Earnings slip for Equity Silver

First half earnings for Equity Silver Mines (TSE) were $2.7 million this year, compared with earning of $6.5 million in the same period last year.

Earnings for the second quarter ended June 30 dropped to $615,000 from $2.9 million in 1990.

Equity noted that lower silver and copper prices as well as lower sales volumes contributed to the drop in earnings.

Production declined as a result of a drop in ore grades, both from the mining operation and from existing stockpiles.

Silver production for the first half totalled 3.3 million oz. and is forecast to reach 5.4 million oz. by year-end.

The company is continuing negotiations with government authorities to determine the total security required to cover post-closure costs at the Equity silver mine near Houston, B.C.

Equity has provided a security deposit of $31 million which it believes is more than sufficient to meet its obligations. The mine is scheduled to close in the fourth quarter of 1992.