MIM doubles profit

Press, 31 August 1989, Page 40

MIM doubles profit

NZPA-AAP Brisbane MIM Holdings has more than doubled its annual net profit to sAust2o3.s million (5NZ262.5M) on the back of strong metals prices and record sales. Record sales revenue from its international mining and processing operations of SAustl.76B (5NZ2.278) offset the adverse impact of the high Australian dollar in the first three quarters of the year, the MIM chairman, Sir Bruce Watson, said. The net profit compared with last year’s result of sAust97.B4M (5NZ126.21M) and came before a foreign exchange gain of SAust36.6M which carried group net profit to sAust24o.l2M (5NZ309.75). “That is due to vastly im-

proved metal prices, improved competitiveness within the company and record copper production of almost 174,000 tonnes,” the chairman said.

The . only non-performer was the coal division, which made a pre-tax loss of SAustBsM (SNZIIOM), on top of a SAust66M loss in the previous year.

The loss was caused by the strong Australian dollar and reduced coal production from strikes associated with the introduction of new work practices and unseasonal wet weather, the chairman said. However, he said the future looked brighter with recent restructuring bringing productivity increases at MlM’s coal operations at Oaky Creek, Newlands and

Collinsville.

"I think you can look forward to a much better result in coal this coming year,” he said.

“The coal price has strengthened, the dollar has weakened, demand is good and I think all of that augurs well for the future of the coal industry.”

Shareholders would receive a final unfranked dividend of A7c, taking the year’s total to A 10c — twice last year's payout. This was about an 11.5 per cent return, but was not satisfactory when bank funds returned 17%, the chairman said.

During the next quarter, he said he hoped to seal the sAust2soM (5NZ322.5M) deal with the Italian power company, AGIP.

Under the deal agreed last December, AGIP buys 25% of Newlands and Collinsville with an option to buy 25%.

The chairman said that the delay was just in agreeing on “fine print”

He also confirmed that MIM expected to float subsidiary Highlands Gold, which has a 33% interest in Porgera goldmine in Papua New Guinea, late this year or early next year. MIM is also conducting a study into a zinc refinery in Townsville. The outcome would be largely dependent on energy costs, the chairman said.

He said he expected a decision in the next two to three months on natural gas against coal at the Mt Isa mines.