A drop in production due to adverse climatic conditions at the Sleeper gold mine in Nevada resulted in lower output and earnings for Amax Gold (TSE).
The Colorado company reported first quarter net earnings of $8 million or 13 cents per share on revenues of $33.2 million compared to earnings of $10 million or 17 cents a share on revenues of $35.3 million in the same period last year.
Amax says first-quarter gold production dropped to 77,539 oz. from 84,184 oz. compared with the year-ago period even though gold output at its Wind Mountain mine in Nevada and Waihi operation in New Zealand was up slightly.
It attributed the increase in quarterly production costs (US$185 per oz. compared with US$143 last year) to inclement weather and lower-than-expected throughput at Sleeper.
Amax expects the 5.18% interest in the Waihi mine which it acquired recently from a joint venture partner should add about 4,000 oz. to its annual gold output this year. As a result of the acquisition, Amax owns 33.53% of Waihi.
Amax Gold’s average realized price of gold sold in the first quarter was US$421 per oz., US$50 higher than the COMEX average price. Amax Gold (TSE)* 3 months ended Mar. 31 1991 1990 Revenue $33,200 $35,300 Net earnings 8,000 10,000
per share 0.13 0.17
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