Despite operating problems at the Ok Tedi gold/copper mine in Papua New Guinea, Toronto-based Metall Mining (TSE) strengthened its financial position recently.
Third-quarter net income increased to $6.2 million or 16 per share, from $5.2 million or 14 per share at the same time last year.
Net income for the nine months ended Sept 30 was $22.7 million or 60 per share. As the company began operations on April 1, 1987 there are no comparable figures for last year.
A 62%-owned subsidiary of West German metals giant Metallgesellschaft AG, Metall has interests in a number of resource companies and projects. They include a 49% stake in Temagami Mining Co., the company which controls Vancouver- based Teck Corp. (TSE) Metall also holds a 10% stake in Cominco Ltd. (TSE)
A 7.5% holding in Ok Tedi Mining, gives Metall a share in an operation which produced 125,000 oz gold and 20.4 million lb copper during the three months ended Sept 30. Due to lower than planned head grades and a 12-day strike, third- quarter production at Ok Tedi was down significantly from the 174,464 oz gold and 24.7 million lb copper produced at the same time last year.
Total production at Ok Tedi for the first nine months of 1988 was 464,000 oz gold and 75.5 million lb copper.
Metall also holds a 10% stake in Highmont Mining Co. which in turn holds a 5% interest in cash flow from the Highland Valley Copper project in British Columbia.
Earnings from partnership interests include profits from Highmont for the nine months of $484,000 and $257,000 in the third quarter.
Under a rights offering, Metall recently acquired 10.4 million shares of M.I.M. Holdings Ltd. for $15.4 million. As a result, Metall now holds 52.3 million M.I.M shares.
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