Gold production 480,000 oz for Echo Bay Mines in 1987

With 480,000 oz of gold estimated to be produced this year, output has more than quadrupled for Edmonton-based Echo Bay Mines from the 118,000 oz poured back in 1983 from its then-only gold mining operation, the Lupin mine in the Northwest Territories.

Now some four years and the acquisition of five mines later, Echo Bay has become the country’s second largest gold producer. The way things look now, it will be surpassed only by the Dome Mines group of companies, which last year produced 553,000 oz of the yellow metal. Estimated production from the Dome group for this year is still unavailable.

Most of the increase in Echo Bay’s production will come through a full year’s production not only at the three producing Nevada mines acquired from Tenneco Inc. last fall but also at the Sunnyside mine in southwestern Colorado.

Looking at 1986, the Edmonton- based company produced 320,693 oz, up 21% from the 264,511 oz produced in 1985.

The increased gold production has certainly perked up the company’s bottom line. Net earnings for the year ended Dec 31, amounted to $25.9 million(US), or 61 cents per share, a substantial jump over the $15.2 million or 38 cents per share posted in the previous year.

Revenues were $126.1 million in 1986 based on an average realized gold price of $367 per oz, up from $83.8 million at an average price of $324 per oz in 1985.

Fourth-quarter net earnings were $9 million or 20 cents per share versus $5.2 million or 13 cents per share in the 1985 quarter. Revenues were $46.4 million based on an average gold price of $399 per oz, compared with $22.7 million at $334 per oz.

The company has changed from Canadian to U.S. dollar reporting, effective with its Dec 31 financial statements to “reflect the growing international nature of Echo Bay’s shareholders and to conform with the currency in which gold is generally traded.”