Higher gold production for LAC in 1st quarter

Increased gold production and lower net earnings have been reported by Toronto-based LAC Minerals (TSE) for the first quarter of 1990, reflecting the consolidation of 65% owned Bond International Gold (TSE) for a complete quarter. LAC had net earnings for the three months ended March 31 of $3.4 million (3 cents per share) on revenue of $111.4 million, compared with earnings of $6 million (6 cents per share) on revenue of $37.3 million for the year earlier period.

Total gold production for the first quarter increased to 245,636 oz. of which LAC’s share is 181,642, compared with 71,773 oz. for the same period in 1989. The average cash cost of production improved to $247 per oz., compared to $322 per oz. a year ago.

Earnings from operations rose to $7 million, compared with a loss of $0.9 million for the same period last year. The company said reduced financial income and a higher effective income and mining tax rate partially offset the increase in earnings from operations. Working capital provided by operations for the period increased to $37.3 million in 1990, from $5.6 million last year.

The company’s delivery commitments on forward gold sales at the end of the quarter were 490,000 oz., of which 190,000 are for delivery during the balance of this year at $459 per oz., while the other 300,000 oz. are for delivery next year at $443 per oz.

For the first quarter, LAC’s subsidiary BIG reported a net loss of $4.3 million (8 cents per share) on revenue of $70.2 million, compared with net income of $3.4 million (5 cents per share) on revenue of $52.6 million a year earlier.

BIG said results during the first quarter were affected by a pretax unrealized foreign exchange loss of $3.1 million, compared with a $5.9-million gain in the same period last year. The loss is also attributable to lower copper prices and lower copper production at the company’s El Indio mine in Chile.

Total gold production from BIG’s five mines during the quarter was 162,456 oz., of which the company’s share was 152,182 oz. The average cash cost of production during the quarter rose to $229 per oz., including byproduct credits, compared with $167 per oz. in the same period last year. Working capital from operations nearly doubled during the quarter to $23.3 million from $12.7 million a year ago. LAC Minerals (TSE) $000s except per-share items* Quarter ended Mar. 31 1990 1989 Revenue $111,400 $37,300 Net earnings 3,400 6,000

per share 0.03 0.06 *US dollars004 Bond International Gold1 (TSE) $000s except per-share items* Quarter ended Mar. 31 1990 1989 Revenue $70,200 $52,600 Net earnings (loss) (4,300 ) 3,400

per share (0.08 ) 0.06 *US dollars