After reflecting a $16.6-million extraordinary charge for the loss stemming from the fatal accident at the Westray coal mine last May in Nova Scotia, Curragh (TSE) reported a net loss for 1992 of $54.3 million, compared with a loss in 1991 of $98.3 million.
The company says gross sales of zinc and lead concentrates in 1992 increased to $352.7 million from $225.2 million in 1991. The loss of income in the fourth quarter of $34.4 million reflects the sharp fall in zinc and lead prices over previous quarters, it says.
Sales revenues in 1992 from the Faro and Sa Dena Hes mines in the Yukon increased but were constrained by the sharp drop in metal prices at the end of the year. In the fourth quarter, the weaker Canadian dollar had a modest, but favorable impact on net revenues but this was offset by increased treatment charges as smelters began to operate below break-even levels, Curragh says.
Production of zinc and lead concentrates rose to 630,300 tonnes after a planned shutdown from 487,800 tonnes in 1991.
Chairman Clifford Frame says that Curragh’s liquidity and financial strength was severely impaired by a cash drain of $15.6 million on the Westray loan and $30.4 million of scheduled and unscheduled payments on the Sa Dena Hes loans.
In addition, $14 million of development spending on the Grum project in the Yukon by Curragh, together with $5 million from a Yukon loan, uncovered 25 million tonnes of new reserves at Faro, Curragh says. To date, $89 million has been invested in the development of Grum.
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