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METALL MINING ANNOUNCES SECOND QUARTER RESULTS

 TORONTO, Aug. 26 /PRNewswire/ -- Dr. Klaus M. Zeitler, President and Chief Executive Officer of Metall Mining Corporation ("Metall"), announced today that earnings for the six months ended June 30, 1993 were $2.9 million or $0.05 per share compared to $3.9 million or $0.08 a share in 1992. For the three months ended June 30, net income was $110,000 compared to $3.2 million one year ago. Revenues increased to $65.1 million for the quarter from $52.8 million last year due to the acquisition of Minnova Inc. in the second half of 1992. Earnings for the quarter and the six months were affected by lower prices for base metals and increased expenditures on exploration partially offset by increased tax recoveries compared to the previous year.
 During the second quarter, Metall increased its ownership of Minnova to 100 percent. Metall issued 7.7 million Common Shares, issued warrants to acquire 2.9 million Metall shares and paid cash of $23.2 million to the former Minnova minority shareholders in a transaction valued at $122.7 million. Metall currently has 65.3 million Common Shares outstanding. Metall also acquired assets during the quarter from Kerr Addison Mines Ltd., which included exploration properties previously held jointly with Minnova, for $23.5 million. Also in the second quarter, Metall announced the purchase of 273,500 Class A Common Shares of Teck Corporation ("Teck") for $5.8 million, raising Metall's direct and indirect voting interest in Teck from 28.5 percent to 33.5 percent.
 Metall's investments in Teck and MIM Holdings Limited ("MIM") resulted in a loss of $400,000 for the quarter compared to earnings of $3.5 million in the comparable quarter last year. Following a review of its accounting policies, Metall discontinued equity accounting for the investment in MIM effective April 1, 1993. Metall now cost accounts for its investment in MIM and will record income as dividends are received.
 At Copper Range Company cash operating costs continued to decline and were US$0.76 per pound of copper in the second quarter. Cathode production was 36.4 million pounds for the quarter including production from outside purchased concentrates compared to 32.5 millions pounds in the second quarter of 1992.
 The Bougrine zinc/lead project in Tunisia is on schedule to begin commercial production in the first quarter of 1994 with site construction and underground mine development well advanced. The Cayeli copper/zinc project in Turkey is on schedule for a late 1994 start-up. Feasibility studies are continuing on both the Izok Lake project in the Northwest Territories and the Pend Oreille zinc deposit in the state of Washington.
 Metall intends to create a new public company to hold its gold assets and is preparing a preliminary prospectus for filing in the near future. With respect to the Troilus gold project in Quebec, Metall has received a favourable feasibility study and discussions have begun with the government of the Province of Quebec with respect to financial assistance for infrastructure and with financial institutions on project financing.
 As recently announced, Metall is initiating a strategic plan to develop Metall into one of the world's major integrated copper producers over the medium term. Implementation of this copper strategy, which includes the acquisition of significant smelting assets, would diversify Metall's production base and reduce its exposure to variations in copper treatment charges.
 CONSOLIDATED STATEMENTS OF INCOME
 (unaudited)
 Three Months Six Months
 Ended June 30 Ended June 30
 (thousands of Canadian 1993 1992 1993 1992
 dollars except per share ---- ---- ---- ----
 amounts)
 Revenues
 Sales $65,061 $52,829 $134,020 $106,064
 Investment and
 other income 4,595 1,464 8,124 6,440
 Total 69,656 54,293 142,144 112,504
 Expenses
 Cost of sales 58,492 46,319 117,083 94,366
 Depreciation,
 depletion and
 amortization 5,428 3,917 10,959 8,431
 Exploration 3,853 842 5,860 1,417
 General and
 administration 2,815 1,584 4,969 3,070
 Operating earnings (loss) (932) 1,631 3,273 5,220
 Interest expense (4,411) (4,131) (9,530) (8,418)
 Income and resource
 taxes recovery (expense) 3,800 (67) 6,374 465
 Equity in earnings of
 associated companies 1,368 5,608 2,619 6,333
 Minority interests 285 138 192 273
 Net income $110 $3,179 $2,928 $3,873
 Earnings per Common Share $0.00 $0.06 $0.05 $0.08
 Weighted average shares
 outstanding (000's) 62,718 57,554 60,138 50,985
 Certain comparative amounts have been reclassified to conform to the 1993 presentation.
 -0- 8/26/93
 /CONTACT: H. Douglas Scharf, Vice-President, Finance and Chief Financial Officer, 416-361-6400/


CO: Metall Mining Corporation ST: Ontario IN: MNG SU: ERN

LG -- NY026 -- 6077 08/26/93 10:59 EDT
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Date:Aug 26, 1993
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