Higher revenue for LAC but earnings down a third

Both LAC Minerals (TSE) and subsidiary Bond Gold International reported higher revenues for the first quarter of 1991.

While revenues at LAC were US$131.4 million, up from US$111.4 million a year ago, Bond reported revenues of US$74.9 million, an increase of about US$5 million over the first quarter of 1990.

But net earnings at both companies were hit by a US$4.5-million provision for a decline in the value of their investments. LAC’s earnings dropped to US$2.2 million (two cents per share) from US$3.4 million (three cents per share) a year ago. Bond reported income of US$1.5 million (three cents per share) compared with a loss of US$4.3 million (eight cents per share) in the first quarter of 1990.

Both companies had higher cash production costs. Bond’s cost for the quarter jumped US$27 to US$250 per oz., primarily due to lower-grade ore at the Bullfrog mine in Nevada. LAC’s average cost was US$246 per oz. compared with US$225 last year.

LAC’s total quarterly gold production was 254,300 oz. compared with 240,500 oz. last year. The company delivered 266,000 oz. at an average realized gold price of $416 per oz.