Hemlo mines’ profit improves but Teck’s earnings decline

Increased gold production from two Ontario gold mines enabled Teck (TSE) to report a new record in operating profit from mining activities during its third quarter ended Sept. 30. Operating profit from mining totalled $54 million for this period, up from $47 million reported for the 1989 third quarter. Despite this increase, the company’s third- quarter net earnings slipped to $22.5 million or 27 cents per share, from $24.1 million or 30 cents per share a year earlier. Third-quarter revenues increased to $119 million from $106 million in 1989.

Gold production from the Hemlo gold mines, David Bell and Williams, totalled 674,300 oz. for the first nine months of this year. This represents a 12% increase over production of 601,600 oz. in the comparable period for last year.

Teck’s 50% share of operating profit from the two mines was $91 million in the 9-month period, compared with $77 million a year earlier. The average production cost per oz. of gold was US$89 at David Bell and US$170 at Williams. Teck (TSE) 3 months ended Sept. 30 1990 1989 Revenue $118,937 $105,730 Net earnings $22,489 $24,150

per share 0.27 0.30 9 months ended Sept. 30 Revenue $348,131 $315,581 Net earnings $67,822 $82,630

per share 0.82 $1.02