Increased revenue and gold output were reported by Cambior (TSE) for the first quarter of 1990. Net income declined slightly. The Val d’Or, Que.,-based producer recorded net earnings of $4.6 million (15 cents per share) for the quarter on revenue of $27.2 million, compared with $4.8 million (20 cents per share) on revenue of $25.8 million for the same period in 1989.
The company attributes the decrease in per-share earnings mainly to the issue of about seven million shares subsequent to the complete exercise of warrants. The improved revenue resulted from higher investment income on proceeds from the exercise of warrants.
Gold production during the quarter increased to 39,582 oz. from 37,986 oz. last year. However, output was lower than expected because of a 4-week strike at the Doyon mine and a 7-week strike at the Beauchemin mine. At both mines, new 3-year labor agreements were signed.
The company says that in addition to lowering planned output for the quarter, the strikes added $35 per oz. to the cost of the gold produced.
Forward selling plays a large part in Cambior’s corporate strategy. To the end of 1990, Cambior says it is committed to sell 115,400 oz. gold (about 64% of planned production) at an average price of US$485 per oz. Cambior (TSE) $000s except per-share items Quarter ended Mar. 31 1990 1989 Revenue $27,237 $25,840 Net earnings 4,580 4,768
per share 0.15 0.2
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