Gibraltar earnings decline slightly

Although 1992 pre-tax earnings for Gibraltar Mines (TSE) increased over 1991 levels, higher income taxes as a result of non-deductible items resulted in lower net earnings.

Gibraltar made $3.1 million in 1992 on revenues of $67.3 million compared with more than $3.2 million in 1991 on revenues of $63.4 million. Higher mill throughput and an increase in head grade pushed

copper-in-concentrate production to 70.9 million lb., up from 63.4 million lb. in 1991.

Cathode copper production decreased during the year, however, dropping to 6.9 million lb. from about 7.3 million lb.

Molybdenum production declined to 376,000 lb. from 808,000 lb. in 1991. Declining grades and poor market conditions led to the closing of the moly circuit in December and it is not expected to operate in 1993. Cash from operations totaled $13.5 million, up significantly from $4.7 million

in 1991. A decrease in production costs contributed to

the increased cash flow. (Payment of current liabilities had a negative impact on cash flow in 1991.)

Gibraltar finished the year with more than $22 million in working capital and no long-term debt.

Reserves can sustain operations for another 12 years. Proven and probable reserves in three zones are about 162.6 million tons grading 0.301% copper and 0.0084% moly at a strip ratio of 1.2-to-1.

Reserves do not include the Gibraltar North zone, which is uneconomic in light of current copper prices and high stripping costs. The zone is subject to a 30% net profits interest in favor of Newcoast Silver Mines (VSE).