San Francisco-based Homestake Mining (NYSE) reports increased first-quarter net income of $13.2 million, or 13 cents per share, almost double last year’s first-quarter earnings of $7.1 million, or 7 cents per share. The company says the increase reflects a 33% gain in gold sales during the quarter to 274,737 oz., and a 4% increase in average realized gold price to $406 per oz. from $392 a year ago.
Increased volume and improved operating efficiencies helped reduce the company’s average cash production cost 4% to $268 per oz. from $280 last year. Meanwhile, overall gold production increased 36% to 291,881 oz. First-quarter revenue increased 33% to $131.6 million from $98.6 million last year.
Gold production at the Homestake mine in South Dakota increased by 10,280 oz. to 102,398, largely due to improved ore grades in several operating stopes and a 2% increase in gold recovery. The company recently announced a $23-million, 5-year exploration program to follow up new underground gold discoveries three miles north of the Homestake mine.
The McLauglin gold mine in northern California achieved a 13% production increase to 71,052 oz., while Homestake’s share of output from the Round Mountain mine in Nevada rose to 23,116 oz. Homestake’s El Hueso mine in Chile increased production 7% to 20,308 oz.
The Golden Bear operation in British Columbia experienced major startup problems with its roaster feeder during the first quarter, but is expected to be in full operation by the third quarter of this year, says Homestake.006 0508,0206,0304,0008 Homestake Mining (NYSE) $000s except per-share items* Quarter ended Mar. 31 1990 1989 Revenue $131,561 $98,607 Net earnings 13,249 7,138
per share 0.13 0.07 *US dollars004
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