Despite higher silver production,
The company reported a loss of US$3.8 million, compared with a loss of US$3.1 million in the corresponding period in 1997.
Silver production climbed to 1.6 million oz., up from 1.36 million oz. during the fourth quarter of 1997. Net operating cash costs increased 5 cents per oz. to US$4.21 per oz. silver, largely as a result of lower byproduct credits.
The company produced 5.8 million oz. in 1998, up 36% from last year. Cash costs declined, despite lower byproduct credits, to US$4.43 per oz.
Sunshine expects to crank out 5.5 million oz. in 1999, as it expands development into the eastern area of the Sunshine mine in northern Idaho. It plans to develop access to the ConSil shaft, which it acquired in 1995. Rehabilitation of the shaft, which extends to 5,400 ft., is expected to boost production by 50% and cut cash costs by 10%. Additional production will come from several veins in the West Chance area.
On the strength of these developments, the company has again boosted production forecasts at the mine. Annual production is now expected to remain around 5.5 million oz. through to the end of 2002.
In the meantime, Sunshine is considering expanding to 6,600 tons per day the proposed Pirquitas silver-tin deposit in northwestern Argentina.
Proven and probable reserves stand at 101 million oz. silver within 20.1 million tons grading 5 oz. per ton and 0.29% tin. The company estimates capital costs for construction will be US$120 million.
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