As indicated by Agnico-Eagle Mines’ (TSE) first-quarter results, the Toronto-based gold producer is starting to benefit from a recent amalgamation with affiliate Dumagami Mines. Bolstered by output from Dumagami’s Donald La Ronde gold mine near Bousquet, Que., Agnico’s first-quarter gold production shot up to 44,034 oz. from 16,551 oz. in the same period last year.
As a result, first-quarter net income increased to $1.7 million or 7 cents per share compared with a net loss of $1.9 million or 13 cents per share in the equivalent 1989 period. Operating results from the La Ronde mine which produced 25,010 oz. gold at a cost of $250 per oz., are not included in Agnico’s 1989 first- quarter results.
Revenues for the three months ended March 31 also advanced to $21.2 million from $9.8 million last year.
Also contributing to Agnico’s first-quarter results was a reduction in production costs at the Joutel, Que., division where quarterly gold output increased to 19,024 oz. from 16,551 oz.
“Cost control measures at the division have resulted in a 15% decrease in cash mine operating costs for the quarter from $7 million in the 1989 first quarter to $6 million, despite a 10% increase in the amount of ore treated,” said President Paul Penna.
The average cash cost per ounce of gold produced at Joutel in the first three months of 1990 declined from $425 per oz. in the corresponding 1989 first quarter to $314 or US$265 per oz.
There are currently 24.8 million Agnico shares outstanding compared with 15 million on March 31, 1989. Agnico-Eagle Mines (TSE) $000s except per-share items Quarter ended Mar. 31 1990 1989 Revenue $21,197 $9,841 Net earnings(loss) 1,747 (1,895 )
per share 0.07 (0.13 )
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