The earnings of gold-silver producer Cheni Gold Mines (TSE) totalled $2.5 million for the nine months ended Sept. 30, off slightly from the $2.7 million in earnings reported in the same period last year. Production for the nine months was 40,231 oz. gold and 883,287 oz. silver. Cash operating costs amounted to $82.08 per ton, or about US$199.20 per gold equivalent oz.
Earnings for the second quarter were off significantly because of a company decision to spend $800,000 on a summer surface drilling program which resulted in a downgrading of ore reserves. Earnings were also off because of lower- grade ore which reduced total metal production. The company said grades have now returned to normal levels and the production shortfall should be made up by year-end.
Average selling prices in the third quarter after accounting for forward sales were US$398 per oz. for gold and US$5.20 per oz. for silver. Forward sales to the end of May, 1992, amount to 15,400 oz. of gold at US$417.48 per oz., and 345,000 oz. of silver at US$5.48 per oz. Cheni Gold Mines (TSE) 3 months ended Sept. 30 990 989 Revenue $7,444 $8,579 Net earnings 25 1,762
per share 0.00 0.16 9 months ended Sept. 30 Revenue $23,419 $17,183 Net earnings 2,493 2,663
per share 0.23 0.24
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