52,000 oz of silver from the Wind Mountain mine.
Sales increased 21% to $57.6 million for the 1989 first half compared to $47.5 million for the same period of 1988.
As a result of its hedging program, Amax was able to realize an average selling price for gold exceeding the average COMEX price for the quarter and first six months of 1989.
Timothy Haddon, president and chief executive officer, said the company was pleased with the results in view of lower market prices and an increase in its federal tax provision.
“The Sleeper mine continues to operate smoothly, the Waihi mine displayed improved performance and Wind Mountain commenced initial operations during the quarter,” he said. “Further, our increased exploration expenditures should provide future growth opportunities for Amax Gold.”
Amax has mining operations in the United States and in New Zealand, and has interests in gold- producing properties in Canada through its holding in Canamax Resources (TSE).
]]>
Be the first to comment on "Amax earnings lower in 1989"