The importance of the rich Page- Willians gold mine at Hemlo to Lac Minerals is clearly spelled out in the company’s quarterly financial results for the period ended March, 31. The mine, awarded to International Corona in a landmark court case now under appeal by Lac, generated more than 40% of Lac’s revenues.
For the period, Lac realized revenues of $67.7 million of which $27.3 million came from the Page- Williams. More importantly, of 21 cents earnings per share more than 85%, or 18 cents per share, came from the Page-Williams gold mine. Without the mine, Lac would have only had meagre earnings of 3 cents per share for the quarter. During the comparable period in 1986, Lac had earnings per share of 2 cents excluding the Page-Williams mine and 8 cents with the mine. First quarter results were also adversely affected by a foreign exchange loss of $6.9 million.
Gold production from the period totalled 122,358 oz from five mines; up from 107,945 oz produced during the same period last year. The largest increase came from Lac`s Macassa mine near Kirkland Lake, Ont. Here, gold output increased to 17,848 oz for the quarter from 11,802 oz. At this rate, the Macassa could yield more than 70,000 oz in 1987.
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