Sale of interest in Cominco, Afton lifts Metall income

Proceeds of $18 million from the sale of its interest in Cominco (TSE) and Afton Mining boosted Metall Mining’s (TSE) earnings to $15.2 million (35 cents per share) in 1991 from $2.9 million in 1990.

In November, 1991, Metall sold 3.4 million Cominco shares to its parent, MIM Holdings of Australia. The Canadian subsidiary later sold its interest in Afton Mining, a copper-gold producer in British Columbia, to Teck (TSE) for an after-tax gain of $4.1 million.

At the Copper Range mine in Michigan, Metall’s copper cathode production reached 103.6 million pounds compared with 94.4 million pounds in 1990. This year, Metall will purchase more copper concentrates to fill excess capacity at its smelter and refinery and take advantage of high treatment charges. In Papua New Guinea, Metall’s share of earnings from the Ok Tedi copper-gold mine increased to $15.1 million from $5.1 million in 1990.

Financing and development of Metall’s advanced projects in Turkey and Tunisia are proceeding. At Dikili, where Metall plans to establish an open pit gold mine, production is expected to begin in 1993 at a rate of 100,000 oz. per year. Next on the schedule is the Bougrine lead-zinc deposit, where engineering and construction are currently under way. The Cayeli copper-zinc mine is expected to come on stream in late 1994 or early 1995.