Record high gold output of 34,571 oz. helped to stem the flow of red ink at Hope Brook Gold’s (TSE) underground gold mine in Newfoundland for the three months ended Sept. 30. But, the company blamed high interest rates and a strong Canadian dollar for a loss of $3.5 million (12 cents per share) on revenue of $16 million in the third quarter. That’s down from a loss of $4.9 million (16 cents per share) on revenue of $13.3 million in the year-earlier quarter.
Third-quarter gold production was the highest to date due to a cycle of higher-grade ore which permitted the mine to operate at better than cash break-even before interest charges. During the quarter, the company received $455 for each oz. of gold it produced.
Losses in the 9-month period ended Sept. 30 were $13 million (43 cents per share) on revenue of $41.3 million, compared with a loss of $12.7 million (42 cents per share) on revenue of $27.2 million in the year- earlier period.
The company said full utilization of expanded mill capacity has been delayed by shortfalls in production from underground. The mine’s two electric haulage trucks have operated at acceptable levels of availability except for some interruptions in August. A third truck will be delivered by year-end to meet the mill’s expanded capacity.
A new effluent treatment system is set to achieve full operation this month and should provide increased efficiency at lower costs, too.
Management’s revised proposal for a first contract with the United Steelworkers of America is being reviewed by union membership and a vote is expected soon.
Hope Brook Gold (TSE) 3 months ended Sept. 30 1990 1989 Revenue $15,958 $13,279 Net earnings (loss) (3,477) (4,888)
per share (0.12) (0.16)
9 months ended Sept. 30 Revenue $41,304 $27,200 Net earnings (loss) (13,012) (12,562)
per share (0.43) (0.42)
Be the first to comment on "Output up, losses down at Hope Brook"