Echo Bay Mines Ltd. of Englewood, Colo., reported a net loss of $20.7 million during its second quarter, compared with a $14.6 million net loss during last year’s second quarter.
The company, which operates the Kettle River project in Republic, Wash., said lower gold prices caused the loss for the quarter which ended June 30.
Echo Bay’s average price per gold ounce fell from $392 last year to $350 during the second quarter.
The company processed more lower-grade ore, as expected, which increased cash operating costs to $262 a gold ounce.
In the wake of gold prices’ drop to a 12-year-low, Echo Bay is discussing delaying construction on its Paredones Amarillos gold mine in Mexico with its joint-venture partner, Viceroy Corp.
Echo Bay is also considering delaying construction at its Aqaurius gold mine in Ontario, Canada, until gold prices recover.
Echo Bay has continued to downsize its Denver-based personnel office from 116 to 75. The cutbacks will reduce its cash operating costs and general expenses by $4 million, the company said. , DataTimes
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