Magma posts record annual output

Arizona-based Magma Copper (NYSE) has announced record production of 768 million lb. copper at a net cash operating cost of 66 cents per lb. in 1992. President Burgess Winter told a recent gathering of the Toronto Society of Financial Analysts that this represents a 54% increase in production since 1988.

The increase in production helped the company to post a net income of US$55.3 million in 1992, compared to a net loss of US$120.5 million in 1991. Magma owns and operates underground and open-pit copper mines at its San Manuel, Pinto Valley and Superior mining divisions in Arizona. It also has leaching, solvent extraction and electrowinning facilities at San Manuel and Pinto Valley.

At the San Manuel operation a feasibility study is nearing completion on the Lower Kalamazoo orebody. It is estimated that the Lower Kalamazoo zone will yield 170 million lb. copper per year and extend the San Manuel underground mine’s life from 1997 to 2008.

A feasibility study is also under way at Pinto Valley to extend the mine life from 1999 to 2006.

Magma hopes to have the Robinson open-pit copper-gold orebody near Ely, Nev., in production by late 1994. The Robinson property has reserves of 201 million tons grading 0.6% copper and 0.01 oz. gold per ton.

The company is also evaluating the Florence property where it hopes to use in situ leaching technology to process some 300 million tons of oxide ore grading 0.4% copper.

Besides being a major copper producer, the company operates the largest smelting and refining complex in the U.S.

With a 20% expansion in smelter capacity planned for 1994, Magma is poised to take advantage of projected increases in copper demand in China and Japan. John Champagne, president of Magma Metals, a unit of Magma, estimates that by 1995, one-third of the company’s copper production will be sold to Asian markets.