High gold and silver prices, combined with an increase in precious metals production, coalesced into a healthy first quarter for Prime Resources Group (TSE).
Earnings for the period totalled $13.2 million, compared with $5.4 million in the first quarter of 1995.
The average gold and silver prices increased by US$21 and US83 cents per oz., respectively, while gold and gold-equivalent production jumped to 111,160 oz.
from the 77,849 oz. reported in the first quarter of 1995.
Prime’s principal asset, the Eskay Creek mine in northwestern British Columbia, opened last year. During the first quarter of 1996, the mine shipped 28,600 tons of ore containing 59,920 payable ounces of gold and 2.8 million oz. silver (99,408 gold-equivalent ounces).
By comparison, shipments in the first quarter of 1995 totalled 20,400 tons containing 65,227 gold-equivalent ounces.
Including output from Prime’s nearby, 40%-owned Snip mine, gold and gold-equivalent production in the first quarter of 1996 was 111,160 oz.
Cash production costs during the period decreased by 9% to US$164 per oz.
Prime recently bought the remaining 60% interest in Snip from Cominco for $55 million.
Prime is funding the acquisition out of working capital, which, at March 31, stood at $125.6 million. Prime has no debt and 76 million shares outstanding.
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