Normandy sets record

Producing more than a million ounces of gold in six months is good news for any mining company; even better news is when the production record is accompanied by record profits. Such was the case for Normandy Mining (NDY-T), which posted a record profit of US$41.5 million for the six months ended Dec. 31, 1999, while setting a new production record of 1.1 million oz. for the period.

(The record profit was reported in Australian dollars, which are converted here at an exchange rate of 0.64). It was accompanied by a record interim dividend declaration of US$27.1 million, continuing 14 consecutive payments of dividend payments.

Lower costs were reported at two key operations, Tanami and the Kalgoorlie Super Pit, both of which are in Australia. At Kalgoorlie, Normany shifted to owner-mining away from contract mining. A total of US$53 million of capital was invested in the mining fleet. Kalgoorlie produced 198,200 oz. gold in the last six months of 1999 at US$225 per oz., whereas Yandal added 232,800 oz. at US$178 per oz.

TVX Normandy Americas contributed 93,400 oz. at US$127.5 per oz. during the period, with every mine acheiving record annual production. Brazilian gold production increased, owing to the commissioning of a fifth ball mill and associated jig and Knelson concentrators. At Crixas, also in Brazil, planning was advanced to expand throughput by 100,000 tonnes per year to 700,000 tonnes.

In Canada, operations at Musselwhite and Britania reported similar results, with the latter recording production of more than 100,000 oz. in a calendar year for the first time.