<PAGE>

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                    FORM 10-Q
(Mark One)
[X]        QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
           EXCHANGE ACT OF 1934
           For the quarterly period ended JULY 31, 1999

                                       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 333-66291

                        THE DOE RUN RESOURCES CORPORATION
             (Exact name of registrant as specified in its charter)

                      NEW YORK                                13-1255630
        (State or other jurisdiction of                      (IRS Employer
         incorporation or organization)                   Identification No.)

           1801 PARK 270 DRIVE, SUITE 300
                 ST. LOUIS, MISSOURI                             63146
      (Address of principal executive offices)                (Zip Code)

   Registrant's telephone number, including area code    (314) 453 - 7100



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 proceeding 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.
                                                 [X]     YES      [   ]  NO

Number of shares outstanding of each of the issuer's classes of common stock,
as of September 10, 1999:
<TABLE>

<S>                                                              <C>
COMMON STOCK, $.10 PAR VALUE                                     1,000 SHARES

</TABLE>


<PAGE>

                               THE DOE RUN RESOURCES CORPORATION
                                       INDEX TO FORM 10-Q
<TABLE>
<CAPTION>
                                                                                                  PAGE NO.
                                                                                                  --------
<S>                                                                                               <C>

PART 1.  FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS
                               THE DOE RUN RESOURCES CORPORATION
Condensed Consolidated Balance Sheets
   July 31, 1999 and October 31, 1998                                                                3
Consolidated Statements of Operations
   three and nine months ended July 31, 1999 and 1998                                                4
Condensed Consolidated Statements of Cash Flows
   nine months ended July 31, 1999 and 1998                                                          5
Notes to Consolidated Financial Statements                                                          6-19

                                      DOE RUN PERU S.R.L.

Condensed Consolidated Balance Sheets
   July 31, 1999 and October 31, 1998                                                                20
Condensed Consolidated Statements of Operations
   three and nine months ended July 31, 1999 and 1998                                                21
Condensed Consolidated Statements of Cash Flows
   nine months ended July 31, 1999 and 1998                                                          22
Notes to Condensed Consolidated Financial Statements                                                 23


ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF                                                    24-35
         FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT
         MARKET RISK                                                                                 35

PART II.  OTHER INFORMATION.
ITEM 2.  LEGAL PROCEEDINGS                                                                           35

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K.
(a)  EXHIBITS                                                                                        36


SIGNATURES                                                                                           37

EXHIBIT INDEX                                                                                        38
</TABLE>



<PAGE>

PART 1. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS

                       THE DOE RUN RESOURCES CORPORATION
                     CONDENSED CONSOLIDATED BALANCE SHEETS
               (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
                                                                                                   JULY 31,            OCTOBER 31,
                                                                                                     1999                 1998
                                                                                                   --------           ------------
                                                                                                  (UNAUDITED)
<S>                                                                                                <C>                <C>
                                     ASSETS
Current assets:
    Cash                                                                                           $   6,963            $   4,646
    Trade accounts receivable, net of allowance for
        doubtful accounts                                                                             85,190               86,338
    Inventories                                                                                      128,515              126,467
    Prepaid expenses and other current assets                                                         35,968               30,306
                                                                                                   ---------            ---------
        Total current assets                                                                         256,636              247,757

Property, plant and equipment, net                                                                   264,727              264,468
Special term deposit                                                                                 125,000              125,000
Net deferred tax assets                                                                                    -                8,015
Other noncurrent assets, net                                                                          15,582               18,399
                                                                                                   ---------            ---------
        Total assets                                                                               $ 661,945            $ 663,639
                                                                                                   =========            =========

                      LIABILITIES AND SHAREHOLDER'S EQUITY
Current liabilities:
    Short-term borrowings and current maturities of long-term debt                                 $  11,261            $   2,018
    Accounts payable                                                                                  48,510               53,698
    Accrued liabilities                                                                               60,802               50,670
    Net deferred tax liabilities                                                                         -                  1,815
                                                                                                   ---------            ---------
        Total current liabilities                                                                    120,573              108,201

Long-term debt, less current maturities                                                              474,560              476,284
Net deferred tax liabilities                                                                           3,558                2,571
Other noncurrent liabilities                                                                          57,281               58,005
                                                                                                   ---------            ---------
        Total liabilities                                                                            655,972              645,061

Shareholder's equity:


    Common stock, $.10 par value, 1,000 shares authorized,
         issued, and outstanding                                                                         -                    -
    Additional paid-in capital                                                                         5,000                5,000
    Retained earnings                                                                                    973               13,578
                                                                                                   ---------            ---------
        Total shareholder's equity                                                                     5,973               18,578
                                                                                                   ---------            ---------
        Total liabilities and shareholder's equity                                                 $ 661,945            $ 663,639
                                                                                                   =========            =========
</TABLE>

               The accompanying notes are an integral part of
                   these consolidated financial statements.


                                       3
<PAGE>

                       THE DOE RUN RESOURCES CORPORATION
               CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
                           (DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                      THREE MONTHS ENDED              NINE MONTHS ENDED
                                                                           JULY 31,                         JULY 31,
                                                                -------------------------------  ------------------------------
                                                                       1999            1998             1999           1998
                                                                --------------  ---------------  --------------- --------------
<S>                                                                 <C>              <C>              <C>            <C>

Net sales                                                           $ 204,382        $ 184,360        $ 577,765      $ 527,765

Costs and expenses:
    Cost of sales                                                     172,748          156,586          493,095        439,691
    Depletion, depreciation and amortization                            7,684            5,551           24,064         17,012
    Selling, general and administrative                                 8,658            8,031           26,318         25,731
    Exploration                                                         1,005            1,165            2,855          2,764
                                                                    ---------        ---------        ---------      ---------
      Total costs and expenses                                        190,095          171,333          546,332        485,198
                                                                    ---------        ---------        ---------      ---------

      Income from operations                                           14,287           13,027           31,433         42,567

Other income (expense):
    Interest expense                                                  (14,972)         (12,532)         (44,413)       (27,037)
    Interest income                                                     3,629            3,641           11,202          6,000
    Other, net                                                           (800)             704           (1,117)            69
                                                                    ---------        ---------        ---------      ---------
                                                                      (12,143)          (8,187)         (34,328)       (20,968)
                                                                    ---------        ---------        ---------      ---------

      Income (loss) before income taxes                                 2,144            4,840           (2,895)        21,599

Income tax expense                                                      1,186            2,181            9,710         10,161
                                                                    ---------        ---------        ---------      ---------

      Income (loss) before extraordinary item                             958            2,659          (12,605)        11,438
      Extraordinary item related to early retirement
           of debt, net of income tax benefit                              -                -                -          (4,388)
                                                                    ---------        ---------        ---------      ---------

      Net income (loss)                                             $     958        $   2,659        $  (12,605)    $   7,050
                                                                    =========        =========        ==========     =========
</TABLE>

               The accompanying notes are an integral part of
                   these consolidated financial statements.

                                       4
<PAGE>

                       THE DOE RUN RESOURCES CORPORATION
            CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
                           (DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>

                                                                                                      NINE MONTHS
                                                                                                     ENDED JULY 31,
                                                                                            ------------------------------
                                                                                                1999            1998
                                                                                            --------------  --------------
<S>                                                                                           <C>               <C>
Cash flows from operating activities:
    Net income (loss)                                                                         $   (12,605)      $   7,050
    Extraordinary item related to retirement of debt                                                  -             6,750
    Adjustments to reconcile net income to net cash provided by operating
       activities:
        Depreciation, depletion and amortization                                                   24,064          17,012
        Amortization of deferred financing fees                                                     2,666           1,501
        Deferred income taxes                                                                       7,187             281
        Imputed interest                                                                              358              15
        Increase (decrease) resulting from changes in assets and liabilities                           58         (36,434)
                                                                                              -----------       ---------

             Net cash provided by (used in) operating activities                                   21,728          (3,825)

Cash flows from investing activities:
    Special term deposit                                                                              -          (125,000)
    Purchases of property, plant and equipment                                                    (24,912)        (17,032)
                                                                                              -----------       ---------
        Net cash used in investing activities                                                     (24,912)       (142,032)

Cash flows from financing activities:
    Proceeds from (payments on) revolving loans and
       short term borrowings, net                                                                 (15,544)         15,767
    Proceeds from long-term debt                                                                    5,665         380,000
    Payments on long-term debt                                                                     (2,075)       (230,845)
    Proceeds from sale/leaseback transactions                                                      17,922            -
    Payment of deferred financing costs                                                              (467)        (12,930)
    Payment of dividends                                                                               -             (189)
    Redemption of preferred stock                                                                      -           (2,500)
                                                                                              -----------       ---------
        Net cash provided by financing activities                                                   5,501         149,303
                                                                                              -----------       ---------
        Net increase in cash                                                                        2,317           3,446

Cash at beginning of period                                                                         4,646           8,943
                                                                                              -----------       ---------
Cash at end of period                                                                         $     6,963       $  12,389
                                                                                              ===========       =========

Supplemental disclosure of cash flow information-
    Cash paid during the period for:
       Interest, net of capitalized interest                                                  $    29,206       $   9,445
                                                                                              ===========       =========
       Income taxes                                                                           $     6,739       $  14,089
                                                                                              ===========       =========
</TABLE>

               The accompanying notes are an integral part of
                   these consolidated financial statements.

                                       5
<PAGE>

                       THE DOE RUN RESOURCES CORPORATION

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                             (DOLLARS IN THOUSANDS)

(1) SUMMARY OF  SIGNIFICANT ACCOUNTING POLICIES

        UNAUDITED INTERIM FINANCIAL STATEMENTS

    These interim consolidated financial statements include the accounts of
    The Doe Run Resources Corporation and its subsidiaries (collectively, the
    Company). The common stock of the Company is owned by DR Acquisition
    Corp., a wholly-owned subsidiary of The Renco Group, Inc. (Renco). In the
    opinion of management, the interim consolidated financial statements
    contain all adjustments, consisting of normal recurring accruals,
    necessary to present fairly the consolidated financial position as of
    July 31, 1999 and results of operations for the three and nine month
    periods ended July 31, 1999 and 1998. Interim periods are not necessarily
    indicative of results to be expected for the year.

        RECLASSIFICATIONS

    Certain prior year balances have been reclassified in order to conform
    to current presentation.

(2) INVENTORIES

<TABLE>
<CAPTION>
                                                JULY 31,          OCTOBER 31,
                                                  1999               1998
                                              -----------         -----------
                                              (UNAUDITED)
    <S>                                       <C>                 <C>
    Finished metals and concentrates            $ 15,323           $ 10,954
    Metals and concentrates in process            66,215             70,224
    Materials, supplies and repair parts          46,977             45,289
                                                --------           --------
                                                $128,515           $126,467
                                                ========           ========
</TABLE>

    Materials, supplies and repair parts are stated net of reserves for
    obsolescence of $4,564 and $4,559 as of July 31, 1999 and October 31,
    1998, respectively.

(3) SALE/LEASEBACK TRANSACTION

    In January 1999, Doe Run Peru S.R.L. (Doe Run Peru) finalized an
    agreement for the sale and leaseback of its oxygen plant at the La Oroya
    facility for $17,162. Doe Run Peru has an option to repurchase the oxygen
    plant at the end of the five-year lease term for $200. This transaction
    has been accounted for as a financing arrangement. A sale and leaseback
    of computer equipment, accounted for as a financing arrangement, provided
    an additional $760 of cash flows from financing activities. Under a
    related capital lease, certain computer hardware was leased under a
    capital lease obligation for $603, which included a deferred maintenance
    balance of $151.

(4) CHANGE IN TAXABLE STATUS

    On January 15, 1999, Renco filed an election, with the consent of its
    shareholders, with the Internal Revenue Service to change its taxable
    status from that of a subchapter C corporation to that of a subchapter S
    corporation, effective November 1, 1998. At the same time, Renco elected
    for the Company to be treated as a qualified subchapter S subsidiary
    (QSSS). Most states in which the Company operates will follow similar tax
    treatment. QSSS status requires the ultimate shareholders to include
    their pro rata share of the Company's income or loss in their individual
    tax returns. The election does not affect foreign income taxes related to
    the Company's foreign subsidiaries, and the Company will continue to
    provide for state and local taxes for those jurisdictions that do not
    recognize QSSS status. As a result of this change in tax status, the
    elimination of federal and most state deferred tax assets and liabilities
    for income tax purposes resulted in a charge to income tax expense of
    $6,200 for the nine months ended July 31, 1999.

                                       6
<PAGE>

                       THE DOE RUN RESOURCES CORPORATION

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                             (DOLLARS IN THOUSANDS)


(5) HEDGING

    The fair market value of the Company's net hedging positions at July 31,
    1999 is the difference between quoted prices at the respective period-end
    and the contract settlement value. The fair market value represents the
    estimated net cash the Company would receive (pay) if the contracts were
    canceled on the respective dates. As management has designated these
    contracts as hedges, the related gains and losses will be recognized in
    net sales when the related production is sold.

