Revenues for the nine months were $78.3 million versus $43.8 million. However, 1988 results reflect a labor dispute that interrupted 4.5 months of operations.
Cash flow from operations reached $39.4 million, which increased the company’s cash position by $17.5 million to $48 million.
President Anthony Petrina attributed the improved results largely to higher sales volumes and copper prices. Higher volumes resulted from the sale of copper inventory stockpiled during the 1988 strike.
The company instituted a forward selling program as a hedge against lower copper prices. Forward sales total 28.66 million lb at an average price of $1.17(US) per lb.
In other company news, Gibraltar agreed to provide security totalling $10 million to meet post-closure reclamation costs. Funding of $5 million w ill be provided in 1989 with subsequent payments of $1 million per year for five years. The total cost will be amortized over the remaining mine life at $162,000 per quarter.
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