Higher copper prices give Gibraltar a boost

Stronger prices for the red metal enabled Gibraltar Mines (TSE) to earn $3.4 million (or 13 cents per share) on revenue of $100 million for 1995.

The figure compares with a net loss of $10 million on revenue of $21.6 million for 1994. (The loss resulted from a temporary halt in production at the McLeese Lake mine.)

Earnings for the fourth quarter totalled $403,000 on revenue of $29 million, during which time copper production at McLeese Lake topped 15.7 million lb. The yearly total amounted to 66.9 million lb. Cash flow exceeded $24 million, compared with a cash flow deficit of $8.5 million in 1994.

Gibraltar has more than $88 million in working capital, most of which is earmarked for the Lomas Bayas oxide copper project in Chile.

A positive feasibility study on Lomas Bayas estimates the capital cost of a 99,000-ton-per-day open-pit mine at US$195.6 million. Project financing is being secured.

The oxide-leach operation is expected to produce 132 million lb. of cathode copper per year for 12 years at an cash cost of US51 cents per lb. in the first five years, or US59 cents per lb. over the life of the mine.

Proven and probable minable reserves at Lomas Bayas are estimated at 312.7 million tons grading 0.36% copper at a stripping ratio of 0.4-to-1.