A jump in gold production helped Amax Gold (NYSE) report an increase in third- quarter earnings to US$10.6 million from US$10.1 million in the same quarter of 1989. Revenue for the three months ended Sept. 30 was US$36.6 million compared with revenue of US$30.9 million in the year-earlier period.
The jump in revenue was attributed to an increase in gold sales to 89,108 oz. in the recent quarter from 76,699 oz. in the third quarter of 1989. The increase was primarily a result of increased production at the Wind Mountain heap leach mine, northeast of Reno, Nev.
Gross operating margin for the third quarter was US$14.9 million compared with last year’s US$14.1 million. Cash production costs for the quarter increased to US$145 per oz. compared with a cost of US$135 per oz. in the previous year.
The company attributed the increase in production costs to increased haulage distances at the Sleeper mine in Nevada and increased production at the more costly Wind Mountain mine.
A onetime charge of US$12.6 million relating to the writedown of the company’s investment in Canamax Resources (TSE) pushed 9-month earnings down to US$16.1 million compared with US$28.2 million for the 1989 period.
Gross operating margin for the nine months ended Sept. 30 was US$46.4 million, compared with US$46 million in 1989. Cash flow for the 9-month period was US$49.6 million or about US83 cents per share, up from the US$41.8 million reported in the 1989 period.
As a result of the company’s strong cash flow, voluntary cash payments of US$17.6 million were made to the outstanding gold loan.006 Amax Gold (NYSE) 3 months ended Sept. 30 1990 1989 Revenue $36,600 $30,900 Net earnings 10,600 10,100
per share 0.18 0.17 9 months ended Sept. 30 Revenue $109,100 $88,400 Net earnings 16,100 28,200
per share 0.270.47
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