Recently cut loose by its parent, RTZ (NYSE) of London, Toronto-based Rio Algom (TSE) realized earnings of $8.2 million in the second quarter compared with $6.4 million for the same period of 1991.
Rio says the improved performance is due to better results at Potash Co. of America and Highland Valley Copper as well as more favorable exchange rates. In addition, closure of the East Kemptville tin mine in Nova Scotia stemmed mounting losses from that operation.
For the first half of the year, Rio recorded earnings of $13.1 million (27 cents per share) compared to $20.4 million (44 cents per share). Rio attributes the weaker 6-month results to lower earnings from uranium and metals distribution and lower investment and other income.
Now wholly owned by the public, Rio has adopted a Shareholder Protection Rights Plan to prevent hostile takeovers. To implement the plan, Rio has granted shareholders one right for each common share. Certain events, including an unapproved purchase of 20% or more of the company’s voting shares by a person or group, will entitle rights holders to acquire common shares of the company at a 50% discount to the market price.
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