The large U.S. gold producer reported net income of $13.5 million(US) or 21 cents a share on sales of $37 million for the period ended March 31. Despite lower average prices for both gold and silver, higher profits were generated from increased production and reduced costs, particularly at the Paradise Peak mine in Nevada.
First-quarter cash production costs at all operations averaged $115.61 per oz, a significant improvement over the $138.51 average cost achieved in 1988. Costs at Paradise Peak declined sharply to $81.75 per oz from $110.97 in the 1988 first quarter.
In its latest quarter, the company produced 77,000 oz of gold compared with 70,000 oz last year. Silver production increased to 1.1 million oz from the 952,000 oz produced in the 1988 first quarter.
The company said its higher production volumes were achieved from richer ore grades processed at Paradise Peak and from process improvements implemented last year.
FMC Gold expects to produce about 300,000 oz gold and six million oz silver from its three Nevada gold mining operations in 1989.
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