Earning Report (March 06, 1989)

For the year ended Dec 31 the company reports net income of $66.4 million or 68 cents per share on revenue of $432.6 million. For the same period a year earlier the company reported net income of $146.4 million or $1.51 per share on revenue of $516.2 million.

The 1987 results included a gain of $94.9 million or 98 cents per share from the sale of a minority interest in the company’s Australian subsidiary, Homestake Gold of Australia.

Net income for both years also included gains on sales of exploration properties in the course of Homestake’s ongoing program to dispose of properites which do not meet its development objectives.

Hudson Bay Mining and Smelting (TSE) reports fourth quarter net income of $14.9 million on revenue of $130.4 million. For the comparable quarter a year earlier the company reported net income of $3.6 million on revenue of $90.1 million. For the year ended Dec 31 the company reports net income of $28.5 million on revenue of $410.9 million. For the year earlier period the company reported net income of $39.3 million on revenue of $342.6 million.

The 1988 results included a $3.4 million benefit from the application of tax loss carried forward and a charge of $2.8 million for the writedown of an investment.

The 1987 results include gains of $15.7 million from the sale of mining properties, $14.3 million from the capitalization of prior years’ exploration expenses, and $10.5 million from the recovery of deferred income taxes.

Inspiration Resources Corp. (TSE) reports fourth quarter net income of $2.6 million(US) or 4 cents per share on revenue of $246.4 million, compared with 1987 fourth quarter net income of $0.2 million or 1 cents per share on revenue of $262.3 million. For the year ended Dec 31 the company reports net income of $41.9 million or 63 cents per share on revenue of $1,436 million. For the same period a year earlier the company reported net income of $24.7 million or 38 cents per share on revenue of $1,305 million.

The 1988 results include a $26.7 million gain on the sale of IRC’s U.S. copper subsidiary and a $3.5 million gain on the sale of certain leased assets. The 1987 results included a $13.8 million credit from the capitalization of previously expensed exploration costs and gains of $10.4 million on the sale of an interest in a Canadian mining property and $4.3 million from discontinued operations.

Hayes Resources (TSE) reports a consolidated loss for the year ended Dec 31 of $2.63 million or 8 cents per share on revenue of $28.9 million, compared with a loss of $1.87 million or 27 cents per share on revenue of $25,000 for the prior year.

The 1988 loss includes a $498,000 write-off of deferred exploration costs on a project which was abandoned at year-end. Prior year results included a write-off of $1.52 million.

Noranda Inc. (TSE) reports fourth quarter net earnings of $150 million or 78 cents per share on revenue of $2,118 million. For the same period a year earlier the company reported net earnings of $121 million or 79 cents per share on revenue of $1,890 million.

For the year ended Dec 31 the company reports net earnings of $603 million or $3.14 per share on revenue of $8,858 million. For the same period a year earlier the company reported net earnings of $343 million or $2.14 per share on revenue of $7,366 million. During the year there was a gain of $60 million relating to the recovery of a tax loss carry-forward in the U.S. This was offset by $62 million of unusual losses arising from asset writedowns. The net impact on earnings of these items was negligible.

Results were adversely affected by the rise in the value of the Canadian dollar. Earnings for the year were $140 million less than they would have been had the dollar remained at average 1987 levels.

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