Net earnings of US$33.3 million for the year ended Dec. 31 were off for Amax Gold (NYSE) from the previous year when earnings reached US$43 million. The company noted the drop in earnings was primarily due to an increase in taxes. With pretax earnings constant at US$44.4 million, net tax expense in 1989 was US$11.1 million higher than that in the previous year.
The drop in the year-over-year price of gold was offset to a large extent by the company’s gold marketing program which resulted in an average price of US$411 per oz. for gold, compared with the Comex average of US$382 per oz.
Cash production costs for the year were US$132 per oz., compared with US$110 per oz. for 1988. Amax attributed the increase to a higher net proceeds tax in Nevada and an increase in higher cost production at the Wind Mountain mine in Nevada and the Waihi mine in New Zealand. Amax Gold (NYSE) — $000s* Year ended Dec. 31 1989 1988 Revenue $121,600 $104,400 Net earnings 33,300 43,000
per share 0.55 0.72 *US dollars.004
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