A 5% decline in production costs boosted Echo Bay Mines’ (TSE) second-quarter earnings to US$4.7 million (five cents per share) from US$800,000 (one cent per share) in 1990.
The company lowered its average cash production cost to US$236 per oz. during the quarter from US$249 last year, despite an additional US$2 provision for estimated future reclamation.
The biggest improvement was realized at the McCoy/
Cove mine in Nevada, where costs dropped by US$52 to US$250 as production jumped 19% to 71,021 oz.
Meanwhile, total production from the company’s four major mines rose to 198,371 oz. from 190,591 oz. in the second quarter of 1990. Silver-rich ore from the Cove deposit quadrupled silver output to 1.4 million oz. Since June 30, 1990, Echo Bay has reduced its total debt by US$69.3 million to US$345.8 million.
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