Gibraltar reports earnings drop

A drop in the price of copper as well as lower investment income pushed earnings down for Gibraltar Mines (TSE) during the first half of 1991.

The company reported earnings of $2 million on revenues of $31.3 million in the first six months of 1991, compared with earnings of $4.5 million on revenues of $36.9 million in 1990.

Earnings for the second quarter fell to $258,000 from $2.2 million in the same period last year.

Gibraltar cited a drop in copper prices to an average of US$1.08 per lb. for the first six month of 1991, compared with an average of US$1.16 last year. Interest income also fell compared with 1990 figures due to a drop in cash balances to $8.8 million from $31.3 million last year. During the first six months of 1991 the company’s capital expenditures totalled $14.2 million with the purchase of new haul trucks as well as a 40-cu.-yd. shovel. In addition, the company recently started the development of a new pit at its Gibraltar mine near Williams Lake, B.C. Total expenditures on the new pit during the second quarter were $1 million.