High pitch in profit for Battle Mountain

The profit song of Battle Mountain Gold (TSE) keeps taking on a new and higher pitch.

The 3-year-old company reports record earnings in the second quarter and first half of this year, largely, its chairman says, on improving gold prices, production increases, and currency exchange gains on the investment in its Australian operations.

With operating gold mines in Nevada as well as Australia, the Houston-based company also has two new U.S. gold projects waiting in the wings, and is expected to increase its output by 30% from 1987 levels to 348,000 oz gold next year (N.M., June 20/88).

In the second quarter of 1988, Battle Mountain rang up net income of $16.1 million, or 35 cents a share, a 74% increase over the $9.3 million or 14 cents a share it earned in the similar period last year.

For the first half this year, net income was $32 million or 49 cents a share, up 77% from the $18 million, or 28 cents a share, earned in the first half last year.

In the latest period net sales for the second quarter were $36.2 million, against $26.9 million last year, and net sales for the latest six months were $73.4 million, up 43% from $51.5 million in 1987’s first half.

Chairman Douglas Bourne notes that the strong first-half earnings translate to a net income per equivalent oz of gold sold of about $200(US), with an average realized gold price of $461 per oz.