Gibraltar has loss despite cash flow

Although the company reported a positive cash flow, Gibraltar Mines posted a net loss of $4.6 million or 40 cents per share in 1986, compared to a restated loss of $246,000 in 1985.

A. J. Petrina, president, said the recent loss was attributable to a decline in copper production and weaker prices for copper and molybdenum. Mill throughput dropped because the feed was harder and it was also lower grade.

The $12.6-million cathode copper plant is producing approximately 22,000 lb of high quality copper per day and should make “a significant contribution to cash flow in 1987,” he said.

In December, Gibraltar sold 554,546 shares with a share-purchase tax credit which raised $6 million. A final prospectus is being filed to distribute these shares to the public at a price of $8.25 per share. This transaction will allow Gibraltar to obtain value for tax deductions it had earned but could not use. Separately, approximately $1.9 million was received from the British Columbia government in settlement of claims made for provincial sales tax paid on grinding media from 1979 to 1986.