Higher throughput rates and head grades propelled
Net earnings for the period topped a record $12.4 million (25 per share), or 48% more than a year ago. Revenue was also higher, at $42.4 million versus $32 million.
Meanwhile, cash flow increased to $18.6 million from $11.8 million.
Wheaton pulled a record 87,787 oz. from its seasonal Golden Bear mine in northwestern British Columbia. Another 7,000 oz. are expected to be leached by year-end.
Total cash costs for the period were US$180 per oz., up US$21 from a year ago. The increase was partially offset by higher realized prices of US$325 per oz.
A total of 295,026 tonnes grading 8.3 grams gold per tonne was mined from the Ursa pit, while 85,581 tonnes grading 7.2 grams were hauled up from an underground working in the Kodiak B deposit. This is higher than originally planned, and is explained by the fact that 90,000 tonnes of waste from the Ursa pit were re-assessed as ore, while Kodiak B was simply mined a year ahead of schedule. The ore also leached better than original indications.
Wheaton now expects to produce 24,000 oz. in 2001 and 4,000 oz. in the following year. Mining activities are scheduled to end this year, with production thereafter to come from stockpiles and residual leaching.
Meanwhile, a feasibility study at the Red Mountain gold project, also in northwestern British Columbia, is in progress. The study is assessing the viability of relocating the Golden Bear mill to process a high-grade core of 700,000 tonnes grading 12 grams gold over four or five years.
Abroad, the Costa Rican government has given its stamp of approval to the Bellavista heap-leach gold mine, which has been proposed by Wheaton River. Construction, however, is being delayed by the necessity of holding a public hearing and by weak gold prices. Wheaton wants to hedge most of the projected production at US$350 per oz. or higher.
Bellavista hosts proven and probable resources of 11.3 million tonnes grading 1.54 grams gold per tonne. Another 9.9 million tonnes grading 1.2 grams gold are classified as inferred.
Annual production is forecast at 60,000 oz., while total cash costs are pegged at US$171 per oz. The deposit would be mined by open-pit methods.
In related news, Wheaton has filed a normal course issuer bid for 5 million shares, or 10% of its 50.3 million shares outstanding. Any shares acquired will be cancelled.
On Sept. 30, Wheaton River had $21.4 million in cash.
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