Zinc miner
For the first nine months of 2000, Breakwater reported earnings of $15.9 million (or 19 per share) on revenue of $243.8 million, compared with earnings of $19.4 million (25) on revenue of $194 million during the corresponding period last year.
For the third quarter ended Sept. 30, 2000, the company racked up earnings of $7.1 million (9) on revenue of $97.4 million, down from $10.4 million (13) earned on $70.5 million in revenue a year ago.
Breakwater attributes the increase in gross revenue over the first nine months to higher realized zinc prices (US52 per lb., compared with US50 per lb. in the first nine months of 1999) and increased metal production resulting from the acquisition, effective May 1, 2000, of the Bouchard-Hbert and Langlois zinc mines in Quebec from
Breakwater says these gains were partly offset by lower lead and silver prices, and higher treatment charges.
Total cash costs during the 9-month period were US41 per lb. of payable zinc, compared with US39 per lb. a year earlier. The increase was primarily due to higher treatment charges and lower head grades.
From its six operating mines, Breakwater produced the following amounts of metal in concentrate during the first nine months of 2000: 150,780 tonnes zinc (compared with 131,671 tonnes last year); 2,757 tonnes copper (nil last year); 8,209 tonnes lead (8,213 tonnes); 2.1 million oz. silver (1.6 million oz.); and 11,268 oz. gold (3,537 oz.).
Breakwater now owns six operating mines: Cambior’s former mines, both in Quebec; the Nanisivik mine on Baffin Island; Bougrine in Tunisia; El Mochito in Honduras; and El Toqui in southern Chile. The company also owns the Caribou mine in New Brunswick, which is currently dormant.
Although the two Quebec mines have had operating problems since Breakwater assumed ownership, these are now largely resolved, and operating results from the two mines are expected to improve in subsequent quarters. The company says that, barring any unforeseen difficulties, the fourth quarter’s operating results should be better than the third quarter’s.
Breakwater also has several promising exploration programs under way at El Toqui, Bougrine, El Mochito, Langlois and at the Puerto Sanchez project, 250 km south of El Toqui.
In addition, the company is negotiating to begin drilling at the Oued Amizour deposit in Algeria.
Meanwhile, Breakwater is awaiting an approval by the shareholders of
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