Cominco bleeding red ink due to base metal price slump

Cominco (TSE) reported a net loss of $123.3 million for the first nine months of the year, compared with a profit of $65 million for the same period in 1992.

The red ink was mainly attributed to low base metal prices, compounded by the weak performances of the Red Dog zinc-lead mine in Alaska and the smelter complex at Trail, B.C.

Production of zinc concentrate at Red Dog was adversely affected by fine-tuning of the modified circuits. However, by the end of the third quarter, production had exceeded 38,000 tonnes per month. Two 1,250-hp ball mills are being installed to further improve mill throughput and recovery. Meanwhile, progress has been made in the ongoing implementation of a plan aimed at making the Trail complex more productive and competitive. Union workers have ratified an extension of the existing collective agreement which does not provide for a wage or benefit increase. The revised agreement provides for profit-sharing, among other measures.