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Show The National Enterprise , August 18, 1976 Page nine Hecla Not Optimistic As Substantial Losses Loom Hecla Mining Company (Spokane Stock Exchange 15.00, 15.50) experienced a loss in the second quarter of The consolidated net loss for the quarter was $3,240,965, or $0.48 per share, as compared to net income of $942,956, or $0.14 per share, for the first quarter of 1976 and $1,841,316, or $0.27 per share, for the second quarter of 1975. The second quarter loss also resulted in a consolidated net loss for the first six months of 1976 of $2,298,009, or $.34 per share. This compares with consolidated net income of $3,446,280, or $0.50 per share for the same period in 1976. operate the plants as efficiently as possible, we have been treating purchased concentrates from outside sources to partially offset the production shortfall from the sulfide mine, the executive added. According to Love, total Lakeshore Mine project development costs to July 1, 1976 are $198 million, which includes $11 million of working capital. Additional working capital of $9 million is estimated to be required by the end of the year to finance Congress Gives Strippers Price Relief increased inventories in process and and product Congress last week comsales receivables. pleted action on a bill deconThe Lucky Friday and trolling the price of oil from Unit operated low producing wells and setnormally throughout the ting up new programs for second quarter, Love re- energy conservation. ported. The Sunshine Mine Under the bill, oil from has been closed by a strike wells those stripper since Marh 11, 1976 and the 10 barrels a day or producing matter is still unsettled. Hecla less would be entirely free must bear its share of standby of regulation and could rise to costs at the mine in addition to the import level of more than the loss of revenue from this $13 a barrel. The oil is source. currently sold at a controlled price of $11.63 per barrel. in-trans- Star-Morni- it, ng Stripper wells account for about 12 percent of U.S. oil output. The bill also authorized the Federal Energy Administration to give price incentives for oil flushed from old wells by chemical flooding or other tertiary methods of extraction. These account for less than one percent of U.S. production but sponsors of the bill hope a price bonus will encourage more. 1975. According to company president W. H. Love, the loss during the second quarter primarily resulted from Hecla s share of the net loss incurred by the Lakeshore operation in the amount of $4,385,108. This amount in- cludes amortization and preciation expense de- of and interest on bank loans of $916,602. The Lakeshore Mine, a 50-5- 0 partnership with El Paso Natural Gas Company, was placed on an operational status for accounting purposes as of April Net operational 1, 1976. results from that time forward, including current interest costs, are reflected in the $1,006,000, companys regular income ac- count. Other factors which adversely affected the companys earnings, Love said, were loss of income from the Sunshine Unit Area as result of a labor strike, and the companys equity in the net loss of Granduc Mines, Limited for the first six months of 1976 in the amount of $206,000. Love said that operating losses will continue, probably into the fourth quarter as the costs per pound of copper produced during the buildup of production to full plant capacity are higher than normal. Although it was earlier reported that fullscale operation was expected by year end, it now appears that goal may have been optimistic and that full production in both oxide and sulfide mines may not be attained until the second quarter of 1977, he added. Love reported that the oxide mine is now operating at near its rated capacity and is on schedule. However, the sulfide mine has achieved only about 50 of rated capacity. Problems are related to with controlling caving of the ore, including difficulty with ore passes, excessive ground weight over extraction drift openings, and trouble with fragmentation of caved material he said. The metallurgical plants are operating well and appear capable of achieving projected operating results. In order to Everybody claims to be in favor of freedom. Yet how many people really understand what itk all about? Consider the businessman who's all for free competition . . . unless his competition is named IBM or is Japanese. 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