CRA EXPECTS TO PAY FINAL DIVIDEND OF 10 CENTS

  CRA Ltd &lt;CRAA.S> said it expected to
  pay a final 1986 dividend of not less than 10 cents a share
  after July 1, making 13 cents forthe year against 15 in 1985.
      The mining and smelting group earlier reported 1986 net
  earnings rose to 138.2 mln dlrs from 87.8 mln in 1985, against
  analysts' forecasts yesterday of 125 mln to160 mln.
      CRA said it was deferring consideration of a dividend until
  later this year to provide the benefit of dividend imputation
  to its shareholders. After July 1, dividends will be tax-free
  to shareholders provided they come out of earnings on which the
  full 49 pct company tax rate has been pid.
      The company operates on a substituted tax year, not the
  fiscal year ending June 30, and as a result has incurred tax at
  the 49 pct rate on 1986 earnings, CRA said in a statement.
      Consequently, it has funds available for distribution with
  dividend imputed but is waiting to see the imputation
  legislation before determining the final payout, it said.
      Despite the higher net earnings, CRA said 1986 was a poor
  year for the minerals industry, with the notable exception of
  gold producers.
      Prices for major metals expressed in real U.S. Dollars
  declined to the lowest levels in about 50 years, it said.
      Fluctuating exchange and interest rates added volatility
  and uncertainty, while the revaluation of the yen is leading to
  substantial restructuring of Japanese industry, CRA said.
      World demand for metals is growing slowly. Inventories have
  steadily declined, with supply and demand in better balance,
  but overcapacity continues, CRA said.
      Turning to contributions to its earnings, CRA said
  Bougainville Copper Ltd &lt;BUVA.S> contributed 31.3 mln dlrs
  while its share of Comalco Ltd's &lt;CMAC.S> net was 37.8 mln.
      Net earnings from iron-ore operations were 111.8 mln dlrs
  against 149.2 mln in 1985, it said.
      Lead, zinc and silver mining and smelting operations
  incurred a net loss of 66.8 mln dlrs against a 38.1 mln loss in
  1985, CRA said.
      Coal activities resulted in a net profit of 36.7 mln dlrs
  against 34.1 mln, while salt raised its contribution to 4.7 mln
  from 2.8 mln.
      CRA's share of earnings from the Argyle diamond project
  amounted to 12.0 mln dlrs against nine mln in 1985.
      CRA said the main item in its 250.28 mln dlr extraordinary
  loss was a 172.9 mln writeoff of unrealised foreign exchange
  losses on borrowings as required by a new accounting standard.
      Other extraordinary items were 63.3 mln dlrs provided for
  closures and writedown of assets and a 14.1 mln increase in
  future tax provisions, CRA said.
      Cash flow continued at a high level, being 950.6 mln dlrs
  before capital expenditure against 1.02 billion in 1985. The
  strong cash flow, coupled with the proceeds of the 1986 rights
  issue and the use of existing cash balances, enabled group debt
  to be reduced by nearly 500 mln dlrs.
      CRA said it held forward contracts at year-end to buy 985
  mln U.S. Dlrs to hedge part of its foreign debt. This cost 47.0
  mln dlrs after tax, included in the net interest cost.
  

