The 1990 second-quarter financial results from Placer Dome (TSE) show a jump in net earnings to $80.8 million, or 34 cents per share, compared with net earnings of $31.5 million or 14 cents per share for the same period in 1989. For its 1990 first half, the major mining company reported consolidated net earnings of $115.9 million, or 49 cents per share. This includes a non-recurring gain of $59.9 million from the sale of its U.S. oil and gas assets and an $8.7 million writedown of the company’s share of its investment in the Big Bell gold mine in Australia. Net earnings in the 1989 first half totalled $69.3 million.
Revenues in the first half reached $577.8 million, compared with $457.3 million from continuing operations in the 1989 first half.
Placer Dome said earnings from continuing operations in the first six months of this year totalled $56 million, compared with $63.4 million in the same period of 1989. This decline was attributed to reduced contributions from base metal mines.
The company noted that its share of gold production rose 31% to 667,000 oz., compared with the 510,000 oz. gold produced in the first half of 1989. The average cash cost of gold production fell slightly to US$253 per oz., compared with US$261 per oz. in the first half of 1989.
In the 1990 first half, Placer Dome paid $105 million to acquire a 45% interest in Stikine Resources, which in turn holds a 50% interest in the Eskay Creek deposit north of Stewart, B.C. Placer Dome (TSE) $000s except per-share items 3 months ended June 30 1990 1989 Revenue $277,900 $226,900 Net earnings $80,800 $31,500
per share 34 cents 14 cents004
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