This is proving to be a record year for base metal producers, particularly Cominco Ltd. (TSE). For the nine month period ended Sept 30, consolidated earnings were $128.3 million before including an extraordinary gain of $1.7 million. These results compare with a consolidated profit of $31 million before an extraordinary gain of $66 million a year ago.
Total debt as of Sept 30 was $366.3 million, about $12 million higher than the level at Dec 31, 1987. Since that time, major expenditures have been made on the Red Dog mine project ($133 million), the Trail smelter modernization ($44 million), and the Highland Valley Copper mill relocation ($12 million). In addition, $100 million of preferred shares was retired.
The capital programs were financed primarily out of cash flow from operations and a net increase in borrowings of $12.2 million. Working capital as of Sept 30 was $395 million.
Third quarter earnings were $49.8 million or 60 per common share. This compares to a $5.1 million profit last year. The company’s mining and integrated metals segment had a third quarter operating profit of $98.6 million, over double the previous year’s performance. That increase was due to higher zinc and copper prices and increased sales volumes with the exception of copper and lead concentrates, Cominco says.
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