Higher earnings but lower profit for LAC in ’89

Net earnings of US$30.5 million (31 cents per share) for 1989 on revenues of US$186 million were reported by LAC Minerals (TSE), compared with earnings of US$38.4 million (42 cents per share) in 1988 on revenues of US$174.3 million. Toronto-based LAC, which acquired about 65% of Bond International Gold (BIG) last November, is reporting its financial results in U.S. currency, as BIG did. LAC also says a significant amount of its future production will come from areas where the U.S. dollar is considered to be the functional currency.

For 1989, LAC produced 370,875 oz. gold, including 41,911 oz. from BIG’s operations during the fourth quarter of 1989. LAC’s three large Canadian mining operations, Doyon (50% interest), Bousquet No. 1 and Macassa, produced 117,345 oz., 110,364 oz. and 82,540 oz., respectively, for the company last year.

LAC delivered 370,093 oz. during 1989 at an average price of US$411, compared with 316,440 oz. at an average price of US$470 the previous year. The company’s average cash operating cost last year was US$282 per oz. compared with US$260 in 1988.

During the fourth quarter last year, LAC recorded net earnings of US$1.5 million (1 cents per share) on revenue of US$67.5 million, compared with US$6.1 million (7 cents per share) on revenues of US$45.2 million the year before. LAC Minerals (TSE)* Year ended Dec. 3119891988 Revenue (000s)$186,000$174,300 Net earnings (000s)30,50038,400 Net earnings

(per share)0.310.42 *US dollars.003