24

11

12;

13.

14.

11535

RETIREMENT PLANS

The Company maintains contributory retirement plans which cover certain salaried and hourly
paid employees. The following information sets out the plans funded status at December 31, 1987:

Expected actuarial present value of benefit obligations $ 8,797,000

Plan’s assets at fair value, primarily pooled funds invested in cash and bonds $ 9,650,000

MAJOR CUSTOMERS

Substantially all asbestos revenue is derived from sales to customers outside Canada. Sales to
three major customers, under contracts which generally are not more than one year in duration,
accounted for approximately one-half of the revenue in 1987 (two customers in 1986).

SEGMENTED INFORMATION

Segmented information is not presented because substantially all revenue is derived from sales to
customers outside Canada.

CHANGE OF AUDITORS

The comparative figures for 1986 are based upon financial statements which were reported on
by other auditors.

SUBSEQUENT EVENT

Subsequent to the year-end the Company has arranged the necessary financing of $30 million to
proceed with the development of the McDame orebody.

FIVE YEAR SUMMARY

(1983 to 1986 Restated)
($ in thousands)

1987 1986 1985 1984 1983
Revenue $ 58,129 $ 48739 $ 61,317 $ 73,282 $ 70,402
Expenses 45,293 40,250 48,654 53,525 56,871
Earnings from Operations

before the following 12,836 8,489 12,663 19,757 13,531
Interest _— — 3,573 6,549 7,330
Depreciation 2,640 5,411 6,776 7,295 8,896
Income and Mining Taxes 4,400 1,648 889 1,118 (1,369)
Dividends on Preferred Shares

of Subsidiary 2,144 2,927 932, — =
Earnings (Loss) from

Continuing Operations 3,652 (1,497) 493 4,795 (1,326)
Insurance Recovery and Loss

from Discontinued

Operations — (61) 374 3,273 (1,690)
Extraordinary Items — 1,225 2,000 (4,850) (5,977)
Net Earnings (Loss) $ 3,652 $ (333) $ 2,867 $ 3,218 $ (8,993)

a a SC Tre SF ERIN WOheeee)
McDame Exploration $52,608). S: = 4:5800 9 Gan Age 156 $ 40
Fixed Assets (Net) $ 600 $ 1,005 §$ 332. §$ 823 §$ 830
Debt at year end (net of cash)

(millions) $ 2720E> 34.7 §$ 43.3 § 48.5 §$ 74.5
Ore Mined - tonnes 1 100 262 794 015 1065 299 1015 134 895 071
Waste Removed —

bank cubic metres 1 416 000 729 000 1308200 1933380 3 188 281
Fibre Produced — tonnes 96 014 80 676 86 401 93 526 82 168