Toronto-based Falconbridge Gold (TSE) succeeded in increasing its gold output in 1989 even though the company is no longer mining ore from its Owl Creek mine, west of Timmins, Ont. The 50.6% owned Falconbridge Ltd. affiliate produced 78,406 oz. of the yellow metal in 1989 at a cost of US$266 per oz. compared with 67,742 oz. at US$295 per oz. in 1988.
As a result, net earnings in 1989 increased to $6.1 million or 46 cents per share, compared with earnings of $846,000 or 6 cents per share in the previous year.
Revenues in 1989 were $44.5 million from the sale of 95,116 oz. gold, compared with $30.7 million on sales of 57,518 last year.
The company also reported fourth-quarter net earnings of $1.1 million or 8 cents per share, compared with a loss of $1.3 million or -10 cents per share during the same period in 1988.
President Brian Ferguson said gold production during the quarter would have been higher but for a snowstorm which caused the inflatable ore storage building in Falconbridge Ltd.’s custom processor to collapse.
Falconbridge Gold produced 16,781 oz. of the yellow metal in the fourth quarter, compared with 20,437 oz. in the equivalent 1988 period.
Looking ahead, Ferguson is forecasting gold production of about 55,000 oz. from the company’s Hoyle Pond mine near Timmins and stockpiled material from Owl Creek is expected to produce an additional 15,000 oz.
About $1.8 million is also to be spent this year as Falconbridge Gold bids to find new reserves on the Hoyle Pond property. Falconbridge Gold (TSE) Year ended Dec. 31 1989 1988 Revenue (000s) $44,500 $30,700 Net earnings (000s) 6,100 846 Net earnings
(per share) 0.46 0.6004
Be the first to comment on "Falconbridge gold output up despite halt at Owl Creek"