New York-listed Santa Fe Pacific Gold recorded lower first-quarter earnings than in the same period in 1995 as a result of a 20% drop in production at its Twin Creeks gold mine in northern Nevada.
For the first quarter, Santa Fe earned US$6.2 million (or 5 cents per share), compared with US$12.3 million (9 cents per share) for the same period in 1995. The production shortfall was caused by lower-than-expected grades.
Gold sold by Santa Fe during the first quarter averaged US$409 per oz., up US$9 over the same period last year. However, revenues for the period were US$83.3 million, down slightly from US$84.7 million in 1995. Nevertheless, Santa Fe expects the mine to produce its projected 500,000 oz. gold for 1996.
The company is proceeding with mill expansion at Twin Creeks, and delivery of a 4,000-ton-per-day autoclave is expected in the second quarter.
Not all of Santa Fe’s projects got off to a rough start this year, however.
Gold production at the Mesquite mine in southeastern California increased by 28%.
The company is exploring the Golden Eagle project in Washington state, the Sharaltyn joint venture in Kazakhstan, and the Gurupi project in Maranhao, Brazil.
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