Pegasus Gold Has Higher Losses

Pegasus Gold Inc. of Spokane saw higher losses during the 1997 second quarter compared with last year, the company said Friday.

The gold mining company reported a net loss of $3.2 million during the 1997 second quarter ending June 30, compared with a net loss of $1.7 million during last year’s second quarter.

Pegasus said the loss was because of its investments in the Emerging Markets Gold Fund. Gold prices hit a 12-year low in June.

However, Pegasus took an aggressive approach to sell most of its gold in advance at higher prices, which protected its costs. While gold prices averaged $343 an ounce during the second quarter, Pegasus sold its gold at $444 an ounce.

Pegasus had 897,000 ounces of its gold marked for selling at a higher price - $436 an ounce - on June 30, compared to the market price of around $324 an ounce. , DataTimes