Third-quarter earnings for Amax Gold (NYSE) took a turn for the worse, sliding to US$700,000 from US$5.4 million for the same period last year.
Earnings for the nine months ended Sept. 30 were also lower, totalling US$16.4 million, down from US$20.9 million in the first nine months of 1991. The company outlined a number of factors affecting the third quarter and 9-month results.
At 55,619 oz., gold sales in the third quarter were 24% lower than the same period in 1991. Amax noted that the decline is related to an inventory buildup at the recently commissioned Hayden Hill mine in Lassen Cty., Calif. Nine-month results were affected by lower production from both the Sleeper and Wind Mountain mines which yielded 111,571 oz. and 43,483 oz. respectively. This compares with 9-month production last year of 147,195 oz. and 67,440 oz. respectively at the two Nevada mines.
A 57% drop in mill head-grades was the primary factor in Sleeper’s lower production, while the end of mining operations in January, 1992, at the Wind Mountain mine lowered gold output.
Total gold production for the third quarter was 64,695 oz. bringing the 9-month total up to 187,714 oz. Overall cash production costs totalled US$202 per oz. for the nine months, up from US$184 per oz. in 1991.
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