Metal prices help those who help themselves, especially when a producer can beat the spot market prices through forward selling. Such is the case with Falconbridge (TSE), which realized prices slightly above spot market averages for both the 9-month period ended Sept. 30 and the third quarter.
For the nine months, the company generated revenues of $565.4 million. This represents a rise of $38.7 million over the same period in 1994. Net income was $138.6 million, up $44 million from a year ago.
A lower Canadian dollar strengthened the revenue and earnings figures, as did increased production from the company’s Kidd Creek division near Timmins, Ont., where ore grades proved to be higher than planned. Production at Falconbridge’s Sudbury division was lower because its Lockerby and Lindsley mines had been undergoing development, and also because the new Craig mine was being commissioned.
The Raglan deposit in far northern Quebec is scheduled to enter production in late 1997. Exploration drilling near the main deposit, at Katinniq, intersected new mineralization just west of the existing mine portal, with grades of 2% to 5% nickel and 0.4% to 2% copper over core lengths of 16.6 to 34.6 metres. At another prospect, 4 km east of Katinniq, mineralization in drill holes ranged from 3.1 metres grading 4.26% nickel to 19.25 metres of 3.25% nickel. The drilling continues.
Meanwhile, at the Touba-Biankouma joint venture in Ivory Coast, minable reserves are estimated at 39.3 million tonnes of laterite mineralization grading 2% nickel and 0.07% cobalt.
Falco has also sold its Lakefield Research division, in Lakefield, Ont., to the division’s management, who will operate the metallurgical and testing laboratory as a stand-alone company.
The company has declared a common share dividend of 10 cents per share and has issued US$200 million in 7.375% debentures maturing in 2005.
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