Metal prices, summer strike cause 1991 loss for Curragh

Weak metal prices and a summer strike at the Faro, Yukon, zinc-lead mine, forced Toronto-based Curragh Resources (TSE) to take a net loss of $98.3 million or $3.06 per share in fiscal 1991.

In 1990, Curragh reported a profit of $32 million or $1.12 per share. Results in 1991 included a $31-million charge related to the unwinding of Curragh’s 20% interest in Spanish smelting giant Asturiana de Zinc, plus a $19.2-million loss on the sale of Sherritt Gordon (TSE) shares. Curragh was also forced to equity account for losses incurred by Asturiana from its smelting activities in 1991.

Due to the strike at Faro, production of lead and zinc concentrates dropped to 487,800 tonnes in 1991 from 548,400 tonnes the previous year. The company realized an average of US51 cents per lb. for its zinc output in 1991 compared with US69 cents in the year-earlier period. Year over year lead prices also dropped to US25 cents per lb. from US36 cents.

In addition, to unwinding its cross-shareholdings with Asturiana, Curragh says it is pursuing further initiatives to improve liquidity and fund ongoing activities.