    The fair market value of the Company's net open hedging positions at
    July 31, 1999 was $(792).

(6) ENVIRONMENTAL AND LITIGATION MATTERS
    ENVIRONMENTAL

    The Company recorded a liability of $34,536 and $35,896 as of July 31,
    1999 and October 31, 1998, respectively, which represent management's best
    estimates of known obligations relating to environmental and reclamation
    matters, which are discussed below.

        DOMESTIC OPERATIONS

    The Company is subject to numerous federal, state and local environmental
    laws and regulations governing, among other things, air emissions, waste
    water discharge, solid and hazardous waste treatment, and storage,
    disposal and remediation of releases of hazardous materials. In common
    with much of the mining industry, the Company's facilities are located on
    sites that have been used for heavy industrial purposes for decades and
    may require remediation. The Company has made and intends to continue
    making the necessary expenditures for environmental remediation and
    compliance with environmental laws and regulations. Environmental laws
    and regulations may become more stringent in the future which could
    increase costs of compliance.

    Primary smelter slag produced by and stored at the primary smelter in
    Herculaneum, Missouri is currently exempt from hazardous waste regulation
    under the Resource Conservation and Recovery Act of 1976, as amended
    (RCRA). The Company has accrued approximately $1,000 related to the
    Herculaneum smelter's operations, primarily for closure obligations. If
    the slag or other wastes at the smelter were to be regulated as hazardous
    waste, the Company may be required to take corrective action under RCRA
    at the smelter, as well as to adopt stricter management practices for
    these wastes. Further, the EPA has initiated an investigation of the
    smelter under the Comprehensive Environmental Response, Compensation and
    Liability Act of 1980, as amended (CERCLA), which could potentially
    require remediation similar to the corrective action mentioned above.

    At its primary smelter in Glover, Missouri, the Company intends to open a
    new slag pile for disposal of its smelting residue. The cost of opening the
    slag pile is estimated at $400, which will be capitalized. The slag pile
    will be available for use in November, 1999. According to the purchase
    agreement with Asarco, Inc. (ASARCO) is required to close the existing
    pile with proportionate contribution from Doe Run based on its use. Doe
    Run's contribution is expected to be minimal. The Company will accrue for
    closure of the new slag pile over the period of use.

    The Company is working with regulators to develop a new three-year
    compliance plan so that the Herculaneum smelter meets the ambient air
    quality standard for lead promulgated under the federal Clean Air Act.
    The plan must be completed by September 2000 and will take effect after
    that date to implement the control measures identified in the plan. The
    Company expects to make capital expenditures for various control measures
    totaling approximately $2,900 in fiscal 1999 and anticipates additional
    future cash requirements of $3,000 during the three-year compliance
    period. Regulators could require that additional measures be included in
    the plan, which could increase the amount of anticipated capital
    expenditures.

                                       7
<PAGE>

                       THE DOE RUN RESOURCES CORPORATION

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                             (DOLLARS IN THOUSANDS)


    The Company has received notice that it is a potentially responsible
    party (PRP) subject to liability CERCLA, at the following sites: four
    sites in St. Francois County, Missouri, including the Big River Mine
    Tailings site, the Bonne Terre site, the Federal site and the National
    site; the Oronogo-Durenweg site in Jasper County, Missouri; the Cherokee
    County site in Cherokee County, Kansas; the Tar Creek site in Ottawa
    County, Oklahoma; the Block "P" site in Cascade County, Montana; and the
    Missouri Electric Works site in Cape Girardeau, Missouri. There are four
    additional sites in St. Francois County for which the Environmental
    Protection Agency (EPA) has indicated it will issue notice. These sites
    involve historical operations of predecessors of the Company. CERCLA
    provides for strict and, in certain circumstances, joint and several
    liability for response costs and natural resource damages. The Company
    has a reserve as of July 31, 1999 of approximately $14,500 for these
    sites, including the four additional sites in St. Francois County, which
    the Company believes is adequate based on its investigations to date.
    However, depending upon the types of remediation required and certain
    other factors, costs at these sites, individually or collectively, could
    have a material adverse effect on the results of operations, financial
    condition and liquidity of the Company.

    The Company signed a voluntary Administrative Order of Consent (AOC) in
    1994 with the EPA to remediate the Big River Mine Tailings site. In
    February 1997, the Company signed an AOC to perform an Engineering
    Evaluation/Cost Analysis (EE/CA) on the Bonne Terre site. In March 1998,
    an AOC was signed to perform an EE/CA on the National site. In addition
    to remediating the mine waste areas at these sites, the Company has
    signed an AOC with the EPA to conduct a Remedial
    Investigation/Feasibility Study (RI/FS) to assess potential off-site
    impacts of site operations on and the need for remediation regarding
    groundwater, residential soils, several creeks and a river. The RIFS is
    being conducted by a third party and is approximately one-half complete,
    with completion expected within two years. The Company believes the
    current reserves assigned to these sites are adequate. However, should
    remediation goals or areas change, requiring substantially increased
    measures, there can be no assurance that the reserves would be adequate.

    The Company has been advised by the EPA that it is considering taking
    certain response actions at a mine site in Madison County, Missouri known
    as the LaMotte Site. A predecessor of the Company was a former operator
    of the site in a joint venture with another company. The EPA has not
    decided whether any action will be taken, but the Company has signed an
    AOC to conduct an RI/FS at the site. This site is substantially smaller
    than the sites in St. Francois County where the Company has been named a
    PRP, and the potential issues are less complex. At this time, based on
    this preliminary meeting and an inspection of the site, management does
    not believe that any future action will result in a material adverse
    impact to the results of operations, financial condition or liquidity of
    the Company.

    The Company's recycling facility is subject to corrective action
    requirements under RCRA, as a result of a storage permit for certain
    wastes issued in 1989. This has required and may involve future
    remediation of solid waste management units at the site. Although it is
    not possible to predict whether completed actions will be approved or new
    actions required, the Company has reserves as of July 31, 1999 of
    approximately $1,800 for future corrective actions and $2,600 for closure
    costs for the permitted storage area.

    The Company's domestic operating facilities have wastewater discharge
    permits issued under the federal Clean Water Act, as amended. It is
    expected that stricter discharge limits than previously in effect will be
    included in permits now subject to renewal. As a result, there will be
    additional treatment facilities required, with anticipated total capital
    expenditures of $4,000 over the next five years to meet applicable permit
    requirements. Management does not expect an appreciable increase in
    operating costs.

    The Company's mining and milling operations include seven mine waste
    disposal facilities that are subject to Missouri mine closure permit
    requirements. The total expected cost of closure is $14,600. The Company
    has begun certain closure requirements ahead of closure and will accrue
    for the cost of ultimate closure at a rate of approximately $450 per
    year. The Company's mine closure reserves were approximately $7,400 as of
    July 31, 1999.

                                       8
<PAGE>

                       THE DOE RUN RESOURCES CORPORATION

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                             (DOLLARS IN THOUSANDS)


        FOREIGN OPERATIONS

    Doe Run Peru has submitted to and received approval from the Peruvian
    government for the Programa de Adecuacion y Manejo Ambiental
    (Environmental Adjustment and Management Program) (the PAMA) that
    consisted of an environmental impact analysis, monitoring plan and data,
    mitigation measures and closure plan. The PAMA also sets forth the
    actions and corresponding annual investments the concession holder agrees
    to undertake in order to achieve compliance with the maximum applicable
    limits prior to expiration of the PAMA (ten years for smelters, such as
    Doe Run Peru's operations, and five years for any other type of mining or
    metallurgical operation). The required amount of annual investment must
    not be less than one percent of annual sales. Once approved, the PAMA
    functions as the equivalent of an operating permit with which the
    operator must comply. After expiration of the PAMA, the operator must
    comply with all applicable standards and requirements.

    Doe Run Peru has committed under its PAMA to implement the following
    projects through December 31, 2006: (i) new sulfuric acid plants; (ii)
    elimination of fugitive gases from the coke plant; (iii) use of
    oxygenated gases in the anodic residue plant; (iv) water treatment plant
    for the copper refinery; (v) a recirculation system for cooling waters at
    the smelter; (vi) management and disposal of acidic solutions at the
    silver refinery; (vii) industrial waste water treatment plant for the
    smelter and refinery; (viii) containment dam for the lead muds near the
    zileret plant; (ix) granulation process water at the lead smelter; (x)
    anode washing system at the zinc refinery; (xi) management and disposal
    of lead and copper slag wastes; and (xii) domestic waste water treatment
    and domestic waste disposal. Annual spending on a calendar year basis
    approved in the PAMA is as follows:

<TABLE>
<CAPTION>
                                                    ESTIMATED
                      YEAR                            COSTS
                      <S>                           <C>
                      1999                          $   5,050
                      2000                             11,265
                      2001                             13,800
                      2002                             14,300
                      2003                             13,180
                      2004                             30,055
                      2005                             34,790
                      2006                             42,040
                                                    ---------
                                                    $ 164,480
                                                    =========
</TABLE>

    The current estimate for the total of spending on environmental projects
    under the PAMA and on additional related process changes for Doe Run Peru
    is approximately $195,000 for this period.

    Doe Run Peru's operations historically and currently exceed some of the
    applicable Ministry of Energy and Mines (MEM) maximum permissible limits
    pertaining to air emissions, ambient air quality and waste water effluent
    quality. The PAMA projects, which are more fully discussed below, have
    been designed to achieve compliance with such requirements prior to the
    expiration of the PAMA on January 13, 2007. No assurance can be given
    that implementation of the PAMA projects is feasible or that their
    implementation will achieve compliance with the applicable legal
    requirements by the end of the PAMA period. Doe Run Peru has advised the
    MEM that it intends to seek changes in certain PAMA projects that it
    believes will more effectively achieve compliance. However, there can be
    no assurance that the MEM will approve proposed changes to the PAMA or
    that implementation of the changes will not increase the cost of
    compliance. Further, there can be no assurance that the Peruvian
    government will not in the future require compliance with additional or
    different environmental obligations that could adversely affect Doe Run
    Peru's business, financial condition or results of operations. Under the
    purchase agreement related to the acquisition of the La Oroya assets in
    October 1997, Empresa Minera del Centro del Peru S.A. (Centromin), the
    previous owner of the La Oroya assets, agreed to indemnify Doe Run Peru
    against environmental liability arising out of its prior operations, and

                                       9
<PAGE>
                       THE DOE RUN RESOURCES CORPORATION

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                             (DOLLARS IN THOUSANDS)

    performance of the indemnity has been guaranteed by the Peruvian
    government through the enactment of the Supreme Decree No. 042-97-PCM.
    However, there can be no assurance that Centromin will satisfy its
    environmental obligations and investment requirements, including those in
    its PAMA, or that the guarantee will be honored. Any failure by Centromin
    to satisfy its environmental obligations could adversely affect Doe Run
    Peru's business, financial condition or results of operations.

    According to the purchase agreement, the Company has the option to
    continue the use of the LaOroya smelter existing zinc ferrite disposal
    site until October 2000, after which it can take ownership of the site or
    create a new site. If the Company chooses to take ownership of the site,
    it will be responsible for its closure costs. The Company has accrued for
    management's estimate of the closure costs, or $7,200. If the ferrite
    site is abandoned, the Company must pay this amount to Centromin.

    Doe Run Peru's Cobriza mine has a separate PAMA. The total cost of
    capital projects to manage tailings, sewage and garbage is approximately
    $4,700, to be expended over the next three years.

        CONSOLIDATED

    The Company believes its reserves for domestic and foreign environmental
    and reclamation matters are adequate, based on the information available.
    Depending upon the type and extent of remediation activities required,
    costs in excess of established reserves are reasonably possible.
    Therefore, there can be no assurance that additional costs, both
    individually and in the aggregate, would not have a material adverse
    effect on the results of operations, financial condition and liquidity of
    the Company.

    LITIGATION

    The Company is a defendant in six lawsuits alleging certain damages
    stemming from the operations at the Herculaneum smelter. Two of these
    cases are class action lawsuits. In one case, the plaintiffs seek to have
    certified two separate classes. The first class would consist of property
    owners in a certain section of Herculaneum, alleging that property values
    have been damaged due to the operations of the smelter. The second class
    would be composed of children who lived in Herculaneum during a period of
    time when they were nine months to six years old, and the remedy sought
    is medical monitoring for the class. The second class action similarly is
    seeking certification of a class of property owners allegedly damaged by
    operations from the smelter, but the purported size of the class is every
    home in Herculaneum, Missouri. The other four cases are personal injury
    actions by sixteen individuals who allege damages from the effects of
    lead poisoning due to operations at the smelter. Punitive damages also
    are being sought in each case. The Company is vigorously defending all of
    these claims.

