A drop in gold sales and lower metal prices brought reduced first-quarter earnings for Pegasus Gold (TSE) this year over last.
Pegasus reported earnings of US$378,000 for the 1991 first quarter on revenues of US$23.3 million, compared with earnings of US$621,000 in the first quarter of 1990 on revenues of US$29.8 million.
Gold sales for the quarter ended March 31, dropped 11,600 oz. while production dropped 15,000 oz. to 41,100 oz.
About 5,000 oz. of the decline was related to the closure of the Relief Canyon mine in Nevada and the suspension of mining operations at Basin Creek near Helena, Mont. The balance of the drop is attributed to unfavorable weather conditions affecting production levels at the Florida Canyon mine in Nevada.
The average gold price realized during the period was US$409 per oz. compared with US$414 per oz. in 1990.
The resulting drop in revenues, equivalent to about US$1.7 million in earnings, was offset by a US$1.8-million reduction in operating expenses during the period.
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