Curragh first quarter unaffected by strike at Faro mine

Striking employees at Curragh Resources’ (TSE) lead-zinc mine at Faro, Y.T., were recently issued with their first cheques since the strike began April 5.

The 400 strikers, represented by the United Steelworkers of America Local 1051, are each receiving $110 a week in strike pay from the union, plus $25 per dependent.

A union spokesman said no formal discussions have been held with the company since negotiations broke off April 3 and employees are gearing up for what could be a lengthy strike.

While they were offered a $2.40-per-hour wage increase over three years, negotiators are looking for a $3.50 increase within two years, to bring them close to the levels obtained by miners at other northern operations.

“We want to be in the same ballpark as other northern miners instead of sitting out in the bleachers,” said Trevor Harding, a spokesman for the union.

As the strike began in April, it wasn’t a factor in Curragh’s first-quarter results which included a net loss of $8.3 million or 26 cents per share on revenues of $38 million.

In the same period last year, Curragh reported net earnings of $14.2 million or 57 cents a share on revenues of $61.9 million.

Curragh Chairman Clifford Frame attributed the results to lower zinc and lead prices which fell by an average of US12 cents and US11 cents respectively from average levels in the first quarter of 1990.

“The strong Canadian dollar is an added burden,” Frame said. “Since the first quarter of 1990, it has increased in value by 2 cents against the U.S. dollar, which had the effect of reducing our cash flow by $4.6 million.”

However, the Faro operation produced 142,886 tons of concentrate in the first quarter, up 8.5% from the equivalent 1990 quarter. The volume of payable metal rose to 132.9 million lb., a gain of 7.7% on the first three months of 1990.

Construction of the company’s new lead-zinc mine at Mt. Hundere, Y.T., and Westray coal mine in Nova Scotia is proceeding ahead of schedule and within budget, the company says. Curragh Resources (TSE) 3 months ended Mar. 31 1991 1990 Revenue $38,303 $61,902 Net earnings (loss) 14,208 (8,314)

per share 0.57 (0.26)