Earnings slip for Amax Gold (November 13, 1989)

Third-quarter results for the Colorado-based gold mining company showed net earnings of $10 million or 17 cents per share, compared with $13.1 million or 22 cents per share for the 1988 third quarter.

Gold production reached 222,000 oz for the 9-month period, a 30% increase over 1988 results. Third- quarter gold production was up 35% to 84,600 oz from 62,500 oz for the same period in 1988.

The cash production cost per oz for the first nine months of 1989 was $129(US), compared with $107 for the same period in 1988. This increase was attributed primarily to higher-cost production from the Wind Mountain mine which began operations in the second quarter.

Cash production costs for the third quarter were $135(US) per oz, up slightly from $122 in the 1988 third quarter. The average realized price per oz of gold was $402 in the third quarter, $33 better than the average COMEX price.

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