Mixed results mark Breakwater’s quarter

The recent downturn in lead and zinc prices affected the first-quarter earnings reported by Breakwater Resources (BWR-T).

The Toronto-based company earned $1.6 million (or 2cents per share) in the 3-month period, compared with $3 million (5cents per share) during the first quarter of 1997. Revenue between the two periods rose, however, to $43.5 million from $35.9 million.

Contributing to the drop in earnings was an operating loss at the Toqui mine, 1,350 km south of Santiago, Chile. Breakwater acquired the polymetallic producer in August 1997. Throughput during the recent quarter amounted to 94,727 tonnes averaging 7.5% zinc and 1 gram gold per tonne. The mine cranked out 12,976 tonnes from which were derived 6,227 tonnes of zinc concentrate, as well as 846 oz. gold and 10,890 oz. silver.

Operating costs at Toqui were US$35.04 per tonne. The lower-than-expected production and zinc grade resulted in an operating loss of $1.4 million for the quarter.

However, this decrease was partially offset by increased metal production and lower costs at the Nanisivik and Mochito mines, in the Northwest Territories and Honduras, respectively.

Nanisivik, situated on the north coast of Baffin Island, generated a first-quarter profit of $2.6 million, compared with $1.5 million a year earlier. Mill throughput totalled 199,214 tonnes grading 7.6% zinc, from which were extracted 25,615 tonnes of zinc concentrate containing 14,623 tonnes zinc and 140,823 oz. silver.

Operating costs at Nanisivik averaged $39.14 per tonne during the past quarter.

Meanwhile, at the Mochito mine, zinc and lead concentrate production totalled 19,353 and 1,735 tonnes, respectively, containing 9,888 tonnes zinc, 1,112 tonnes lead and 345,113 oz. silver.

Operating costs at the Honduran operation averaged US$32.11 per tonne.