FORM 10-Q
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
( X ) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1995
or
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ______________ to _____________
Commission file number 1-10122
Magma Copper Company
(Exact name of registrant as specified in its charter)
Delaware 86-0219794
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
7400 N. Oracle Rd., Suite 200
Tucson, Arizona 85704
(Address of Principal executive offices) (Zip Code)
(520) 575-5600
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
Yes X No
______ ______
Number of shares of common stock outstanding
at March 31, 1995: 46,112,065
<PAGE>
MAGMA COPPER COMPANY
Form 10-Q
For the Quarter Ended March 31, 1995
INDEX
Page
Number
Part I - Financial Information
Item 1 - Financial Statements
Introduction to the Financial Statements 1
Consolidated Balance Sheets -
March 31, 1995 and December 31, 1994 2
Consolidated Statements of Operations-
Three months ended March 31, 1995 and 1994 3
Consolidated Statements of Cash Flows -
Three months ended March 31, 1995 and 1994 4
Notes to Consolidated Financial Statements 5
Report of Independent Public Accountants 9
Item 2 - Management's Discussion and Analysis of
Financial Condition and Results
of Operations 10
Part II - Other Information
Item 6 - Exhibits and Reports on Form 8-K 13
Signature 14
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
The financial statements for the three months ended March 31, 1995 and
1994 include, in the opinion of the Company, all adjustments (which consist
only of normal recurring adjustments) necessary to present fairly the results
of operations for such periods. Results of operations for the three months
ended March 31, 1995, are not necessarily indicative of results of operations
which will be realized for the year ending December 31, 1995. The financial
statements should be read in conjunction with the Company's Form 10-K for the
year ended December 31, 1994.
The financial statements included herein have been subjected to a
review, in accordance with the standards established by the American
Institute of Certified Public Accountants, by Arthur Andersen LLP, the
registrant's independent public accountants.
<PAGE>
MAGMA COPPER COMPANY
Consolidated Balance Sheets
(In thousands)
March 31, December 31,
Assets 1995 1994
------ ------------ ------------
Current Assets:
Cash $ 48,467 $ 72,849
Marketable securities 8,420 15,388
Accounts receivable 72,116 101,058
Inventories:
Metals 129,070 96,186
Materials and supplies 38,768 40,814
Prepaid expenses 17,703 15,045
--------- ---------
Total current assets 314,544 341,340
--------- ---------
Net Property, Plant and Mine
Development 1,299,767 1,217,220
--------- ---------
Other 25,549 18,076
--------- ---------
Total Assets $1,639,860 $1,576,636
========= =========
Liabilities and Stockholders' Equity
------------------------------------
Current Liabilities:
Accounts payable $ 32,612 $ 34,101
Accrued liabilities and short-term
borrowings 175,654 183,516
Current portion of long-term debt 5,616 5,641
Income taxes payable 14,616 3,218
--------- ---------
Total current liabilities 228,498 226,476
--------- ---------
Accrued Pension, Retirement and
Other Liabilities 71,063 67,934
Deferred Income Taxes 145,882 135,356
Long-Term Debt 384,688 386,802
Commitments and Contingencies
Stockholders' Equity:
Cumulative convertible preferred
stock 40 40
Common stock 461 460
Capital in excess of par value 625,985 625,849
Retained earnings 186,693 137,833
Unearned stock grant compensation (3,431) (4,032)
Unrealized loss on marketable
securities (19) (82)
--------- ---------
Total stockholders' equity 809,729 760,068
--------- ---------
Total Liabilities and
Stockholders' Equity $1,639,860 $1,576,636
========= =========
The accompanying notes are an integral part of these
consolidated financial statements.
