Cominco loss affects Teck earnings

Low zinc and lead prices led to lower earnings for Teck (TSE) in the 1993 second quarter ended June 30. Net earnings of $3 million for the period were down considerably from $12 million a year earlier.

Although cash flow was up from last year, Teck’s second-quarter earnings were affected by a $7.2-million equity loss from Cominco (TSE). Teck’s current cash balance is about $138 million, down from $215 million at the start of the year because of capital expenditures at the Louvicourt project in Quebec and the Quebrada Blanca copper project in Chile. The company has sold its oil-and-gas interest in Trilogy Resource and is expecting to receive $51 million from the sale in August.

During the first half of the year, Teck reported gold production of 189,000 oz. from the Hemlo mines in Ontario compared with 188,000 oz. last year.