Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Minorco invests in gold

Nigel Cope
Thursday 16 March 1995 19:02 EST
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

Minorco, Anglo American's offshore minerals and mining arm, reported strong earnings in its industrial, mineral and agribusiness divisions yesterday in accounts that covered an 18-month period following the change of the year end from June to December.

Pre-tax profits were $540m (£337.5m) for the 18 months to December on sales of $4.6bn. For the year to June 1993, profits were $340m on sales of $2.7bn.

Chairman Julian Ogilvie Thompson said: "Minorco will benefit in 1995 from the restructuring of our gold interests and the developments in our base metals and paper and packaging segments." He added that Minorco has six major new mining projects under development.

Problems at the North American gold producer Jerritt Canyon resulted in an exceptional charge of $69m partly related to the development of an underground mine. Minorco said Jerritt Canyon should be profitable this year after two years of losses. Jerritt Canyon, together with a new mine at Cresson in Colorado should be producing 320,000 ounces of profitable gold this year.

The base metals division also disappointed due to a weak zinc price and the exhaustion of some mines. Paper and packaging performed well and the company expects a £250m newsprint facility in Aylesford, Kent to start manufacturing newsprint from waste paper by the middle of this year.

In November Minorco acquired control of the Lisheen zinc deposit in County Tipperary after a bitter battle. Minorco paid £77m for a 50 per cent stake and management control. Development of the project is expected to cost around $180m.

Gold, zinc, copper and nickel projects are at the feasibility study stage in Chile, Argentina, Venezuela and Brazil. The company has increased its interest in the Collahuisi copper mine in Chile to 50 per cent since the year end. Estimated capital costs are $1.3bn and production is expected to start in late 1998.

The company raised the dividend from 57 US cents for the 12 months to June 1993 to 95 cents for the 18 months to December 1994.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in