Hemlo Gold reports drop in earnings

Second-quarter earnings of $10.6 million (12 cents per share) on revenue of $44.5 million were recorded by Hemlo Gold Mines (TSE), compared with $12.2 million (14 cents per share) on revenue of $47.2 million for the same period in 1987.

During the quarter, the Noranda- controlled company produced 73,587 oz gold from its Hemlo property at an average operating cost of $128(US) per oz, compared with 79,003 oz at $94 per oz for the same three months last year. A recovery rate of 96.4% was achieved during the quarter. Tonnage milled during the quarter declined compared with last year, the shortfall attributed to stoping disruptions.

For the first six months of 1988, Hemlo reported earnings of $25.1 million (29 cents per share) on revenue of $95.9 million, and produced 161,473 oz gold. Comparable financial information for 1987 is not available, the company having come into being at the first of February last year.

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