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METALL MINING REPORTS 1991 YEAR END RESULTS

 METALL MINING REPORTS 1991 YEAR END RESULTS
 TORONTO, March 30 /PRNewswire/ -- Klaus M. Zeitler, president and


chief executive officer of Metall Mining Corporation, announced today that net earnings for 1991 were $15,162,000 or $0.35 per share compared to $2,864,000 or $0.07 per share in 1990. Sales in 1991 were $177,713,000 compared to $166,913,000 in 1990.
 For the three months ended Dec. 31, 1991, net earnings were $1,026,000 or $0.02 per share compared to a net loss of $6,420,000 or $0.17 per share in the fourth quarter of 1990. Sales were $47,779,000 in the fourth quarter of 1991 compared to $38,978,000 in 1990.
 At Copper Range, production amounted to 103.6 million pounds of copper cathode compared to 94.4 million pounds in 1990. Production of copper cathode for the quarter was 26.4 million pounds, a 14 percent increase over fourth quarter production in 1990. In order to utilize its excess smelter and refinery capacity, Copper Range increased treatment of purchased copper concentrates. In 1991, Copper Range produced 14.1 million pounds of copper cathode from purchased and tolled concentrates and is expected to increase to 34 million pounds in 1992 to take advantage of the current high treatment charges.
 Ok Tedi, the copper-gold mine in Papua New Guinea in which Metall holds an 8.7 percent preferred and 7.5 percent ordinary share interest, paid dividends of $8.1 million to Metall during the year. Record production levels continued during the fourth quarter which resulted in production of copper in concentrate of 450.8 million pounds for the year from 375.2 million pounds in 1990. Production of gold in concentrates declined to 356,400 ounces in 1991, compared with 444,000 ounces in 1990, due to a decrease in gold headgrades. Metall's share of earnings from Ok Tedi amounted to $15,053,000 for 1991 compared to $5,140,000 in 1990.
 Teck reported net earnings for the year of $36,826,000 compared to $90,568,000 in 1990. Lower metal prices, a 13 percent decline in gold production and losses from its 22.5 percent equity interest in Cominco were mainly responsible for the decrease. Metall's share of Teck's earnings was $1,879,000 compared to $7,296,000 in 1990.
 Metall's share of the loss of Cominco to the effective date of the sale of its investment, Sept. 27, 1991 amounted to $5,164,000 compared to earnings of $3,419,000 for the full year 1990. Cominco's net loss in 1991 was $41,309,000 as compared to earnings of $54,756,000 in 1990. Metall realized an after tax gain of $13.9 million on the sale of its investment in Cominco.
 Effective Dec. 23, 1991, Metall sold its interest in Afton Mining Company to Teck Corporation which resulted in an after tax gain of $4.1 million.
 Development work at the 49 percent owned Cayeli copper-zinc project in Turkey continued in the quarter. Agreement was reached with the Turkish government on the expansion of the port facilities at Rize on the Black Sea to handle the shipment of concentrates. Requests for tenders for the construction of surface facilities have been issued. Negotiations with international banks regarding project financing are progressing well and agreement is expected in the near future. Startup is scheduled for late 1994 or early 1995. Production is expected to average 100,000 tonnes of copper concentrates and 70,000 tonnes of zinc concentrates per year.
 At Bougrine, non-recourse financing has been finalized and engineering and construction has begun. As part of the financing arrangements, Metall and its Tunisian partners agreed to reduce their respective interests by five percent to 45 percent each. The International Finance Corporation will acquire the additional 10 percent interest in Bougrine. A contract has been awarded to Kilborn Inc. of Toronto for the construction of the surface facilities. At full production, Bougrine will produce 70,000 tonnes of zinc concentrates and 14,000 tonnes of lead concentrates per annum. Startup is expected in 1994.
 At the Dikili gold project in Turkey, in which Metall has a one- third interest, the feasibility study was accepted and project financing is currently being arranged. Contracts for treatment plant construction, mine stripping and tailings dam construction have been offered for tender. The mine is expected to produce approximately 100,000 ounces of gold per year and have a mine life of 8 years. Startup is expected in 1993.
 During the first quarter of 1992, Metall agreed to acquire from Minnova Inc. a 40 percent joint venture interest in the Izok Lake property in the Northwest Territories for $15 million. Izok Lake is one of the largest undeveloped base metal deposits in North America with reserves estimated at 13.4 million tonnes grading 14.4 percent zinc and 3.2 percent copper.
 -0- 3/30/92
 /CONTACT: H. Douglas Scharf, vice president-finance and chief financial officer, 416-361-6400, for Metall Mining/ CO: Metall Mining Corporation ST: Ontario IN: MNG SU: ERN


SH -- NY080 -- 2968 03/30/92 14:48 EST
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Date:Mar 30, 1992
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