Gibraltar Mines (TSE) reported its highest earnings since 1979 for the year ended Dec. 31. Net earnings for the year were $24.3 million on revenues of $104.7 million, compared with earnings of $8.3 million on revenues of $50 million in the previous year when the company operated for only 23 weeks because of a labor dispute. The company noted that the jump in earnings was largely due to higher copper prices and sales volumes as well as lower unit costs. Partially offsetting these factors were the effects of a stronger Canadian dollar and higher smelter costs.
Cash generated from operations amounted to $47.9 million, compared to $15.3 million in 1988. Cash and short-term investments increased by $6.6 million to $37.1 million, after dividend payments of $34.9 million.
Gibraltar instituted a forward selling program totalling 35.3 million lb. of copper at average prices of US$1.14 per lb., covering the period from Jan. 1990 to March 1991.
At the end of 1989, the company had set aside a total of $5 million to cover post-closure reclamation costs, and plans to increase the bond by $1 million per year over the next five years. Gibraltar Mines (TSE) Year ended Dec. 31 1989 1988 Revenue (000s) $104,700 $50,000 Net earnings (000s) 24,310 8,339 Net earnings
(per share) 2.02 0.69004
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