Earnings for the first half of 1990 for Equity Silver Mines (TSE) stood virtually unchanged over the previous year. The company reported earnings for common shareholders of $8.2 million for the six months ended June 30, or 25 cents per share. Equity noted that the results were positively affected by higher sales volumes of silver and gold, lower unit costs and reduced exploration costs. These positive factors were all but cancelled by lower silver and copper prices, as well as lower copper sales volumes and an increase in the provision for mine closure costs.
The average London spot silver price for the first half was US$5.11 per oz. versus US$5.71 in 1989, and the average spot gold price was US$386 per oz. versus US$384 in 1989.
Forward sales contracts for gold and silver covering the first half resulted in additional revenues of $5.6 million.
The company has forward sales contracts covering the period of June 30 to November, 1991, totalling 1.9 million oz. of silver at an average price of US$6.70, and 30,000 oz. of gold at an average price of US$438.
The level of funding required for mine closure costs has not yet been finalized with the government of British Columbia. To date, $16 million has been set aside and Equity has increased its total future provision to $30 million in accordance with an independent study which estimated closure costs.0600,0206,0300,0008 Equity Silver Mines (TSE) $000s except per-share items 6 months ended June 30 1990 1989 Revenue $46,500 $50,000 Net earnings 8,200 8,200
per share 0.25 0.25004
Be the first to comment on "Equity Silver earnings steady"