Earnings from operations at Brunswick Mining and Smelting Corp.’s large zinc-lead operation near Bathurst, N.B., failed to materialize during the third quarter ended Sept. 30. For the period, the mine generated a loss of $1.6 million but managed to scratch out a profit of $17,000 follwing the addition of tax credits. An extraordinary gain of $3.5 million on the sale of the company’s investment in Brascade class A preferred shares, yielded a quarterly profit of $3.5 million of 10 cents per share. This compares to a loss of $2.8 million or 8 cents per share realized during the same period last year. For the 9-month period, Brunswick earned $11.8 million or 34 cents per share.
The poor financial performance is being attributed to disappointing results during the summer vacation period at the mine. However, stronger productivity was achieved in September, Brunswick reports. Also, zinc prices declined to $820(US) per tonne — off $40 in September.
A return to full production at the company’s operations is expected to result in a stronger fourth quarter. Markets for all the company’s products remain firm, especially for lead.
Directors of the company have declared a 5 cents dividend plus an extraordinary 5 cents dividend payable on Dec. 16 to shareholders of record on Nov. 19.
Be the first to comment on "Brunswick scratches profit from extraordinary gain"