Meridian posts loss for quarter | nnbusinessview.com

Meridian posts loss for quarter

NNBW staff

Meridian Gold Inc. of Reno lost $12.9 million in its last full quarter as an independent, publicly owned company.

The company, which is being acquired by Toronto’s Yamana Gold Inc., said costs associated with the takeover talks contributed to the loss. That acquisition is expected to be wrapped up this week.

The quarter’s loss compares with a net income of $5.7 million in the comparable period a year earlier.

Meridian said its mines in Chile and Nevada produced 78,300 ounces of gold during the quarter, up from 74,200 ounces a year earlier.

The Rossi Mine in Nevada, a joint venture in which Meridian owns 40 percent and Barrick Gold Exploration owns 60 percent, posted sharply higher production costs during the quarter.

Meridian executives said the ore mined during the third quarter contained significantly less gold, boosting the cash costs of production to $494 an ounce from $322 earlier this year.

The mine 25 miles northwest of Carlin, which began commercial operation last spring, produced 10,200 ounces of gold during the third quarter.


News


See more