Pine Point Mines, which lost $9.8 million in the first half last year, has completely reversed its fortunes in the similar period this year, with reported net earnings of $10.8 million.
The profit this year came on sales of $50.1 million, compared with sales of $44.2 million for the 1986 first half.
In the second quarter this year, Pine Point had earnings of $6.4 million on sales of $24.5 million, compared with a loss of $2.3 million on sales of $25.2 million in second quarter 1986.
Higher zinc and lead prices and lower production costs were given the credit for the improved financial performance.
Sales of zinc and lead concentrates during the latest quarter were 57,500 (71,500 in the 1986 quarter) tons and 49,500 (45,700) tons respectively. Production for the quarter was 142,300 (120,800) tons of zinc concentrate and 45,200 (51,300) tons of lead concentrate.
President David Johnston says mining operations were completed at the end of the second quarter. The ore stockpile as at June 30 was 2.2 million tons, at estimated grades of 10.5% zinc and 3.5% lead.
Mr Johnston said milling is expected to continue into the first quarter of 1988.
Agreement was reached for the sale of the mobile mining equipment fleet to a mining company (unnamed) for about $5.4 million.
The Pine Point president said negotiations are continuing with Cominco Ltd. regarding acquisition of an interest in Cominco’s Polaris mine.
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