LAC back in the black

A cleaner balance sheet, a strong hedging program and increased gold production pushed LAC Minerals (TSE) well into the black in 1991.

For the year ended Dec. 31, 1991, LAC recorded earnings of US$15 million (12 cents per share) compared with a loss of US$64.3 million (53 cents per share) in 1990.

The 1990 loss reflected a US$119.6-million writedown in the value of LAC’s mining interests, including US$84 million for its exploration properties. Following the acquisition of the remainder of Bond International Gold, LAC’s share of gold production increased from 785,000 oz. to 886,000 oz. in 1991. Hedging ensured an average realized gold price of US$413 in 1991, compared with US$408 per oz. in 1990.

At the end of the year, LAC had 1.54 million oz. gold hedged at an average price of US$398 per oz. Total ore reserves were 10.1 million oz., virtually unchanged from 1990 year-end.