by Doug Ashbury
Northern News Services

NNSL (Dec 24/97) - Con mine owner Miramar Mining Corporation is "well positioned" to withstand the recent spate of low gold prices, according to its third quarter report.

Miramar has sold forward Con's fourth quarter gold production at $423 US per ounce, the company said.

And for 1998, Miramar has sold forward 133,050 ounces at an average of $441 US an ounce.

Selling forward guarantees a set price at a future date.

Early Monday afternoon, the gold spot price was $291.05 US.

But Giant mine owner Royal Oak Mines Inc.'s 1998 gold sales are not hedged.

Royal Oak "will be selling gold produced in 1998 into the spot market," said Nick Volk, Royal Oak's manager of financial analysis.

On the spot market, commodities are sold for cash and delivered immediately.

While not hedged in 1998, Volk said Royal Oak will realize $390 US to $400 US an ounce with this year's gold hedging.

Royal Oak predicts its 1997 cash costs among all its gold production holdings will be $332 US ($200 US and $174 US in 1998 and 1999).

The company's Kemess mine, with a low cash cost per ounce, is due to be in production in April.

Both Miramar and Royal Oak recently released third quarter financial results.

For the nine months ended Sept. 30, Miramar lost $15.6 million compared to a $6.1 million gain in the same nine months in 1996.

Nine month gold production was 72,021 ounces compared to 85,395.

Third quarter gold production was 28,363 compared to 31,993.

Over the year's first three quarters, Royal Oak lost $62.6 million compared to a $15.3 million gain for the same period in 1996.

Third quarter loss was $2.4 million compared to $10.2 million gain.

Royal Oak's total gold production from all sources was 284,430 ounces over the year's first nine months compared to 283,655 ounces over the same nine months a year earlier.

Giant produced 68,567 ounces of gold over the first nine months compared to 61,033.

In third quarter, Giant gold production was 22,749 ounces compared to 20,984.

Nine month cash cost was $344 US compared to $337 US (third quarter, $296 US compared to $339 US).

Third quarter average London afternoon fix was $324 US.