Gold decline hits Placer Pac

Press, 24 September 1988, Page 36

Gold decline hits Placer Pac

NZPA-AAP Sydney A slight fall in gold production pushed down Placer Pacific’s net earnings to sAustl7.o7 million from sAustl9.9l million for the six months ended June 30. The result was on total revenue of sAust6B.B4 million, including $7.46 million interest and other income, compared with $74.12 million for the corresponding six months in 1987. Earnings from subsidiaries fell to $7.36 million from $9.59 million while the tax bill jumped

from $lOO,OOO to $2.66 million. Exploration expenses were up from $896,000 to $2.25 million. Earnings for the second quarter of 1988 were $4.05 million on revenue of $28.40 million. The average price for gold during the quarter was $640 compared with $566 for the same quarter in 1987. At June 30, 70 per centowned subsidiary, Kidston Gold Mines, had 16,484 ounces of gold in inventory, about 10,000 ounces more than usual because of the mining of high

grade ore late in June. Placer last month reported a fall in gold production to 100,229 ounces in the first half of 1988 from 115,658 ounces. Earnings during the quarter were also affected by a strengthening of the Australian dollar. Kidston had sold forward 137,000 ounces of gold to June 30, 1990 at a weighted average price of $U5505.12. On June 29, the Loan Facility Agreement with ÜBS Australia for financing the Big Bell Project in Western Australia was executed. ______