Kerr, Minnova benefit from B.C., Quebec mines

Toronto-based Kerr Addison Mines (TSE), the 51% owned Noranda (TSE) affiliate, reported a significant increase in 1990 earnings, thanks largely to strong production performances at its mining operations.

Kerr Addison, which owns 50.4% of Minnova (TSE), reported net earnings of $17.6 million or $1 per share for the year ended Dec. 31, compared with earnings of $12.6 million or 72 cents a share in the same period last year.

During 1990, Kerr Addison’s revenues increased by 60% to $211.6 million from $131.6 million last year. The company attributed the revbenue increase to production at Minnova’s new Ansil and Samatosum mines in Rouyn-Noranda, Que., and Kamploops, B.C., respectively.

Kerr Addison reported fourth-quarter net earnings of $5 million or 28 cents per share on revenues of $51.6 million, compared with a net loss of $3.9 million or 23 cents per share on revenues of $33.7 million in the equivalent 1989 period.

Having recently elected to sell its entire 30.5% stake in Calgary oil producer Anderson Exploration, Kerr Addison has $89.7 million in cash and short-term securities. That represents a decrease of $5 million from last year.

Meanwhile, Minnova reported net income of $15.1 million or $1.05 per share for the year ended Dec. 31, compared with a loss of $$6.8 million or 48 per share in 1989. Revenues in 1990 increased by 68% to $195.9 million from $116.6 million the previous year.

Minnova’s 1990 results include a partial writedown on the Lac Shortt gold mine in northwestern Quebec where ore reserves are expected to be depleted within two years.

As Minnova will be unable to recoup its investment in Lac Shortt at current gold prices, a pretax charge of $10 million was made against third-quarter operation.

Minnova reported fourth-quarter net earnings of $4.1 million or 28 cents per share on revenues of $47.5 million, compared with a net loss of $11.3 million or 79 cents a share on revenues of $30.6 million in the same period last year.

Fourth-quarter results include an $8-million credit relating to Quebec mining duties, plus a $10-million provision for mine closures. Exploration expenditures of $18.7 million for 1990 include $6.2 million spent to evaluate Audrey Resources’ (TSE) Mobrun mine 1100 lens. Minnova is earning a 50% stake in the 1100 by spending $10 million on exploration. Mobrun is near Rouyn-Noranda, Que.