Metal Mining earns $3 million in second quarter

After completing its first full quarter as the principal worldwide mining vehicle of West Germany- based Metallgesellschaft AG, Metall Mining Corp. said it has shown improvements in all aspects of its operations.

During the second quarter ended Sept 30, Metall reported consolidated net income of $2,996,000 or 8 cents per share compared to a first- quarter loss of $221,000 or 1 cents per share.

After extraordinary items, Metall’s net income was $5,219,000 or 14 cents per share, up from $990,000 or 4 cents per share for the first quarter.

That included strong equity earnings from its 16.7% interest in the Afton copper and gold mine near Kamloops, B.C. As a result of higher gold production and prices, operating profits at the Afton mine amounted to $11.3 million compared to $6.5 million during the previous quarter.

Second quarter production at Afton was approximately 12,800 oz gold and 10.3 million lb copper, Metall said.

Metall has a 7.5% interest in the Ok Tedi gold copper mine in Papau New Guinea which reported a $16- million profit compared to a loss of $5.3 million in the previous quarter.

Metall said Ok Tedi produced 152,000 oz gold and 39 million lb of copper during the quarter, up from 107,000 oz gold and 3.4 million lb copper in the earlier quarter.

Since Metall holds a substantial interest in separate holding companies which control Teck Corp. and Cominco Ltd., income increases posted by Teck and Cominco was good news for Metall.

Teck reported net income of $9.5 million for the quarter, up from $5.9 million during the same period last year. Cominco posted an income before extraordinary items of $7 million compared to a loss of $13.9 during the same period in 1986.

With a cash position of $171 million Metall is currently attempting to make a number of major North American acquisitions but the company expects no announcements until the new year.

Metall shares traded recently on the Toronto Stock Exchange at $10.75 in a 52-week range of $17.50 and $8.75.