Chicago-based FMC Gold (NYSE) produced 95,000 oz. gold in the 1991 third quarter ended Sept. 30, a slight increase from the 89,000 oz. produced in the comparable period last year.
But the company’s net earnings fell to US$2.6 million for the quarter from US$10.9 million a year earlier because of lower prices for gold and silver. Cash production costs also increased during the quarter to US$221 per gold equivalent oz., compared with US$169 per gold equivalent oz. in the third quarter of 1990.
FMC Gold said gold production at the Paradise Peak mine in Nevada declined slightly to 47,000 oz. in the quarter from 50,000 oz. in the 1990 third quarter, while silver production fell to 580,000 oz. from 1.5 million oz. last year.
The decline in precious metal production at Paradise Peak was attributed to lower ore grades, although this was partially offset by increased mill throughput and heap leach production from the Ketchup Flat and County Line deposits.
A 20% increase in gold production was reported from the company’s 30% owned Jerritt Canyon mine in Nevada (30,000 oz. from 20,000 oz.) because of higher throughput and improved operation of the ore-roasting circuit. Gold production also rose modestly at the Royal Mountain King mine in California, which turned out 18,000 oz. in the third quarter compared with 14,000 oz. in the prior year.
On the exploration front, the company said its share of gold reserves at Jerritt Canyon increased significantly by 325,000 oz. to the end of August, with drilling to continue into 1992.
During the latest quarter, the company deferred the development decision on its Beartrack gold project in Idaho, “given the uncertainty of the gold price environment, coupled with delays in the permitting process.” For the first nine months of 1991, FMC reported net income of US$5.8 million, well below the US$34.1 million recorded for the first nine months of 1990.
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