A drop in gold and silver prices as well as increased production costs hurt year-end earnings for FMC Gold (NYSE). The company reported earnings for the year ended Dec. 31 of US$48.9 million on revenues of US$151.5 million, a drop from 1988 earnings of US$61.2 million on revenues of US$171.1 million. The company noted the average price received for gold dropped to US$382 per oz. for 1989 from US$434 per oz. in 1988. The price realized for silver fell to US$5.46 per oz. from an average of US$6.52 per oz.
FMC produced 326,500 oz. of gold and 5.1 million oz. of silver during the period. This compares with 331,800 oz. of gold and 4.3 million oz. of silver in 1988.
Production costs on a gold equivalent basis increased to an average of US$129 per oz. in 1989 from US$122 per oz. in 1988. The company is still in the enviable position of being one of the lowest-cost producers in the free world.
At year-end FMC had US$55 million in cash and cash equivalents. FMC Gold (NYSE)* Year ended Dec. 31 1989 1988 Revenue (000s) $151,500 $171,100 Net earnings (000s) 48,900 61,200 Net earnings
(per share) 0.75 0.93 *U.S. dollars003
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