Record production from Timmins Nickel’s (TSE) 51% owned Redstone nickel mine near Timmins, Ont., added up to a profitable second quarter for the Toronto- based company. Timmins Nickel reported net income for the quarter ended Nov. 30 of $471,000 or 4 cents per share compared to a loss of $242,000 or 2 cents per share in the same period last year. Due to the fact that nickel sales rose by 34% to 1.47 million lb. in the 3-month period (compared to the first quarter), revenues climbed to $3.5 million from $2.8 million in the equivalent 1989 quarter.
“Mine production of accountable nickel from Redstone in the quarter was 1.5 million lb. representing a 73% increase from the previous quarter,” the company said.
For the six months ended Nov. 30, Timmins Nickel had net income of $172,000 or 2 cents per share, compared to a loss of $11,000 or 0.01 cents per share during the same period in 1989. Revenues in the 6-month period increased to $6.2 million from $5.2 million a year ago.
According to Timmins Nickel, development at Redstone’s Langmuir No. 1 zone has been completed at a cost of $750,000 and shipments began in mid-December.
The company said it expects to see a doubling of nickel output to its own account in the next quarter now that the 500-ton-per-day Langmuir project is up and running.
Operating costs at the Redstone mine were reduced to US$2.85 per lb. of accountable nickel in the quarter, including ramp development costs previously capitalized. Timmins Nickel (TSE) 3 months ended Nov. 30 1990 1989 Revenue $3,490 $2,813 Net earnings (loss) 471 (242 )
per share 0.04 (0.02 ) 6 months ended Nov. 30 1990 1989 Revenue $6,163 $5,249 Net earnings (loss) 172 (11 )
per share 0.02 (0.01 )004
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