<PAGE>
MAGMA COPPER COMPANY
Consolidated Statements of Operations
(In thousands, except per share amounts)
Three Months
ended March 31,
------------------------------
1995 1994
-------- --------
Sales $297,537 $175,532
Cost of sales:
Cost of products sold (195,930) (140,224)
Depreciation, depletion
and amortization (16,791) (15,143)
Selling, general and
administrative (8,036) (5,148)
Exploration, research
and development (4,613) (3,238)
------- -------
Income from operations 72,167 11,779
Other income (expense):
Interest expense (5,360) (5,966)
Interest income 1,036 3,620
Other 768 994
------- -------
Income before income taxes 68,611 10,427
Income tax provision (16,845) (2,816)
------- -------
Net income $ 51,766 $ 7,611
======= =======
Preferred stock dividends (2,906) (2,906)
------- -------
Net income available for
common stock $ 48,860 $ 4,705
======= =======
Earnings per share of common
stock, primary:
Net income $ 1.05 $ .16
Preferred stock dividends (.06) (.06)
------- -------
Earnings per share of common
stock $ .99 $ .10
======= =======
Average common shares
outstanding, primary 49,213 49,033
Earnings per share of common
stock, fully diluted:
Net income $ .82 $ .10*
======= =======
Average common shares outstanding,
fully diluted 63,529 63,118
* The Company's convertible preferred stock is not included in the
calculation as its effects are antidilutive.
The accompanying notes are an integral part of these
consolidated financial statements.
<PAGE>
MAGMA COPPER COMPANY
Consolidated Statements of Cash Flows
(In thousands)
Three months
ended March 31,
-------------------
1995 1994
-------- --------
Net income $ 51,766 $ 7,611
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation, depletion and amortization 16,791 15,143
Gain (loss) on sale of assets 1 (185)
Other 749 555
------- -------
69,307 23,124
------- -------
Change in certain assets and liabilities:
(Increase) decrease in:
Accounts receivable 28,942 6,270
Inventories (25,198) (9,383)
Prepaid expenses (2,658) 2,946
Increase (decrease) in:
Accounts payable and accrued expenses (16,851) 4,588
Income taxes payable 11,398 2,594
Accrued pension, retirement
and other liabilities 3,129 718
Deferred income taxes (2,670) (35)
------- -------
Net change in certain assets and liabilities (3,908) 7,698
------- -------
Net cash provided by operating activities 65,399 30,822
------- -------
Cash flows from investing activities:
Capital expenditures (87,573) (34,438)
Acquisition of Tintaya (3,716) --
Marketable securities 6,936 (98,308)
Proceeds from sale of assets 3 254
Other (7,593) (3,746)
------- -------
Net cash used by investing activities (91,943) (136,238)
------- -------
Cash flows from financing activities:
Short-term financing 7,500 --
Long-term debt repayment (1,000) (1,000)
Long-term lease financing (1,139) (1,288)
Debt issuance costs (430) (108)
Issuance of common stock under stock plans 118 128
Issuance of common stock from warrants exercised 19 --
Issuance of preferred stock -- (83)
Preferred stock dividend (2,906) (2,906)
------- -------
Net cash provided (used) by financing activities 2,162 (5,257)
------- -------
Net decrease in cash (24,382) (110,673)
Cash at the beginning of the period 72,849 230,414
------- -------
Cash at the end of the period $ 48,467 $119,741
======= =======
Marketable securities 8,420 206,252
------- -------
Total cash and marketable securities $ 56,887 $325,993
======= =======
Supplemental disclosure of cash flow information:
Cash paid during the period for -
Interest, net of amounts capitalized $ 2,745 $ 3,843
Income taxes $ 5,079 $ --
The accompanying notes are an integral part of these
consolidated financial statements.
<PAGE>
MAGMA COPPER COMPANY
Notes to Consolidated Financial Statements
Note 1 -- Basis of Consolidation
The accompanying consolidated financial statements include the accounts
of Magma Copper Company and its subsidiaries ("Magma" or the "Company"). All
material intercompany activity has been eliminated. Certain amounts
previously reported have been reclassified to conform to the current
presentation in the accompanying consolidated financial statements.
Note 2 -- Inventories
Copper concentrate is a product that can be readily purchased or sold to
third parties. Typically it is the practice of the Company to classify its
concentrate inventories as "in process" rather than "finished goods" as this
material is subject to further processing at the Company's smelting and
refining complex. However, at March 31, 1995 and December 31, 1994, $2.4
million and $4.7 million, respectively, of copper concentrate from the
Company's Tintaya, Peru property was classified as finished goods because
this material is expected to be sold to third parties.
