Low coal prices and the high level of the Canadian dollar continue to take their toll on Westar Mining (TSE). The company reported a net loss of $9.8 million for its 1991 second quarter and a loss of $19.7 million for the six months ended June 30.
This compares with a loss of $10.7 million in the second quarter of 1990 and a loss of $12.9 million in the 1990 first half. Results for the first half of 1990 included an extraordinary gain of $10.5 million. Excluding the extraordinary gain in 1990, year-over-year results showed an improvement, although it was marginal considering the concessions the company received from its lenders in a debt restructuring completed earlier this year. As a result of the restructuring, interest costs for the first half of 1991 dropped to $12.8 million from $30.4 million reported for the first half of 1990. Interest charges in the second quarter of 1991 were $5.1 million, compared with $15.7 million in the same period last year.
Although coal production increased slightly from the same period last year, price decreases and foreign exchange factors helped push down revenue. Revenues for the six months totalled $227.5 million, compared with $229.3 million in 1990. Second-quarter revenue was $111.6 million compared with $113.7 million for the same period in 1990.
Cash available after interest charges and before depreciation was $5.5 million for the six months, and $1.8 million for the quarter ended June 30. Westar continues to be unable to meet its retraction obligation on its A preferred shares which have a par value of $25 and accumulated dividends of close to $12 per share. The shares recently traded at the $9.50 level.
Be the first to comment on "Westar Mining losses mount"