NBH core earnings lift first half

Press, 1 February 1988, Page 26

NBH core earnings lift first half

NZPA-AAP Melbourne North Broken Hill Holdings said strong earnings in its core lead, silver and gold businesses lifted first half 1987-88 profit. The increase was stunted by a stronger Australian dollar against the U.S. dollar and new conservative methods adopted to value minerals concentrate shipments, North BH said. Net equity-accounted profit in the half-year ended December 16 rose to sAust4o.27 million from $37.03M on sales of $579.47M up from $523.68M. Earnings were strongest in the last half of the 24 week period, the company said. North BH made a net

loss from earnings of associated companies of $2.68M under an accounting rule in which associates’ dividends cannot exceed profits. North BH actually earned $10.48M profit from its 30 per centowned Energy Resources of Australia, Ltd, (ERA) but had to show 513.11 M received in dividends as a loss.

Peko-Wallsend, Ltd, North BH’s 30 per cent partner in energy resources and the subject of an agreed-merger bid from North, reported similar earnings from ERA earlier last week. Stock exchange authorities criticised Peko for effectively releasing ERA earnings before ERA had

itself reported. North BH has 22.1 per cent of Peko under the terms of its agreed bid of two North shares plus 250 c cash for each of Peko’s 87.07 million ordinary shares. Ron Brierley’s Industrial Equity has raised its stake in Peko to 19.9 per cent, just below the threshold where a takeover bid must by law be made. North BH said an extraordinary profit of $18.971V. in North BH’s half-year results, against a SI2M loss, arose from a 519.61 M sale of its share in the Golden Grove zinc/lead deposit. Mining and smelting pre-tax profits rose more than 12 per cent