A boost in copper sales, combined with a sizable increase in the realized price of lead, enabled Magma Copper (NYSE) to more than double its third-quarter earnings from the same period last year.
The company sold 175 million lb. of the red metal (20% higher than a year ago) at a realized price of US$1.32 (31 cents higher). Sales amounted to US$393 million, compared with US$227 million in the third quarter of 1994.
Increases in sales and the price of copper were offset by an 8 cents-per-lb. increase in net cash operating costs
Magma produced copper at a cost of 66 cents per lb. for the period, up from 58 cents last year.
Earnings were reported as being US$51.9 million (or 84 cents per share), compared with US$22.3 million (35 cents per share) for the year-ago period.
By the end of the first quarter of 1996, Magma will have completed most of the capital projects included in a US$700-million expansion program, which began in 1993.
The program includes a 20% expansion of overall smelter capacity (completed in early 1994), acquisition of the Tintaya operation in Peru, and completion of the Robinson project (scheduled for early 1996).
The Robinson, situated in eastern Nevada, will add another 140 million lb. copper and 102,000 oz. gold to its annual production.
The company cranked out 170 million lb. copper from its mines during the third quarter, which is up from 141 million lb. produced in the same period last year.
For the first three quarters of 1995, Magma posted a record US$158 million in income and US$298 million in cash flow.
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