Breakwater breaks even in Q1

Higher prices for gold, silver and copper helped offset lower production for Breakwater Resources (BWR-T) in the first quarter.

The company earned $69,000 (or nil per share), compared with a loss of $3.3 million (3 loss per share) in the first three months of 2002. Revenue between the two periods fell $11.6 million, to $52.9 million, reflecting lower sales volumes and a stronger Canadian dollar.

Operating cash flow shrank to $400,000 from $4.1 million, and the loss from mining activities grew $2.2 million, to $2.4 million.

Production of zinc-in-concentrate fell nearly 30% to 43,125 tonnes, owing to the closure of the Nanisivik mine on Baffin Island at the end of the third quarter of 2002.

Total cash costs were unchanged at US31 per lb., while mine site operating costs climbed US$1.23 to US$27.84 per tonne milled.

Breakwater’s copper production slipped marginally to 1,328 tonnes, silver output fell by 37% to 588,602 oz., and gold was off 222 oz. at 7,252 oz. Conversely, lead production climbed 245 tonnes, to 3,935 tonnes.

On the sales side, Breakwater realized an average of US36 per lb. for its zinc, unchanged from a year earlier, while lead fetched US20 per lb., or 9% less. On the plus side, the company realized US3 more for its copper at US76 per lb.; also, the average realized price for silver climbed 4% to US$4.68 per oz., and gold jumped 26% to US$344.13 per oz.

At the end of March, Breakwater had $5.8 million in cash and equivalents. Total debt was $70.1 million.

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