After abnormal items, the Queensland-based firm made a much larger A$130.9 million profit -- a sharp turnround from the A$160.4 million deficit of a year ago. The main gains in the year just ended were a A$146.6 million profit from the sale of MIM's interest in Papua New Guinea's Highlands Gold; a write-back of A$22.3 million of coal-related provisions; and a A$38.9 million gain from the restructuring of European investments. These were offset by some additional provisions and write-offs. However, the company admitted the results were still unsatisfactory and warned that volatile metal prices and exchange rates made it very difficult to forecast results for the year ahead.
However, given the present level of copper prices in particular, a difficult year is in prospect,'' it cautioned. With the heavy investment required in the new Argentine Alumbrera project and the Queensland-based Ernest Henry mine, MIM said it was halving the final dividend to 1.25 cents a share. Nevertheless, the stock market welcomed the figures, pushing MIM shares - which have been badly depressed for some time -- six cents higher to A$1.65. Group sales were about two per cent up at A$2.58 billion.
MIM said that despite the drop in copper price towards the end of the year, average prices were little changed from 1994-95. Volumes, meanwhile, were 10.8 per cent higher for zinc, but 16.1 per cent lower for silver, and 11.2 per cent down for coking coal.
The core operations, based in Queensland's Mount Isa and the subject of a bitter industrial dispute last year, turned from a A$41.6 million loss to a A$33.2 million profit.