Brunswick turns quarterly profit

Favorable exchange rates, improved lead prices and positive adjustments to year-end inventories more than offset weaker prices for zinc and copper, enabling Brunswick Mining and Smelting (TSE) to earn a profit in the first quarter.

The price of zinc on the London Metal Exchange averaged US44 cents per lb. during the quarter, compared with US47 cents in the same period of 1993. The New Brunswick producer recorded net earnings of $7 million for the first quarter, compared with a loss of $6.8 million for the same period last year. The mining division processed an average of 10,609 tonnes of ore per operating day, compared with 10,528 tonnes per day in the first quarter last year. Ore grades for lead and zinc combined were 12.9% in the period, compared with 11.7% in the first quarter of 1993. Zinc recoveries were 85.2%, compared with 82.3% in the previous quarter.

Operations resumed Jan. 3 at the lead smelter after a 6-week shutdown to accumulate lead concentrate. Production continued to improve with sinter feed to the blast furnace, averaging 811 tonnes per day, compared with 711 tonnes per day in the first quarter of 1993. The fertilizer plant operated consistently throughout the quarter, achieving record production in March. Operations at the Heath Steele zinc and lead mine, which were temporarily suspended July 4, 1993, are expected to resume when market conditions warrant, the company said.

During the first quarter, new collective agreements were negotiated at Heath Steele and the mining and smelting divisions. A new agreement was reached at the fertilizer plant in early April.