Glamis Gold (GLG-T) tightened its belt and boosted efficiency to squeak out a profit of US$203,000 (or 1 cents per share) during the first six months of 1998.
Quarterly results were not as positive. The company experienced a loss of US$131,000 (nil per share) in the recent 3-month period, compared with a loss of US$584,000 (2 cents per share) in last year’s second quarter.
Glamis produced 27,596 oz. gold from its two mines in the second quarter, compared with 32,451 oz. a year ago. The results reflect a 14% decrease in the realized gold price.
Second-quarter revenue totalled US$8.2 million, compared with US$11 million a year ago, whereas revenue in the first half amounted to US$17 million, compared with US$22 million.
Cash costs in the recent quarter were US$197 per oz., slightly higher than the US$196 reported a year ago.
Production at the Rand mine, near Bakersfield in southern California, totalled 22,192 oz. in the first half of 1998, compared with 23,664 oz. a year ago, while cash costs remained unchanged at US$213 per oz. Total production costs per ounce rose to US$297 from US$291.
In southeastern California, at the Picacho mine, Glamis cranked out 4,753 oz. in the second quarter, compared with 8,526 oz. in the year-ago period. The 44% decrease is attributed to depletion of reserves. On the bright side, cash costs per ounce decreased as well, to US$128 from US$143, with total cash costs ringing in at US$211, compared with US$258 in the second quarter of 1997.
Glamis’s overall cash flow for the quarter was calculated to be US$2.9 million, compared with US$4.4 million a year ago. Causes for the shortfall include a drop in gold production and weaker prices for the yellow metal. The company ended the quarter with working capital of US$36.1 million and remains debt-free. Glamis has 31 million shares outstanding.
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