Despite weak gold prices, Glamis Gold (TSE) turned in another solid operating performance during its first quarter of fiscal 1993.
The company has been producing gold for over 10 years, and currently operates two open-pit, heap-leach operations; the Picacho and Yellow Aster, both in California.
Now an investment-grade junior paying regular dividends, Glamis is riding out a weak gold market by keeping its cost of production on a per-ounce basis low due to increased productivity, modernization, economies of scale and an improved ore-to-waste ratio.
The company is also managing to increase proven and probable reserves, while maintaining grades, at its major operating mines through ongoing drill programs.
The company’s share of production for its latest quarter was 20,558 oz., a 14% increase over the 18,041 oz. produced a year earlier. The average cash costs per oz. declined to US$173 from US$182, while total costs declined to US$248 from US$263.
Net earnings for the first quarter of fiscal 1993 (ended Sept. 30) were US$1.29 million, up from US$739,000 in the comparable period a year earlier.
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