Brunswick loses $10 million

A lengthy strike at the Brunswick mine continued to decimate Brunswick Mining & Smelting’s (TSE) earnings well into the second quarter.

For the three months ended June 31, the lead-zinc producer reported a net loss of $10.1 million (26 cents per share) compared with earnings of $19.2 million (49 cents per share) in the second quarter of 1990.

The dismal earnings picture was exacerbated by a weak zinc price, which averaged 52 cents in the second quarter compared with 72 cents in the first half of 1990 and 54 cents in the first quarter of this year. After settling the 10-month strike, Brunswick resumed operations at reduced levels in May. The mine has since reached full production and the smelter is expected to reach its planned operating rate by September.

Noranda (TSE) has a 64.7% interest in Brunswick.