Breakwater Resources reported earnings of $4.2 million or 19 cents per share for the year ended Dec 31. This compares to earnings of $925,000 or 5 cents per share in 1986. “The substantial increase in earnings is due to the higher price of gold realized during the year and increased production from the Cannon mine,” says Brian G. Pewsey, president.
In 1987, Breakwater’s 49%-owned Cannon mine processed a total of 487,066 tons of ore, recovering 136,913 oz gold and 184,660 oz silver. Average head grade was 0.31 oz and the recovery rate was 91.35%. The cash operating cost was $170(US) per oz.
As of Dec 31, the company had forward sales contracts covering 1988 production for 24,120 oz gold at an average price of $503. The proceeds from these forward sales ($12.1 million) will cover Breakwater’s share of 1988 operating costs, Pewsey confirms.
Breakwater declared a semi- annual dividend of 5 cents per share payable Dec 31 to shareholders of record Dec 15.
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