Sunshine Mining Losses Accelerate In 1995

Despite big losses, company claims ‘strong financial position’ Losses at Boise-based Sunshine Mining & Refining Co. accelerated during 1995, according to year-end financial results reported Monday.

For 1995, Sunshine lost $15.5 million compared with a 1994 loss of $4.9 million. However, the 1994 results reflect a one-time $6.9 million gain with the elimination of post-retirement medical benefits for employees.

For the fourth quarter, Sunshine lost $4.4 million, compared with a loss of $4.2 million during the same 1994 period.

Despite the losses, Sunshine said the company remains in a strong financial position, with only $1.5 million of debt and $23.5 million in capital.

The company attributed the 1995 losses, in part, to the cost of expanding international exploration. The company spent $6 million on exploration sites in Peru and Argentina. The new projects will position the company to boost production while lowering the cost of mining silver and other metals.

Sunshine’s spent $6.62 for every ounce of silver it produced in 1995 while receiving an average of only $5.26 for each ounce it sold.

Sunshine also announced Monday that it will double production at its flagship Sunshine silver mine in Idaho’s Silver Valley, hiring at least 60 more workers there over the upcoming year.

Shareholders will meet this month to approve a plan to convert Sunshine’s preferred shares to common shares. The company hasn’t paid dividends on those preferred shares since the early part of the decade, and the plan would settle claims from major holders of those preferred shares.

Other financial reports:

Albertson’s, Inc., the nation’s fourth-largest retail food-drug chain, on Monday reported improved fourth-quarter sales and profits.

The Boise-based retailer, which operates 764 stores, said fourth-quarter sales were up 6.8 percent to $3.3 billion and earnings for the quarter were $154.1 million, compared with $1.44.2 million for the same period last year.

Earnings per share increased to 61 cents per share from 57 cents per share last year.

A. Craig Olson, senior vice president for finance and chief financial officer, said fiscal 1995 was a challenging year.

“The critical success factors in the retail food-drug industry - increasing identical store sales, providing employee training and advancement, controlling expenses and increasing retail square footage - are all in place and working,” Olson said.

He said Albertson’s will focus on quick meal ideas and improving front-end service in 1996.

For the year, the company reported sales of $12.6 billion, up 5.8 percent. Identical-store sales went up 0.8 percent.

, DataTimes