Net earnings up for Mentor Expl.

For the 6-month period ended June 30, Mentor Exploration and Develop ment realized net earnings of $1.26 million, or 36 cents a share. That’s a significant increase from the $479,055 or 13 cents a share posted for the comparative 1985 period.

The chief reasons for the rise are the more than 2-fold increase in the gain on the sale of investments and a sharp reduction in interest expense and bank charges, says President Paul Penna.

Mentor, of which Agnico-Eagle Mines holds a 41.5% interest, had a working capital deficiency of $2.93 million for the latest 6-month period. While this figure is significantly below the working capital deficiency at the comparative 1985 period of $4.96 million, it was higher by $333,445 at the beginning of the 1986 period.

Mr Penna also notes the capital used in the purchase of investments in the latest period at $2.64 million was substantially greater than in the 1985 period when it was $435,665.

Mentor’s portfolio of long-term investments principally consist of substantial minority shareholders in Agnico-Eagle, Dumagami Mines (17%) and Sudbury Contract Mines (40%).

These investments are carried at a cost of $14.5 million, but a current quoted market value of $38.3 million.