Vancouver With the company continuing to see losses from its equity stake in Northern Orion Explorations (NNO-T), Miramar Mining’s (MAE-T) two operations in the Northwest Territories generated badly needed free cash flow during the second quarter of 2001.
Combined production from the Con and Giant mines tallied 36,760 oz. gold in the quarter ended June 30, compared with 30,060 oz. gold in the same period a year ago. Total cash costs fell to US$255 per oz. from US$269 in the second quarter of 2000.
Consolidated cash flow from operations hit $954,000, compared with $769,000 in the second quarter of 2000. After accounting for mining expenses, including reclamation activities, the operations coughed up $1.5 million in free cash flow over the past two quarters.
“During the first half of 2001, our Yellowknife operations delivered solid results, generating free cash flow at current commodity prices while doing concurrent reclamation,” says Anthony Walsh, Miramar ‘s president.
Despite the improvements at its mines, equity losses in Northern Orion, deferred development costs and reclamation expenses hurt Miramar’s bottom line. The company lost $1.7 million (or 3 per share) in the second quarter, compared to a loss of $1.3 million (3 per share) in the corresponding period of 2000.
Near the end of the quarter, Miramar announced that the Giant operation would be extended until late 2002.
Banking on future production from the Hope Bay project in Nunavut, the company, along with joint venture partner Hope Bay Gold (HGC-T), increased this year’s exploration budget to $12.9 million.
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