Royal Oak boosts Giant mine’s output in third quarter

Royal Oak Mines’ (TSE) Giant gold mine outside Yellowknife, N.W.T., increased gold production during the third quarter of 1992 compared to the second quarter despite a bitter strike which began May 23 and an ongoing RCMP investigation into the death of nine miners from an underground explosion Sept. 18 that temporarily closed the mine.

Operations resumed Sept. 25 and, although the strike is still on, the mine continues to operate using a mix of replacement workers, union members who crossed the picket line, and Royal Oak staff. Mediators have been appointed by the federal government to resolve the labor dispute and no new developments are being reported from the ongoing police investigation into the nine deaths.

The Giant gold mine turned out 22,185 oz. gold during Royal Oak’s latest quarter ended Sept. 30, 5% lower than in the comparable period of 1991, but a 6% improvement over this year’s second quarter.

The company’s Timmins division in Ontario turned out 25,511 oz. gold in the third quarter, 8% higher than in the comparable period last year and 9% higher than this year’s second quarter.

Royal Oak says its third-quarter production and earnings benefited from the successful reopening of the Hope Brook mine in Newfoundland which yielded 21,934 oz. gold at a cash cost of US$234 per oz.

The company’s third-quarter production totalled 65,287 oz. with a cash production cost of US$301 per oz., compared with 46,905 oz. at US$328 a year ago.

Royal Oak’s bottom line is holding steady with net earnings of $2.93 million in the recent third quarter, compared with $2.14 million a year ago.