    Preliminary investigation and research by the Company indicates property
    values in Herculaneum are consistent with those of surrounding
    communities and have not been affected by the smelter. Finally, based on
    rules for class certification, the Company believes class certification
    is not appropriate. Because the cases are in discovery, the Company is
    unable at this time to state with certainty the expected outcome of and
    the final costs of any of these cases. Therefore, there can be no
    assurance that these cases would not have a material adverse effect, both
    individually and in the aggregate, on the results of operations,
    financial condition and liquidity of the Company.

    On May 21, 1999, a lawsuit was filed against the Company alleging certain
    damages from discontinued mine facilities in St. Francois County. The
    plaintiffs seek to have certified two separate classes. The first class
    would consist of property owners, alleging that property values have been
    damaged due to the tailings from the discontinued operations. The second
    class would be composed of children, and the remedy sought is medical
    monitoring for the class. The Company intends to vigorously defend itself
    against this claim. The Company is unable at this time to state with
    certainty the expected outcome of and the final costs of this suit.
    Therefore, there can be no assurance the suit will not have a material
    adverse effect on the results of operations, financial condition and
    liquidity of the Company.
                                       10
<PAGE>

                       THE DOE RUN RESOURCES CORPORATION

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                             (DOLLARS IN THOUSANDS)


(7) GUARANTOR SUBSIDIARIES

    The Guarantor Subsidiaries (Fabricated Products, Inc. (FPI) and DR Land
    Holdings, LLC (the Domestic Guarantors) Doe Run Cayman Ltd. (Doe Run
    Cayman) and certain subsidiaries, Doe Run Mining S.R.L. and its
    subsidiaries Doe Run Development S.A.C. and Doe Run Peru, and its
    wholly-owned subsidiary, Doe Run Air S.A.C.) have jointly and severally,
    fully, unconditionally and irrevocably guaranteed the unsecured debt of
    the Company. Separate financial statements and other disclosures
    concerning certain Guarantor Subsidiaries and disclosures concerning
    non-Guarantor Subsidiaries have not been presented because management has
    determined that such information is not material to investors.



                                       11
<PAGE>

                       THE DOE RUN RESOURCES CORPORATION

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                             (DOLLARS IN THOUSANDS)

(7) GUARANTOR SUBSIDIARIES (CONTINUED)

                      CONDENSED CONSOLIDATING BALANCE SHEET

                          AS OF JULY 31, 1999 (UNAUDITED)

                  (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
                                                      The Company
                                                       Excluding                Doe Run Cayman    Doe Run
                                                       Guarantor     Domestic     and Certain     Peru and                    The
                                                      Subsidiaries  Guarantors   Subsidiaries   Subsidiaries  Eliminations  Company
                                                      ------------  ----------  --------------  ------------  ------------  -------
<S>                                                   <C>           <C>         <C>             <C>           <C>           <C>
                                                                ASSETS
Current assets:
      Cash                                                $      -     $     -       $     31      $   6,932  $       -    $  6,963
      Trade accounts receivable, net of allowance
          for doubtful accounts                             48,462       5,807              -         31,267       (346)     85,190
      Inventories                                           52,603       2,302              -         73,652        (42)    128,515
      Prepaid expenses and other current assets              9,730         176          1,234         26,548     (1,720)     35,968
      Due from subsidiaries                                 14,145           -         15,886              -    (30,031)          -
      Due from parent                                            -           -              -         32,189    (32,189)          -
                                                          --------     -------       --------       --------  ---------    --------
          Total current assets                             124,940       8,285         17,151        170,588    (64,328)    256,636
Property, plant and equipment, net                         143,753       8,103              -        112,871          -     264,727
Special term deposit                                       125,000           -              -              -          -     125,000
Other noncurrent assets, net                                14,658         317            253            354          -      15,582
Investment in subsidiaries                                  25,172           -        177,764              -   (202,936)          -
                                                          --------     -------       --------       --------  ---------    --------
          Total assets                                    $433,523     $16,705       $195,168       $283,813  $(267,264)   $661,945
                                                          ========     =======       ========       ========  =========    ========

                                               LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
      Short-term borrowings and current maturities
          of long-term debt                               $    349     $     -       $  1,465       $  9,447  $       -    $ 11,261
      Accounts payable                                      17,536       2,745              -         28,575       (346)     48,510
      Accrued liabilities                                   37,626         472          7,208         17,216     (1,720)     60,802
      Due to subsidiaries                                        -           -         32,189              -    (32,189)          -
      Due to parent                                              -      11,630          1,323         17,078    (30,031)          -
                                                          --------     -------       --------       --------  ---------    --------
          Total current liabilities                         55,511      14,847         42,185         72,316    (64,286)    120,573
Long-term debt, less current maturities                    323,862           -        127,595         23,103          -     474,560
Net deferred tax liabilities                                     -           -            128          3,430          -       3,558
Other noncurrent liabilities                                48,177       1,904              -          7,200          -      57,281
                                                          --------     -------       --------       --------  ---------    --------
          Total liabilities                                427,550      16,751        169,908        106,049    (64,286)    655,972
Shareholders' equity:
      Common stock, $.10 par value, 1,000 shares
          authorized, issued, and outstanding                    0           -              -              -          -           0
      Common stock, $1 par value, 1,000 shares
          authorized, issued, and outstanding                    -           1              -              -         (1)          -
      Common stock, $1 par value, 2,005,000 shares
          authorized, issued and outstanding                     -           -          2,005              -     (2,005)          -
      Common stock, one nuevo sole par value,
          648,672,941 shares authorized, issued
          and outstanding                                        -           -              -        255,200   (255,200)          -
      Additional paid in capital                             5,000       1,205              -       (113,409)   112,204       5,000
      Foreign currency translation adjustment                    -           -              -        (15,029)    15,029           -
      Retained earnings                                        973      (1,252)        23,255         51,002    (73,005)        973
                                                          --------     -------       --------       --------  ---------    --------
          Total shareholders' equity                         5,973         (46)        25,260        177,764   (202,978)      5,973
                                                          --------     -------       --------       --------  ---------    --------
          Total liabilities and shareholders' equity      $433,523     $16,705       $195,168       $283,813  $(267,264)   $661,945
                                                          ========     =======       ========       ========  =========    ========
</TABLE>

                                      12
<PAGE>


               THE DOE RUN RESOURCES CORPORATION

           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                    (DOLLARS IN THOUSANDS)

(7) GUARANTOR SUBSIDIARIES (CONTINUED)

            CONDENSED CONSOLIDATING BALANCE SHEET
                  AS OF OCTOBER 31, 1998
       (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

<TABLE>
<CAPTION>
                                                              The Company
                                                               Excluding                       Doe Run Cayman        Doe Run
                                                               Guarantor          Domestic      and Certain          Peru and
                                                              Subsidiaries       Guarantors     Subsidiaries        Subsidiary
                                                              ------------      -----------    --------------       ----------
<S>                                                           <C>               <C>           <C>                  <C>
                                                                ASSETS
Current assets:
    Cash                                                        $       -         $      -    $      89            $  4,557
    Trade accounts receivable, net of allowance for
        doubtful accounts                                          51,387            5,127        4,374              30,935
    Inventories                                                    39,545            1,735        6,506              78,150
    Prepaid expenses and other current assets                       6,966              134        3,366              21,923
    Due from subsidiaries                                          20,434                -       10,388                  85
    Due from parent                                                     -                -            -              22,144
                                                             ------------       ----------    ---------             -------
        Total current assets                                      118,332            6,996       24,723             157,794
Property, plant and equipment, net                                151,255            8,818        3,634             100,761
Special term deposit                                              125,000                -            -                   -
Net deferred tax assets                                             8,015                -            -                   -
Other noncurrent assets, net                                       17,274              391          286                 448
Investment in subsidiaries                                         20,776                -      156,174                   -
                                                             ------------       ----------    ---------             -------
        Total assets                                            $ 440,652         $ 16,205    $ 184,817            $259,003
                                                             ------------       ----------    ---------             -------
                                                             ------------       ----------    ---------             -------

                                                   LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
   Current maturities of long-term debt                         $     895         $      -    $   1,123            $      -
   Accounts payable                                                21,120            2,937        4,971              30,155
   Accrued liabilities                                             28,692              366        7,107              16,588
   Net deferred tax liabilities                                     1,815                -            -                   -
   Due to subsidiaries                                                  -                -       22,144                   -
   Due to parent                                                        -           11,068          811              19,028
                                                             ------------       ----------    ---------             -------
        Total current liabilities                                  52,522           14,371       36,156              65,771
Long-term debt, less current maturities                           320,689                -      127,595              28,000
Net deferred tax liabilities                                            -                -            5               2,566
Other noncurrent liabilities                                       48,863            1,942            -               7,200
                                                             ------------       ----------    ---------             -------
        Total liabilities                                         422,074           16,313      163,756             103,537

Shareholders' equity:
   Common stock, $.10 par value, 1,000 shares authorized,
    issued, and outstanding                                             0                -            -                   -
   Common stock, $1 par value, 1,000 shares authorized,
    issued, and outstanding                                             -                1            -                   -
   Common stock, $1 par value, 2,005,000 shares authorized,
    issued and outstanding                                              -                -        2,005                   -
    Common stock, one nuevo sole par value, 648,672,941
    shares authorized, issued and outstanding                           -                -            -             247,926
   Additional paid in capital                                       5,000              935            -            (125,000)
   Retained earnings                                               13,578           (1,044)      19,056              32,540
                                                             ------------       ----------    ---------             -------
        Total shareholders' equity                                 18,578             (108)      21,061             155,466
                                                             ------------       ----------    ---------             -------
        Total liabilities and shareholders' equity              $ 440,652         $ 16,205    $ 184,817            $259,003
                                                             ------------       ----------    ---------             -------
                                                             ------------       ----------    ---------             -------






<CAPTION>

                                                                               The
                                                          Eliminations       Company
                                                          ------------       -------
<S>                                                       <C>               <C>
                                                          ASSETS
Current assets:
    Cash                                                    $        -      $   4,646
    Trade accounts receivable, net of allowance for
        doubtful accounts                                       (5,485)        86,338
    Inventories                                                    531        126,467
    Prepaid expenses and other current assets                   (2,083)        30,306
    Due from subsidiaries                                      (30,907)             -
    Due from parent                                            (22,144)             -
                                                              -------        --------
        Total current assets                                   (60,088)       247,757
Property, plant and equipment, net                                   -        264,468
Special term deposit                                                 -        125,000
Net deferred tax assets                                              -          8,015
Other noncurrent assets, net                                         -         18,399
Investment in subsidiaries                                    (176,950)             -
                                                            -----------    ----------
       Total assets                                         $ (237,038)     $ 663,639
                                                            -----------    ----------


                           LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
   Current maturities of long-term debt                              -      $   2,018
   Accounts payable                                             (5,485)        53,698
   Accrued liabilities                                          (2,083)        50,670
   Net deferred tax liabilities                                      -          1,815
   Due to subsidiaries                                         (22,144)             -
   Due to parent                                               (30,907)             -
                                                            ----------      ---------
    Total current liabilities                                  (60,619)       108,201
Long-term debt, less current maturities                              -        476,284
Net deferred tax liabilities                                         -          2,571
Other noncurrent liabilities                                         -         58,005
                                                            ----------      ---------
    Total liabilities                                          (60,619)       645,061
Shareholders' equity:
   Common stock, $.10 par value, 1,000 shares authorized,
    issued, and outstanding                                          -              0
   Common stock, $1 par value, 1,000 shares authorized,
    issued, and outstanding                                         (1)             -
   Common stock, $1 par value, 2,005,000 shares authorized,
    issued and outstanding                                      (2,005)             -
    Common stock, one nuevo sole par value, 648,672,941
    shares authorized, issued and outstanding                 (247,926)             -
   Additional paid in capital                                  124,065          5,000
   Retained earnings                                           (50,552)        13,578
                                                            ----------      ---------
    Total shareholders' equity                                (176,419)        18,578
                                                            ----------      ---------
    Total liabilities and shareholders' equity              $ (237,038)     $ 663,639
                                                            ----------      ---------

</TABLE>


                                      13

<PAGE>

               THE DOE RUN RESOURCES CORPORATION

           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                    (DOLLARS IN THOUSANDS)


(7) GUARANTOR SUBSIDIARIES (CONTINUED)

             CONSOLIDATING STATEMENT OF OPERATIONS
          THREE MONTHS ENDED JULY 31, 1999 (UNAUDITED)
                    (DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                The Company
                                                  Excluding                Doe Run Cayman     Doe Run
                                                  Guarantor     Domestic    and Certain       Peru and                     The
                                                Subsidiaries   Guarantors   Subsidiaries    Subsidiaries  Eliminations   Company
                                                -------------  ----------  --------------   ------------  ------------  --------
<S>                                             <C>            <C>         <C>              <C>           <C>           <C>
Net sales                                         $ 84,152       $ 7,145      $ 3,191        $ 118,304      $ (8,410)   $204,382

