LAC ups 9-month output, earnings

Higher production from the Bousquet No. 2 mine near Malartic, Que., boosted LAC Minerals’ (TSE) total gold production and earnings for the first nine months of the year.

LAC reports a net income of US$13.4 million (11 per share) for the nine months ended Sept. 30 compared with US$12 million (10 per share) for the same period last year. The company’s share of gold production jumped from 573,954 oz. to 623,416 oz.

Partly as a result of higher costs, third-quarter earnings dropped to $6.2 million (5 per share) from $7.2 million (6 per share) last year. During the quarter, cash production costs averaged US$268 per oz. compared with US$246 per oz. in 1990.

While increasing cash flow by 20% during the nine month period, LAC reduced its debt by about $111 million, or 27%. As of Sept. 30, the company’s hedging program covered 1.6 million oz. at an average price of US$406 per oz.