In comparison with the same period last year, Brunswick Mining and Smelting Corp. has reported a dramatic turnaround in its earnings position for the six months ended June 30.
The company recently reported that earnings before gain on sale of investment were $3.6 million for the second quarter, compared with a loss of $1.8 million for the same period last year.
Net earnings of $7.9 million (23 cents per share) for the second quarter and $8.3 million (24 cents per share) for the six months include an after-tax gain of $4.3 million on the sale of the Kerr Addison Mines investment to Noranda Inc. for $24.50 per Kerr share.
As consideration, Brunswick will receive preferred shares of Noranda Forest Inc. valued at $70.8 million, or $5.8 million (pre-tax) above Brunswick’s book cost.
Brunswick said lower productivity was recorded during the half just prior to the settlement of the new labor agreement which provides for average wage increases of $1.20 per hour over the life of the contract.
The agreement also provides for improvements to pensions, a benefit program and a lump sum of $1,400 on signing.
Brunswick shares were trading recently on the Toronto Stock Exchange at $18, just below its 52-week high of $20 but well above its $11.63 low point.
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