A first-quarter loss is expected by Asarco (NYSE), resulting from rain-related costs, lower metal prices and a scheduled 30-day maintenance shutdown at the Hayden smelter.
Heavy rains and flooding in Arizona during late 1992 and early 1993 are expected to cost about US$20 million after taxes during the first quarter ended March 31.
The Ray complex was hardest hit, with an production shortfall of about 10,000 tons of copper for the quarter.
The Mission mine and mill, about 100 miles south of Ray, was not as adversely affected by the rain. Production levels were maintained at higher operating costs.
Chairman Richard Osborne said the estimated US$20 million cost is due to lost production and repairs to damaged facilities.
Asarco plans to claim the losses against its property damage and business interruption insurance. Although the company anticipates payment, the US$20 million cost estimate does not include any potential recovery.
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