If zinc prices remain at the US60 cents level, the Mt. Hundere zinc-project should generate 25-30 cents per share of net earnings for Hillsborough Resources (TSE) in 1991, says President George Vooro. Mt. Hundere, near the Yukon-British Columbia border, is a joint venture owned 20% by Hillsborough and 80% by Curragh Resources (TSE). Curragh, the project manager, says it plans to have the project in production by July. Hillsborough, through its Canadian Mine Development division, is mine development contractor on the project.
At the company’s annual meeting, Vooro said the project is on budget but is about half a month behind schedule on construction. Proven and probable reserves at Mt. Hundere are sufficient for eight years of lead-zinc concentrates production at 150,000 tonnes per year.
Hillsborough reported net income of $995,555 (20 cents) for the first quarter of 1991 compared with $490,200 (10 cents per share) for the same period in 1990. Vooro says 1991 earnings should surpass 1990’s, but he does not expect earnings for the current year to be “four times the first quarter.” In 1990, Hillsborough reported net income of $2.25 million after paying out $510,000 in dividends.
“The outlook for 1991 is very positive,” said Vooro, adding that the company will consider declaring a dividend in 1991. The company, formed in 1984, has paid a dividend every year since 1986.
Vooro said the company’s strategy is to “get involved in mining operations when we have an equity position” such as at Mt. Hundere. By the end of 1993, Vooro said he would like to see the company’s revenue split evenly from contracting and from mine operations.
The company is currently looking at gaining an equity position in two projects: a gold project in Ontario and a lead-zinc project in South America. Vooro said a decision on the two projects will be made during the second quarter. Hillsborough Resources (TSE) 3 months ended Mar. 31 1991 1990 Revenue $10,755 $5,872 Net earnings 996 490
per share 0.20 0.10
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