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AMAX REPORTS FIRST QUARTER RESULTS

 AMAX REPORTS FIRST QUARTER RESULTS
 NEW YORK, April 17 /PRNewswire/ -- AMAX (NYSE: AMX) today reported


net earnings of $12 million ($0.14 per primary common share) for the first quarter of 1992, versus first quarter 1991 net earnings of $32 million ($0.37 per primary common share). Operating earnings in the quarter were $9.1 million, compared with $80.8 million in the comparable 1991 period.
 Sales in the first quarter of 1992 were $876.9 million, while sales in the 1991 first quarter totaled $928.4 million.
 The 1992 results include a $56 million pretax gain from the January 1992 issuance of Amax Gold Inc. stock to acquire the Fort Knox gold property in Alaska. The market value of the Amax Gold shares issued was substantially in excess of the per share carrying amount of AMAX's investment in Amax Gold. The gain represents AMAX's interest in the increase of book value per share. AMAX tax expense includes $10 million arising from this transaction.
 Amax Coal contributed steady earnings; oil and natural gas and gold operations remained profitable in the quarter despite lower prices for their products. Start-up costs of $6 million, pretax, at the new Lauralco aluminum smelter in Quebec caused AMAX's aluminum unit, Alumax, to post a loss in the quarter.
 AMAX Chairman and Chief Executive Officer Allen Born, commenting on the results, said: AMAX was able to earn an operating profit in the first quarter in spite of the weak economy and a continued influx of surplus metals inventory into the marketplace.
 When we began restructuring the company six years ago, we set out to build a dynamic metals and energy company which could weather tough economic times and prosper during periods of normal demand for our products. We are achieving that goal by building low-cost aluminum smelter capacity, acquiring attractively priced energy and metals reserves, and managing our assets effectively.
 In addition, he continued, were continuing to build the company on its successful natural resources base. During the first quarter of 1992, we began the start-up process at our very low-cost Lauralco aluminum smelter; completed the acquisition of the Fort Knox gold property for shares of our Amax Gold subsidiary; sold our potash interests; and neared completion of the Hayden Hill gold mine in California, which should begin production in the second quarter.
 The economic news is becoming more encouraging and we are cautiously optimistic that a solid recovery will be under-way by the end of the year. We don't expect significant improvement in our earnings until the economy strengthens, but we are working to maintain our profitability by minimizing costs, improving products and market position, and disposing of assets which do not fit our long-term strategies and goals.
 AMAX is a low-cost producer of quality metals and energy. Its principal businesses are aluminum, coal, natural gas, gold, molybdenum and other metals.
 AMAX INC.
 (In thousands except per share amounts)
 Quarter ended March 31: 1992 1991
 Sales $876,900 $928,400
 Earnings from operations 9,100 80,800
 Net earnings 12,200 32,000
 Weighted avg. shares outstdg. 87,000 86,800
 Net earnings per common share $ 0.14 $ 0.37
 -0- 4/17/92
 /CONTACT: Jerry Cooper Of AMAX, 212-856-5982/
 (AMX) CO: AMAX Inc. ST: New York IN: MNG SU: ERN


TS -- NY003 -- 9639 04/17/92 09:53 EDT
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Publication:PR Newswire
Date:Apr 17, 1992
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