MIM has almost stagnant profit

Press, 16 September 1987, Page 41

MIM has almost stagnant profit

NZPA-AAP Brisbane Queensland's premier mining house, MIM Holding, has reported an almost stagnant sAust4B.49 million net annual profit, up just 0.5 per cent on last year. It represents a mere $9.53M improvement on the half year net profit MIM chairman, Sir Bruce Watson, blamed continuing low metal prices and an unrealised foreign exchange loss of 5545 M for the poor result

The profit announcement came amid continuing speculaton that MlM's share register is vulnerable following the decision by Asarco Inc, announced in New York to sell almost half its 34 per cent holding. While Sir Bruce agreed the move made a takeover bid possible, he said MIM was not concerned.

He pointed out he was a director of Asarco, and said MIM, Asarco’s biggest shareholder with a 24.4 per cent interest had been kept informed of proposals. "But I guess that when you have a single shareholder holding 34 per cent or more and someone takes about half of them, then you are at risk,” he said.

“They will keep 19 per cent and that is a fairly sizeable lump of shares in safe hands.”

Analysts have suggested Robert Holmes a Court may renew his interest in MIM. His Bell Resources made an unsuccessful raid on Asarco in 1985, hoping to win eventual control of MIM. Sir Bruce said the Asarco sale would see further MIM shares go into Australian hands.

The deal would boost Australian ownership of MIM to 85 per cent from about 72 per cent.

Those shareholders -would be pleased by the prospects for the current year. Directors recommended a steady 2c a share final dividend to give an unchanged 4c for the year on issued capital boosted by a one-for-two bonus issue in May. Recent strengthening in metal prices and "the bottoming of coal prices” would see an improved profit, Sir Bruce said.

Sir Bruce told reporters the 5545 M unrealised foreign exchange loss, brought to account to comply with accounting standards, was covered by a 5550 M transfer from the asset revaluation reserve.