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SUNSHINE MINING COMPANY ANNOUNCES OPERATING RESULTS FOR SECOND QUARTER AND FIRST SIX MONTHS OF 1993

 BOISE, Idaho, Aug. 12 /PRNewswire/ -- Sunshine Mining Company (NYSE: SSC) announced today improved operating results for the second quarter and the first six months of 1993. In the second quarter of 1993, the company recorded an improvement from the second quarter of 1992 of approximately $3.5 million in operating results and net income. For the first six months, the improvement in operating results was $4.3 million, and in net income was $15.6 million.
 Excluding the one-time $11.3 million charge for post-retirement benefits, the improvement in operating results for the quarter and year- to-date is due to reduced general and administrative expenses, interest expense, and gains on the company's silver bullion held for investment. Aggregate silver production was 1.2 million ounces for the six months vs. 1.4 million ounces for the same period in 1992 and average silver prices for the period are $3.96 per ounce vs. $4.09 in 1992. For the second quarter, average silver prices were $4.26 vs. $4.05 for the 1992 period.
 In commenting on the results, John Simko, president and chief executive officer of Sunshine, noted that recent spot prices of silver had been as much as $1.00 per ounce higher than the average price in the second quarter of the year. "We expect to continue to report improving results as silver prices begin to recover from the very low levels of recent years, and we should soon begin to see contributions from the higher levels of metallurgical and refining work we are receiving. We also remain optimistic about the prospects of finding a major new ore body at the Sunshine Mine.
 "While we still have much to do to reach our goal of profitable operations, we have clearly come a long way toward that objective." Simko commented that he expected to see the trends continue in the coming quarters of increasing revenues and declining expenses. He noted that the company expected the overwhelming majority of Silver Indexed Bondholders to accept the modified terms of the bonds' "Put" feature in the third quarter. If the response to the "Put" is as hoped, the company could record a one-time charge in the third quarter for early retirement of debt of as much as $22 million, but the company would be virtually debt free and have minimal interest charges in future periods.
 Sunshine, through its Sunshine Precious Metals Inc. subsidiary, owns and operates the Sunshine Mine and Refinery Complex in the Coeur d'Alene Mining District in Northern Idaho. The Sunshine Mine has been in operation for over 100 years, over which time it has been the largest primary silver producing mine in North America.
 SUNSHINE MINING COMPANY
 Financial Information
 (In Thousands, Except for per Share Amounts)
 Period ended June 30 Quarter Six Months
 1993 1992 1993 1992
 Operating revenues $ 6,048 $ 3,535 $ 8,961 $ 5,840
 Operating Loss $(1,429) $(4,427) $(5,341) $ (8,011)
 Loss Before Cumulative Effect
 of a Change in
 Accounting Method $(4,365) $(7,908) $(9,687) $(13,962)
 Cumulative Effect on Prior
 Years of a change in the
 Method of Accounting for
 Postretirement Benefits
 Other Than Pensions -- -- -- (11,346)
 Net Income (Loss) (4,365) (7,908) (9,687) (25,308)
 Preferred Dividend
 Requirements (2,764) (2,868) (5,473) (5,791)
 Income (Loss) Applicable to
 Common Shares $(7,129) $(10,776) $(15,160) $(31,099)
 Income (Loss) Per
 Common Share:
 Operations (0.05) (0.09) (0.10) (0.17)
 Cumulative Effect of
 Change in Accounting
 Principle -- -- -- (0.10)
 Income (Loss) Per
 Common Share $ (0.05) $ (0.09) $ (0.10) $ (0.27)
 Weighted Average Shares 149,768 116,213 148,147 115,481
 -0- 8/12/93
 /CONTACT: William W. Davis, 214/855-8706, for Sunshine Mining Company/
 (SSC)


CO: Sunshine Mining Company ST: Idaho IN: MNG SU: ERN

TM -- NY087 -- 2320 08/12/93 17:31 EDT
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Publication:PR Newswire
Date:Aug 12, 1993
Words:645
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