Low production costs and increased gold sales were responsible for a third-quarter earnings increase of 26% compared with last year’s result s, Battle Mountain Gold (TSE) says.
Third quarter net income was $15.3 million, or 24 per share, up 26% from the $12.1 million, or 19 per share, earned during the third quarter of 1987.
For the nine months ended Sept 30, net income was $47.3 million, or 73 per share, up 57% from the $30.2 million, or 47 per share, earned during the same period last year.
During the first nine months of this year, the company’s average realized price for gold was $457 per oz. During the same period last year the company realized a price of $427 per oz. Cash production costs for the company were $132(US) per oz during the 9- month period, compared with $122(US) per oz in the first nine months of 1987.
In 1988, Battle Mountain expects to sell a total of 305,000 oz of gold from its Fortitude, Surprise, Pajingo and Canyon Placer mines. The company is also spending over $20 million on exploration projects covering some 9,000 sq miles in the United States, Canada, Australia, and Indonesia.
Earlier this year Battle Mountain backed out of a $40-million deal which would have seen it purchase a 40%-interest in Noramco Mining Corp. (TSE) of Vancouver.
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