Sunshine Mining Lost $64.8 Million In ‘98

Sunshine Mining and Refining Co. reported a year-end, net loss of $64.8 million Friday, mainly due to a writedown of its flagship mine near Kellogg.

The net loss - which amounted to 25 cents per share - compares with a net loss of $19.3 million in 1997.

The company wrote down $50.4 million in investments in its Sunshine Mine during the third quarter, due to fading ore reserves and lower metals prices. However, further drilling revealed more high-grade reserves to mine this year and in 2000, company officials announced in January.

Both operating revenues and silver production increased in 1998. Total silver production was 5.8 million ounces last year, a 36 percent increase from 1997.

Company officials expect the Sunshine Mine to produce about 5.5 million ounces of silver annually at least through mid-2002, officials said.

The company is planning a major exploration and development project into the eastern area of the Sunshine Mine, which includes access to the 5,400-foot ConSil shaft.