Dayton records operating loss

Although the Andacollo mine in central Chile is breaking previous production records, its owner, Dayton Mining (DAY-T), posted a third-quarter loss of $3.2 million (or 12 cents per share) on revenue of $11.9 million.

By comparision, the third quarter of 1997 saw the company turn a profit of $799,000 (a loss of 1 cents per share) on $12.2 million in revenue.

For the first nine months of the year, Dayton lost $10.6 million (36 cents per share) on revenue of $31 million, compared with a profit of $782,000 (a loss of 5 cents per share) on $37.5 million in the year-ago period.

The Andacollo mine, an open-pit, heap-leach operation, produced 25,077 oz. at a cash operating cost of US$226 per oz. for the quarter ended Sept. 30, 1998, versus 22,797 oz. at US$206 per oz. a year ago.

Gold production for the first nine months of 1998 was 61,990 oz., compared with 70,232 oz. a year ago, while cash operating costs rose to US$256 from $224 per oz.

Dayton realized an average gold price of US$345 per oz. during the first nine months of 1998, compared with US$397 per oz. a year ago.

The company continues to achieve record production at Andacollo; in October, it set a new monthly record of 9,484 oz.