Liberian earnings (April 22, 1991)

Net profit of US$572,475 (14 cents per share) has been reported by Liberian Iron Ore (TSE) for the first three months of 1991, compared with a net profit of US$29.7 million ($7.52 per share) in the year-earlier period. On Feb. 5, the company declared a dividend of US$45 million or US$11.38 per share payable on March 15 to shareholders of record. As a result, all but US$10,450 of LIO’s retained earnings at Dec. 31 have been distributed to its shareholders.

In addition, the directors have proposed that LIO’s paid-up capital be reduced by $21.5 million to $2 million which would permit a further distribution to shareholders of US$5.43 per share. The proposed reduction of capital will be submitted for shareholder approval at the annual meeting on April 19.

As a result of previous asset sales, the dividend payments and the reduction in paid-up capital, LIO’s income and operating expenses will be substantially reduced in the future.