Improvements at two key mines enabled Homestake Mining (NYSE) to produce a record 479,200 oz. gold during the quarter ended June 30. This represents a 4% improvement over gold production in the same period a year ago.
Underground grades rose by nearly 32% at the Homestake mine in South Dakota as a result of greater ore control and closure of certain high-cost areas of the mine. Production rose to 121,800 oz., the highest level since the mid-1970s.
A 14% increase in gold production was achieved at the Williams mine in Ontario’s Hemlo camp. The increase is attributed to higher throughput and higher-than-expected grades.
The California-based major succeeded in lowering its break-even cost to US$312 per oz. Cash operating costs were US$230 per oz. for the second quarter, 12% lower than in the previous year.
Net income of US$16.9 million was reported for the first six months of 1993, compared with a loss of US$27.7 million a year ago. The improvement is attributed to lower operating costs, a reduction in exploration and interest expenses, and higher gold prices.
Homestake expects to produce 1.8 million oz. gold this year, mainly from the U.S., Canada and Australia.
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