The sale of some gold mining assets is providing Cyprus Minerals (NYSE) with additional funds for capital programs aimed at reducing costs and expanding production.
An 80% interest in the Golden Cross gold mine near Waihi, New Zealand, was sold to Coeur d’Alene Mines (NYSE). Production began in early 1992 and the open pit and underground operation is now producing 100,000 oz. gold and 370,000 oz. silver per year.
The second sale, to Australian Resources and Mining, involves the company’s 66.7% interest in the Selwyn mine in Australia.
Denver-based Cyprus said the sales support its strategy of “only pursuing larger, lower-cost gold deposits.” As part of this objective, the company plans to spend a large part of its current exploration budget on potentially significant deposits.
Cyprus also produces coal and lithium and is a major producer of copper, using both conventional milling techniques and solvent
extraction-electro-winning. A modernization program was completed last year at the Arizona operations, where efforts are continuing to reduce costs and expand production.
Cyprus recently implemented a price protection program which should provide an average copper realization of at least 94 cents per lb. for 1993 sales. Chairman Milton Ward said this program and the sale of assets enable Cyprus to fund its ongoing capital programs and growth plans.
The company had a cash balance of about US$162 million at the end of the 1993 first quarter. The sale of the gold mining assets, plus the sale of about 45% of a claim against LTV Steel, will add a further US$135 million.
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