Magma Copper basks in record earnings

Continuing its winning ways, Magma Copper (NYSE) unveiled results for its second consecutive record-breaking quarter.

The company earned US$54.4 million (or 86 cents per share) for the period, compared with US$20.6 million (or 33 cents per share) for the same period last year.

These results follow on the heels of earnings of US$51.8 million reported for the first quarter.

The company credits the profits to a healthy copper price and higher sales of the red metal (albeit at lower realized price than in the first quarter). Magma sold 196 million lb. at US$1.28 per lb.

Production for the period amounted to 171 million lb., and net cash operating costs were 64 cents per lb., up from 56 cents in the first quarter.

Magma will spend US$22 million on exploration and feasibility work during 1995.

Three new mines — Tintaya, Robinson and Kalamazoo — are expected to augment production levels substantially, once they become operational. At Tintaya, drilling has intercepted high-grade skarn zones containing 0.9%-4.8% copper.

Meanwhile, feasibility studies are continuing at two operations in Arizona.

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