FirstMiss quarterly profits slip

The company attributed the drop to lower interest income, increased interest expense and additional costs associated with mill start-up.

FirstMiss produces gold at its Getchell mine in north central Nevada. Production is from heap leaching as well as from a new 3,000-ton-per-day mill which processes refractory ore reserves.

Proven and probable sulphide reserves were reported in mid-1989 as 8.1 million tons grading 0.154 oz. Heap leach reserves amounted to 1.4 million tons grading 0.049 oz.

Gold production continues to increase with mill output reaching 24,242 oz versus 20,910 oz in the previous quarter. Heap leach operations produced 7,171 oz, compared with 5,398 oz in the first quarter of 1988.

Cash production costs at the mill averaged $283(US) per oz while heap leach costs averaged $100 per oz. Over-all, costs at the Getchell mine were $241 per oz.

President Cecil Alvarez indicated that mill costs were adversely affected by various operating problems. He expects unit costs to decrease when the mill reaches design rates.

FirstMiss has a 5-year hedging program which establishes a minimum price of $400 per oz for 202,600 oz and a maximum price of $450 for 70,600 oz. The company has the option to sell 30,000 oz of gold in fiscal 1990 under the program.

FirstMiss Gold has 18 million shares outstanding, 82% owned by First Mississippi (NYSE).

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