Kiena Gold Mines realized net income of $9.56 million or 81 cents per share on revenue of $39.6 million in 1987. The Placer Dome affiliate attributes the improved bottom line to stronger gold prices which offset lower anticipated gold production last year. The average gold price realized was $444(us) per oz, compared to $360 per oz in 1986. In that same year, Kiena made a profit of $6.7 million or 58 cents per share.
During the year, the Val d’Or, Que., mine produced 67,113 oz of gold, down from 72,694 oz in 1986. This decline in gold output was due to a planned reduction in ore grade, the company says.
Exploration work at the mine has added 20% more ore to the mine’s reserves after allowing for the tonnage milled during the year. Reserves stand at 6.7 million tons grading 4.93 g (0.143 oz per ton). The deposit, which remains open at depth, will be accessed via another shaft. The program will cost $4.2 million and will provide access for drilling from the 750-m level. At year-end, Kiena had cash and short-term deposits of $23.2 million.
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