The Castle Mountain open-pit, heap-leach mine in California’s San Bernardino Cty. continues to pump out profits for 75% owner Viceroy Resources (TSE).
The company earned $11.6 million, or 50 cents per share, for the fiscal year ended March 31, 1995, on sales of $71.8 million. Cash flow during the period totalled a whopping $35 million, or $1.50 per share.
This compares with earnings of $11.25 million and cash flow of $22 million in the previous year.
The mine produced 168,190 oz., a rise of 11% over the previous year. Cash operating costs dropped 22% to US$162 per oz. of gold produced.
Viceroy reported fourth-quarter earnings of $1.95 million, or 9 cents per share. The company’s performance during the 3-month period was adversely affected by a large income tax provision.
Spokesman Gordon Fitzpatrick said Viceroy’s tax rate averaged about 16% during the year and is expected to jump to about 20% for the current fiscal year.
Castle Mountain is producing a pretax cash flow of $2.9 million per month. MK Gold (NASDAQ) holds the remaining 25% interest in the mine.
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