Money-losing mine hits Metall earnings

Higher than expected operating and restructuring costs at the Copper Range mine in northern Michigan will reduce Metall Mining’s (TSE) 1990 income by about $7 million, the company estimates.

Although the mine produced 94.4 million lb. copper cathode in 1990 compared with 87.4 lb. in 1989, costs for development and training were higher than anticipated.

As a result, Copper Range will report a net loss for the year ended Dec. 31, compared with earnings of $11.3 million for the nine months ended Dec. 31, 1989. Although Metall says it expects to report positive earnings for 1990, the Toronto-based copper producer will report a net loss for the fourth quarter.

Metall, a subsidiary of Germany’s Metallgesellschsft, acquired Copper Range in 1989. The company is aiming for a production target of 130 million lb. per year through a multimillion dollar 3-year restructuring plan.

Meanwhile, Metall has announced plans to raise $65 million through a public offering of five million units.

The units, consisting of one common share and one common share purchase warrant, will be offered for public distribution in Canada and Europe at a price of $13 each.

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