Improved copper prices and additional production from the Cerro Colorado mine in Chile helped Rio Algom (TSE) post improved financial results in 1995.
The company produced 197.1 million lb. copper in 1995, which it sold at an average price of US$1.33 per lb., compared with 157.5 million lb. sold at US$1.05 per lb. in the previous year. The increased production stemmed from the fact that Cerro Colorado was operational for a full year in 1995, compared with only seven months in 1994.
Earnings in 1995 hit a 7-year high and revenues jumped by 80% from the previous year. The company earned $132.4 million (or $2.55 per share) on revenues of $1.98 billion, compared with $75.2 million ($1.48 per share) on $1.1 billion in 1994.
With production from the Alumbrera copper mine coming on stream, Rio expects to become one of the world’s leading copper producers, with total output projected to rise to 350 million lb. by 1999.
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