Second-quarter earnings at
For the first six months of 2003, Meridian is showing a profit of US$18.5 million, out of US$72.4 million in sales. At the halfway mark of 2002, earnings stood at US$21.6 million and revenue at US$65.4 million. Second-quarter profits were slightly lower this year than in 2002, when the company earned US$11.3 million while taking in US$34.3 million in revenue.
Meridian’s mainstay, the El Penon mine in northern Chile, produced just under 78,000 oz. gold and just over 968,000 oz. silver during the quarter, down from 84,000 oz. gold and 1.4 million oz. silver in the second quarter of 2002. Cash costs rose to US$48 per oz. from US$29.
Part of the increase in costs can be traced to lower silver grades, which fell to 191 grams per tonne in the recent quarter, compared with 278 grams in the corresponding period of 2002. Lower gold head grades — 14.5 grams per tonne as against 15.7 grams a year earlier — also contributed to the increase in costs. Still, El Penon’s costs are among the thinnest in the industry.
The Jerritt Canyon gold mine in Nevada, which was sold to
Meridian booked a US$3.3-million gain on the sale of its Jerritt Canyon interest and now has cash and current assets of US$171.4 million. Payables and short-term liabilities amount to US$16.1 million.
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