Geomaque Explorations (GEO-T) held its position as a profitable junior gold producer in 1997, posting earnings of $1.6 million (or 4cents per share).
This figure includes a one-time charge of US$698,000 relating to the writedown of deferred exploration expenses incurred on properties in Mexico and West Africa.
Operating cash flow rose to a record US$4.4 million in 1997. This represents an increase of 7% over 1996 cash flow, despite a drop in the company’s average realized gold price to US$368 per oz. in 1997, from $393 per oz. the previous year.
Gold production increased by 47% to 53,150 oz. in 1997 as a result of an expansion completed during the year at the company’s 100%-owned San Francisco mine in Mexico’s Sonora state. With the expansion, crusher throughput rose dramatically to 2.4 million tonnes, but the average grade dropped 19% to 1.05 grams gold per tonne, from 1.29 grams in 1996.
Efficiencies realized through higher crusher throughput translated to a 15% decrease in the cost per tonne of ore processed to US$5.96 in 1997 from US$6.99 in 1996. Total cash operating costs were $252 per oz. gold, an increase of 12% over cash costs of $225 per oz. in 1996.
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