Costs and expenses:
     Cost of sales                                  67,724         6,069        3,702           95,896          (643)    172,748
     Depletion, depreciation and amortization        5,393           382            -            1,909             -       7,684
     Selling, general and administrative             4,069           433        2,805            9,103        (7,752)      8,658
     Exploration                                     1,005             -            -                -             -       1,005
                                                  --------       -------       ------        ---------      --------    --------
        Total costs and expenses                    78,191         6,884        6,507          106,908        (8,395)    190,095
                                                  --------       -------       ------        ---------      --------    --------

        Income (loss) from operations                5,961           261       (3,316)          11,396           (15)     14,287

Other income (expense):
     Interest expense                              (10,189)         (273)      (3,698)          (1,030)          218     (14,972)
     Interest income                                 3,796             -            -               51          (218)      3,629
     Other, net                                         92           (29)          (7)            (856)            -        (800)
     Equity in earnings of subsidiaries              1,497             -        9,161                -       (10,658)          -
                                                  --------       -------       ------        ---------      --------    --------
                                                    (4,804)         (302)       5,456           (1,835)      (10,658)    (12,143)
                                                  --------       -------       ------        ---------      --------    --------

        Income (loss) before income tax expense      1,157           (41)       2,140            9,561       (10,673)      2,144

     Income tax expense                                199             -          587              400             -       1,186
                                                  --------       -------       ------        ---------      --------    --------

        Net income (loss)                         $    958       $   (41)     $ 1,553        $   9,161      $(10,673)   $    958
                                                  --------       -------       ------        ---------      --------    --------
</TABLE>

                                      14

<PAGE>


                      THE DOE RUN RESOURCES CORPORATION

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                             (DOLLARS IN THOUSANDS)


(7) GUARANTOR SUBSIDIARIES (CONTINUED)

                     CONSOLIDATING STATEMENT OF OPERATIONS
                   THREE MONTHS ENDED JULY 31, 1998 (UNAUDITED)
                             (DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                             The Company
                                              Excluding                   Doe Run Cayman    Doe Run
                                              Guarantor      Domestic      and Certain     Peru and                     The
                                             Subsidiaries   Guarantors     Subsidiaries   Subsidiary   Eliminations   Company
                                             ------------   ----------    --------------  ----------   ------------   -------
<S>                                          <C>            <C>           <C>             <C>          <C>            <C>
Net sales                                        $62,350    $ 4,614        $ 3,049        $122,085     $ (7,738)      $184,360

Costs and expenses:
     Cost of sales                                51,584      4,148              -         101,406         (552)       156,586
     Depletion, depreciation and amortization      3,677        260              -           1,614            -          5,551
     Selling, general and administrative           4,220        290          2,418           8,393       (7,290)         8,031
     Exploration                                   1,165          -              -               -            -          1,165
                                                 -------    -------        -------        --------     --------       --------
        Total costs and expenses                  60,646      4,698          2,418         111,413       (7,842)       171,333
                                                 -------    -------        -------        --------     --------       --------

        Income (loss) from operations              1,704        (84)           631          10,672          104         13,027

Other income (expense):
     Interest expense                             (8,095)      (223)        (4,193)           (244)         223        (12,532)
     Interest income                               3,761          -             10              93         (223)         3,641
     Other, net                                     (302)         2          1,120            (116)           -            704
     Equity in earnings of subsidiaries            6,409          -          9,042               -      (15,451)             -
                                                 -------    -------        -------        --------     --------       --------
                                                   1,773       (221)         5,979            (267)     (15,451)        (8,187)
                                                 -------    -------        -------        --------     --------       --------

        Income (loss) before income tax expense    3,477       (305)         6,610          10,405      (15,347)         4,840

     Income tax expense                              818          -              -           1,363            -          2,181

        Net income (loss)                        $ 2,659     $ (305)       $ 6,610         $ 9,042     $(15,347)       $ 2,659
                                                 -------    -------        -------        --------     --------       --------
                                                 -------    -------        -------        --------     --------       --------

</TABLE>


                                                 15

<PAGE>

                      THE DOE RUN RESOURCES CORPORATION

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                             (DOLLARS IN THOUSANDS)


(7) GUARANTOR SUBSIDIARIES (CONTINUED)

                     CONSOLIDATING STATEMENT OF OPERATIONS
                  NINE MONTHS ENDED JULY 31, 1999 (UNAUDITED)
                             (DOLLARS IN THOUSANDS)


<TABLE>
<CAPTION>
                                             The Company
                                              Excluding                   Doe Run Cayman    Doe Run
                                              Guarantor      Domestic      and Certain     Peru and                     The
                                             Subsidiaries   Guarantors     Subsidiaries   Subsidiary   Eliminations   Company
                                             ------------   ----------    --------------  ----------   ------------   -------
<S>                                          <C>            <C>           <C>             <C>          <C>            <C>
Net sales                                      $238,862      $ 19,108        $ 15,198       $336,893    $(32,296)     $577,765

Costs and expenses:
  Cost of sales                                 197,256        16,105           9,279        280,429      (9,974)      493,095
  Depletion, depreciation and amortization       17,221         1,144              45          5,654         -          24,064
  Selling, general and administrative            11,896         1,128           8,488         26,555     (21,749)       26,318
  Exploration                                     2,855           -               -              -           -           2,855
                                               --------      --------        --------       --------    --------      --------
    Total costs and expenses                    229,228        18,377          17,812        312,638     (31,723)      546,332
                                               --------      --------        --------       --------    --------      --------

    Income from operations                        9,634           731          (2,614)        24,255        (573)       31,433

Other income (expense):
  Interest expense                              (30,530)         (826)        (11,186)        (2,642)        771       (44,413)
  Interest income                                11,415           -                41            517        (771)       11,202
  Other, net                                       (467)         (113)          2,272         (2,809)        -          (1,117)
  Equity in earnings of subsidiaries              4,126           -            17,754            -       (21,880)          -
                                               --------      --------        --------       --------    --------      --------
                                                (15,456)         (939)          8,881         (4,934)    (21,880)      (34,328)
                                               --------      --------        --------       --------    --------      --------

    Income (loss) before income tax expense      (5,822)         (208)          6,267         19,321     (22,453)       (2,895)

  Income tax expense                              6,783           -             2,068            859         -           9,710
                                               --------      --------        --------       --------    --------      --------

    Net income (loss)                         $ (12,605)       $ (208)        $ 4,199       $ 18,462    $(22,453)    $ (12,605)
                                               --------      --------        --------       --------    --------      --------

</TABLE>



                                                                      16

<PAGE>


                     THE DOE RUN RESOURCES CORPORATION

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                         (DOLLARS IN THOUSANDS)

(7) GUARANTOR SUBSIDIARIES (CONTINUED)


                       CONSOLIDATING STATEMENT OF OPERATIONS
                    NINE MONTHS ENDED JULY 31, 1998 (UNAUDITED)
                         (DOLLARS IN THOUSANDS)


<TABLE>
<CAPTION>

                                                   The Company
                                                    Excluding                 Doe Run Cayman     Doe Run
                                                    Guarantor     Domestic     and Certain       Peru and                   The
                                                  Subsidiaries   Guarantors    Subsidiaries     Subsidiary   Eliminations  Company
                                                  ------------   ----------   --------------    ----------   ------------  -------
<S>                                               <C>            <C>          <C>               <C>          <C>           <C>

Net sales                                            $181,356      $12,441         $ 5,049      $ 349,444      $(20,525)  $527,765

Costs and expenses:
     Cost of sales                                    148,674       11,470               -        283,037        (3,490)   439,691
     Depletion, depreciation and amortization          11,463          539               -          5,010             -     17,012
     Selling, general and administrative               12,155        1,002           3,158         26,523       (17,107)    25,731
     Exploration                                        2,764            -               -              -             -      2,764
                                                     --------      -------          ------       --------      --------   --------
        Total costs and expenses                      175,056       13,011           3,158        314,570       (20,597)   485,198
                                                     --------      -------          ------       --------      --------   --------

        Income (loss) from operations                   6,300         (570)          1,891         34,874            72     42,567

Other income (expense):
     Interest expense                                 (16,933)        (534)         (9,825)          (279)          534    (27,037)
     Interest income                                    5,975            -              10            549          (534)     6,000
     Other, net                                          (543)         (30)            179            463             -         69
     Equity in earnings of subsidiaries                16,384            -          27,576              -       (43,960)         -
                                                     --------      -------          ------       --------      --------   --------
                                                        4,883         (564)         17,940            733       (43,960)   (20,968)
                                                     --------      -------          ------       --------      --------   --------

        Income (loss) before income tax expense        11,183       (1,134)         19,831         35,607       (43,888)    21,599

     Income tax expense                                 2,114           16               -          8,031             -     10,161
                                                     --------      -------          ------       --------      --------   --------

        Income (loss) before extraordinary item         9,069       (1,150)         19,831         27,576       (43,888)    11,438
        Extraordinary item                             (2,019)           -          (2,369)             -            -      (4,388)
                                                     --------      -------          ------       --------      --------   --------

        Net income (loss)                            $  7,050      $(1,150)        $17,462      $  27,576      $(43,888)  $ 7,050
                                                     --------      -------          ------       --------      --------   --------
                                                     --------      -------          ------       --------      --------   --------

</TABLE>

                                      17

<PAGE>


                     THE DOE RUN RESOURCES CORPORATION

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                         (DOLLARS IN THOUSANDS)

(7) GUARANTOR SUBSIDIARIES (CONTINUED)


                       CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
                         NINE MONTHS ENDED JULY 31, 1998 (UNAUDITED)
                                    (DOLLARS IN THOUSANDS)


<TABLE>
<CAPTION>

                                                   The Company
                                                    Excluding                 Doe Run Cayman     Doe Run
                                                    Guarantor     Domestic     and Certain       Peru and                    The
                                                  Subsidiaries   Guarantors    Subsidiaries     Subsidiaries  Eliminations  Company
                                                  ------------   ----------   --------------    ------------  ------------  -------
<S>                                               <C>            <C>          <C>               <C>           <C>           <C>


Net cash provided by (used in) operating activities   $ 7,373      $ (462)      $16,473         $ 24,060     $ (25,716)    $21,728
Cash flows from investing activities:
       Purchases of property, plant and equipment     (11,089)       (100)          (85)         (13,638)            -     (24,912)
       Investment in subsidiaries                      (4,126)          -       (21,590)              -         25,716           -
                                                     --------     -------       -------         --------      --------    --------
           Net cash provided by (used in)
             investing activities                     (15,215)       (100)      (21,675)         (13,638)       25,716     (24,912)
Cash flows from financing activities:
       Payments on revolving loans
           and short-term borrowings, net              (2,750)          -             -          (12,794)            -     (15,544)
       Proceeds from long-term debt                     5,665           -             -                -             -       5,665
       Payments on long-term debt                        (895)          -             -           (1,180)            -      (2,075)
       Proceeds from sale/leaseback transactions            -           -             -           17,922             -      17,922
       Payment of deferred financing costs               (467)          -             -                -             -        (467)
       Loans from parent/subsidiaries                   6,289         562         5,144          (11,995)            -           -
                                                     --------     -------        ------         --------      --------    --------
           Net cash provided by (used in)
              financing activities                      7,842         562         5,144           (8,047)            -       5,501
                                                     --------     -------        ------         --------      --------    --------
           Net increase (decrease) in cash                  -           -           (58)           2,375             -       2,317

Cash at beginning of period                                 -           -            89            4,557             -       4,646
                                                     --------     -------        ------         --------      --------    --------
Cash at end of period                                 $     -      $    -       $    31         $  6,932     $       -     $ 6,963
                                                     --------     -------        ------         --------      --------    --------
                                                     --------     -------        ------         --------      --------    --------
</TABLE>

                                      18

<PAGE>


                     THE DOE RUN RESOURCES CORPORATION

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                         (DOLLARS IN THOUSANDS)

(7) GUARANTOR SUBSIDIARIES (CONTINUED)


                       CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
                         NINE MONTHS ENDED JULY 31, 1998 (UNAUDITED)
                                   (DOLLARS IN THOUSANDS)


<TABLE>
<CAPTION>

                                                   The Company
                                                    Excluding                 Doe Run Cayman     Doe Run
                                                    Guarantor     Domestic     and Certain       Peru and                    The
                                                  Subsidiaries   Guarantors    Subsidiaries     Subsidiaries  Eliminations  Company
                                                  ------------   ----------   --------------    ------------  ------------  -------
<S>                                               <C>            <C>          <C>               <C>           <C>           <C>

