Profit and production up for Echo Bay in 9-months

With a 76% boost in profit, Edmonton-based Echo Bay Mines has emerged from the nine months ended Sept 30 with net earnings of $21.9 million on revenues of $109.2 million.

This compares to net earnings of $12.6 million on revenues of $81.8 million in the year-earlier period.

The bottom line improvement is mainly attributable to increased gold sales volume and a higher realized gold price. In the latest period 222,900 troy oz of gold were sold at an average price of $351(US) per oz compared to 189,200 troy oz sold in the year-earlier period at $321 per oz.

Consolidated gold production for the 9-month period was 212,600 troy oz, up from the 192,400 oz produced in the year earlier period. The increase is mainly due to the Sunnyside mine in Colorado reaching commercial production effective Aug 1. From that time to the end of Sept 30 that mine produced 8,362 oz of gold at a cash production cost of $290 per oz.

The company’s 100%-owned Lupin mine located in the Northwest Territories produced 143,602 oz of gold at a cash production cost of $177 per oz in the latest nine month period, up from 141,753 oz in the year-earlier period.

At the Round Mountain mine in central Nevada, Echo Bay’s 50% share of 9-month gold production amounts to 60,598 oz at a cash production cost of $191 per oz compared to 50,600 oz produced at $221 per oz in the year-earlier period.

It is safe to assume Echo Bay will enjoy increased gold production over the next 9-month period. Earlier this fall the company had signed an agreement in principle with U.S.-based Tenneco Inc. to acquire its North American gold mining, development and exploration properties for $130 million. Among the assets are three producing mines in Nevada.