Borrowings, price slump major Eldorado setbacks

Eldorado Nuclear reports a loss of $13.4 million on revenues of $42.7 million in the second quarter this year, compared with a loss of $2.3 million on revenues of $67.5 million in the similar period last year.

The company recorded a loss of $30.1 million on revenues of $73.7 million in the first six months of 1986, against a loss of $17.5 million on revenues of $97.9 million in 1985’s first half.

Cash available from operations in the latest period amounted to $9.1 million, a $32.4-million decline resulting from a $38.1-million reduction in cash from sales compared with the year-earlier period. Short-term borrowings of $84.3 million were required to cover financing and investment activities.

N. M. Ediger, chairman of Eldorado, says the 6-month loss resulted in long-term debt at June 30 being 3.0 times shareholder equity, up from 2.5 at the end of last year, and well above debt-equity ratios of mining companies in the private sector. The company has two major financial problems, he said. The continuing high cost of borrowings and depressed spot market prices for uranium concentrates, which contributed to the 25% reduction in first-half revenues.

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