Rio Algom posts profits for 33rd consecutive year

Last year marked the 33rd consecutive year of profits and dividends for Rio Algom (TSE). In 1992, the company posted a net profit of $39.4 million on revenues of $1.03 billion.

At the annual meeting in Toronto, President Colin Macaulay told shareholders that last year’s profit resulted from strong copper prices, a lower Canadian dollar and improved potash prices.

In the first quarter, the company had net earnings of $7 million (15 cents per share) compared with $4.9 million (10 cents per share) in the same period in 1992.

In 1993, the company is biased toward base metals and plans to focus on low-cost, high-reserve operations, Macaulay said.

Rio operates the Highland Valley copper mine in British Columbia and hopes to have the $290-million Cerro Colorado porphyry copper deposit in Chile in production by mid-1994. The company has already presold the first 14 years of production from Cerro Colorado.

At the meeting, the company adopted a share option plan for directors and a shareholder rights protection plan to ensure investors get the best price for their shares in the event of a takeover.