Net income of $1.9 million (23 cents per share) on revenue of $10.3 million was repomted by TSE-listed Sigma Mines (Quebec) for the first quarter this year, compared with net income of $1.67 million (20 cents per share) on revenue of $10.7 million for the same period in 1987. Gold production at 16,935 oz was slightly higher than in 1987.
The company attributes the improved results primarily to increased interest income and a lower effective rate of income and mining tax.
Also, Kiena Gold Mines (TSE) reports net income of $1.4 million (12 cents per share) on revenue of $8.9 million during the first quarter, compared with net income of $2.1 million (17 cents per share) on revenue of $10.3 million. Gold production during the quarter was 14,317 oz, down from 16,745 oz last year.
Kiena says first-quarter results were affected by a decrease in the quantity of gold sold, partially offset by higher average gold prices realized. The company says the lower gold output was the result of a temporary reduction in grade attributed to cyclical factors at the Kiena mine.
Shareholders of both companies are to vote this month on a proposed amalgamation of Sigma and Kiena, which are subsidiaries of Placer Dome (TSE).
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