Third-quarter earnings were steady for Echo Bay Mines (TSE), despite increased sales from expanded production.
The company had net earnings of $13.5(US) million or 14 per share in the third quarter, compared with $13.6 million or 14 per share in the year earlier period.
Earnings were flat mainly because of lower gold prices during the quarter and a favorable depreciation and amortization adjustment made in the comparable 1987 quarter. Depreciation and amortization were $55(US) per oz during the recent third quarter, while in the year-ago quarter, they were only $30 per oz.
Gold production for the third quarter this year totalled 147,746 oz, an increase of 14% over production of 129,728 oz from the third quarter of last year. The company sold 140,623 oz of its gold production at an average price of $433 during the third quarter compared to 124,553 oz at $445 in the same period last year.
Quarterly revenues were $64.7 million, up from $56.7 million a year ago. Consolidated cash production costs were $205 per oz, compared with $208 in the third quarter of last year.
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