Vancouver —
The major earned $285 million (or $1.42 per share) in the 3-month period, compared with $104 million (56 per share) in the fourth quarter of 2003. Annual earnings between 2003 and 2004 increased to $617 million ($3.18 per share) from $134 million (71 per share).
Strong prices for base metals and coal were behind the profitable performance, though their effect was offset somewhat by a weaker U.S. dollar.
At the end of 2004, Teck Cominco had $907 million in cash and was $665 million in debt.
The operating profit in 2004 was $1.1 billion, a sizable jump over the $314 million from the prior year. Contributing to the rosy results were high production and sales volumes and the acquisition of an additional 34% in Highland Valley Copper.
Copper sold for an average of US$1.35 per lb. in 2004, up 59% from US85 in 2003; lead averaged US40 per lb., up 54% from US26; zinc was US48 per lb., up 26% from US38; and molybdenum was US$19 per lb., up a whopping 280% from US$5. Gold sales averaged US$406 per oz., up 13% from US$359 in 2003.
Coal sales last year averaged US$52 per tonne, an increase of 16% over the US$45 realized in 2003.
Teck Cominco is one of the world’s larger producers of zinc and metallurgical-grade coal, and produces significant amounts of copper and gold from 13 mines in Canada, the U.S. and Peru.
In Arizona’s Pinal Cty., Teck has struck a deal to earn up to a 65% interest in a copper-silver property held by
The Monitor property is 1,400 metres southeast of Grupo Mexico’s Ray mine, the second-largest copper producer in the state. General Minerals has identified a 2-by-2-km area “that displays characteristics typical of porphyry copper systems.”
Teck Cominco can earn its initial 51% stake by spending US$3 million on the Monitor property over five years, during which time staged cash payments totalling US$285,000 are also required. The company can acquire a further 14% by spending US$4 million on exploration and completing a feasibility study.
General Minerals has carried out geological, geochemical and geophysical programs, and several targets have been developed. In addition to near-surface oxide copper-silver mineralization and high grade copper-silver mineralization within east-west structures, the company is encouraged by the potential for a classic porphyry copper deposit at depth, below the oxide mineralization.
General Minerals has other exploration properties in Arizona, including the Markham Wash project area, near the Dos Pobres deposit (owned by Phelps Dodge). The company notes that the project has many similarities to neighbouring lands containing known porphyry copper deposits, though much of the area is covered by post-mineral volcanic and alluvial cover.
Geophysical programs have identified several large anomalies that have never been drilled, and geochemical work is exploring the target’s potential as a copper-bearing porphyry system.
Be the first to comment on "Teck Cominco continues performance streak"