In 1995, Campbell Resources (TSE) accomplished a triple feat: it almost doubled its earnings from the previous year; reported record gold production; and increased minable reserves at all its mine properties.
The company earned $10.5 million (or 9 cents per share) on revenue of $67.4 million, compared with $5.3 million (5 cents per share) on $46.9 million for 1994. Revenue in 1995 was bolstered by a one-time gain of $2.9 million from the sale of a property interest.
Increased gold production was attributed to improved operations and a full year’s output at the Santa Gertrudis mine in Mexico’s Sonora state. The open-pit, heap-leach mine yielded 55,600 oz. gold at a cash operating cost of US$205 and made Santa Gertrudis Mexico’s third-largest gold producer. In 1994, Santa Gertrudis produced 41,600 oz., of which Campbell’s share amounted to 16,300 oz. at a cash operating cost of US$287 per oz.
Minable reserves at Santa Gertrudis rose to 1.5 million tons averaging 0.063 oz. gold per ton, compared with 1.1 million tons averaging 0.062 oz. gold in the previous year. The increase resulted from an aggressive, property-wide exploration program, which will continue in 1996. The company plans to spend $2.2 million exploring the 75-sq.-mile property.
Meanwhile, in the Chibougamau camp of northwestern Quebec, Campbell produced 64,500 oz. gold and 1.5 million lb. copper at the Joe Mann mine, compared with 61,100 oz. gold and 1.2 million lb. copper in 1994.
Cash operating costs drifted lower, to US$284 from US$299 per oz., as a result of high millhead gold grades and a reduction in the amount of low-grade, development ore processed.
With the acquisition of the Cerro Quema project in Panama, Campbell increased its total minable reserves. The property hosts 9.9 million tons averaging 0.04 oz. gold per ton and is expected to produce 50,000 oz. annually.
The company expects to produce 123,000 oz. in 1996 from existing operations and continues to pursue gold prospects in Latin America.
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