LAC’s third quarter earnings slip slightly to $11.4 million

Earnings for the first nine months of this year totalled $34.5 million or 36 cents per share, compared with $38.5 million or 42 cents per share in the same period in 1988. Third- quarter and 9-month revenues were $46.9 million and $138.8 million respectively.

Gold production eased from 87,705 oz in the third quarter last year to 82,007 oz this year. For the nine months, LAC produced 246,602 oz — up 3% from the 239,487 oz produced last year. Gold production this year is forecast at 320,000 oz, the company says.

LAC continues to benefit from its forward-hedging policy which resulted in an average gold price in the quarter of $408(US) per oz. Market prices during the period averaged $367(US).

The company has committed 410,000 oz of production to future sales contracts. Of this amount, 60,000 oz are for delivery during the remainder of this year at a price of $439(US), 250,000 oz in 1990 at an average price of $454(US) and 100,00 oz in 1991 at $429(US).

After the loss of the company’s Williams gold mine at Hemlo, Ont., to Corona Corp. this year, the company’s largest gold producer was its 50% interest in the Doyon mine in Quebec. For the 3-month and 9-month periods, LAC’s share of Doyon’s gold production was 28,778 oz and 87,354 oz respectively.

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