Gibralter quarterly loss about equal to last year’s

Gibraltar Mines reports a loss of $1,184,000 or 10 cents per share on revenues of $14,975,000 for the first three months of 1987.

This compares to a loss of $1,141,000 or 10 cents per share on revenues of $15,319,000 in the corresponding period of 1986.

A. J. Petrina, Gibraltar’s president, said cash from operations remained positive and a dividend of 5 cents per share was paid on March 9, 1987. The company’s cash balance at March 31, 1987 was $12,918,000.

Mr Petrina said copper production increased 30% to 18,628,000 lb due mainly to the processing of higher grade ore, improved recoveries, and the new output from the cathode copper plant.

He said the benefit of the resulting lower unit costs, however, was largely offset by weaker prices for copper and higher smelter charges.

The copper price averaged 63 cents (US) per lb compared to 65 cents per lb in the corresponding period of 1986.

Molybdenum sales were approximately one-third of those in the 1986 period when inventories were reduced.

The Metals Week price for molybdenum contained in molybdic oxide averaged $3.09 per lb compared to $2.68.

Mr Petrina said the sale of cathode copper made a significant contribution to cash flow. The level of cathode copper production reflected cold weather conditions which, as expected, adversely affected the efficency of the dump leaching system. Cathode copper production in 1987 is expected to be approximately 8,500,000 lb.

The company is continuing its exploration program, and will provide up to $500,000 for this purpose by issuing flow-through shares. Mr Petrina said the program will emphasize off-property activities mainly directed to the evaluation and possible acquisition of gold prospects in the Cariboo region of British Columbia.