Bema Gold Corp., a junior mining company with interests in mines in Russia, South Africa and South America, went from a loss in last year’s second quarter to a profit of $745,000 US for the three months ended June 30.
The profit, which amounted to a slim 0.2 cents per share, was an improvement on the restated net loss of $4.2 million, or 1.3 cents per share, for the same period last year.
The Vancouver-based company, which reports results in U.S. dollars, attributed the improvement on its bottom line to gains on derivative instruments related to its gold-hedging program.
Gold revenue in the second quarter was $21.2 million on sales of 54,036 ounces at an average realized price of $391 US per ounce. That was down from a year earlier, when gold revenue totalled $24.6 million on sales of 72,890 ounces at an average realized price of $337 per ounce.
The Julietta Mine in Russia, which is 79 per cent owned by Bema, contributed $10.4 million to revenue in the second quarter, down $300,000 from a year earlier. Another $10.7 million was contributed by the Petrex Mines in South Africa, down from $13.9 million in the second quarter of 2003.
The company (BGO-TSX) said its focus for the remainder of 2004 will be to optimize production at the Petrex Mines and continuing to increase reserves at the Julietta Mine.
It also expects to make significant advances at its three major development projects, Refugio and Cerro Casale in Chile and Kupol in Russia.
The company said its goal is to increase annual gold production to more than one million ounces from the development of these existing assets.