Amax reports record output

With three new mines in operation, quarterly gold production for Amax Gold (AU-N) has reached record levels.

The three mines — Fort Knox in Alaska, Kubaka in eastern Russia and Refugio in Chile — contributed to second-Quarter production of 192,493 oz., which is more than triple Amax’s output during the same period last year.

At Fort Knox and Kubaka, where startup proceeded faster than expected, cash costs amounted to US$170 and US$160, respectively.

At Refugio, however, production was down from the first quarter as a result of a 3-week shutdown caused by heavy snowfall. The mine produced 18,376 oz.

during the April-To-May period.

Production at two other mines — Hayden Hill in California and Guanaco in Chile — is expected to taper off by year-end, as reserves are exhausted.

The company reported a loss of US$9.2 million (or 11 cents per share) for the second quarter, compared with a loss of US$5.8 million (8 cents per share) in 1996.