Thermal coal producer Consolidated Brinco (TSE) reported a loss of $536,000 for the three months ended March 31, compared with a loss of $185,000 in the same period last year.
The company owns and operates an open pit and underground coal mine near Campbell River, B.C.
Revenue for the first quarter was $396,000, down sub- stantially from revenue of $1.57 million in the first quarter of 1990.
The lower revenue was the result of the delay in the shipment of a 62,042-tonne cargo of coal due to the late arrival of the ship.
The shipment, sold to a Japanese power utility, will be included in the current quarter.
The company expects to reduce general and administrative costs significantly as a result of the curtailment of exploration activities and various other measures.
Operating costs are also expected to decrease now that the mine is on the provincial power grid. The operation was previously powered by diesel generators.
Consolidated Brinco completed the construction of a 700,000-tonne-per-year wash plant during the quarter at a cost of about $2 million. The company is now reviewing plans to expand open pit operations to the South Pit area later this year if marketing arrangements can be made.
Australian thermal coal producers have agreed to price levels for the fiscal year ended March 31, 1992, at about US$1 per tonne lower than the past year. This sets the stage for price reductions with other suppliers and Consolidated Brinco reports negotiations with customers for deliveries during the coming year are protracted.
The company’s balance sheet is in good shape with about $3 million in working capital. Long-term debt decreased to $5.4 million as at March 31, compared with $11.5 million at the end of the first quarter of 1990.
Consolidated Brinco plans to change its year end to March 31 to coincide with the Japanese fiscal year.
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