Earnings rise for Teck and Cominco

The sale of its 10.8% stake in Diamond Fields Resources saw the 1996 net earnings of Teck (TEK-T) jump by almost 184% over the previous year.

The Vancouver-based major reported net earnings of $255 million on revenue of $702 million for 1996, up from earnings of $90 million on revenue of $699 million for 1995. Included in the 1996 figures was an extraordinary after-tax gain of $232 million on the exchange of Diamond Fields shares, as well as asset valuation writedowns of $41 million.

Net earnings in the fourth quarter were $2 million, after the company recorded an after-tax writedown on its 38.2% holding in Golden Knight Resources (GKR-T).

Teck’s 1996 gold production was 360,000 oz., up by 25,000 oz. over the previous year. Copper production was 143 million lb., compared with 127 million lb. in 1995. The gain came from extra output from the Quebrada Blanca mine in Chile, and the Louvicourt mine in Quebec. Coal production last year amounted to 3.9 million tonnes, down 3% over over 1995.

The company ended the year with working capital of $430 million, up from $171 million at the beginning of 1996.

Teck has a 34% stake in Cominco (CLT-T), which reported consolidated earnings (including special items) of $152 million for 1996, compared with $104 million in 1995.

Special items in 1996 included the after-tax effect of selling an interest in the Snip gold mine near Stewart, B.C., and the Brilliant Dam, near Trail, B.C.

Unaudited, consolidated, fourth-quarter earnings were $14 million (or 17 cents per share). Cominco’s working capital at the end of the year was $285 million, down $71 million from 1995.