Earnings slip for Amax Gold (November 11, 1991)

A drop in gold output as well as an increase in production costs negatively affected the earnings of Amax Gold (NYSE) for the period ended Sept. 30.

Earnings for the third quarter dropped to US$5.4 million from US$10.6 million in the same period last year. Revenue for the three months was US$32.4 million compared with US$36.6 million last year.

Earnings for the quarter were influenced by a drop in gold production at the Sleeper mine in Nevada to 40,635 oz. from 62,306 oz. in the year-earlier period. Exploration expenditures were also higher, jumping to US$5 million from US$2.5 million last year.

Total production for the third quarter was 69,203 oz. compared with 91,446 oz. in the third quarter of 1990.

Net earnings for the nine months ended Sept. 30 were US$20.9 million, up from US$16.1 million.