TVX Gold reports lower earnings in first quarter of 1993

Temporary refining problems at the La Coipa mine in northern Chile have resulted in lower first-quarter earnings of US$2 million (2 cents per share) for TVX Gold (TSE) compared with US$3.1 million (2 cents per share) in the same period last year.

At the annual meeting, President Martin Robinson told shareholders that the 1-month build-up of metals inventory at La Coipa, which is a 50-50 joint venture with Placer Dome (TSE), is expected to be drawn down largely in the second quarter.

Earnings were also adversely affected by low gold prices, though this was partially offset by improved cash production costs.

The company’s share of production from six operations increased by 7% to a new quarterly record of 113,700 oz. gold equivalent (90,200 oz. gold and 1.98 million oz. silver). Cash costs for the quarter were 3% lower at US$165 per gold equivalent oz.

Robinson expects the operations will have another strong year in 1993 as the company expects to produce 410,000 oz. gold equivalent at an average cash cost of US$180-190 per oz.

In 1992, TVX and its partners spent US$4 million on exploration at the six producing mines, the objective being to increase reserves.

At the Casa Berardi operation in northern Quebec, owned 60% by TVX and 40% by Golden Knight Resources (TSE), two new mineralized zones were located on the north side of the Casa Berardi fault, about 100 metres northeast of the Est mine. The new zones contain estimated reserves of 400,000 tons grading 0.18 oz. gold per ton.

At the Mineral Hill mine in Montana, a new zone, with reserves of more than one million tons grading 0.4 oz. gold per ton was found. An underground program is scheduled for 1993 to confirm reserves and extract a bulk sample for metallurgical testing.

Further exploration is also planned for this year at the company’s operations in Brazil and Chile.