Amax Gold announces third quarter earnings

Amax Gold’s net earnings were $13.1 million(U.S.), or 22 per share for the 1988 third quarter compared with $11.1 million or 18 per share for the 1987 third quarter. For the first nine months of 1988, net earnings were $38.6 million or 64 per share compared with $31.5 million or 53 per share for the same period in 1987.

Sales for the third quarter and first nine months of 1988 were 61,500 and 165,500 oz gold, respectively, compared to 42,330 and 117,660 oz gold for the same periods in 1987. Gold sales are being reported by Amax Gold’s 28.4% owned Waihi mine in New Zealand for the first time this quarter, with Amax Gold’s share being 3,720 oz gold.

Cash production costs for the Sleeper mine in Nevada for the 1988 third quarter and first nine months were $106 and $101 per oz, respectively, compared with $72 and $73 per oz, respectively, for the third quarter and first nine months of 1987. This increase in production costs is due primarily to increased production from higher cost heap leach operations and, for the nine month period, a lower average mill- head grade.

Amax Gold produces and explores for gold in the United States and has interests in gold producing properties in Canada and New Zealand. The company is 87% owned by Amax Inc.