Production hits records but Westmin profit off

Despite record minerals, oil and natural gas production, Westmin Resources earnings in 1986 slid to a net of $8,648,000, on revenues of $189,563,000, compared with earnings of $30,452,000 on revenues of $169,783,000 in 1985.

After provision for dividends on the preferred shares, there was a loss of 21 cents a common share, compared with earnings of 40 cents in 1985.

The company blames the earnings decline on severely depressed crude oil prices, coupled with weakness in natural gas, but notes that crude oil and gold prices recovered significantly toward the end of 1986 and into this year.

In the fourth quarter 1986, Westmin had net earnings of $3,265,000 on gross revenue of $45,383,000, or a loss of 3 cents a share after provision for preferred dividends. It compares with net earnings of $5,933,000 or 6 cents a share on revenue of $42,506,000 in the comparable 1985 quarter.

At the end of the year, the company had working capital of $117,000,000, up from $87,583,000 a year earlier. Westmin sold its interest in Lacana Mining in February, for $34,661,000.

With completion of the Sundance acquisition and H-W mine- mill expansion in 1985, capital expenditures on exploration, acquisitions and development decreased to $36,865,000 from $288,968,000 the previous year.

With these facilities now in place and fine-tuned for optimum output, Westmin says the company is in a position to realize to the maximum on any increase in world prices for its products.