Inspiration’s revenue up, earnings down

Strong copper prices and higher production from the Namew Lake operation in Manitoba failed to improve the financial fortunes of New York-based Inspiration Resources (NYSE) and wholly owned subsidiary Hudson Bay Mining (TSE). Due largely to the closure of an offshore gold project in Nome, Alaska, Inspiration (IRC) reported a third-quarter net loss of US$18 million or 27 cents a share compared to a net loss of US$8.3 million or 12 cents per share at the same time last year.

Revenues reported by Inspiration for the three months ended Sept. 30, however, increased to US$306.7 million from US$281.4 million in the equivalent 1989 period.

IRC Chairman Reuben Richards attributed the third-quarter results to losses at the company’s Terra International agribusiness operation, higher copper prices and increased production at Hudson Bay Mining. “Excluding the charge related to the gold operation closure, IRC would have reported a 1990 third-quarter loss of 2 cents a share,” he said.

In the first nine months of 1990, IRC reported net income of US$6.9 million or 10 cents per share compared with net income of US$27.6 million or 42 cents per share in the equivalent 1989 period. Nine-month revenues of US$1.2 billion were unchanged from last year’s figures.

Meanwhile, Hudson Bay Mining reported 1990 third-quarter net earnings of $11.6 million on revenues of $107.2 million compared with net income of $12 million on revenues of $109.3 million at the same time last year.

For the first nine months of 1990, Hudson Bay reported net earnings of $18.9 millon on revenues of $313.1 million compared with net earnings of $34.6 million on revenues of $344.4 million in the equivalent 1989 period.

Hudson Bay Chairman John Ellis said that while third-quarter earnings decreased because of a higher effective tax rate, before-tax earnings (during the period) were up due to higher copper prices and increased production from the 60% owned Namew Lake mine.

In the first nine months of 1990, Hudson Bay’s share of zinc concentrates increased to 78.7 million lb. from 78.2 million in 1989. The company’s share of copper and nickel concentrates also increased to 62.7 million lb. and 7.8 million lb. respectively from 53.8 million lb. and 2.1 million lb. last year. Inspiration Resources (NYSE)* 9 months ended Sept. 30 1990 1989 Revenue $1,205,345 $1,184,079 Net earnings 6,918 27,600

per share 0.10 0.42 3 months ended Sept. 30 1990 1989 Revenue $306,706 $281,416 Net earnings (loss) (18,004) (8,303)

per share (0.27) (0.12) Hudson Bay Mining (TSE) 9 months ended Sept. 30 1990 1989 Revenue $313,100 $344,400 Net earnings 18,900 34,600 3 months ended Sept. 30 1990 1989 Revenue $107,200 $109,300 Net earnings 11,600 12,000