Minerals lead Noranda’s recovery

Better results from its mining division helped Noranda (TSE) boost its earnings to $49 million or 10 cents per share during the first half of 1992 compared with $33 million or 2 cents per share for the same period in 1991.

Noranda Minerals accounted for most of that with earnings of $69.1 million for the first six months of this year compared to $2.4 million a year earlier. Earnings from operations represented almost half of this year’s earnings for the minerals subsidiary while the sale of a 10% interest in Hemlo Gold (TSE), reducing Noranda’s stake to 46%, brought in $30 million in the first quarter.

Before allowing for the costs of borrowing and corporate expenses, net of investment and other income, the mining subsidiary earned $86 million for the parent company in the first half of the year compared to $15 million from its forest products division and $22 million from its oil and gas division. Comparative results for the second quarter among the three divisions were $55 million, $10 million and $12 million, respectively.

Noranda Minerals president Alex Balogh said the mining division is on target to reach its goal of reducing costs by 10% this year and said improvements in metal recoveries and production volumes have been “very encouraging.”