The components of inventories are as follows (in thousands):
March 31, December 31,
1995 1994
------------- ------------
Metals in process, net $107,473 $ 70,817
Finished goods 21,597 25,369
------- -------
Metals 129,070 96,186
Materials and supplies, net 38,768 40,814
------- -------
$167,838 $137,000
======= =======
Note 3 -- Income Taxes
SFAS 109, "Accounting for Income Taxes", requires use of the liability
method for providing deferred income taxes, which generally records deferred
taxes for transactions reported in different years for financial reporting
and tax purposes.
In calculating income taxes, the Company has benefited from deductions
for percentage depletion. In general, the Company's cumulative percentage
depletion deductions exceed cost basis of depletable properties, resulting in
current percentage depletion being treated as a permanent difference. The
effect of this permanent difference causes the effective tax rate to be
generally lower than the statutory tax rate.
The Company has recorded a provision for income taxes of $16,845,000 in
the first three months of 1995. Included in this provision is an accrual for
foreign taxes. Additionally, U.S. taxes net of anticipated foreign tax
credits have been provided on foreign earnings as management does not have
specific plans for reinvestment of foreign earnings nor do they plan to
postpone remittance indefinitely. The provision for income taxes differs
from the amounts computed by applying the federal statutory tax rate to the
net income before taxes, as follows:
<PAGE>
For the three months ended
March 31, 1995
---------------------------
Dollars Tax Rate
(In millions) (percentage)
------------ -----------
Income tax provision
at federal
statutory rate $(24,021) (35)%
Percentage depletion 9,328 13
State tax (2,152) (3)
------- ---
Total provision $(16,845) (25)%
======= ===
Note 4 -- Commitments and Contingencies
The Company is from time to time involved in various legal proceedings
of a character normally incident to its business, including various claims
and pending actions against the Company seeking damages in large amounts or
clarifications of legal rights. Although there can be no assurance in this
regard, the Company does not believe that adverse decisions in any pending or
threatened proceedings, or any amounts which it may be required to pay by
reason thereof, would have a material adverse effect on the financial
condition or results of operations of the Company.
Note 5 -- Capitalized Interest
During the first three months of 1995 and 1994, $5,804,000 and
$4,755,000, respectively, of interest cost was capitalized on certain long-
term projects. The total amount of interest cost incurred was $11,164,000
and $10,721,000 for the first three months of 1995 and 1994, respectively.
Note 6 -- Disclosure About Fair Value of Financial Instruments
The following methods and assumptions were used to estimate the fair
value of each class of financial instruments for which it is practicable to
estimate that value:
Cash and Short-Term Borrowing. The carrying amounts approximate fair
value.
Marketable Securities. In the first quarter of 1994 the Company adopted
SFAS 115, "Accounting for Certain Investments in Debt and Equity Securities".
Accordingly, certain of the Company's investments with an average maturity of
less than 2 years have been classified as available-for-sale securities and
are reported at their estimated fair value, based on quoted market prices for
those or similar investments. The Company utilizes the specific
identification method in computing realized gains and losses.
During the three month period ended March 31, 1995, the Company received
$7.0 million in proceeds from maturities of available-for-sale securities
resulting in no realized gains or losses.
The change in unrealized holding losses, net of tax, for the three month
period ending March 31, 1995 was $.1 million.
<PAGE>
Long-Term Debt. The fair value of the Company's long-term debt is
estimated based on the quoted market prices for the same or similar issues or
on the current rates offered to the Company for debt of the same remaining
maturities.
Price Protection Contracts. From time to time the Company enters into
options and futures contracts or fixed price forward sales agreements as a
hedge against lower copper prices. The carrying amount of these contracts
reflects the cost of the option premiums which will be amortized ratably as
the contracts expire. The fair value of these contracts is estimated based
on quotes from brokers and market prices at March 31, 1995.
The estimated fair values of the Company's financial instruments as of
March 31, 1995 are as follows (in thousands):
Carrying Fair
Amount Value
-------- -------
Cash $ 48,467 $ 48,467
Marketable securities 8,420 8,420
Short-term borrowing 22,500 22,500
Long-term debt (includes
current portion) 390,304 418,148
Copper price protection
contracts 32,784 (1,829)
Gold swap contracts -- 1,996
The fair value estimates are made at discrete points in time based on
relevant market information and information about the financial instruments.
