Cominco hampers Teck’s earnings but posts $10-m quarterly

Cominco is raining on Teck’s parade.

A $17.2-million equity loss in Cominco (TSE) reduced the 1993 third-quarter earnings of Teck (TSE) to $9.9 million, compared with $13.8 million in 1992. The loss in Cominco was attributed to lower prices for zinc and lead, as well as lower copper and nickel prices.

Higher earnings from gold and coal operations resulted in greater cash flow for Teck in its latest quarter. Cash flow for the first nine months of the year was also higher: $96 million, up from $83 million the previous year. However, net earnings in that period were $15.6 million, down from $34.6 million last year. This reduction was also attributed to the equity loss in Cominco.

Teck’s cash balance as of Sept. 30 was $149 million, a decrease from $215 million at the start of the year. The drop is mainly due to capital expenditures at the Louvicourt copper-gold project in Quebec and the Quebrada Blanca copper project in Chile.

Teck owns 25% of the former and 29.5% of the latter. Both projects are on schedule, within budget and expected to enter production next year.