Giant Yellowknife lowers its costs

The company reports reduced minesite costs of $378(C) per oz and $363 at Timmins and Yellowknife, respectively, from conventional operations, compared with 1988 averages of $600 and $549.

Third-quarter consolidated earnings of $2.4 million (29 cents per share) were recorded by Giant compared with $3.7 million (44 cents per share) for the same period last year. Revenue was $32.7 million compared with $36.7 million last year.

For the nine months ending Sept 30, earnings amounted to $2.9 million (35 cents per share) compared with $2.35 million (28 cents per share) for the same period in 1988. Revenue was $90.1 million compared with $96.1 million.

Gold production to Sept 30 totalled 147,716 oz; third-quarter output was 55,819 oz.

The company continues to benefit from its forward sales program. Gold revenue during the third quarter averaged $571 per oz, compared with the average spot gold price of $435. As of Sept 30, Giant had forward sales contracts and gold-loan repayments to 1993 totalling 406,000 oz at an estimated average delivery price of $555.

At Timmins, the massive tailings treatment project of associated company ERG Resources (TSE) “operated at breakeven” during the first nine months of 1989, Giant reports. Lower than anticipated metallurgical recovery rates and high operating costs have hampered the project, as did cold weather during the third quarter.

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