Normal mining and milling operations remain suspended at Gibraltar Mines’ (TSE) open pit copper mine near Williams Lake, B.C. The Placer Dome (TSE) subsidiary said one of two alternative contract offers was recently rejected by 61% of the striking unionized employees who have been off the job since mid-May. At press time the company and the union were still negotiating with a government-appointed mediation officer.
Announcing the company’s latest financial results, Gibraltar President, A. J. Petrina, said results for the nine months ended Sept 30, illustrate the extent to which the company’s earnings are leveraged to the copper price. Net earnings of $7,268,000 or 60 per share were recorded for that period, in which the mine operated for only 4 months. This compares to $963,000 or 8 per share in the corresponding period of 1987. Revenues in the two periods were $43.8 million and $49.2 million respectively. The improved earnings were attributed to a higher copper price and to record production from the cathode copper plant, some 8,363,000 lb during the period.
In the third quarter, Petrina said the company incurred a loss of $966,000 because of the strike and the cash balance declined to $35.4 million. A regular quarterly dividend of 10 per share was paid during the third quarter.
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