Hemlo Gold Mines (TSE) reported earnings of $8.6 million (10 cents per share) for the second quarter compared with $1 million for the same period last year. The 1990 income included the writedown of Hemlo’s investment in Windarra Minerals (TSE), while the 1991 results include Hemlo’s purchase of Noranda’s (TSE) gold assets.
As a result of lower-grade ore at Golden Giant mine at Hemlo, Ont., and the inclusion of higher-cost ore from the Silidor mine near Rouyn-Noranda, Que., operating costs jumped to US$126 per oz. from US$105 per oz. during the second quarter of 1990. Hemlo received an average gold price of US$374 compared with US$379 last year.
During the first six months of 1991, Hemlo produced 220,715 oz. of gold (down from 222,698) for earnings of $16.8 million (19 cents per share).
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