Liberian earnings (March 04, 1991)

Net earnings of US$8.01 per share have been reported by Liberian Iron Ore (TSE) for the year ended Dec. 31. A special dividend of US$11.38 per share has also been declared payable to shareholders of record on March 1, 1991. The dividend represents substantially all of the company’s retained earnings. In addition, the company’s directors have proposed that the paid up capital of Liberian Iron Ore be reduced by US$21.5 million to US$2 million, and that a further distribution of US$6.43 be made to shareholders.

The company also holds a US$11.7-million promissory note from government-owned Liberian Mining (LIMINCO). But, in view of the difficult circumstances in Liberia including cessation of all mining operations, the note is carried on LIO’s books at US$1. Management of LIO intends to keep the company alive in order to pursue either repayment of the promissory note or enhancement of its value through negotiation.