Despite lower production at its Pinto Valley Division, Arizona- based Magma Copper (NASDAQ) achieved record earnings last year. Magma’s net income for the year ended Dec. 31 was US$58.5 million or US$1.43 per common share, compared with US$56.3 million or US$1.47 per common share during the same period last year.
Revenues increased to US$649.9 million in fiscal 1989 from US$607.1 million in 1988. The 1989 result included a fourth- quarter writedown of US$3.5 million on the cost of shutting down Magma’s rod-casting facility in Chicago, Ill.
Net cash provided by operating activities in 1989 was US$92.8 million compared with US$69.8 million in 1988, representing an increase of 33% and a year-end cash balance of US$50 million.
The company reported fourth- quarter net income of US$5.9 million or US14cents per share, compared with US$15.5 million or US40cents per common share during the same period in 1988.
Last year’s results were achieved despite difficulties in attaining full productive capacity in the new smelter which in turn resulted in electro-refined cathode production at only 73% of capacity, said Magma President Burgess Winter.
“Results for 1989 were also negatively impacted by lower-than- capacity production from our Pinto Valley division near Miami, Ariz., due to concentrator repair and expansion,” he said.
In 1989 Magma sold 461.6 million lb. refined copper, compared with 464.7 million lb. in 1988. Magma Copper (NASDAQ)* Year ended Dec. 31 1989 1988 Revenues (000s) $649,963 $607,066 Net earnings (000s) 58,492 56,334 Net earnings (per share) 1.821.47 *US Dollars
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