GENERAL49711 - Laserfiche WebLink

Home Browse Search

DerverRocl<;rMoim~air~~ews___ _____ ______ 1 ;- '~~~eahd ua~ters m+dv~ ~ r q ~~ would take 100 jobs ~I, CYPRUS from SB "If you get rid of 50-odd percent of your company, what's going to happen to your mazket cap? lt's going down, and [hat says [o me takeover target," Worthington said. Cyprus last year sold off its Amax Gold subsidiary, its lithium properties and its eastern coal holdings. When it sells its remain- ing coal, the company will have only copper and molybdenum, in- cluding the 1{enderson Mine near Empire, the mothballed Climax Mine neaz Leadville and another molybdenum ore body in western Colorado. If Cyprus were to move its headquarters, the loss of 100 co~- { poste jobs would not have a major i economic impact on Colorado, since the Henderson Mine would continue producing the steel-al- ]oyin€ metal molybdenum, said Stuart Sanderson, president of the Colorado Mining Association. "Cyprus was once the Colorado industry's Flagship company, and [here's a psychological factor I there," said Sanderson. "I[ might ! ~ take some of [he luster off Den- ~ vet's claim to be the center of -iirRtEaciiltRlfig, but most mining companies headquartered in Colorado have had to undergo same restructuring." In an effort to cut costs, Cyprus- Amax has eliminated its investor relations department, a move that indicates how deeply depressed metal prices have become. "A major company getting rid of its investor relations department? That's essential," Worthington said. "What if there's a major acci- dentsomewhere?" A sale of Cyprus' remaining coal mines could generate $800 mil- lion, money that would be used to finance the copper operations, Malys said. The coal property auc- tion is being handled by the in- vestment banker Solomun Smith Barneylnc. The company last month de- clared adividend of 20 cents per share, but Ward warned that "in 1999, our board of directors will assess current market conditions, operating cash flow and other fac- !ors in determining dividend pay- ments." Malys said fourth-quarter earn- ings wi II 6e lower because of a fire that shut down its Willow Creek coal mine in Utah on Nov. 25.