Net cash provided by (used in) operating
 activities                                         $  25,584     $   420        $ 22,771       $(8,640)      $(43,960)   $ (3,825)
Cash flows from investing activities:
       Special term deposit                          (125,000)          -               -             -              -    (125,000)
       Purchases of property, plant and equipment      (8,729)     (4,391)              -        (3,912)             -     (17,032)
       Investment in subsidiaries                     (16,384)          -         (27,576)            -         43,960           -
                                                     --------     -------        --------       -------       --------    --------
           Net cash provided by (used in)
             investing activities                    (150,113)     (4,391)        (27,576)       (3,912)        43,960    (142,032)
Cash flows from financing activities:
       Proceeds from revolving loan
           and short-term borrowings, net               6,767           -          (3,000)       12,000              -      15,767
       Proceeds from long-term debt                   255,000           -         125,000             -              -     380,000
       Payments on long-term debt                    (130,845)          -        (100,000)            -              -    (230,845)
       Payment of deferred financing costs            (12,618)          -            (312)            -              -     (12,930)
       Loans from parent/subsidiaries                   7,335       3,971         (16,164)        4,858              -           -
       Payment of dividends                              (189)          -               -             -              -        (189)
       Redemption of preferred stock                   (2,500)          -               -             -              -      (2,500)
                                                     --------     -------        --------       -------       --------    --------
           Net cash provided by financing activities  122,950       3,971           5,524        16,858              -     149,303
                                                     --------     -------        --------       -------       --------    --------
           Net increase (decrease) in cash             (1,579)          -             719         4,306              -       3,446

Cash at beginning of period                             1,579           -           2,351         5,013              -       8,943
                                                     --------     -------        --------       -------       --------    --------
Cash at end of period                                $      -     $     -        $  3,070       $ 9,319       $      -    $ 12,389
                                                     --------     -------        --------       -------       --------    --------
                                                     --------     -------        --------       -------       --------    --------

</TABLE>

                                      19

<PAGE>

                                 DOE RUN PERU S.R.L.
                        CONDENSED CONSOLIDATED BALANCE SHEETS
                  (DOLALRS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)


<TABLE>
<CAPTION>
                                                                                  JULY 31,               OCTOBER 31,
                                                                                    1999                     1998
                                                                              --------------             -----------
                                                                                (UNAUDITED)
<S>                                                                           <C>                        <C>
                                                   ASSETS

Current assets:
     Cash                                                                        $  6,932                $  4,557
     Trade accounts receivable, net of allowance for
         doubtful accounts                                                         31,267                  30,935
     Inventories                                                                   73,652                  78,150
     Prepaid expenses and other current assets                                     26,548                  21,923
     Due from parent/subsidiaries                                                  32,189                  22,229
                                                                                 --------                --------
         Total current assets                                                     170,588                 157,794

Property, plant and equipment, net                                                112,871                 100,761
Other noncurrent assets, net                                                          354                     448
                                                                                 --------                --------
         Total assets                                                            $283,813                $259,003
                                                                                 --------                --------
                                                                                 --------                --------

                                       LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
     Short-term borrowings and current maturities of long-term debt              $  9,447                $     -
     Accounts payable                                                              28,575                  30,155
     Accrued liabilities                                                           17,216                  16,588
     Due to parent                                                                 17,078                  19,028
                                                                                 --------                --------
         Total current liabilities                                                 72,316                  65,771

Long-term debt, less current maturities                                            23,103                  28,000
Net deferred tax liabilities                                                        3,430                   2,566
Other noncurrent liabilities                                                        7,200                   7,200
                                                                                 --------                --------
         Total liabilities                                                        106,049                 103,537

Shareholders' equity:


     Common stock, one nuevo sole par value, 648,672,941
         shares authorized, issued and outstanding                                255,200                 247,926
     Due from shareholder                                                        (113,409)               (125,000)
     Foreign currency translation adjustment                                      (15,029)                      -
     Retained earnings                                                             51,002                  32,540
                                                                                 --------                --------
         Total shareholders' equity                                               177,764                 155,466
                                                                                 --------                --------
         Total liabilities and shareholders' equity                              $283,813                $259,003
                                                                                 --------                --------
                                                                                 --------                --------

</TABLE>

The accompanying notes are an integral part of these condensed consolidated
financial statements.

                                      20

<PAGE>

                                   DOE RUN PERU S.R.L.
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
                                  (DOLLARS IN THOUSANDS)


<TABLE>
<CAPTION>
                                                                      THREE MONTHS                          NINE MONTHS
                                                                     ENDED JULY 31,                        ENDED JULY 31,
                                                            ---------------------------------    ----------------------------------
                                                                 1999              1998               1999              1998
                                                            ----------------  ---------------    ---------------- -----------------
<S>                                                        <C>                <C>                 <C>                <C>
Net sales                                                         $ 118,304        $ 122,085            $336,893         $ 349,444

Costs and expenses:
    Cost of sales                                                    95,896          101,406             280,429           283,037
    Depreciation and amortization                                     1,909            1,614               5,654             5,010
    Selling, general and administrative                               9,103            8,393              26,555            26,523
                                                                     ------           ------             -------           ------
        Total costs and expenses                                    106,908          111,413             312,638           314,570
                                                                   --------         --------            --------          -------

        Income from operations                                       11,396           10,672              24,255            34,874

Other income (expense):
    Interest expense                                                 (1,030)            (244)             (2,642)             (279)
    Interest income                                                      51               93                 517               549
    Other, net                                                         (856)            (116)             (2,809)              463
                                                                     -------            -----             -------             ---
                                                                     (1,835)            (267)             (4,934)              733
                                                                     -------            -----             -------             ---
        Income before income tax expense                              9,561            10,405             19,321            35,607

Income tax expense                                                      400            1,363                 859             8,031
                                                                       ----           ------                ----            -----

        Net income                                                  $ 9,161          $ 9,042            $ 18,462          $ 27,576
                                                                    -------          -------            --------          --------
                                                                    -------          -------            --------          --------

</TABLE>

The accompanying notes are an integral part of these condensed consolidated
financial statements.


                                         21

<PAGE>

                                   DOE RUN PERU S.R.L.
              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
                                  (DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>

                                                                          NINE MONTHS
                                                                         ENDED JULY 31,
                                                               -------------------------------
                                                                   1999              1998
                                                               --------------    -------------
<S>                                                             <C>             <C>
Net cash provided by (used in) operating activities                  $24,060          $(8,640)
Cash flows from investing activities:
     Purchases of property, plant and equipment                      (13,638)          (3,912)
                                                                     --------          -------
          Net cash used in investing activities                      (13,638)          (3,912)
Cash flows from financing activities:
     Proceeds from (payments on) revolving loans
        and short-term borrowings, net                               (12,794)          12,000
     Payments on long-term debt                                       (1,180)               -
     Proceeds from sale/leaseback transactions                        17,922                -
     Loans from (to) parent                                          (11,995)           4,858
                                                                     --------          -----
          Net cash provided by (used in) financing activities         (8,047)          16,858
                                                                      -------         ------
          Net increase in cash                                         2,375            4,306

Cash at beginning of period                                            4,557            5,013
                                                                      ------           -----
Cash at end of period                                                $ 6,932          $ 9,319
                                                                      -------         -------
                                                                      -------         -------

</TABLE>


The accompanying notes are an integral part of these condensed consolidated
financial statements.


                                     22

<PAGE>

                                 DOE RUN PERU S.R.L.
                NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                (DOLLARS IN THOUSANDS)


(1)      BASIS OF PRESENTATION

UNAUDITED INTERIM FINANCIAL STATEMENTS
         In the opinion of management, the interim condensed consolidated
         financial statements of Doe Run Peru S.R.L. (Doe Run Peru)
         contain all adjustments, consisting of normal recurring accruals,
         necessary to present fairly the condensed consolidated financial
         position as of July 31, 1999 and results of operations for the
         three and nine month periods ended July 31, 1999 and 1998.
         Interim periods are not necessarily indicative of results to be
         expected for the year.

(2)      INVENTORIES

<TABLE>
<CAPTION>

                                                    JULY 31,      OCTOBER 31,
                                                      1999           1998
                                                      ----           ----
                                                   (UNAUDITED)
<S>                                               <C>            <C>
     Refined metals and concentrates for sale        $  3,149       $  3,857
     Metals and concentrates in process                44,968         54,534
     Materials, supplies and spare parts               25,535         19,759
                                                     --------        --------
                                                     $ 73,652      $  78,150
                                                     --------        --------
                                                     --------        --------
</TABLE>

(3)      SALE/LEASEBACK TRANSACTION

         In January 1999, Doe Run Peru finalized an agreement for the sale
         and leaseback of its oxygen plant at the La Oroya facility for
         $17,162. Doe Run Peru has an option to repurchase the oxygen plant
         at the end of the five-year lease term for $200. This transaction
         has been accounted for as a financing arrangement. A sale and
         leaseback of computer equipment, accounted for as a financing
         arrangement, provided an additional $760 of cash flows from
         financing activities. Under a related capital lease, certain
         computer hardware was leased under a capital lease obligation for
         $603, which included a deferred maintenance balance of $151.

(4)      CONVERSION OF LOAN TO FOREIGN CURRENCY

         In the second quarter of fiscal 1999, Doe Run Mining and Doe Run
         Peru agreed to convert the loan payable to Doe Run Peru by Doe Run
         Mining from dollars into Peruvian nuevos soles. The related
         translation effect of the loan receivable is reflected in other
         shareholders' equity as a foreign currency translation adjustment.


(5)      MERGER OF DOE RUN PERU AND COBRIZA S.A.

         On March 1, 1999 Doe Run Mining merged the Empresa Minera
         Cobriza S.A. into Doe Run Peru.


                                        23

<PAGE>


ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS

               The following discussion and analysis includes the U.S.
         operations of the Company, including FPI, and the Peruvian
         operations of the Company, including Doe Run Cayman and its
         Peruvian subsidiaries, and should be read in conjunction with the
         consolidated financial statements of the Company and the notes
         thereto, and other financial information included herein.


         RESULTS OF OPERATIONS

                  The Company reported net income of $1.0 million for the
         three months ended July 31, 1999 (the 1999 quarter) compared to
         net income of $2.7 million for the three months ended July 31,
         1998 (the 1998 quarter). The Company's U.S. operations reported a
         net loss of $5.2 million (excluding intercompany fee revenue of
         $4.6 million) for the 1999 quarter compared to a net loss of $8.3
         million (excluding intercompany fee revenue of $4.2 million) in
         the 1998 quarter. The improvement in U.S. operations was
         primarily due to an increase in gross margins, in spite of lower
         lead, copper and zinc prices, due to increased volumes and lower
         unit production costs. This improvement was partially offset by
         increased depreciation expense primarily associated with the
         September 1998 acquisition of the Missouri Lead Division assets
         of ASARCO Incorporated (the MLD Acquisition) and increased
         interest expense resulting from an increase in outstanding debt,
         primarily associated with the MLD Acquisition. Peruvian
         operations contributed $6.1 million to net income for the 1999
         quarter (excluding intercompany fees and eliminations of $4.6
         million) compared to net income of $11.0 million (excluding
         intercompany fees and eliminations of $4.1 million) in the 1998
         quarter. The decrease in Peruvian net income was due primarily to
         lower copper prices and lower margins on refined copper resulting
         from lower treatment charges and difficulties in obtaining
         suitable feed material. Increased interest expense also
         contributed to the decrease in net income. Partially offsetting
         these factors were lower income taxes.

                  The Company reported a net loss of $12.6 million for the
         nine months ended July 31, 1999 (the 1999 period) compared to net
         income of $7.1 million for the nine months ended July 31, 1998
         (the 1998 period). The Company's U.S. operations reported a net
         loss of $29.8 (excluding intercompany fee revenue of $12.8
         million) million for the 1999 period compared to a net loss of
         $22.5 million (excluding intercompany fee revenue of $12.1
         million) for the 1998 period. The net loss increased primarily as
         a result of increased depreciation expense, increased interest
         expense and a write-off of deferred tax balances of $6.2 million
         associated with a change in tax status to a qualified subchapter
         S subsidiary. See "Item 1. Financial Statements - Note 4 to the
         Company's Consolidated Financial Statements" for a discussion of
         the change in tax status. These factors were partially offset by
         improved gross margins and absence of the extraordinary loss
         affecting the 1998 period. Peruvian operations contributed $17.2
         million to net income for the 1999 period (excluding intercompany
         fees and eliminations of $12.7 million) compared to net income of
         $29.5 million (excluding intercompany fees and eliminations of
         $12.1 million) for the 1998 period. The decrease in Peruvian net
         earnings was due primarily to lower margins on silver and copper
         and increased interest expense, partially offset by lower income
         taxes and absence of the extraordinary loss affecting the 1998
         period.


