Strike Affects Earnings at Gibraltar Mines

Higher copper prices and lower unit costs led to significantly improved first half results for Gibraltar Mines (TSE), a Placer Dome (TSE) subsidiary, which operates an open pit copper mine near Williams Lake, B.C. But the company said its earnings were adversely affected by a strike which resulted in lower concentrate production and sales volume.

The company reported net earnings of $8.2 million or 68 cents per share for the six months ended June 30, compared to a loss of $896,000 or 7 cents per share in the corresponding period of 1987. Revenues in the two periods were $42.5 million and $30.8 million respectively. Copper prices averaged $1.10(US) per lb in the first half of 1988, compared to 66 cents (US) for the same period in 1987.

Gibraltar’s President A. J. Petrina, notes that operations generated cash of $19.7 million compared to $6.3 million in the corresponding 1987 period, and the company’s cash position increased $15.9 million to $37.5 million. A regular quarterly dividend of 10 cents per share was paid during the second qua rter.

Mining and milling operations have been suspended since mid- May as a result of a strike by employees. Petrina said the company and the employees’ union were invited by a mediation officer to meetings from Aug 22-24. Both parties have agreed to attend.


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