Lac reports higher earnings in 2nd quarter

Second-quarter earnings by Lac Minerals (TSE) were 23% higher than for the same period in 1987, and more than twice those recorded during the first quarter of this year.

The Toronto-based gold producer recorded net earnings of $18.4 million (20 cents per share) on revenue of $56.4 million during the second quarter, compared with $14.9 million (18 cents per share) on revenue of $51.2 million for the same period last year. Lac’s first quarter earnings this year totalled $7.9 million.

For the first six months of 1988, the firm recorded net earnings of $26.3 million (29 cents per share) on revenue of $99.8 million, compared with $18.5 million (22 cents per share) on revenue of $95.3 million for the first half of 1987.

Cash flow from operations during the second quarter amounted to $29.4 million and for the first six months of the year $41.3 million, compared with $25 million and $32.1 million for the same periods in 1987.

Gold production of 87,968 oz during the second quarter compares with the 77,742 oz produced during the same period last year. For the first half of 1988, gold production totalled 151,782 oz, compared with 155,060 oz last year. The company experienced a workers’ stike at its Bousquet mine in northwestern Quebec during the first quarter of this year.

Lac attributes the increased second quarter revenue to higher gold deliveries, a higher average realized price for gold and the addition of revenue from its base metal operations.

The company is projecting total gold output this year of 315,000 oz.

Not included in the Lac figures are results from the Page Williams mine at Hemlo in northern Ontario. The Supreme Court of Canada is to hear, this October, an appeal by Lac of a court decision awarding the mine to International Corona Resources, which earlier this year became part of Corona Corp. (TSE).