Teck, Cominco investments boost Metall Mng. earnings

The acquisition of a U.S. copper producer and investments in two of Canada’s largest mining companies contributed to higher annual earnings for Toronto-based Metall Mining (TSE). Metall, a 62.7% owned affiliate of West German metals giant Metallgeselschaft, holds a 10% interest in each of Vancouver- based companies Teck (TSE) and Cominco (TSE).

For the year ended Dec. 31, Metall reported net income of $34.3 million or 91 cents per share, compared with $42.1 million or $1.12 per share during the same period last year. Metall says extraordinary items of $2.5 million in 1989 and $10.6 million in the previous year, reflect tax loss recoveries as well as extraordinary items reported by Teck and Cominco.

Revenues in 1989 were $111.5 million. (As the Copper Range acquisition was completed in the second quarter of 1989, there were no equivalent revenue results reported in 1988.)

The company’s mine production in 1989 was 61,000 tonnes of copper, 62,000 tonnes of zinc, 30,000 tonnes of lead, 102,000 oz. gold and 2.9 million oz. silver.

The company reported fourth- quarter net income of $6.5 million or 17 cents per share, compared with $17.4 million or 46 cents per share in the 1988 period. Fourth-quarter revenues were $35.8 million.

On April 1, 1989, Metall invested $83 million to acquire the Copper Range mine and smelter operation in White Pine, Mich., which produced 65.3 million lb. copper cathode and more than 950,000 oz. silver by Dec. 31. Metall is attempting to modernize and increase production there while reducing operating costs.

Investments in other operations, including a 7.5% stake in the Ok Tedi gold-copper project in Papua New Guinea, also contributed to Metall’s 1989 financial results. Metall’s share of profits from Ok Tedi increased to $2.04 million from $1.3 million 1988. The operation produced 514,000 oz. gold and 298.3 million lb. copper.

Metall’s share of Teck earnings in 1989 was $8.9 million in 1989, compared with $11.1 million a year earlier. The company’s share of Cominco earnings also increased to $19.7 million from $18.7 million in the previous year.

There are currently about 37.7 million Metall shares issued and outstanding. They were trading recently at $13.38 in a 52-week range of $10-14.50. Metall Mining (TSE)* $000s except per-share items Year ended Dec. 31 1989 1988 Revenues $111,594 * Net earnings 34,304 42,144

per share 0.91 1.12 * No equivalent revenues reported for 1988.