After recording a US$2.2-million profit for the first three months of the year, Inco (TSE) slipped into the red during the second quarter, reporting a net loss of US$1.5 million (3 cents per share) compared to earnings of US$30.3 million (28 cents per share) in the second quarter of 1991.
The company attributed the second-quarter loss to lower nickel deliveries and lower realized prices for nickel and precious metals, partially offset by higher cobalt prices.
Inco realized an average price of US$3.38 per lb. for its nickel during the second quarter compared with US$3.59 in the first three months of 1992 and US$3.97 during the second quarter of 1991. The lower prices offset any gains realized through lower unit production costs.
Just a few months ago, Inco said it had lowered its break-even selling price to US$3.15-3.20 per lb. of nickel.
Net earnings for the six months ended June 30 were US$700,000 compared with US$83.9 million last year.
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