Teck will take 450,000 oz. gold from Hemlo in ’91

With a 50% interest in two of Canada’s richest gold mines, Teck (TSE) was able to chalk up healthy financial results for yet another year.

President Norman Keevil told shareholders at the recent annual meeting that direct earnings were a healthy $86 million in 1990, a new high before taking into account a reduced contribution from its equity interest in Cominco (TSE) which affected net earnings.

Keevil said the company’s growth and financial performance are due largely to increased gold production which jumped from 80,000 oz. in 1985 to just over 500,000 oz. in 1990. This year the two Hemlo operations, David Bell and Williams, are expected to produce 450,000 oz. to Teck’s account.

The company’s gold production in the 1991 first quarter was 108,847 oz., compared with 134,365 oz. in the 1990 first quarter. It was noted at the annual meeting that the planned mining grade at Williams in 1991 will be lower than that achieved last year.

Cominco contributed a loss of $4 million, which reduced Teck’s first-quarter net earnings. These stood at $10.9 million on revenues of $104 million, down from $24 million on revenues of $120 million a year earlier.

Keevil also outlined details of a recent initiative to reorganize the company’s exploration and evaluations group, part of its “objectives for the ’90s” aimed at matching or exceeding the growth rate of the ’80s.

Several new projects were also highlighted, including the Powderhorn titanium project in Colorado at the prefeasibility stage, and the Straight Forks project in Utah, a grassroots open pit gold target that is yet to be drill tested.

Shareholders were also told that a drill program is now under way at the Thunder Lake gold property in Western Ontario to follow up some initial intersections made in 1990. This project is part of Teck’s “Quest Program” to find another Hemlo.

Keevil said Teck’s recent equity investment in Prime Equities (VSE) and various associated juniors will also increase its exposure to exploration, particularly in northwestern British Columbia. Teck is also involved in a base metal exploration program in southern British Columbia.