Higher base metals prices boost Westmin earnings

Higher base metal prices brightened the financial picture considerably for Westmin Resources (TSE) during the first nine months of 1988. The company reported net earnings of $16,066,000 or 9 per common share for the period, compared to net earnings of $14,301,000 or 4 per common share for the same period in 1987. Gross revenues totalled $153,102,000 in 1988 versus $137,062,000 a year earlier.

While operating profit from Westmin’s mining division totalled $22,301,000 compared to $9,065,000 for the 9-month period a year ago, operating profit from the petroleum division declined to $5,939,000 from $18,861,000 in 1987 due primarily to significantly lower prices for crude oil.

With favorable prices for base metals expected to continue, Westmin said it is anticipating increased revenues from its mining division to the end of 1988 and into 1989. The company is now working toward maximizing the production potential of its recently expanded Myra Falls operation near Campbell River, B.C. An ongoing underground development program at the H-W mine, supplemented by ore production from the Lynx mine, is expected to ensure a steady ore supply to meet full mill capacity of 4,400 tons per day.

Westmin reported that development of the Premier Gold project near Stewart is on schedule for a spring 1989 start-up. Mining in the Dago and Premier pits is already under way and ore is being stockpiled. Current reserves of gold and silver are expected to supply the new 2,200-ton-per-day mill for the next 10 years. At the Debbie gold project on Vancouver Island (a joint venture with Nexus Resource Corp.), the adit is more than 50% complete with drilling in progress from the drill stations developed to date.