                                            24

<PAGE>


                The Company's results for the three months and the nine
         months ended July 31, 1999 reflect declines in the market prices
         of metals from the prior year. The following table sets forth
         average London Metal Exchange (LME) prices for lead, copper and
         zinc and the average London Bullion Market Association (LBMA)
         price for silver for the periods indicated:

<TABLE>
<CAPTION>

                                            Three Months Ended               Nine Months Ended
                                                  July 31,                         July 31,
                                       ------------------------------  ------------------------------
                                             1999            1998             1999           1998
                                       -------------- ---------------  --------------- --------------
<S>                                     <C>            <C>             <C>              <C>
Average Prices
--------------
     Lead  ($/ton)                          $ 462.20        $ 489.00         $ 459.20       $ 492.60
     Copper  ($/ton)                        1,383.60        1,522.60         1,341.20       1,573.20
     Zinc  ($/ton)                            941.20          939.80           911.40         973.60
     Silver ($/troy ounce)                      5.16            5.43             5.14           5.83

</TABLE>

                The following table sets forth the Company's production
         statistics for the periods indicated:

<TABLE>
<CAPTION>

                                                       Three Months Ended        Nine Months Ended
                                                            July 31,                 July 31,
                                                    ------------------------ -------------------------
                                                       1999        1998         1999         1998
                                                    ----------- ------------ -----------  ------------
<S>                                                <C>          <C>         <C>            <C>
U.S. Operations
---------------
     Lead metal - primary (short tons)                  94,433       55,056     285,570       183,001
     Lead metal - secondary (short tons)                28,934       28,137      83,977        80,391
     Lead concentrates (metal content, short tons)      96,253       58,084     288,267       179,582
     Ore Grade                                            5.87%        5.06%       5.66%         5.42%

Peruvian Operations
-------------------
     Refined copper (short tons)                        19,354       18,382      54,817        53,283
     Refined lead (short tons)                          30,607       30,789      89,365        87,771
     Refined zinc (short tons)                          20,951       19,942      60,408        58,850
     Refined silver (thousands of troy ounces)           8,543        7,153      24,206        19,923
     Refined gold (thousands of troy ounces)                15           16          48            43

</TABLE>

                  Mine production of lead metal in concentrates for the
         1999 quarter increased by 59.3% compared to the 1998 quarter. Of
         this increase, 47.2% was attributable to the MLD Acquisition.
         Production by existing properties was 12.1% better in the 1999
         quarter, compared to the prior year, primarily due to an increase
         in ore grade from 5.56% in the 1998 quarter to 6.24% in the 1999
         quarter. Operating plans were modified, beginning in the second
         quarter of 1999, based on evaluations designed to optimize mine
         production in light of low metal prices and the availability of
         lead concentrates for purchase. As a result, during the 1999
         period, mining of lower grade areas was scaled back from planned
         levels. Mine production of lead metal in concentrates increased
         by 60.5% from the 1998 period to the 1999 period. Of this
         increase, 48.9% was attributable to the MLD Acquisition.
         Production by existing properties was 11.6% better than the prior
         year primarily due to an increase in ore grade from 5.42% in the
         1998 quarter to 6.01% in the 1999 quarter. While production
         exceeded the prior year, it was slightly less than planned, in
         spite of the improved ore grade, due to production disruptions
         that occurred during the first quarter and the modifications to
         the operating plan discussed above.

                                       25
<PAGE>

         Primary smelter production for the 1999 quarter was 71.5% greater
than the 1998 quarter. The MLD Acquisition accounted for an increase of
63.5%. Production at the Company's Herculaneum primary smelter for the 1999
quarter was 8.0% better than the 1998 quarter primarily due to a more
efficient startup after the smelter's annual maintenance shutdown. For the
1999 period, primary smelter production increased 56.0% over the 1998 period.
An increase of 55.4% is attributable to the MLD Acquisition. In spite of
cooling system failures on its blast furnaces, which hampered production
during the first quarter of 1999, Herculaneum's production for the 1999
period improved 0.7% compared to the 1998 period

         Secondary smelter production exceeded the prior year by 2.8% for the
three months and 4.5% for the nine months ended July 31, 1999 due to improved
smelter operating efficiencies. These improvements were accomplished in spite
of the failure of the reverberatory furnace floor in July 1999, which
resulted in unplanned maintenance downtime and lost production. The furnace
has been rebuilt and production has returned to normal levels.

         During the third quarter of 1998, La Oroya installed equipment that
increased the capacity of its silver and lead refineries by approximately
25.0% and 4.8%, respectively. During the 1999 quarter the capacities of the
lead and zinc refineries were each increased by approximately five percent.
The benefits of these improvements, partially offset by problems obtaining
suitable feed material, are reflected in the production results for the
quarter and the nine months ended July 31, 1999. Refined silver production
exceeded the prior year by 19.4% and 21.5% for the quarter and the nine
months ended July 31, 1999, respectively. Refined lead production was .6%
lower for the quarter but up 1.8% for the nine months, compared to the prior
year. Refined zinc production was up 5.1% for the quarter and 2.6% for the
1999 period, compared to the prior year. Copper production was better than
the prior year for both the three months and the nine months ended July 31,
1999, but slightly less than expected, due to the reduced availability of
suitable concentrates. The tight market conditions for copper concentrates
continue currently, and the Company continues to partially mitigate the
impact of these market conditions by maximizing production of copper
concentrates from its Cobriza mine.

         Results of operations for the three months and the nine months ended
July 31, 1999 and 1998 include the results of the Company's U.S. and Peruvian
operations. In order to provide a more meaningful analysis, the results of
operations attributable to Peruvian operations will be noted and discussed
separately under "Results of Peruvian Operations."

         NET SALES in the 1999 quarter were $204.4 million compared to $184.4
million in the 1998 quarter. A decrease of $3.8 million is attributable to
Peruvian operations. U. S. net sales were $23.9 million or 38.3% higher in
the 1999 quarter, compared to the 1998 quarter, primarily due to greater lead
metal and zinc concentrate sales volume associated with the MLD Acquisition,
partially offset by slightly lower realized prices for lead metal and zinc
concentrates.

                                      26
<PAGE>

         The following table sets forth the operating results, sales volumes
and realized prices for the Company's U. S. operations for the periods
indicated:

<TABLE>
<CAPTION>
                                                         Three Months Ended          Nine Months Ended
                                                              July 31,                    July 31,
                                                   ----------------------------  ------------------------
RESULTS OF  U.S. OPERATIONS                             1999          1998          1999        1998
                                                   -------------   ------------  ----------- ------------
<S>                                                <C>             <C>           <C>         <C>
Net sales *                                         $ 86,158        $ 62,295     $ 243,722    $ 180,819

Costs and expenses:
     Cost of sales                                    73,230          55,306       211,929      159,152
     Depreciation and amortization                     5,775           3,937        18,365       12,002
     Selling, general and administrative               4,502           4,510        13,024       13,157
     Exploration                                       1,005           1,165         2,855        2,764
                                                    --------        --------     ---------    ---------
         Total costs and expenses                     84,512          64,918       246,173      187,075
                                                    --------        --------     ---------    ---------
         Income from operations                        1,646          (2,623)       (2,451)      (6,256)

Other income (expense)
     Interest expense                                (10,244)         (8,095)      (30,585)     (16,933)
     Interest income                                   3,578           3,538        10,644        5,441
     Other, net                                           63            (300)         (580)        (573)
                                                    --------        --------     ---------    ---------
                                                      (6,603)         (4,857)      (20,521)     (12,065)
                                                    --------        --------     ---------    ---------
     Loss before income tax expense
           and extraordinary item                   $ (4,957)       $ (7,480)    $ (22,972)   $ (18,321)
Income tax expense                                       199             818         6,783        2,130
Extraordinary item                                         -               -             -       (2,019)
                                                    --------        --------     ---------    ---------
   Net income                                       $ (5,156)       $ (8,298)    $ (29,755)   $ (22,470)
                                                    ========        ========     =========    =========

* Intercompany fees that are eliminated in the consolidated results of the Company and have been
  excluded from the results presented above are as follows:

   Net Sales                                        $  4,561        $  4,240     $  12,836    $  12,058


SALES VOLUMES (SHORT TONS)
     Lead metal                                      109,769          73,211       321,885      209,995
     Zinc concentrates                                24,365          18,009        74,536       51,151
     Copper concentrates                               4,468           3,844        11,784       13,339

REALIZED PRICES ($/TON)
     Lead metal                                      $566.85         $569.93       $546.20      $582.59
     Zinc concentrates                                322.63          328.22        301.52       348.07
     Copper concentrates                              203.22          194.85        205.28       215.16

</TABLE>

                                      27
<PAGE>

         Lead metal net sales increased 49.1% from $41.7 million in the 1998
quarter to $62.2 million in the 1999 quarter. An increase of $20.8 million in
lead metal net sales resulted from the production volume increase discussed
above and strong demand in the U.S. market. Zinc concentrate net sales were
higher by $2.0 million due to a 35.3% volume increase, resulting primarily
from the MLD Acquisition, partially offset by lower realized prices. Other
sales were higher primarily due to an increase of approximately $1.4 million
in sales by Seafab Metals Company, a division of FPI, which returned to full
production after relocating its fabrication plant during 1998, partially
offset by a reduction in sales of zinc metal imported from Peru.

         Net sales for the 1999 period were $577.8 million compared to $527.8
million for the 1998 period. A decrease of $12.9 million is attributable to
Peruvian operations. U.S. net sales for the 1999 period were $62.9 million
greater than the 1998 period due primarily to increased lead metal and zinc
concentrate sales volume partially offset by lower metal prices. Lead metal
net sales increased 43.7% from $122.3 million in the 1998 period to $175.8
million in the 1999 period. An increase of $65.2 million in lead metal net
sales resulted from the production volume increase and strong demand
discussed above. The average LME price for lead metal decreased 5.3% in the
1999 period, compared to the 1998 period. As a result, the Company's net
realized price was 6.2% lower in the 1999 period reducing net sales by $11.7
million. Net realized prices for lead metal and zinc and copper concentrates
include the effects of changes in premiums received, as well as net hedging
activity. Zinc concentrate sales were $4.7 million higher in the 1999 period,
compared to the 1998 period, due to a 45.7% volume increase partially offset
by a 13.4% reduction in the net realized price. Other sales were higher
primarily due to an increase of approximately $4.9 million in sales by Seafab
Metals Company, partially offset by a reduction in sales of imported zinc
metal.

         COST OF SALES for the 1999 quarter was $172.7 million compared to
$156.6 million for the 1998 quarter. A decrease of $1.8 million is
attributable to Peruvian operations. U.S. cost of sales for the 1999 quarter
was $17.9 million greater than the 1998 quarter. Volume changes, primarily
the increased sales of lead metal and zinc concentrates discussed above
accounted for a cost of sales increase of $24.5 million, which was partially
offset by a 9.4% reduction in the per unit production cost of lead metal.
This lower production cost is primarily the result of programs the Company
implemented during the second quarter of 1998 to minimize the impact of metal
price declines through cost reductions and productivity and revenue
enhancements. These programs, which are ongoing, include maintenance and
other expense reductions, selective mining of higher grade ores and increased
primary and secondary smelter production, all of which contributed to
improved unit production cost in the 1999 quarter. Also contributing to lower
unit costs were certain production efficiencies realized as a result of the
MLD Acquisition.

         Cost of sales for the 1999 period was $493.1 million compared to
$439.7 million for the 1998 period. Of this increase, $0.6 million is
attributable to Peruvian operations. U.S. cost of sales for the 1999 period
increased by $52.8 million compared to the 1998 period. Lead metal sales
volume was up 53.3% or 111,890 tons over the prior year, increasing cost of
sales by $64.0 million. Other volume changes added an additional $8.2 million
to cost of sales. These volume increases were partially offset by lower unit
production costs which were primarily the result of the Company's programs of
cost reduction and the productivity enhancements, and the efficiencies
realized as a result of the MLD Acquisition, discussed above.

         DEPLETION, DEPRECIATION AND AMORTIZATION for the 1999 quarter
increased by $2.1 million compared to the 1998 quarter. For the 1999 period,
depletion, depreciation and amortization increased by $7.1 million, compared
to the 1998 period. Increases of $0.3 million for the 1999 quarter and $0.7
million for the 1999 period are attributable to Peruvian operations. The
increases in depletion, depreciation, and amortization for U.S. operations
for the 1999 quarter and the 1999 period are primarily attributable to the
MLD Acquisition.


                                      28
<PAGE>

         INCOME FROM OPERATIONS for the 1999 quarter was $14.3 million
compared to $13.0 million for the 1998 quarter. For the 1999 period,
operating income was $31.4 million compared to $42.6 million for the 1998
period. Decreases of $3.0 million for the quarter and $14.9 million for the
nine months are attributable to Peruvian operations. The remainder of the
changes are primarily due to the factors discussed above.

