Dickenson boosts earnings despite lower gold production

Lower gold output at its Arthur White mine near Red Lake, Ont., hasn’t prevented Toronto-based Dickenson Mines (TSE) from improving its earnings in the second quarter and first half of this year.

In the three months ended June 30, Dickenson reported earnings of $2.4 million or 14 cents a share on revenues of $16.8 million, compared with earnings of $999,000 or six cents a share on revenues of $17.1 million in the same period last year.

Dickenson also reported earnings of $4 million or 23 cents per share in the first half of 1991, compared with earnings of $2.3 million or 13 cents a share in the equivalent 1990 period. First-half revenues fell slightly to $30.4 million from $32.6 million in 1990.

Dickenson attributed its improved earnings picture to higher interest, other income and a lower effective tax rate, which partially offset a drop in the company’s gold production.

The Red Lake operation produced 19,894 oz. in the second quarter and 36,833 oz. in the first half, compared with 19,050 oz. and 40,439 oz. in the corresponding periods in 1990.

First-half gold sales declined to 36,250 oz. at an average realized price of US$418 per oz. from 40,200 oz. at an average of US$424 per oz. in the same period last year. However, Dickenson still expects to produce 78,000 oz. at Red Lake compared with 76,644 oz. in 1990.