Equity Silver Mines reported a loss of $583,000 or 2 cents per sha re for the nine months ended Sept 30, compared to a loss of $713,000 or 3 cents a share the previous year. President A.J. Petrina said the results benefited from gold and silver forward sales contracts, increased mill throughput and recoveries, and exchange gains on a stronger U.S. dollar. However, he noted the average spot silver price declined to $5.45(US) from $6.17 in the corresponding period of 1985.
Mill throughput averaged 10,900 tons per day in the third quarter compared to approximately 6,300 tons before the expanded milling facilities were commissioned in June. The higher mill rate permitted a reduction in cutoff grade and allowed Main zone ore to be treated more economically than originally projected, he added. Depreciation expense increased, reflecting a reduction in mine life because of the higher throughput. Mine life now is estimated at five years.
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