A price protection program ensures that Cyprus Minerals (NYSE) will receive a minimum average sales price of about US94 cents per lb. on about 90% of its projected 1993 copper sales.
The program also ensures an average price of US92 cents on copper sales in the first quarter of 1994. The recent drop in copper prices underscores the importance of the company’s efforts to reduce costs as it increases production, said Cyprus President Milton Ward.
Cyprus reported first-quarter earnings of US$11.6 million, which includes a US$19 million after-tax loss for the effects of record heavy rains and flooding at the Arizona copper operations.
The rains interfered with mining conditions, diluted leach solutions and disrupted rail transportation, causing higher costs and lower production. Insurance claims have been filed which are expected to cover most of the costs.
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