Sherritt Gordon

After reporting losses of $27.7 million in 1986, bad luck continues to plague Toronto-based Sherritt Gordon Mines.

Almost as soon as the company had written off the money-losing Ruttan copper-zinc mine and sold its investment in SherrGold Inc., weak agricultural conditions have impacted on Sherritt’s fertilzer results.

While both the metals and special products groups reported close to 50% in 1987 profit increases, this was offset by a sharp decline in fertilizer.

The company reported an operating loss of $469,000 from its fertilizer division, compared to a profit of $22,920,000 during the same period last year.

For the year ended Dec 31, Sherritt reported net earnings (before preferred dividends) of $5,885,000 compared to a 1986 loss of $27,796,000. After preferred dividends, the company earned 10 cents per share, up from a loss of $1.45 per share in 1986.

Sherritt’s 1987 net earnings included $3,279,000 from continuing operations including its fertilizer, metals and special products divisions. and $2.6 million from discontinued operations like the Ruttan Mine, at Leaf Rapids, Man., and SherrGold Inc.

As reported (N.M., Feb 8/88), Sherritt sold a 58% interest in SherrGold Inc. to Hayes Resources for $17 million cash and 2.4 million shares. SherrGold operates the McLellan gold mine northeast of Lynn Lake, Man.

Sherritt’s 1987 profits reflects operating results prior to sale as well as a gain on disposal of the Ruttan Mine and oil and gas properties. The gain from sale of the SherrGold interest will be included in, Sherritt’s 1988 first quarter results.