Low production costs at the Golden Giant mine near Marathon, Ont., helped owner Hemlo Gold Mines (TSE) keep its earnings in line during the third quarter ended Sept. 30. The company’s third-quarter income was slightly better at $11.1 million (13 cents per share) compared with $10.9 million (13 cents per share) during the same period last year. Third-quarter revenue increased to $54.3 million from $51.6 million in the 1989 period.
Quarterly production at the mine rose to 118,559 oz. up from 104,783 oz. in the year-earlier period. Operating costs also rose to $134 per oz., from $120 per oz. Millhead grades fell to 0.36 oz. from 0.41 oz., while tons milled per day increased to 3,467 from 2,578.
Earnings in the 9-month period were $21.2 million (24 cents per share) on revenue of $158.1 million compared with $29.7 million (34 cents per share) on revenue of $149.9 million in the 1989 period. Nine-month gold production rose to 341,257 oz., up from 295,342 oz.
“Although gold production increased by 15% in the 1990 period, there was a $46 per oz. decrease in the realized price for gold after hedging,” the company said. Year to date earnings were also affected by a $11.1-million writedown on an investment in Windarra Minerals (TSE) in the second quarter. Hemlo Gold Mines (TSE) 3 months ended Sept. 30 1990 1989 Revenue $54,310 $51,580 Net earnings 11,141 10,921
per share 0.13 0.13 9 months ended Sept. 30 Revenue $158,067 $149,913 Net earnings 21,248 29,662
per share 0.24 0.34
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