Pine Point profits climb as mine closure imminent

Ending a successful mining operation on a high note, Pine Point Mines reported net profits for 1987 of $28.3 million, or $6.11 per share.

This compares with 1986 earnings of $2 million or 45 cents per share. Sales revenue amounted to $110.3 million up from $96.7 million the year before.

Miners stopped stockpiling ore for the mill late in June and milling is expected to be completed in March, followed by the permanent shutdown of the historic Northwest Territories operation.

The company attributes its strong financial performance to improved metal prices and reduced unit costs. Cash flow allowed full repayment of debt and accumulation of $31.8 million in short-term investments by year-end.

Production for 1987 was 521,200 tons of zinc concentrate and 161,100 tons of lead concentrate from 3,513,500 tons of ore grading 9.6% zinc and 3.9% lead. Sales of zinc concentrate totalled 263,200 tons (compared to 261,700 tons) and sales of lead concentrate amounted to 164,600 tons (156,100 tons in 1986).

Concentrate inventories at year- end were 486,000 tons of zinc and 13,500 tons of lead. Concentrate sales are expected to be completed by 1991.

Fourth-quarter profits amounted to $6.9 million on sales of $28.3 million, compared with $6.6 million on sales of $27 million in the 1986 quarter.

During the quarter, Pine Point negotiated settlement of legal proceedings which were initiated to recover damages resulting from failure of the contractor to complete a pit grouting project in 1985. The 1986 earnings have been restated to include the settlement by increasing retained earnings by $4.5 million, after providing for income taxes of $2.4 million.