Spokane-based Pegasus Gold Inc. lost $1.8 million, or 5 cents a share, in the first quarter. That compares with a loss of $1.7 million, or 5 cents a share, for first quarter 1994.
Increased expenditures on international exploration hurt earnings during the first quarter of this year, the company reported. However, total gold production increased 41 percent to 122,223 ounces, a record for the first quarter.
Since the beginning of the second quarter in April, Pegasus has gathered financing to acquire the remaining stake in Zapopan N.L., of which it already owns 58 percent. Zapopan operates the Mount Todd mine in Australia, the richest gold mine in Pegasus’ portfolio.
The average cost of producing an ounce of gold at Pegasus mines across the world rose slightly to $251 from $250 during the first quarter of 1995.
Through its market hedging programs, Pegasus received an average of $391 an ounce for the gold it produced, while the average spot price for gold during the first quarter was $380.