In its previous fiscal year the company produced 23,451 oz gold and reported earnings of $1.03 million on revenues of $13.6 million. Glamis said total revenues were adversely affected by lower gold prices and by the increase in value of the Canadian dollar. The average price received per oz of gold was $402(US), a decrease of $52 from a year ago.
With about half its production from the Lamont pit at the Yellow Aster mine in California, Glamis noted that production costs were higher this year because of the initial high strip ratios and the small size of the Lamont pit operation.
In addition, the company reported write-offs of $6.1 million on abandonment and write-down of mineral properties.
Glamis expects to produce 40,000-50,000 oz gold per year from its California mining operations starting in fiscal 1990. The company has contracts for the forward sale of 22,437.5 oz of gold in 1990 at an average price of $413(US) per oz.
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