Mining Companies Report Mixed Financial Results

Mere clay enabled Hecla Mining Co. to report a small profit in the second quarter, while Pegasus Gold Inc. and Echo Bay Mines Ltd. registered net losses based on precious metals operations alone.

Coeur d’Alene-based Hecla Wednesday said record results from its industrial minerals segment helped produce earnings of $800,000, or 2 cents per share, compared with $229,000, or 1 cent per share, for the three-month period a year ago.

For the first six months of the year, the company earned $300,000, or 1 cent per share, compared with a loss of $4.2 million, or 9 cents per share, a year ago.

Revenues were $41.2 million for the quarter, $84.9 million for the half, with sales of industrial minerals constituting more than half the total.

Gross profit from industrial minerals, primarily kaolin clay produced in the Southeast, jumped 40 percent for the quarter.

Meanwhile, lower gold production sapped revenues despite slightly higher prices. Silver revenues rose based on prices that climbed to $5.42 from $5.09 a year ago. Output declined.

Spokane-based Pegasus and Toronto-based Echo Bay, which operates a mine and mill near Republic, are primarily gold producers.

Pegasus reported a net loss of $1.7 million, or 4 cents per share, compared with a loss of $1.2 million, or 3 cents per share, for the same threemonth period a year ago.

For the first six months of the year, the loss was also $1.7 million, compared with $3 million, or 9 cents per share, a year ago.

Second-quarter results reflect a $500,00 charge taken to resolve water quality litigation involving the company’s Zortman mine in Montana.

Total gold production from Pegasus mines in Montana, Nevada, Idaho and Australia was 115,500 ounces in the second quarter, down from 132,200 ounces a year ago.

An increase in gold prices over 1995 levels helped offset the decrease in output.

Echo Bay said its quarterly net loss reached $14.6 million, or 11 cents per share, up from $12.9 million, or 12 cents per share, a year ago, when there were fewer shares outstanding.

For the six-month period, the net loss was $30.8 million, or 24 cents per share, compared with $24.6 million, or 22 cents per share, a year ago.

, DataTimes