Added production from the Ansil and Samatosum polymetallic mines, which both entered commercial production last summer, resulted in a 10-fold profit increase for Minnova (TSE) in the first half of 1990. Based on revenues of $99.1 million, or double last year’s figure, Minnova’s net income for the six months ended June 30 amounted to $10.5 million or 73 cents per share, compared with earnings of $1.3 million or 9 cents per share during the same period last year. Also boosting earnings were stronger copper and zinc prices in the second quarter, which were somewhat offset by weakened precious metals markets, the company said. On average, prices for Minnova’s major products were slightly below those realized in the first six months of 1989.
Cash and short-term securities increased by $21.6 million to $33.5 by June 30. Minnova’s operations provided a $29.1-million cash flow. Minnova’s wholly owned Ansil mine, with reserves of about 1.2 million tonnes grading 7.6% copper and 1.5 grams per tonne gold, has been producing at about 15% below capacity this year because of problems with the ore pass system. Repairs to the system should be completed this month, the company said.
Minnova spent most of its $6.3 million capital expenditure on deep development at the Lac Shortt mine in northwestern Quebec, when it realized that dilution would remain a problem above the 500 level. Exploration expenditures increased to $9.7 million, including the $2.4 million spent on underground drilling of the 1100 lens at the Mobrun mine, near Rouyn-Noranda, Que. Minnova (TSE) $000s except per-share items Quarter ended June 30 1990 1989 Revenue $99,100 $49,500 Net earnings (loss) 10,500 1,300
per share 0.73 0.09004
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