Glamis posts profit

Despite a shortfall in production, Glamis Gold (GLG-T) earned US$205,000 in the third quarter, compared with a loss of US$909,000 in the corresponding period of 1997.

Gold production between the two periods fell to 25,759 oz. from 32,071 oz., reflecting a decrease in output from the Picacho mine in southeastern California. Revenue from gold production slipped accordingly, to US$8.2 million from US$10.3 million. Glamis realized a gold price of US$314 per oz. during the recent quarter.

Production at the Rand mine, also in southern California, totalled 21,740 oz., compared with 23,933 oz. a year ago., though cash costs per ounce were reduced to US$211 from US$258 and total production costs at the mine fell to US$291 from US$343 per oz.

Production at the Picacho mine amounted to 4,019 oz. during the third quarter, compared with 8,138 oz. a year ago. The 50% decrease is attributed to depletion of reserves. Cash costs per ounce fell to US$98 from US$180 between the two periods, and total cash costs slipped to US$159 from US$256 per oz.

At the San Martin project in central Honduras, drilling is about to begin on the Palo Alto zone, which is only 1 mile from the Sinter deposit. Both deposits host oxidized gold mineralization with low stripping ratios.

In Guatemala, drilling is expected to resume at the Cerro Blanco project, where recent work indicated a possible large gold system similar to the San Martin gold district.

Glamis Gold posted positive cash flow of US$3.2 million in the third quarter, compared with US$1.9 million a year ago. The increase is attributed to the recovery of working capital employed at the Picacho mine since mining ceased.

The company ended the quarter with working capital of US$36.8 million (about US$30 million in cash) and remains debt-free.

In other news, Glamis is rumored to be a potential white knight for Rayrock Resources (RAY-T), which is fending off a hostile takeover bid from Vancouver-based Quest Ventures. If successful, Quest intends to liquidate Rayrock’s assets. Rayrock’s board has recommended that shareholders vote against Quest’s proposal during a special meeting scheduled for Nov. 20.

Print

Be the first to comment on "Glamis posts profit"

Leave a comment

Your email address will not be published.


*


By continuing to browse you agree to our use of cookies. To learn more, click more information

Dear user, please be aware that we use cookies to help users navigate our website content and to help us understand how we can improve the user experience. If you have ideas for how we can improve our services, we’d love to hear from you. Click here to email us. By continuing to browse you agree to our use of cookies. Please see our Privacy & Cookie Usage Policy to learn more.

Close