Copper and potash sectors boost Rio Algom earnings

Toronto-based Rio Algom (TSE) is continuing to benefit financially from a favorable economy and the performance of 68.8%-owned copper producing subsidiary Lornex Mining Corp. (VSE).

After reporting improved first half earnings, Rio Algom says consolidated net earnings for the first nine months of 1988 (including a $10-million tax gain) increased to $90.1 million ($2.03 per share) from $53.3 million or $1.20 per common share at the same time last year.

Consolidated revenues were also up to $1.45 billion in the first nine months of 1988 from to $1.11 billion in 1987.

The company’s latest results included $30 million or 68 per share in third quarter consolidated net earnings compared to $15.1 million or 34 per share reported in the third quarter of 1987, Rio Algom said. Third-quarter consolidated revenues increased to $474.1 million from $352.1 million last year.

The company attributes its recent results to the performance of Lornex Mining which holds a 45% interest in the Highland Valley Copper operation in British Columbia. “Metals distribution and potash operations also contributed to the improved results,” the company said.

While Rio Algom reported a loss at its East Kemptville tin mining operation in Nova Scotia, the mine is expected to benefit from a recent upswing in tin prices.

However, uranium earnings were lower this year because of a declining spot market price which led to an inventory adjustment at the Lisbon mine. B ased in Moab, Utah, the Lisbon mine was closed Sept 30 and is being placed on standby.

Rio Algom declared a semi- annual dividend of 37 per share to be paid on Dec 5 to shareholders of record on Nov 14. A quarterly dividend of $1.45 per $5.80 first preference share was also declared payable on Jan 1 to shareholders of record on Dec 16.

In addition a semi-annual dividend of 21 per 8.5% second preference share was announced by the company to be paid on Dec 15 to shareholders of record on Nov 28.