Curragh selling smelter interest (November 25, 1991)

Weak zinc prices, a high Canadian dollar and an investment in Spanish smelting company Asturiana De Zinc were factors in a losing third quarter for Toronto-based zinc-lead miner Curragh Resources (TSE).

In the three months ended Sept. 30, Curragh reported a loss of $11.1 million or 34 cents a share compared to a profit of $13.7 million or 45 cents a share in the same period last year. Without taking into consideration Curragh’s 20.8% stake in Asturiana, Curragh’s net loss for the period would have been $6.9 million or 21 cents a share, a gain of $3.5 million on the previous quarter.

However, third-quarter revenues declined by about 50% to $33.43 million from $66 million last year due to metal prices and the exceptionally strong Canadian dollar. During the quarter zinc averaged US47 cents and lead US25 cents per lb.

Those results brought Curragh’s losses for the year so far to $35.7 million or $1.11 per share compared to a profit of $42.9 million or $1.57 per share in the first nine months of 1990. Revenues for the nine months ended Sept. 30 declined to $88.5 million from $198.4 million in the year-ago period. Curragh says it is making several moves to finance development of the Grum deposit at its Faro, Yukon, mine by issuing a $55-million convertible subordinated debenture and selling its stake in Asturiana.

The Spanish company owns about 5% of Curragh plus 30% of Curragh’s Stronsay zinc-lead property in British Columbia.