Strong metal prices boost Metall’s financial results

Still in the hunt for some acquisitions to beef up its base metals portfolio, Metall Mining (TSE) of Toronto has benefitted financially from stronger metal prices, the company announced recently.

Among a series of assets, Metall holds a 49% interest in Temagami Mining Co., the company which controls Vancouver-based Teck Corp. (TSE). A subsidiary of West German metals giant Metallgeselschaft Ag., Metall also holds an 8.3% stake in Cominco Ltd.

Second quarter net income increased to $6.67 million or 18 cents per share before extraordinary items compared to a loss of $267,000 or 1 cents per share at the same time last year.

Net income reported after extraordinary items increased to $9.4 million or 25 cents per share from $999,000 or 4 cents per share in the second quarter of 1987.

“The company continues to pursue its acquisition program, placing a priority on acquisition targets where we could become the operator and would have direct access to production and cash flow,” said President Dr. Klaus Zeitler.

Net revenues from the companies in which Metall has equity- accounted investments was $57 million in the three months ended June 30, Metall said.

Metall holds a 7.5% stake in the huge Ok Tedi gold/copper mine in Papau New Guinea where a more simplified mining plan has sparked a recent production increase.

Second quarter production at Ok Tedi was up to 174,464 oz gold and 24.7 million lb copper from 165,000 oz gold and 30.5 million lb copper last year.

Additional Metall assets include 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.

As a result, Metall’s share of earnings from Highland Valley amounted to $158,000 during the quarter compared to $118,600 in the second quarter of 1987.