Although Hope Brook Gold Mines’ (TSE) first-quarter production of 23,252 oz. was on par with last year’s quarterly output, lower gold prices and severe winter weather doubled the gold miner’s losses.
In the first three months of 1991, the company lost $8.1 million (27 cents per share) compared with a loss of $4.3 million (14 cents per share) in the first quarter of 1990.
Similarly, BP Canada (TSE), which has a 76% interest in Hope Brook, lost $6.2 million in the first quarter compared with earnings of $6 million for the first three months of 1990.
Meanwhile, Hope Brook has improved operations at the mine on several fronts. In April, the company reached a record haulage of 118,000 tons. At the mill, the new effluent treatment system is now fully operational and the mafic rejection circuit has increased throughput capacity.
An independent committee is currently reviewing an offer by BP to purchase all of the outstanding Hope Brook shares.
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