Dayton sees red in 2000

Vancouver — The latest casualty of historically low gold prices is Dayton Mining (DAY-T), which posted a loss of US$31.4 million (or US$1.17 per share) for 2000.

“The company’s results were dominated by the need to close and write off the under-performing Andacollo mine [in Chile],” says Chief Executive Officer William Myckatyn. “However, the acquisitions of the Denton-Rawhide mine in Nevada gave the company a new asset, which will provide additional gold and silver leverage, as well as exploration upside.”

During the fourth quarter, Dayton produced 23,283 oz. gold and 81,986 oz. silver at a cash cost of US$261 per oz., compared with year-earlier output of 29,507 oz. gold at US$244 per oz. Production for 2000 totalled 121,734 oz. gold and 307,226 oz. silver at a cash cost of US$273 per oz. gold, compared with 1999 output of 134,995 oz. gold and 10,233 oz. silver at US$204 per oz.

The shortfall is due to the closure of the Andacollo mine last year. For 2001, the junior expects its share of the metal production at the Denton-Rawhide mine to hit 49,200 oz. gold and 466,500 oz. silver at an estimated cost of US$213 per oz.

Including the US$22.72-million writedown on the Andacollo mine, Dayton lost US$23.9 million (77 per share) in the fourth quarter, compared with a year-earlier loss of US$2.55 million (15 per share).