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METALL MINING REPORTS SIX-MONTH RESULTS

 METALL MINING REPORTS SIX-MONTH RESULTS
 TORONTO, Sept. 1 /PRNewswire/ -- Dr. Klaus M. Zeitler, president and


chief executive officer of Metall Mining Corporation, announced today that earnings for the second quarter of 1992 were $3,179,000 or $0.06 per share compared to $1,478,000 or $0.04 per share in the same period last year. Earnings increased from the comparable period in 1991 due primarily to higher earnings at Copper Range and equity earnings from MIM Holdings Limited. As well, 1991 earnings included a non-recurring gain of $4.6 million resulting from a share issue by Teck Corporation. In the second quarter of 1992, revenue increased 17 percent to $52,829,000, as compared to $45,148,000 in the second quarter of 1991.
 For the six months ended June 30, 1992, earnings were $3,873,000 or $0.08 per share compared to a loss of $2,490,000 or $0.06 per share in 1991. Revenue increased 26 percent, in the six months, to $106,064,000 from $84,415,000 a year earlier.
 Copper Range had an operating profit of $2,634,000 in the second quarter, compared to an operating loss of $853,000 in 1991. Cash costs (net of credits) declined in the second quarter to US$0.81 per pound. The copper price realized was US$1.00 in the second quarter of 1992. Copper Range's operating profit in the first half of 1992 was $3,076,000, compared to an operating loss of $1,261,000 in 1991. Production at Copper Range, including production from purchased concentrates, for the first six months of 1992 was 68.7 million pounds of copper cathode equivalent. This represents an increase of 22 percent above production in the comparable period in 1991.
 Metall's share of Ok Tedi's earnings for the three month and six month period ended June 30, 1992 was $2,068,000 and $2,502,000, respectively. Ok Tedi is a copper-gold mine in Papua New Guinea in which Metall holds an 8.7 percent preferred and 7.5 percent ordinary share interest. Production for the first half of 1992 was 202.8 million pounds of copper, 147,200 ounces of gold and 361,800 ounces of silver. Metall received a $3.1 million dividend from Ok Tedi on July 31, 1992.
 During the second quarter, the shareholders of Metall approved the purchase of 75,614,000 ordinary shares of MIM from Metallgesellschaft AG in exchange for the issue of 13,138,689 common shares of Metall. This transaction increased Metall's strategic ownership interest in MIM to 13.9 percent. Metall commenced equity accounting for its investment in MIM effective April 1, 1992. MIM reported earnings of A$36.3 million in its quarter ended June 28, 1992 of which Metall's share was $2,800,000.
 Teck reported net earnings of $12.0 million and $20.8 million in the three and six months ended June 30, 1992 compared to the same period in 1991 of $13.3 million and $24.3 million, respectively. Metall's share of earnings of Teck, in which it has a 14.1 percent equity interest, was $667,000 for the quarter and $869,000 for the six months ended June 30, 1992. This compares to Metall's 1991 share of earnings of $973,000 and $1,729,000. Teck's earnings declined principally due to lower average gold prices and lower gold production from the Hemlo mines. Cominco contributed $2 million to Teck's second quarter results which compares favourably to a loss of $3 million in the first quarter of 1992 and losses for all quarters in 1991.
 At the 49 percent owned Cayeli copper-zinc project in Turkey, the construction of the surface facilities was awarded to a consortium comprised of Lurgi Metallurgie GmbH of Germany and Gama Endustri A.S. of Turkey. This contract includes the engineering, procurement and construction of a 600,000 tonne per year processing plant and the expansion of the port facilities at Rize. Bids for the underground mine design and construction are currently being received and will be evaluated in the fourth quarter of 1992. At the 45 percent owned Bougrine zinc-lead property in Tunisia, detailed engineering of the mine and mill is continuing and development of the mine portals is substantially complete.
 During the second quarter, Metall paid $10.1 million to Minnova Inc. as the initial payment for a 40 percent interest in the Izok Lake zinc- copper property in the Northwest Territories. Reserves are estimated at 13.4 million tonnes grading 14.4 percent zinc and 3.2 percent copper, plus lead and silver credits. Drilling is continuing in 1992 to further define and extend the ore reserves. Subsequently, Metall announced an agreement to purchase Kerr Addison Mines Limited's 50.4 percent interest in Minnova for $136.6 million. The closing date for the transaction is October 13, 1992 and is subject to receipt of all necessary corporate and regulatory approvals. This transaction, if approved, will increase Metall's effective interest in Izok Lake to 70.2 percent. In addition to its interest in Izok Lake, Minnova has operating mines in Ontario, British Columbia and Quebec and is engaged in the exploration of mineral properties, primarily copper, zinc, gold and silver.
 METALL MINING CORPORATION
 CONSOLIDATED STATEMENTS OF INCOME
 (unaudited)
 Three Months Six Months
 (thousands of dollars Ended June 30 Ended June 30
 except share information) 1992 1991 1992 1991
 Sales $52,829 $45,148 $106,064 $84,415
 Cost of sales 46,319 42,177 94,366 78,944
 Depreciation, depletion
 and amortization 3,917 4,959 8,431 8,403
 Operating Earnings:
 (Loss) 2,593 (1,988) 3,267 (2,932)
 Investment and other
 income 1,464 6,091 6,440 9,574
 Interest expense (4,131) (3,726) (8,418) (8,991)
 General and
 administration (1,584) (1,511) (3,070) (3,024)
 Exploration (842) (1,071) (1,417) (1,628)
 Recovery of
 (provision for)
 income and
 resource taxes (67) 1,036 465 1,629
 Equity in earnings
 (loss) of:
 Ok Tedi Mining
 Limited 2,068 1,379 2,502 2,483
 Teck Corporation 667 973 869 1,729
 MIM Holdings
 Limited 2,800 - 2,800 -
 Cominco Ltd. - (20) - (1,810)
 Navachab Joint
 Venture 73 46 162 (8)
 Minority interests 138 269 273 488
 Net income (loss) $3,179 $1,478 $3,873 $(2,490)
 Earnings (loss)
 per common share $0.06 $0.04 $0.08 $(0.06)
 Weighted average
 shares
 outstanding (000's) 57,554 44,415 50,985 42,647
 -0- 9/1/92
 /CONTACT: H. Douglas Scharf, vice-president, finance and chief financial officer, 416-361-6400/
 (MLM.) CO: Metall Mining Corporation ST: Ontario IN: MNG SU: ERN


SB -- NY061 -- 5495 09/01/92 14:28 EDT
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