Sunshine Mining Posts Big Loss

Sunshine Mining and Refining Co. posted a larger first-quarter loss than it posted last year, mostly from higher exploration and development costs for its mines.

The Boise-based company lost $4.6 million, or 4 cents a share, for the three months ending in March. That compares with a loss of $3.9 million, or 3 cents a share, for the same time in 1995.

The bigger loss comes from Sunshine’s investment in the West Chance area of its Sunshine Mine in Idaho’s Silver Valley. The company has discovered substantial amounts of silver there and continues to buy equipment and hire more miners to develop the deposit.

Sunshine also spent more money on developing its Pirquitas mine in Argentina.

The company has reduced costs to produce silver from the Sunshine mine to $5.99 an ounce from $8.05 an ounce during the first quarter.

The company also benefitted from an increase in silver prices with a quarterly average of $5.68 an ounce compared with $4.85 last year.

, DataTimes