These estimates may be subjective in nature and involve uncertainties and
significant judgment and therefore cannot be determined with precision.
<PAGE>
Note 7 -- Acquisition of Tintaya
On October 6, 1994, the government of Peru declared the consortium of
Magma Copper Company and its wholly-owned subsidiary, Global Magma, Ltd., the
winning bidder in the privatization of Empresa Minera Especial Tintaya S.A.,
("Tintaya") which owns one of the largest operating mining projects in Peru.
The consortium acquired 98.43% of the common stock of Tintaya on November 29,
1994.
The following unaudited pro-forma combined financial data give effect to
the acquisition as if it had occurred on the first day of the period. This
pro-forma financial data is provided for comparative purposes only and does
not purport to be indicative of the results which would have been obtained if
the acquisition had been effected during the period presented. The pro-forma
financial information is based on the purchase method of accounting and
reflects adjustments to record the profits of acquired inventories,
conversion from Peruvian GAAP to U.S. GAAP, depreciation, depletion and
amortization of mine development costs on the adjusted asset basis and
adjusts income taxes for the pro-forma adjustments.
Quarter ended
March 31, 1994
--------------
Total revenue $194,307
Income before extraordinary items 10,139
Net income 10,139
Primary earnings per share .15
Earnings per share assuming full dilution .15(1)
(1) The Company's convertible preferred stock is not included in the fully
diluted calculation as its effects are antidilutive.
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To Magma Copper Company:
We have reviewed the accompanying condensed consolidated balance sheet
of MAGMA COPPER COMPANY (a Delaware corporation) and subsidiaries as of March
31, 1995, and the related condensed consolidated statements of operations and
cash flows for the three-month periods ended March 31, 1995 and 1994. These
financial statements are the responsibility of the Company's management.
We conducted our reviews in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures
to financial data and making inquiries of persons responsible for financial
and accounting matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards, the
objective of which is the expression of an opinion regarding the financial
statements taken as a whole. Accordingly, we do not express such an opinion.
Based on our reviews, we are not aware of any material modifications
that should be made to the financial statements referred to above for them to
be in conformity with generally accepted accounting principles.
We have previously audited, in accordance with generally accepted
auditing standards, the consolidated balance sheet of Magma Copper Company
and subsidiaries as of December 31, 1994, (not presented herein), and in our
report dated January 27, 1995, we expressed an unqualified opinion on that
balance sheet. In our opinion, the information set forth in the accompanying
condensed consolidated balance sheet as of December 31, 1994, is fairly
stated, in all material respects, in relation to the balance sheet from which
it has been derived.
Arthur Andersen LLP
Tucson, Arizona,
April 14, 1995.
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
MATERIAL CHANGES IN FINANCIAL POSITION
Net income for the three months ended March 31, 1995 was $51.8 million
compared to $7.6 million for the same period in 1994. This increase was
primarily due to increased copper prices and sales volume. The Company
realized a copper price of $1.32 per pound for the three months ended March
31, 1995, a $.48 per pound increase from the same period last year. Net cash
provided by operating activities was $65 million during the first three
months of 1995. Working capital at March 31, 1995 was $86 million (including
$57 million in cash and marketable securities) compared to $115 million
(including $88 million in cash and marketable securities) at December 31,
1994.
The Company's cash position and cash flow from operations were used to
fund capital expenditures of $91 million for the three months ended March 31,
1995 as compared to $34 million for the same period in 1994.
MATERIAL CHANGES IN RESULTS OF OPERATIONS
Results of Operations for the Three Months Ended March 31,1995
As Compared with the Three Months Ended March 31, 1994
Total sales increased 69% to $298 million in 1995 from $176 million in
1994. Sales of copper increased in 1995 to $263 million from $156 million in
1994 due to higher realized copper prices and increased sales volume of
copper purchased from third parties.
Sales of other metal by-products and acid increased $15 million due
primarily to sharply higher prices for molybdenum during January and
February. The sharp market price increase for molybdenum contributed $11
million in increased sales. Other revenue increases resulted from a greater
volume of gold and silver sold and higher prices for acid.
