Lower prices hurt Curragh earnings

Net earnings of $32 million for 1990 were reported by Curragh Resources (TSE), compared with a profit of $60.7 million for the previous year. The company said sales of lead and zinc concentrates increased in 1990 to $352.8 million, up from $348.5 million in 1989.

Curragh attributed the reduced earnings mainly to a sharp decline in metals prices during the last quarter. It said the lower prices resulted in a $14.7-million decline (compared with 1989) in fourth- quarter settlement prices for third- and fourth-quarter production.

Curragh sells most of its production overseas and its revenues were also affected by the stronger Canadian dollar last year.

Production volumes rose by 12% in 1990, to a record 548,484 tonnes. The company gained significant production from residual underground reserves at the bottom of the Faro pit in the Yukon. Underground reserves are being depleted to ready the pit for waste disposal after 1991.

Chairman Clifford Frame said Curragh’s capital expenditures for 1991 will double to $177 million. The Vangorda mine at Faro should enter full production this year and a summer, 1991, startup is planned for the Mt. Hundere project (80% interest) elsewhere in the Yukon. Production from the Grum project at Faro is planned for 1992.

Curragh has a majority interest in the Westray coal project in Nova Scotia, which Frame said is proceeding on schedule to production in August.

Overseas, Curragh has a 20% interest in the Spanish mining and smelting operations of Asturiana de Zinc.006 Curragh Resources (TSE) 12 months ended Dec. 31 1990 1989 Revenue $352,792 $348,501 Net earnings 32,014 60,690

per share 1.12 2.43004