Lower profits from Pine Point Mines and an operating loss at the Trail smelter brought about a significant drop in net earnings for Cominco (TSE) in its 1990 third quarter ended Sept. 30. Consolidated net earnings for the period were $11.6 million or 13 cents per share on sales of $335 million, compared with earnings of $34.2 million or 42 cents per share on sales of $330.5 million in the 1989 third quarter.
The mining and integrated metals business segment earned a third- quarter operating profit of $44.1 million on sales of $265 million, compared with $89.8 million on sales of $269.3 million in the 1989 third quarter.
The company said the reduction in its overall operating profit reflects a $30.5 million decrease in operating profit from Pine Point Mines which had substantial concentrate sales last year. These losses were partially offset by higher profits from Highland Valley Copper, and the Red Dog and Polaris mines.
The loss at the Trail, B.C., smelter was due to reduced zinc production caused by construction of modifications to the zinc plant and the operation of the old lead smelter at a reduced rate while modifications are made to the new QSL smelter.
The Red Dog mine in Alaska, officially opened in August, is now in commercial operation with third- quarter production of concentrate exceeding 90% of feasibility planned levels. Cominco (TSE) 3 months ended Sept. 30 1990 1989 Revenue $335,000 $330,500 Net earnings $11,600 $34,200
per share 0.13 0.42 9 months ended Sept. 30 Revenue $1,020,400 $1,195,300 Net earnings $51,900 $175,500
per share 0.62 $2.16
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