Montreal-based miner Cambior (CBJ-T) racked up a surprise US$10.4-million, or US10 per share, loss during the first quarter, due to an US$11.9-million non-hedge derivative loss.
The quarterly loss compares with a loss of US$900,000, or US1 cent a share, in the same period last year. On a brighter note, revenues did increase by US$2 million over the two periods to US$49.5 million.
Cambior says it plans to exit all non-hedged derivatives by the end of 2004, in order to protect itself against abrupt swings in the gold price.
During the quarter, Cambior produced 149,000 oz. gold at a direct mining cost of US$207 per oz., compared with last year’s 152,000 oz. produced at a cost of US$219 per oz. The company attributes the production decline to lower output at the Omai mine in Guyana.
The Doyon division was the best performer of the first quarter, producing 58,100 oz. gold at a direct mining cost of US$209 per ounce — or 3,000 oz. more, and US$20 per oz. less, than in the first quarter of 2001, owing to higher tonnages sourced from underground and higher head grades.
For all of 2002, Cambior expects its gold production to fall to 547,000 oz. from 615,000 oz. last year, owing to the near-depletion of Omai.
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