With its high-grade Eskay Creek mine in British Columbia up and running, Prime Resources Group (TSE) is starting to post handsome profits.
For the quarter ended Sept. 30, Prime earned $9.5 million; for the first nine months of the year, the figure rises to $25.2 million, or 33 cents per share.
The company’s wholly owned Eskay Creek mine yielded 48,217 oz. gold and 2.23 million oz. silver in the third quarter, raising 9-month production to 152,019 oz. gold and 6.9 million oz. silver.
Cash production costs averaged US$185 per oz. gold-equivalent for the nine months.
Prime’s 40% share of production from the nearby Snip mine amounted to 39,510 oz. gold and 284,646 oz. silver. Cash production costs at Snip averaged US$187 per oz. for the third quarter and US$183 for the nine months.
Production for the year is expected to surpass the most recent estimate of 350,000 oz. gold-equivalent. As of Sept. 30, Prime had more than $65 million in working capital, about $28.9 million in long-term liabilities and just over 76 million shares outstanding.
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