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Gold/Mining/Energy : Gold and Silver Mining Stocks
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To: russwinter who wrote (2444)10/1/2001 1:22:56 AM
From: baystock  Read Replies (1) of 4051
 
Yes ELD has been doing a good job with the turnaround. But it looks like they have had some good luck also...thanks to the drop in the Brazilian currency, their cash costs are down to $170 per oz now:

In the third quarter, Sao Bento has been producing gold at cash operating costs of below US$170 per ounce, excluding the amortization of the Real currency hedge.As a result, the Company's cash position has improved despite the temporary drop in production caused by energy rationing. The Company has successfully modified the operation satisfying the Brazilian Government's decree June 1, 2001 requiring the reduction of power by 20%.The Sao Bento mine produced in excess of 9,000 ounces in both July and August.

The increase in operating cash flow has been helped by the Company's decision to unwind its Brazilian currency hedge in July 2001.During 2001 the Brazilian Real has dropped by 39%, which is beneficial to the Company's cash flow since approximately 70% of its costs at Sao Bento are based in Brazilian Reals.
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