          INTEREST EXPENSE increased by $2.4 million in the 1999 quarter,
compared to the 1998 quarter, due primarily to increases in the Company's
average outstanding debt balance. The increase in the Company's average
outstanding debt balance of approximately $101.5 million for the quarter was
primarily the result of borrowing to finance the MLD Acquisition and
increased working capital required for Peruvian operations and for operations
of the assets acquired in the MLD Acquisition.

          Interest expense increased by $17.4 million in the 1999 period,
compared to the 1998 period, due to an increase in the Company's average
outstanding debt balance and higher average interest rates. The increase in
the Company's average outstanding debt balance of approximately $189.4
million from the 1998 period to the 1999 period was primarily the result of
the $125 million required for a deposit (see "INTEREST INCOME", below) made
in a foreign bank as collateral for a loan made to Doe Run Mining (Special
Term Deposit), borrowing related to finance the MLD Acquisition and increased
working capital requirements discussed above.

          INTEREST INCOME increased $5.2 from the 1998 period to the 1999
period primarily due to interest income on the $125.0 million Special Term
Deposit.

          INCOME TAX EXPENSE for the 1999 quarter and the 1999 period
reflects the impact of a change in tax status effective at the beginning of
the fiscal year. See "Item 1. Financial Statements--Note 4 to the Company's
Consolidated Financial Statements." As a result of this change in tax status,
the elimination of federal and most state deferred tax assets and liabilities
for income tax purposes resulted in a charge to income tax expense of $6.2
million in the 1999 period.


                                     29
<PAGE>

RESULTS OF PERUVIAN OPERATIONS

           The following table set forth the operating results, sales volumes
and realized prices of the Company's Peruvian operations for the periods
indicated:

<TABLE>
<CAPTION>
                                                      Three Months Ended            Nine Months Ended
                                                           July 31,                     July 31,
                                                  --------------------------  ----------------------------
RESULTS OF OPERATIONS                                  1999         1998           1999           1998
                                                  ------------- ------------  -------------- -------------
<S>                                               <C>           <C>           <C>            <C>
Net sales *                                         $ 118,224    $ 122,065       $ 334,043     $ 346,946

Costs and expenses:
     Cost of sales *                                   99,518      101,280         281,166       280,539
     Depreciation and amortization                      1,909        1,614           5,699         5,010
     Selling, general and administrative *              4,156        3,521          13,294        12,574
                                                    ---------    ---------       ---------     ---------
         Total costs and expenses                     105,583      106,415         300,159       298,123
                                                    ---------    ---------       ---------     ---------
         Income from operations                        12,641       15,650          33,884        48,823

Other income (expense)
     Interest expense                                  (4,728)      (4,437)        (13,828)      (10,104)
     Interest income                                       51          103             558           559
     Other, net                                          (863)       1,004            (537)          642
                                                    ---------    ---------       ---------     ---------
                                                       (5,540)      (3,330)        (13,807)       (8,903)
                                                    ---------    ---------       ---------     ---------
     Income (loss) before income tax expense
           and extraordinary item                       7,101       12,320          20,077        39,920
Income tax expense                                        987        1,363           2,927         8,031
Extraordinary item                                          -            -               -        (2,369)
                                                    ---------    ---------       ---------     ---------
    Net income                                      $   6,114    $  10,957       $  17,150     $  29,520
                                                    =========    =========       =========     =========

* Intercompany sales and fees that are eliminated in the consolidated results of the Company and have
  been excluded from the results presented above are as follows:

   Net sales                                             $ 80         $ 20         $ 2,850       $ 2,498
   Cost of sales                                           80          126           2,965         2,498
   Selling, general and administrative expense          4,561        4,241          12,836        12,058

SALES VOLUMES
          Copper (short tons)                          19,061       18,943          54,424        54,098
          Lead (short tons)                            30,065       32,949          89,842        88,387
          Zinc (short tons)                            20,826       20,656          59,346        60,348
          Silver (thousands of troy ounces)             8,589        7,227          24,229        20,235
          Gold (thousands of troy ounces)                  18           16              48            43

REALIZED PRICES
          Copper ($/ton)                           $ 1,335.12   $ 1,545.46      $ 1,330.68    $ 1,564.87
          Lead ($/ton)                                 501.51       519.09          492.77        520.53
          Zinc ($/ton)                                 959.67       976.55          929.74      1,007.45
          Silver  ($/troy ounce)                         5.19         5.63            5.16          5.81
          Gold  ($/troy ounce)                         275.49       299.34          284.28        300.22
</TABLE>

                                      30
<PAGE>

         NET SALES in the 1999 quarter were $118.2 million compared to $122.1
million in the 1998 quarter. This decline is the result of lower realized
prices, partially offset by improved sales volumes. The production
improvements discussed previously increased refined silver sales volume by
1.4 million ounces or 18.8%, increasing net sales by $7.7 million. The
average LBMA price for silver was 5.0% lower in the 1999 quarter, compared to
the 1998 quarter. As a result, the Company's net realized price for refined
silver was 7.8% lower in the 1999 quarter, reducing net sales by $3.8
million. Net realized prices for silver and other refined metals are net of
the effects of changes in premiums and hedging activities. Refined copper net
sales were lower by $3.8 million or 13.1% in the 1999 quarter primarily due
to a 13.6 % decrease in the net realized price. Refined lead net sales were
$2.0 million lower in the 1999 quarter due to a 3.4% decrease in the net
realized price and an 8.8% decrease in sales volume which was the result of
lower availability of metal in inventory at the beginning of the 1999
quarter. Toll volume was 51.2% lower in the 1999 quarter, compared to the
1998 quarter, reducing net sales by $1.8 million. This volume reduction was
due to the absence of toll material in the market at economic terms.

         Net sales for the 1999 period were $334.0 million compared to $346.9
million in the 1998 period. The decline is due to lower metal prices
partially offset by improved sales volumes. The production improvements
discussed previously increased refined silver sales volume by 4.0 million
ounces or 19.7%, increasing net sales by $23.2 million. Due to an 11.8%
decrease in the average LBMA price for silver, the Company's net realized
price for refined silver was 11.2% lower in the 1999 period, reducing net
sales by $15.7 million. Refined copper net sales were lower by $12.2 million
in the 1999 period, compared to the 1998 period, primarily due to a 15.0%
decrease in the net realized price. Refined zinc net sales were $5.6 million
lower in the 1999 period compared to 1998 period due to lower prices and
volumes.

         COST OF SALES decreased from $101.3 million in the 1998 quarter to
$99.5 million in the 1999 quarter. Sales volume increases, primarily the
increase in silver volume discussed above, account for an increase of $6.5
million in cost of sales. This increase was offset by lower unit production
costs resulting primarily from a decrease in feed costs due to lower market
prices for copper, lead, zinc, gold and silver.

         Cost of sales increased 0.2% from the 1998 period to the 1999
period. Increased sales volume of silver, lead, copper, blister copper and
other by-products, partially offset by lower refined zinc and bullion lead
sales, account for a $21.6 million increase in cost of sales. The increase
due to volume was offset by lower unit production costs for copper, lead,
zinc and silver that were primarily the result of lower cost of feed costs
for these metals.

         DEPRECIATION AND AMORTIZATION expense increased by $0.3 million for
the 1999 quarter and $0.7 million the 1999 period, compared to the prior
year, primarily due to recent capital additions.

         SELLING, GENERAL AND ADMINISTRATIVE EXPENSES increased 5.7% in the
1999 period, compared to the 1998 period, primarily due to increased
insurance expense and legal and consulting fees related to the operation of
the Cobriza mine, partially offset by reductions in compensation and other
selling and administrative expenses.

         INCOME FROM OPERATIONS decreased $3.0 million in the 1999 quarter
compared to the 1998 quarter and $14.9 million in the 1999 period compared to
the 1998 period due primarily to the factors discussed above.

         INTEREST EXPENSE increased $0.3 million for 1999 quarter, compared
to the prior year, primarily as a result of the sale and leaseback of the
oxygen plant at the La Oroya smelter which was completed in January of 1999.
Financing of a portion of the acquisition cost of the Cobriza mine and an
increase in short term debt also contributed to the increase.


                                      31
<PAGE>

                        Interest expense increased $3.7 million for the 1999
               period compared to the prior year, due to an increase of
               approximately $45.8 million in the average outstanding debt
               balance and higher average interest rates. Proceeds from the
               increase in the outstanding debt were used to repay a $23 million
               intercompany loan and to finance increased working capital
               required for ongoing operations.

                         OTHER NET, expense was $0.9 million in the 1999 quarter
               compared to other net income of $1.0 in the 1998 quarter. The
               change is primarily due to fluctuations in exchange gains and
               losses partially offset by other net income and expenses.

                         Other net, expense was $0.5 million in the 1999
               period compared to other net income of $0.6 in the 1998 period.
               The change is primarily due to fluctuations in exchange gains and
               losses partially offset by reductions of expenses related to the
               El Nino flooding that occurred during the 1998 period and other
               miscellaneous income.

               FOREIGN INCOME TAXES

                        The Company's foreign income tax provision reflects the
               provision of its Peruvian subsidiaries at the statutory rate of
               30%. Differences between the effective and statutory rate are due
               primarily to book losses of certain subsidiaries that cannot be
               offset against other subsidiaries' taxable income for Peruvian
               income tax purposes.

               LIQUIDITY AND CAPITAL RESOURCES

                       The Company's liquidity requirements arise from its
               working capital requirements, and capital investment and debt
               service obligations. The Company's primary available sources of
               liquidity are cash provided by operating activities and two
               revolving credit facilities. In the U.S., the Company has
               available a revolving credit facility (the Doe Run Revolving
               Credit Facility) that provides for advances by the lender to a
               maximum of $100.0 million less outstanding letters of credit,
               based on specific percentages of eligible receivables and
               inventories. As of July 31, 1999, $18.4 million was outstanding,
               exclusive of $5.2 million of letters of credit, under the Doe Run
               Revolving Credit Facility. In Peru, the Company has available a
               revolving credit facility (the Doe Run Peru Revolving Credit
               Facility) that provides for advances by the lender to a maximum
               of $40.0 million, less outstanding letters of credit and customs
               bonds based upon specific percentages of eligible receivables and
               inventories. At July 31, 1999, $9.0 million, exclusive of
               $2.5million of letters of credit and customs bonds, was
               outstanding under the Doe Run Peru Revolving Credit Facility. Net
               unused availability at July 31, 1999 was $42.3 million under the
               Doe Run Revolving Credit Facility and $28.5 million under the Doe
               Run Peru Revolving Credit Facility. In Peru, the Company also has
               available unsecured and uncommitted credit arrangements, and
               additional availability related to letters of credit and customs
               bonds, provided by local banks. At July 31, 1999, $6.2 million
               exclusive of $18.9 million of letters of credit and customs bonds
               was outstanding under these arrangements. Borrowings under the
               Peruvian working capital facilities, including the Doe Run Peru
               Revolving Credit Facility, are limited to $60.0 million under the
               indentures governing the Notes. In addition to availability under
               the credit facilities, the Company had $7.0 of cash on deposit at
               July 31, 1999.

                        In the 1999 quarter, cash provided by operating
               activities was $25.4 million, cash used in investing activities
               was $13.1 million and cash provided by financing activities was
               $13.5 million. For the 1999 period cash provided by operating
               activities was $21.7 million, cash used in investing activities
               was $24.9 million and cash provided by financing activities was
               $5.5 million (this includes net proceeds of $17.9 million from
               sale and leaseback transactions, including the sale and leaseback
               of La Oroya's oxygen plant discussed below).

                        On January 20, 1999, Doe Run Peru executed a sale and
               leaseback agreement with two Peruvian financial institutions. The
               main oxygen plant at La Oroya was sold at fair market value as
               determined by an independent appraisal. The proceeds, net of
               value added tax, of $17.2 million were used to reduce


                                       32
<PAGE>

               the outstanding balance on the Doe Run Peru Revolving Credit
               Facility and to pay the outstanding balance of an obligation to
               the Company of $3.8 million. The lease requires monthly payments
               of approximately $0.4 million and has a purchase option of $0.2
               million at the end its five-year term. On July 6, 1999 the
               Company borrowed $5.7 million, under a ten-year 9.9% secured
               note, to finance the purchase of capital assets.
               Payments are due monthly under the note.

                        In the U.S., the Company had capital expenditures of
               $11.2 million for the 1999 period and has projected total capital
               expenditures, in the U.S., for fiscal 1999 of approximately $13.8
               million, primarily to support ongoing operations and for
               operational and environmental improvements. In addition to these
               capital investments, the Company's U.S. operations expended an
               average of approximately $63.4 million per year on repairs and
               maintenance from fiscal 1996 through fiscal 1998. As a result of
               these expenditures, the Company believes that it operates and
               will continue to maintain modern and efficient facilities.

