Gold Mining Company Echo Bay Mines
Echo Bay Mines was begun in 1964 and
This is an excerpt from the paper...
Echo Bay Mines was begun in 1964 and was wholly owned by IU International by the end of the 1960s. Echo Bay mined silver near the Arctic Circle in Canada for most of its early history, then used the proceeds of the silver operation to purchase gold mines in the United States in the early 1980s (Clark, 1993, p. 1220). Echo Bay Mines is a major North American gold mining company with interests in four operating mines and exploration and development properties in Canada and the United States. The company has an office in Denver, but is based in Canada, where it is also incorporated. Echo Bay has approximately 1,800 employees, and has been traded on the American Stock Exchange (its symbol is ECO) since 1983. IU International spun off its Echo Bay holdings in November 1983. All financial information included in this report is in American dollars.Gold is both a commodity and a monetary asset which adds complexity to the market and makes estimation of future prices difficult. As a commodity, gold is used in the fabrication of jewelry and electronics; the supply from mines plus the supply from inventory stocks and gold scrap is likely sufficient to meet the market's demands. If gold were only a commodity, price estimation would be more straightforward. However, gold reserves are held by central banks because of the perception of gold as a "store of value" (Clark, 1993, p. 1217). Central banks can therefore have an effect on the price of gold if they decide to
. . .
ncial data is available (Sorrentino, 1993, p. 7770):
Because the company is dependent on the highly volatile market price of gold, it is useful to consider the total output of gold and silver in ounces, as outlined above. This provides a sense of the company's ability to generate product. However, since the company must sell that product at the going market price, its revenues and income must also be considered since these are ultimately the measure of the company's ability to conduct business as an ongoing concern. The price volatility and relative unpredictability of gold (while subject to price fluctuations, silver does not have the wide range of prices as gold) means that companies must be able to contain their costs in order to continue operating profitably even during times of price depression. The following chart illustrates the company's net profit for the past three years (Clark, 1993, 1220):
The company has a current ratio of 1.4 for 1992; this continues a steady increase from .8 in 1991, which was an increase from .65 in 1990. The debt to equity percentage is at 73 percent for 1992, down from 98 percent in 1990, but a slight increase from 1991 (69 percent). Long-term debt to equity has falling from 74
. . .
Some common words found in the essay are:
Echo Bay, Sales Activity, United Canada, Threats Opportunities, Bay Mines, Kettle River, echo bay, Clark November, Circle Canada, Arctic Circle, North American, bay mines, echo bay mines, price gold, 1993 echo bay, 1993 echo, sorrentino 1993 7770, clark 1993, sorrentino 1993, ounces gold, 1993 7770, bay mines company, effect price gold, percent company's, company,
Approximate Word count = 1325
Approximate Pages = 5 (250 words per page)
|
Customer Service
to Over
32,000 Professionally Written Papers!!!
