Net earnings of $17.7 million (73 cents per share) were reported by Cambior (TSE) for 1989 on revenue of $116.9 million, compared with $17.4 million (74 cents per share) on revenue of $109.9 million the previous year. Gold production fell slightly in 1989 to 189,483 oz. from 191,207 oz. from the year before. Operating costs also rose, to $322 per oz. from $284 in 1988.
The Val d’Or, Que.-based company says the rise in revenue was the result of increased production at three of its gold-mining operations and from an increase in investment income.
Earnings were similar in 1989 because of a 115% gain in investment income and a decline in exploration and financial expenses. The company is able to protect its revenue through forward selling and gold loans. Forward sales commitments for 1990 amount to 131,200 oz. at US$486 per oz.; that commitment accounts for 60% of the company’s forecast gold production this year.
Working capital at the end of 1989 stood at $85.6 million.
Cambior owns 50% of the Doyon gold mine in northwestern Quebec, which in 1989 turned out 234,692 oz. Cambior (TSE) Year ended Dec. 31 1989 1988 Revenue (000s) $116,883 $109,848 Net earnings (000s) 17,66 117,438 Net earnings
(per share) 0.73 0.74004
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