Results cloud Sunshine’s year

A lacklustre fourth quarter took the shine off 1994 for Sunshine Mining (NYSE).

The Boise-based company reported a loss of US$4.9 million for the year, compared with a loss, in the previous year, of US$42.3 million. The fourth-quarter loss of $4.2 million represents the bulk of the loss for the year. The 3-month period saw the price of silver fall to US$4.87 from US$5.61 per oz., which caused the company to mark down its silver investments and inventories. Sunshine’s horizon was further clouded by a drop in silver production at its namesake mine in northern Idaho.

Nevertheless, financial results showed a marked improvement over 1993, due largely to lower interest expenses and higher interest income. Contributing to the improvement were lower depreciation, depletion and amortization expenses.

Silver production from the Sunshine mine was 2.1 million oz., compared with 2.3 million oz. in 1993. The mine also produced 826,000 lb. of copper and 474,000 lb. of antimony, compared with 771,000 lb. of copper and 587,000 lb. of antimony in the previous year. Production this year is expected to remain at 1993 levels.