Gold: Do they Pan Out?

Homestake Mining Company

The Company

Homestake is engaged in gold mining and related activities, including exploration, extraction, processing, refining and reclamation. Gold bullion, the Company's principal product, is produced in the United States, Canada, Australia, and Chile. Ore and concentrates containing gold and silver from the Eskay Creek and Snip mines in Canada are sold directly to smelters. Homestake conducts operations at the Homestake mine in the Black Hills of South Dakota and at the McLaughlin mine in northern California. Homestake also has a 100% interest in the Ruby Hill mine in Nevada, which is expected to commence production in the fourth quarter of 1997. In addition, Homestake owns a 25% interest in the Round Mountain mine in central Nevada and has an interest in two smaller mines in Nevada: the Pinson mine (50%) and the Marigold mine (33.3%). The Company has an exploration office in Reno, Nevada. The 120-year old Homestake gold mine is located in Lawrence County in and near Lead, South Dakota. Homestake owns 100% of the operation. Paved public roads provide access to the operation.

Latest Financials

Homestake Mining Company recorded net income of $30.3 million or $0.21 per share during 1996 compared to net income of $30.3 million or $0.22 per share during 1995 and $78 million or $0.57 per share during 1994. After adjusting for one-time nonrecurring items of $10.4 million or $0.07 per share, the 1996 earnings reflect higher gold production and sales volumes, higher gold prices and lower per ounce total cash costs, offset by higher depreciation charges, substantially increased exploration expenditures and lower returns from the Main Pass 299 sulfur operations.

© Copyright 1995-2000, The Motley Fool. All rights reserved. This material is for personal use only. Republication and redissemination, including posting to news groups, is expressly prohibited without the prior written consent of The Motley Fool. The Motley Fool is a registered trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us