                        As part of the acquisition of its Peruvian operations,
               the Company has undertaken a capital investment program, in part
               to satisfy an investment commitment of $120.0 million as set
               forth in the purchase agreement. The company has recently
               received the final report which indicates that total qualifying
               expenditures under the investment commitment in fiscal 1998 were
               $36.4 million, including capital expenditures of $9.6 million,
               operating expenses of $8.5 million and a working capital increase
               of $18.3 million. Peruvian operations had capital expenditures of
               $13.7 million in the 1999 period and have projected total capital
               expenditures for fiscal 1999 of approximately $19.0 million,
               primarily to support ongoing operations and for operational and
               environmental improvements.

                        The Company has substantial indebtedness and debt
               service requirements. As of July 31, 1999, on a consolidated
               basis, the Company had $485.8 million of indebtedness
               outstanding, or $360.8 million net of the Special Term Deposit.
               Management believes that cash flows from operations, in addition
               to availability under the revolving credit facilities, will be
               sufficient to meet the Company's liquidity needs for the
               foreseeable future.

                         The Doe Run Revolving Credit Facility, the Doe Run
               Peru Revolving Credit Facility, and the indentures governing the
               Notes contain numerous covenants and restrictions, including
               requirements that the Company satisfy certain financial ratios in
               order to incur additional indebtedness. The ability of the
               Company to meet its debt service requirements and to comply with
               such covenants is dependent upon future operating performance and
               financial results which are subject to financial, economic,
               political, competitive and other factors affecting the Company,
               many of which are beyond the Company's control.

                      On January 15, 1999, Renco filed an election, with the
               consent of its shareholders, with the Internal Revenue Service to
               change its taxable status from that of a subchapter C corporation
               to that of a subchapter S corporation, effective November 1,
               1998. At the same time, Renco elected for the Company to be
               treated as a QSSS. As a result of such election, generally, no
               provision for federal income taxes will be included in the
               Company's statements of income for periods beginning after
               October 31, 1998. However, under the "built-in gain" provisions
               of the tax law, federal and state taxes may become payable and
               will be charged to the Company's statement of income. Such taxes
               are measured by the excess of the fair market value of assets
               over their tax bases at the effective date of the S corporation
               election if the appreciated assets are disposed of within the
               ten-year post-conversion period. It is not management's present
               intent to generate any taxes under the built-in gain provisions
               of the tax laws. See "Item 1. Financial Statements--Note 4 to the
               Company's Consolidated Financial Statements."


               YEAR 2000 MATTERS

                      Many information and process control systems used in the
               current business environment were designed to use only two digits
               in the date field, and therefore may not function properly in the
               year 2000. Any of the Company's programs that have date-sensitive
               software may recognize a date using "00" as the


                                       33
<PAGE>

               year 1900 rather than the year 2000, which could result in a
               major system failure or in miscalculations. The Company conducted
               a comprehensive review of its computerized information systems
               (IS) to identify systems that could be affected by the year 2000
               problem and has implemented a plan to resolve the issues
               identified. In the U.S., the Company changed its critical
               programs so that a four-digit year would be recognized. These
               programs were tested at the end of February 1999 and the Company
               identified and began correcting programs that were not properly
               processing the new date fields. The modified programs are
               currently in use and will cointinue to be monitored through
               normal operating cycles to determine whether the new date fields
               are being processed properly. The Company anticipates that
               modification of non-critical systems will be completed by
               November 1999. The Company expects to spend,including spending
               to date, approximately $.4 million in
               modifying its U.S. information systems.

                      In Peru, current computerized systems supporting the
               Company's financial, commercial, and logistical functions are
               largely year 2000 non-compliant. The Company is dependent on
               these systems to conduct its basic day to day business functions.
               The Company has purchased new computing hardware and software to
               replace most of these systems. Systems not being replaced are
               being upgraded to year 2000 compliance. Implementation and
               training on the new systems is being conducted by
               cross-functional teams comprised of employees allocated to the
               project and specialized outside consultants. The Company has
               developed an implementation plan using the software vendor's
               implementation methodology. This plan identifies the critical
               software modules and four specific phases that must be
               accomplished in order to implement them. The first two phases
               involve identifying the software functions and reports to be used
               by the Company and the changes required to customize the software
               to the Company's needs. Phase three involves setting up the
               software according to the Company's structure and programming
               the required customization. Phase four involves initial
               implementation, testing and final user training. The critical
               modules have been identified as general ledger, accounts payable,
               project costing, purchase order and inventory. The company has
               completed the first two phases and is approximately 90% complete
               with phase three for all critical modules, with completion of
               the fourth phase by November, 1999. Industry-specific commercial
               and metallurgical systems are being created that are compatible
               with the purchased software modules. The design and development
               phases of these systems are substantially complete. Testing and
               training are expected to be complete by November, 1999. The
               Company has spent approximately $1.0 million to date on these
               efforts, with a total estimate at completion of $2.9 million.

                      The Company has evaluated the status of process controls
               and other non-IS systems, and identified the required actions,
               which consist mostly of software upgrades, of making these
               systems year 2000 compliant. The Company has already completed
               the installation of software in certain areas. Correction to all
               critical systems is targeted for completion by November 1999. The
               Company believes that it can revert to manual process control,
               should there be any problems with process control systems as a
               result of the year 2000.

                        The Company's operations are dependent on various third
               parties, specifically for the availability of utility services,
               primarily electricity, and transportation services. The Peruvian
               operations depend on the viability and performance of certain
               customers and suppliers. Areas of particular vulnerability
               include the supply of concentrate feed, electric power supply,
               transportation services. In Peru, the Company also has exposure
               to the performance of certain government agencies, particularly
               with respect to the import and export of products and the
               reimbursement to the company of export tax credits. The Company
               has written and/or visited key suppliers, customers and
               government agencies requesting assurance that year 2000 issues
               will not disrupt their ability to provide service to the Company.
               In the U.S., the Company has not received any responses that
               indicate any customers' or suppliers' failure to achieve year
               2000 compliance will have an impact on its operations. In Peru,
               responses have been received from less than one-third of the
               parties from whom information has been requested and many
               entities responding have not completed Y2K compliance activities.

                      The Company is developing contingency plans to mitigate
               the risk of disruption to its operations


                                       34

<PAGE>
               based on responses received from third parties. A substantial
               disruption in utility services or feed supply or decreases in
               orders from significant customers due to these third parties
               failing to achieve year 2000 compliance could have a significant
               impact on the Company's results of operations, financial
               position, or liquidity.

                      Except for the new system in Peru discussed above, the
               cost of achieving year 2000 compliance are to be included in the
               Company's operating and administrative expenses. Due to the
               inherent uncertainties surrounding the effect of the year 2000,
               there can be no assurance that failures or implications,
               including potential litigation, will not have a material adverse
               effect on the Company's results of operations, financial position
               or liquidity.

               FORWARD-LOOKING STATEMENTS

                      This report includes "forward-looking statements" within
               the meaning of the Private Securities Litigation Reform Act of
               1995 which involve known and unknown risks, uncertainties and
               other important factors that could cause the actual results,
               performance or achievements of the Company to differ materially
               from any future results, performance or achievements expressed or
               implied by such forward-looking statements. Such risks,
               uncertainties, and other important factors include, among others:
               general economic and business conditions; increasing industry
               capacity and levels of imports of non-ferrous metals or
               non-ferrous metals products; industry trends, including product
               pricing; competition; currency fluctuations; the loss of any
               significant customer; availability of qualified personnel;
               effects of future collective bargaining agreements; major
               equipment failures; unanticipated problems encountered in the
               year 2000 readiness program; and availability of replacement
               equipment to achieve year 2000 readiness. These forward-looking
               statements speak only as of the date of this report. The Company
               expressly disclaims any obligation or undertaking to disseminate
               any updates or revisions to any forward-looking statement
               contained herein to reflect any change in the Company's
               expectations with regard thereto or any change in events,
               conditions, or circumstances on which any such statement is
               based.

              ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
              RISK.

                      In the normal course of its business, the Company has used
               in the past, and may use in the future, forward sales commitments
               and commodity put and call option contracts to manage its
               exposure to fluctuations in the prices of lead, copper, zinc and
               silver. Contract positions are designed to ensure that the
               Company will receive a defined minimum price for certain
               quantities of its production. Gains and losses and the related
               costs paid or premiums received for option contracts which hedge
               the sales prices of commodities are recognized in net sales when
               the related production is sold. None of the aforementioned
               activities have been entered into for speculative purposes.

               PART II.  OTHER INFORMATION.

               ITEM 2.  LEGAL PROCEEDINGS.

               LORI GOVREAU VS. THE DOE RUN RESOURCES CORPORATION was filed in
               February, 1999, in the Circuit Court, 23rd Judicial Circuit at
               Hillsboro, Jefferson County, Missouri alleging certain damages
               stemming from the operations at the Herculaneum smelter damages
               from the effects of lead poisoning due to operations at the
               smelter. Punitive damages also are being sought.

               On May 21, 1999, CHARLES MULLINS, II, ET AL., VS. THE DOE RUN
               RESOURCES CORPORATION was filed in the Circuit Court, 23rd
               Judicial Circuit at Hillsboro, Jefferson County, Missouri. The
               case alleges certain damages from discontinued mine facilities in
               St. Francois County. The plaintiffs seek to have certified two
               separate classes. The first class would consist of property
               owners, alleging that property values have been damaged due to
               the tailings from the discontinued operations. The second class
               would be composed
                                       35
<PAGE>

               of children, and the remedy sought is medical monitoring for the
               class. The Company intends to vigorously defend itself against
               this claim. The Company is unable at this time to state with
               certainty the expected outcome of and the final costs of this
               suit. Therefore, there can be no assurance the suit will not have
               a material adverse effect on the results of operations, financial
               condition and liquidity of the Company.

<TABLE>
<CAPTION>

               ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K
               <S>                <C>

               EXHIBITS.

               EXHIBIT 10.1       Financial  leasing  dated  January 20, 1999
                                  entered into by and between Credito Leasing
                                  S.A. and Banco de Credito del Peru as party of
                                  the first part and Doe Run Peru S.R.L. as
                                  party of the second part (English)

               EXHIBIT 10.2.1     Unconditional Guarantee dated June 11,1999 by
                                  and among the Doe Run Resources Corporation,
                                  Boeing Capital Corporation and First Security
                                  Bank, N.A.

               EXHIBIT 10.2.2     Promissory Note dated July 6, 1999 by and
                                  among Boeing Capital Corporation and First
                                  Security Bank, N.A.

               EXHIBIT 10.2.3     Loan and Security Agreement dated June 11,
                                  1999 by and among Boeing Capital Corporation
                                  and First Security Bank, N.A.

               EXHIBIT 10.3       Amendment No. 4 to Loan and Security Agreement
                                  dated June 11, 1999 by and among the Doe Run
                                  Resources Corporation, Fabricated Products,
                                  Inc. and Congress Financial Corporation

               EXHIBIT 27         Financial Data Schedule

</TABLE>

                                      36

<PAGE>




                               S I G N A T U R E S


               Pursuant to the requirements 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.

                                      THE DOE RUN RESOURCES CORPORATION
                                      (Registrant)






            September 13, 1999        /s/    Marvin K. Kaiser
        Date                          Marvin. K. Kaiser
                                      Vice President and Chief Financial Officer
                                      (duly authorized officer and principal
                                      financial officer)


                                       37
<PAGE>



                                  EXHIBIT INDEX
<TABLE>
<CAPTION>

    EXHIBIT NUMBER                                 DESCRIPTION
    <S>                             <C>
     EXHIBIT 10.1                   Financial leasing dated January 20, 1999
                                    entered into by and between Credito Leasing
                                    S.A. and Banco de Credito del Peru as party
                                    of the first part and Doe Run Peru S.R.L. as
                                    party of the second part (English)

     EXHIBIT 10.2.1                 Unconditional Guarantee dated June 11,1999
                                    by and among the Doe Run Resources
                                    Corporation, Boeing Capital Corporation and
                                    First Security Bank, N.A.

     EXHIBIT 10.2.2                 Promissory Note dated July 6, 1999 by and
                                    among Boeing Capital Corporation and First
                                    Security Bank, N.A.

     EXHIBIT 10.2.3                 Loan and Security Agreement dated June 11,
                                    1999 by and among Boeing Capital Corporation
                                    and First Security Bank, N.A.

     EXHIBIT 10.3                   Amendment No. 4 to Loan and Security
                                    Agreement dated June 11, 1999 by and among
                                    the Doe Run Resources Corporation,
                                    Fabricated Products, Inc. and Congress
                                    Financial Corporation

     EXHIBIT 27                     Financial Data Schedule
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