Cost of products sold increased by 40% to $196 million in 1995 from $140
million in 1994 due to increased sales volume and a higher market price of
purchased copper concentrates and scrap from third parties for subsequent
processing. Additionally, scheduled completion of open-pit mining operations
at San Manuel (which had produced lower unit cost copper cathode) and lower
ore grades in the first quarter of 1995 were the major contributors to
increasing the Company's cost per pound before credits of producing Magma
source concentrates by 6 cents as compared to the same period in 1994.
Despite the overall increase in cost during the quarter, the per pound cost
of products sold net of credits decreased to $0.56 compared to $0.59 in 1994,
due to the temporary increase in molybdenum credits. The following table
sets forth the volume of copper sold in relation to the components that make
up cost of products sold:
<PAGE>
Three months ended
March 31,
(In millions)
1995 1994
-------- --------
Pounds sold from:
Magma sources 135.7 139.6
Purchased 59.2 40.7
----- -----
Total pounds of copper sold 194.9 180.3
===== =====
Toll Processing Pounds:
Returned as cathode 17.6 13.5
Returned as anode 13.6 9.7
Cost of Products Sold:
Magma sources $102.9 $ 96.8
Purchased 79.5 33.1
Tolling 3.3 2.9
Other 10.2 7.4
----- -----
Total cost of products sold $195.9 $140.2
===== =====
Per Pound Cost of Products Sold:
Magma Sources
Before credits $ .76 $ .70
Credits (1) (.20) (.11)
----- -----
Net $ .56 $ .59
===== =====
(1) Deductions for rod premiums, profit on by-products and custom
processing.
Depreciation, depletion and amortization expense increased $1.6
million to $16.8 million in 1995 from 1994 as a result of depreciation of new
assets which includes the Company's acquisition of Tintaya in November 1994.
Selling, general and administrative expenses increased $2.9 million
due primarily to higher insurance and legal costs.
Exploration, research and development costs increased $1.4 million as
a result of the Company's efforts to increase its proven and probable mineral
reserves. These activities are presently conducted at the Company's existing
minesites along with new areas in Chile and Mexico.
Interest expense decreased $0.6 million to $5.4 million in 1995 due
to interest capitalized on the Company's expansion projects.
Interest income decreased $2.6 million to $1.0 million in 1995 as a
result of smaller balances of cash and marketable securities brought about by
the Company's purchase of the Tintaya mine.
<PAGE>
Other income decreased $0.2 million to $0.8 million in 1995 due to the
completion of townsite sales in the first quarter of 1994.
The Company's provision for income taxes of $16.8 million for 1995 and
$2.8 million for 1994 reflects higher income in the current period.
Net income in 1995 was $51.8 million, or $.82 per share fully diluted,
compared to $7.6 million, or $.10 per share in 1994. After dividends on
preferred stock, $48.9 million in 1995 was available for common stockholders,
or $.99 per share, compared to $4.7 million or $.10 per common share in 1994.
CAPITAL RESOURCES AND LIQUIDITY
The Company is pursuing a number of capital projects and anticipates
spending on the order of $700 million on these projects over the next three
years, $435 million of which is scheduled to be spent during 1995.
During the first quarter of 1995, the Company funded its development
projects through internally generated cash flow, short-term borrowing and
existing cash balances. The Company's cash flow available for capital
expenditures (net income plus depreciation, depletion and amortization) was
$69 million at a realized copper price of $1.32 per pound. Cash and
marketable securities at March 31,1995 were $57 million. Although from time
to time the Company anticipates utilizing its $300 million Revolving Credit
Facility for general corporate purposes, at March 31, 1995, there were no
amounts outstanding.
In light of the historic volatility of copper prices, the Company uses
a combination of put options, futures, swap contracts and forward commitments
to assure cash flow from operations to facilitate its capital spending
program. For 1995 and 1996, the Company's price protection program creates
a floor price of approximately $.87 and $.93 per pound, respectively. For
1997, the Company has purchased put options covering 364 million pounds of
first and second quarter production, creating a minimum realized price of
approximately $.93 per pound. The Company believes that even if prices were
to fall below these levels, because of its price protection program, it would
be able to fund a substantial portion of the capital expenditures scheduled
for these periods from cash balances and operating cash flow, with the
remainder to be funded by its existing credit facilities, or alternative
sources of borrowings that the Company may seek.
