Australian-based major Normandy Mining saw its net profit jump by more than half this past quarter.
In the three months ended Sept. 30, Normandy recorded a consolidated net profit of US$32.1 million (unaudited), compared with a profit of $20.5 million in the corresonding quarter in 1996, for a 57% increase.
Gold production for the quarter was 318,447 oz., a level that was roughly on budget but 7% lower than the record set in the quarter ended June 30, 1997. The drop was a result of scheduled mine site development activity at several of Normandy’s operations. At the Mt. Leyshon mine, the haulage road was realigned, while at Kalgoorie Consolidated Gold Mines, the Croesus and Mt. Percy plants were decommissioned and the Fimiston mill was shut down for five days for maintenance.
The average total cash cost of Normandy’s gold operations was US$329 per oz., which was $7 lower than the company’s 1996-97 average. The gold division accounted for US$97 million of Normandy’s US$133.8 million in total earnings (before depreciation, amortization, interest and tax). The metals division contributed US$23.1 million, with commericial minerals accounting for a profit of US$8.4 million.
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