Capital Gold (CGC-T) posted a 52% year-on-year jump in net income in the first fiscal quarter ended Oct. 31.
Net income advanced to US$2.94 million (US2¢ per share) in the three months ended Oct. 31, up from US$1.94 million (US1¢ per share) in the year-earlier quarter; gold sales rose to 11,733 oz. from 11,413 oz. Cash costs per oz. sold rose to US$338 per oz. in the quarter, from US$270 per oz. in the same period of 2008.
The company plans to boost production next year; it is almost finished building a new leach pad and installing an additional crushing and screening module, both of which will be operational in January 2010.
“Together, the new leach pad and crushing and screening module will assist with an increased gold production profile of 70,000 ounces in calendar year 2010,” John Brownlie, the company’s president and chief executive, said in a statement.
In addition to the El Chanate mine near the town of Caborca, in Sonora state, Capital Gold owns and leases concessions near the town of Saric, also in Sonora, where it is conducting preliminary exploration for gold and silver.
At presstime, Capital Gold traded at $1 per share in a 52-week trading range of 43¢-$1.13 per share. The company has 194 million shares outstanding.
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