The decision to complete ongoing projects or to undertake new projects
is subject to a variety of factors, which may include (depending on the
project), the price of copper, the completion of favorable feasibility
studies and permitting. There can be no assurance that the Company will
undertake all of these opportunities or that, if undertaken, they will prove
successful.
<PAGE>
PART II - OTHER INFORMATION
- ---------------------------
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits:
Exhibit 11 - Statement re computation of per share
earnings.
Exhibit 27 - Financial Data Schedules
(b) Reports on Form 8-K:
The Company filed a report on Form 8-K/A-1 (filed February 7,
1995) dated November 29, 1994 to provide required information
pertaining to its acquisition of the Tintaya mine in southern
Peru.
<PAGE>
Signature
---------
Pursuant to the requirement of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
MAGMA COPPER COMPANY
Date: May 12, 1995
By: /s/ Douglas J. Purdom
----------------------------
Douglas J. Purdom
Vice President and
Chief Financial Officer
(Principal Accounting
and Financial Officer)
MAGMA COPPER COMPANY EXHIBIT 11
Computation of Per Share Earnings
(In thousands, except per share amounts)
Three Months
ended March 31,
--------------------------
1995 1994
Primary ------- ------
- -------
Weighted average common
shares outstanding 49,213 49,033
Earnings used in per common
share computation:
Net income $51,766 $ 7,611
Preferred stock dividends (2,906) (2,906)
------ ------
Net income available
for common stock $48,860 $ 4,705
====== ======
Earnings per share:
Net income $ 1.05 $ .16
Preferred stock dividends (.06) (.06)
------ ------
Earnings per share of
common stock $ .99 $ .10
====== ======
Assuming full dilution
- ----------------------
Weighted average common
shares outstanding 63,529 63,118
Earnings used in per common
share computation:
Net income $51,766 $ 7,611
Earnings per share:
Net income $ .82 $ .10
Computation of weighted average
shares outstanding-fully diluted
---------------------------------
Primary weighted average
shares outstanding 49,213 49,033
Assuming full dilution:
Conversion of Series D Preferred
Stock (2 million shares at
3.448 conversion rate) 6,896 6,896
Conversion of Series E Preferred
Stock (2 million shares at
3.5945 conversion rate) 7,189 7,189
Incremental shares 231 --
------ ------
Fully diluted weighted
average shares outstanding 63,529 63,118
====== ======
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED BALANCE SHEETS AND THE CONSOLIDATED STATEMENTS OF OPERATIONS AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> QTR-1
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> MAR-31-1995
<CASH> 48,467
<SECURITIES> 8,420
<RECEIVABLES> 72,116
<ALLOWANCES> 0
<INVENTORY> 167,838
<CURRENT-ASSETS> 314,544
<PP&E> 1,512,846
<DEPRECIATION> 213,079
<TOTAL-ASSETS> 1,639,860
<CURRENT-LIABILITIES> 228,498
<BONDS> 384,688<F1>
<COMMON> 461
0
40
<OTHER-SE> 809,228
<TOTAL-LIABILITY-AND-EQUITY> 1,639,860
<SALES> 297,537
<TOTAL-REVENUES> 297,537
<CGS> 195,930
<TOTAL-COSTS> 212,721<F2>
<OTHER-EXPENSES> 12,649<F3>
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 5,360
<INCOME-PRETAX> 68,611
<INCOME-TAX> 16,845
<INCOME-CONTINUING> 51,766
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 51,766
<EPS-PRIMARY> .99
<EPS-DILUTED> .82
<FN>
<F1>REFLECTS THE COMPANY'S NON-CURRENT LONG-TERM DEBT.
<F2>TOTAL COSTS REFLECTS THE COMPANY'S COST OF GOODS SOLD AND DEPRECIATION,
DEPLETION AND AMORTIZATION COSTS.
<F3>OTHER-EXPENSES REFLECTS SELLING, GENERAL AND ADMINISTRATION COMBINED WITH
EXPLORATION, RESEARCH AND DEVELOPMENT COSTS.
</FN>
</TABLE>
