Increased sales volumes of gold and silver plus lower production costs more than doubled earnings for Vancouver-based Equity Silver Mines (TSE). Net earnings for the year ended Dec. 31 were $20.6 million on revenues of $94 million, compared with the previous year’s earnings of $9.9 million on revenues of $85.2 million.
Cash generated from operations increased to $44.6 million from $41.3 million in the previous year.
Gold and silver production volumes increased by 21% and 18% respectively as a result of higher grades and recoveries.
The company noted that the prices realized from forward sales of gold- and silver-generated revenues of $12.6 million over and above what would have been received had the production been sold at market prices during the year.
As at Dec. 31, forward sales totalled 3.1 million oz. of silver at prices averaging US$7.18 per oz. covering the period to November, 1991, and 47,500 oz. of gold at prices averaging US$446 per oz. covering the period to November, 1991.
Equity posted additional security, now totalling $10 million, to cover future reclamation costs. The company continues to negotiate with the British Columbia government in an attempt to determine the total amount and type of bond required. In 1990, the company plans to fund the greater of $6 million or one-third of the total remaining liability.
The company noted that the year- end cash and short-term investment position of $50.5 million was partially utilized to redeem the Series One Convertible preferred shares at a cost of about $18.5 million. Equity Silver Mines (TSE) Year ended Dec. 31 1989 1988 Revenue (000s) $93,988 $85,229 Net earnings (000s) 20,639 9,945 Net earnings
(per share) 0.63 0.31004
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