North American gold miner Echo Bay has posted net earnings of USD5.5 million in the first quarter compared with net earnings of USD3.8 million a year ago. Revenue reported for the period was USD55.2 million, down from USD64.5 million the previous year as a result of lower production offset by the recognition of deferred revenue (USD7.5 million) in the quarter. The deferred revenue relates to hedging contracts that were closed in prior years. The average price realized during the quarter was USD345 per ounce of gold compared with USD310 per ounce in the same quarter the previous year. Gold production in the quarter was 149,276 ounces compared with 173,470 ounces in the same quarter the previous year. Silver production from McCoy/Cove mine in Nevada during the quarter was 1.5 million ounces compared with 1.6 million ounces produced in 2001. Gold production from all the company's mines decreased for the quarter, compared to a year ago, as a result of from lower grades and fewer tons milled. Gold and silver production at the company's McCoy/Cove mine fell with an increase in cash operating costs to USD225 per ounce from USD257 in 2001, reflecting no mining costs and the reduction of infrastructure costs during the quarter. The property is in full reclamation mode. At the Lupin mine in Nunavut, cash operating costs increased to USD283 per ounce from USD217 per ounce in 2001 reflecting the lower production and the difference in the exchange rate. Echo Bay reports that its hedge book represents approximately 38% of this year's remaining planned gold production, leaving the company unhedged beyond 2002.
